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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 July&nbsp;2, 2020</B></P>

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

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

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<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: 18pt"><B>KUBIENT,&nbsp;INC.</B></FONT><B><BR>
</B>(Exact name of registrant as specified in its certificate of incorporation)</P>

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    <TD STYLE="width: 32%; border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="width: 34%; border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>7373</B></FONT></TD>
    <TD STYLE="width: 1%; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="width: 32%; border-bottom: black 1pt solid; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>82-1808844</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="white-space: nowrap; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State or other jurisdiction of<BR>
incorporation or organization)</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Primary Standard Industrial<BR>
Classification Code Number)</FONT></TD>
    <TD STYLE="white-space: nowrap; padding-right: 3pt; padding-left: 3pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; padding-right: 3pt; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(I.R.S. Employer<BR>
Identification Number)</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>228 Park Avenue South</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Suite&nbsp;72602</B>&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"><B>New
York, New York 10003-1502<BR>
(866) 668-2567<BR>
</B></FONT>(Address, including zip code, and telephone number, including area code, of registrant&#8217;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>Peter Anthony Bordes,&nbsp;Jr.<BR>
Chief Executive Officer<BR>
Kubient,&nbsp;Inc.<BR>
228 Park Avenue South</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Suite&nbsp;72602</B></P>

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<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"><B>New
York, New York 10003-1502<BR>
(866) 668-2567<BR>
</B></FONT>(Name, address, including zip code, and telephone number, including area code, of agent for service)</P>

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

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><BR>
        Marc J. Adesso,&nbsp;Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Waller Lansden Dortch&nbsp;&amp; Davis,
        LLP<BR>
        511 Union Street, Suite&nbsp;2700<BR>
        Nashville, Tennessee 37219<BR>
        Telephone: (615) 850-8063<BR>
        Facsimile: (615) 244-6804</B></P></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 49%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><BR>
        Steven D. Uslaner,&nbsp;Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Mark F. Coldwell,&nbsp;Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Littman Krooks LLP</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>655 Third Avenue, 20<SUP>th</SUP> Floor</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, New York 10017</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Telephone: (212) 490-2020</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Facsimile: (212) 490-2990</B></P></TD></TR>
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<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"><B>Approximate
date of commencement of proposed sale to the public</B></FONT>: As soon as practicable after this registration statement becomes
effective.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
any of the securities being registered on this Form&nbsp;are to be offered on a delayed or continuous basis pursuant to Rule&nbsp;415
under the Securities Act of 1933 check the following box: </FONT><FONT STYLE="font-family: Wingdings"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></P>

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

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth
company. See the definitions of &#8220;large accelerated filer,&#8221; &#8220;accelerated filer,&#8221; &#8220;smaller reporting
company,&#8221; and &#8220;emerging growth company&#8221; in Rule&nbsp;12b-2 of the Exchange Act.</P>

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    <TD STYLE="width: 24%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated filer </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer </FONT><FONT STYLE="font-family: Wingdings">x</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 25%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller reporting company </FONT><FONT STYLE="font-family: Wingdings">x</FONT></TD></TR>
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    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
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    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company </FONT><FONT STYLE="font-family: Wingdings">x</FONT></TD></TR>
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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">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&nbsp;7(a)(2)(B)&nbsp;of the Securities
Act. </FONT><FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

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

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    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Title of Securities Being Registered</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">Proposed Maximum Aggregate Offering <BR> Price(1)(2)</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">Amount of Registration Fee</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="text-indent: -0.125in; padding-left: 0.125in; width: 48%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Units<SUP>(3)</SUP></FONT></TD><TD STYLE="width: 2%; 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">$</TD><TD STYLE="width: 25%; font: bold 10pt Times New Roman, Times, Serif; text-align: right">9,500,000</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 20%; font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,233.10</TD><TD STYLE="width: 1%; font: bold 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: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common Stock par value $0.00001, included in the units<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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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="text-indent: -0.125in; padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrants to Purchase Common Stock, included in the units<SUP>(4)</SUP></FONT></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">-</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">-</TD><TD STYLE="font: bold 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: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares of Common Stock issuable upon exercise of the Warrants included in the units<SUP>(2)(5)</SUP></FONT></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">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">11,875,000</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">$</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right">1,541.38</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriters&#8217; Warrants to Purchase Common Stock<SUP>(6)</SUP></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>N/A</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>N/A</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common Stock, underlying Underwriters&#8217; Warrants<SUP>(2)(5)</SUP></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">593,750</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">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right">77.07</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Total</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">21,968,750</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right">2,851.55</TD><TD STYLE="padding-bottom: 2.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="width: 98%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimated solely for purposes of computing the amount of the registration fee pursuant to Rule&nbsp;457(o)&nbsp;under the Securities Act. Includes the offering price of shares of common stock that the representative of the underwriters has the option to purchase to cover over-allotments, if any.</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: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="width: 98%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to Rule&nbsp;416 under the Securities Act, the shares of common stock registered hereby also include an indeterminate number of additional shares of common stock as may, from time to time, become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions.</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: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="width: 98%; padding-left: 2.15pt; text-align: justify; text-indent: -2.15pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each unit consists of one share of common stock, $0.00001 par value per share, and one warrant to purchase one share of common stock, $0.00001 par value per share.</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: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="width: 98%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No separate fee is required pursuant to Rule&nbsp;457(i)&nbsp;under the Securities Act.</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: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="width: 98%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Estimated solely for the purposes of calculating the registration fee pursuant to Rule&nbsp;457(g)&nbsp;under the Securities Act. The warrants are exercisable at a per share exercise price equal to 125% of the public offering price. The proposed maximum aggregate offering price of the underwriters&#8217; warrants is $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , which is equal to 125% of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (which is equal to 5% of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ).</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: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="width: 98%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In accordance with Rule&nbsp;457(g)&nbsp;under the Securities Act, because the shares of the Registrant&#8217;s common stock underlying the Warrants and Representative&#8217;s warrants are registered hereby, no separate registration fee is required with respect to the warrants registered hereby.</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: justify"><B>The Registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment
which specifically states that this registration statement shall thereafter become effective in accordance with Section&nbsp;8(a)&nbsp;of
the Securities Act of 1933 or until the registration statement shall become effective on such date as the Securities and Exchange
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"></P>

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




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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #ef505f"><B>The information in this preliminary prospectus
is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities
and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting
an offer to buy these securities in any state where the offer or sale is not permitted.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #ef505f">&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="width: 33%; border-bottom: #F7705F 1pt solid; font-size: 10pt"><FONT STYLE="font-size: 10pt; color: Red"><B>PRELIMINARY
    PROSPECTUS</B></FONT></TD>
    <TD STYLE="width: 33%; border-bottom: #F7705F 1pt solid; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt; color: Red"><B>SUBJECT
    TO COMPLETION</B></FONT></TD>
    <TD STYLE="border-bottom: #F7705F 1pt solid; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 10pt; color: Red"><B>DATED
    JULY&nbsp;&nbsp;2, 2020</B></FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #ef505f">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>One Warrant to Purchase One Share 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-align: center"><IMG SRC="tm2023792-1_s1img002.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This is a firm commitment initial public
offering of Kubient,&nbsp;Inc. (the &#8220;Company,&#8221; &#8220;Kubient,&#8221; &#8220;we,&#8221; &#8220;our&#8221; or &#8220;us&#8221;).
Prior to this offering, there has been no public market for our securities. We are offering&nbsp;_______ units,&nbsp;with each
unit consisting of one share of our common stock, $0.00001 par value per share and one warrant to purchase one share of our common
stock. We anticipate a public offering price between $___ and $___ per unit. The shares of common stock and the warrants comprising
the units are immediately separable and will be issued separately in this offering. The warrants included in the units are exercisable
immediately&nbsp;and&nbsp;have an exercise price of $___&nbsp;per share (110% of the public offering price based on an assumed
initial offering price of $__ per unit, the mid-point&nbsp;of the anticipated price range). The warrants will be&nbsp;listed for
trading as described below&nbsp;and&nbsp;will&nbsp;expire five years from the date of issuance.</P>

<P STYLE="font: 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">The units have no stand-alone rights and
will not be certificated or issued as stand-alone securities. Purchasers will receive only shares of common stock and warrants.
The shares of common stock and warrants may be transferred separately, immediately upon issuance. The offering also includes the
shares of common stock issuable from time to time upon exercise of the 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-align: justify">We have applied to have our common stock
and warrants listed on The Nasdaq Capital Market under the symbols &#8220;KBNT&#8221; and &#8220;KBNTW&#8221; respectively. No
assurance can be given that our application will be approved.</P>

<P STYLE="font: 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">Certain of our officers and directors or
entities affiliated with such persons have indicated an interest in participating in this offering on the same terms as those offered
to the public. In addition, certain of our officers and directors or entities affiliated with such persons have agreed to amend
certain outstanding notes prior to the effectiveness of this registration statement to provide for conversion of principal and
interest thereunder into the units being issued in this offering at the public offering price per unit.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless otherwise noted and other than
in our financial statements and the notes thereto, the share and per share information in this prospectus reflects a proposed
reverse stock split of the outstanding common stock and treasury stock of the Company at an assumed 1 for ___ ratio to occur prior
to the closing of the 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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Investing
in our securities involves a high degree of risk. See &#8220;<I>Risk Factors</I>&#8221; beginning on page&nbsp;12</B></FONT><B>
of this prospectus for a discussion of information that should be considered in connection with an investment in our securities.</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"><B>We are an &#8220;emerging growth company&#8221;
under the federal securities laws and may elect to comply with certain reduced public company reporting requirements for future
filings.</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"><B>Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="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-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Per Unit</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-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 74%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Initial public offering price</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriting discounts and commissions<SUP>(1)&nbsp;</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proceeds, before expenses, to us</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</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: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See &#8220;<I>Underwriting</I>&#8221;
beginning on page&nbsp;74 for additional information regarding underwriting compensation.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have granted a 45-day&nbsp;option to the representative of the underwriters to purchase up to&nbsp;____ additional shares of
our common stock and/or&nbsp;up to _____ additional&nbsp;warrants, solely to cover over-allotments, if any. </FONT>The
securities issuable upon exercise of this overallotment option are identical to those offered by this prospectus and have
been registered under the registration statement of which this prospectus forms a part.</P>

<P STYLE="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: justify">The underwriters expect to deliver our
shares and warrants against payment in New York, New York, on or about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2020</P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: Black 1pt solid; width: 53%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Co-Book-Running&nbsp;Manager</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; white-space: nowrap; width: 1%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; width: 46%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Co-Book-Running&nbsp;Manager</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>Maxim Group LLC</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>Joseph Gunnar&nbsp;&amp; Co.&nbsp;LLC</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>The
    Benchmark Company, LLC</B></FONT></TD></TR>
</TABLE>
<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">This prospectus is dated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
, 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"><FONT STYLE="background-color: lightgrey"></FONT></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>

<P STYLE="font: 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"><IMG SRC="tm2023792-1_s1img003.jpg" ALT=""><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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&#8220;<I>With&nbsp;real-time reporting&nbsp;for
publishers and&nbsp;premium partnerships, Kubient helps brands maximize their advertising budgets with their&nbsp;intuitive interface.
If your company is even thinking about using video advertising,</I>&nbsp;<I><U>Kubient is a must-discover startup</U></I>.&#8221;</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>-- Inc. Magazine, February&nbsp;2018</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"><FONT STYLE="background-color: lightgrey"></FONT></P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 90%">&nbsp;</TD>
    <TD STYLE="width: 10%; 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: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prospectus Summary</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#c_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk Factors</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#c_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#c_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Special Note Regarding Forward-Looking
Statements</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#c_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">32</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#d_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of Proceeds</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#d_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">34</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#d_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dividend Policy</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#d_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">35</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#d_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Capitalization</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#d_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">35</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#d_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dilution</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#d_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">36</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#d_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Price of Our Common Stock</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#d_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">37</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#d_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management&#8217;s Discussion and Analysis of
    Financial Condition and Results of Operations</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#d_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">37</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#s_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Business</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">43</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#s_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">51</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#s_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive and Director Compensation</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</FONT>9</A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#s6_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain Relationships and Related Party Transactions</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s6_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">64</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#s6_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Principal Stockholders</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s6_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">66</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#s6_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description of Securities</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s6_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">67</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#s6_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares Eligible for Future Sale</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s6_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">72</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#s6_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriting</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s6_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">74</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#s_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legal Matters</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">82</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#s_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Experts</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">82</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#s_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Where You Can Find Additional Information</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">82</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><A HREF="#s_019"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Index to Financial Statements of Kubient,&nbsp;Inc.</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s_019"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-1</FONT></A></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD><A HREF="#s_018"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glossary</FONT></A></TD>
    <TD STYLE="text-align: right"><A HREF="#s_018"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A-1</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Through
and including&nbsp;</B></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>,
2020 (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating
in this offering, may be required to deliver a prospectus. This is in addition to a dealer&#8217;s obligation to deliver a prospectus
when acting as an underwriter and with respect to an unsold allotment or subscription.</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: lightgrey"></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-align: justify; background-color: white">Neither we nor
the underwriters have authorized anyone to provide any information or to make any representations other than those contained in
this prospectus or in any free writing prospectuses we have prepared. Neither we nor the underwriters take 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 shares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information
contained in this prospectus is current only as of its date, regardless of the time of delivery of this prospectus or of any sale
of our common stock.</P>

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

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

<P STYLE="font: 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"><B>Use of Industry and Market Data</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">This prospectus includes market and industry
data that we have obtained from third-party sources, including industry publications, as well as industry data prepared by our
management on the basis of its knowledge of and experience in the industries in which we operate (including our management&#8217;s
estimates and assumptions relating to such industries based on that knowledge). Management has developed its knowledge of such
industries through its experience and participation in these industries. While our management believes the third-party sources
referred to in this prospectus are reliable, neither we nor our management have independently verified any of the data from such
sources referred to in this prospectus or ascertained the underlying economic assumptions relied upon by such sources. Furthermore,
internally prepared and third-party market prospective information, in particular, are estimates only and there will usually be
differences between the prospective and actual results, because events and circumstances frequently do not occur as expected, and
those differences may be material. Also, references in this prospectus to any publications, reports, surveys or articles prepared
by third parties should not be construed as depicting the complete findings of the entire publication, report, survey or article.
The information in any such publication, report, survey or article is not incorporated by reference in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Trademarks, Trade Names and Service
Marks</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">&ldquo;Kubient&rdquo; and other trademarks
or service marks of Kubient,&nbsp;Inc. appearing in this registration statement are the property of Kubient,&nbsp;Inc. The other
trademarks, trade names and service marks appearing in this prospectus are the property of their respective owners. Solely for
convenience, the trademarks and trade names in this prospectus are referred to without the <SUP>&reg;</SUP> and &trade; symbols,
but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent
under applicable law, their rights thereto.</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"></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_001"></A>PROSPECTUS SUMMARY</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"><I>This summary highlights selected information
contained elsewhere in this prospectus. This summary does not contain all of the information that you should consider before deciding
to invest in our securities. You should read this entire prospectus carefully, including the &#8220;Risk Factors,&#8221; &#8220;Management&#8217;s
Discussion and Analysis of Financial Condition and Results of Operations,&#8221; and our financial statements and the related notes
thereto that are included elsewhere in this prospectus, before making an investment decision.</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-align: justify"><I>Unless the context requires otherwise,
references to the &#8220;Company,&#8221; &#8220;Kubient,&#8221; &#8220;we,&#8221; &#8220;us&#8221; and &#8220;our&#8221; refer
to Kubient,&nbsp;Inc., a Delaware corporation and its wholly-owned subsidiary, Fidelity Media, LLC. For explanations of certain
terms used in this prospectus, please read &#8220;Glossary&#8221; beginning on page&nbsp;A-1.</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-align: justify"><B>Company Overview</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">Kubient, a Delaware corporation, was incorporated
in May&nbsp;2017 to solve some of the most significant problems facing the global digital advertising industry.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our experienced team of marketing and
technology veterans has developed the Audience Cloud, a modular, highly scalable, transparent, cloud-based software platform
for real-time trading of digital, programmatic advertising. Our platform&#8217;s open marketplace gives both advertisers (ad
space buyers) and publishers (ad space sellers) the ability to use machine learning in the most critical parts of any
programmatic advertising inventory auction, while simultaneously and significantly reducing those advertisers and
publishers&#8217; exposure to fraud, even in a pre-bid environment.</P>

<P STYLE="font: 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">By becoming a one stop shop for advertisers
and publishers, providing them with the technology to deliver meaningful messages to their target audience, all in one place, on
a single platform that is computationally efficient, transparent, and as safely fraud-free as possible, we believe that our platform
(and the application of its machine learning algorithms) leads to increased publisher revenue, lower advertiser cost, reduced latency
and increased economic transparency during the advertising auction process.</P>

<P STYLE="font: 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">Furthermore, we believe that our technology
allows advertisers to reach entire audiences rather than buying single impressions from disparate sources. We call this approach
Audience-Based Marketing. Combining this approach with our proprietary solutions for fraud prevention and the reduction of latency
in auctions, we are confident that we are poised to alter the status quo as the next generation of the industry&#8217;s advertising
inventory auction infrastructure.</P>

<P STYLE="font: 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"><B>What We Do: Audience-Based Marketing
on Our Full Stack Platform</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">Our Audience Cloud&#8217;s platform enables
advertisers and publishers to transact directly between each other on an open, end to end real-time bidding platform for programmatic
digital advertising. The advertising inventory on our platform is available in any channel: desktop, mobile, digital out-of-home,
and connected devices; and in any format: video, display, audio, and native. Indeed, we believe our single, fully integrated audience
platform provides a comprehensive, fraud-minimized, transparent, independent advertising marketplace that facilitates intelligent
decision-making, and automated transaction execution for the programmatic advertising industry. We optimize the liquidity and effectiveness
of the advertising supply chain, increasing revenue for publishers and improving return on investment for advertisers.</P>

<P STYLE="font: 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">Our platform offers a machine learning-powered
fraud prevention solution, extremely low latency times and an audience management platform which provides omni-channel access into
all advertising channels, inventory and ad formats. Thanks to our management and development teams&#8217; deep experience with
artificial intelligence applications, our platform is constantly self-optimizing, using our software&#8217;s ability to analyze
and learn from vast volumes of data. We are confident that the additional data we obtain from the volume of transactions on our
platform helps to make our machine-learning algorithms more intelligent over time.</P>

<P STYLE="font: 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">Advertising is sometimes defined as the
transfer of a message from one party to another for the purpose of education, motivation or suggestion. Advertisers who pay to
send a message, should be confident that it arrives to the individual it was intended for and delivers its expected outcome. Our
solution consistently ensures this is the case, by verifying each and every message and intended audience. As a result, we believe
that we process, analyze and connect billions of audience participants and devices faster and more efficiently than the industry
standard.</P>

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

</DIV>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="tm2023792-1_s1img001.jpg" ALT=""><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT>&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-align: justify"><I>Digital Advertising Fraud Solution:
Machine Learning Combined with Artificial Intelligence</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-align: justify">Thanks to advances in technology, the
advertising inventory that is bought and sold in these real time auctions during the bid stream is customized to each
individual viewer. This viewer customization is often called programmatic advertising, a new form of advertising where
advertisers are able to specifically target their preferred audiences and demographics (rather than placing ads in generic
public forums such as billboards or during live events, in hopes that the coveted audience or demographic sees the ad).
According to eMarketer, programmatic digital advertising is one of the fastest growing sectors in the advertising industry,
which is expected to reach $517 billion by 2023; rising from $283 billion in 2018. Digital programmatic advertising&#8217;s
reach includes channels such as online, mobile browsing, in-app, text messages, &#8220;out of home&#8221; video advertising
(in locations such as gas stations and airports) and digital or internet television services. The explosive growth of
programmatic digital advertising has created unique challenges for advertisers and publishers that want to connect and engage
their audiences. One of the primary challenges facing the digital advertising industry is that, like the meteoric growth of
digital advertising itself, fraud is also growing rapidly. According to Forrester Research, digital advertising cost
advertisers $42 billion dollars in 2019, which is a 21% increase from 2018. D<FONT STYLE="background-color: white">espite
attempts by advertisers and publishers to prevent fraud and conduct quality assurance checks</FONT>, both Forrester Research
and Juniper Research estimates that the losses experienced by advertisers will more than double to $100 billion in 2023, with
advertisers losing an estimated 25% of every dollar spent due to fraud.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Digital advertising fraud occurs when an
ad is displayed to a fake website or Bot in an effort to falsely inflate web traffic numbers, rather than being displayed to a
legitimate web site to be viewed by a human being. An advertiser that pays for an ad that is displayed to a Bot has wasted the
budget spent for the placement of that ad, as it is human beings that might spend money on the product or service being advertised,
as opposed to a Bot. Thus, brands and advertisers that cannot prevent their ads being shown to Bots become victims to the billions
of dollars lost to ad fraud annually, as calculated by Juniper Research and Forrester Consulting.</P>

<P STYLE="font: 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">We believe that digital advertising fraud
is further exacerbated by the fact that our industry is increasingly fragmented. The most popular solutions that have emerged in
the marketplace for selling digital advertising are not connected to the solutions used by industry participants for purchases
of digital advertising. In other words, advertisers use DSPs to purchase digital advertising, whereas publishers use completely
different platforms called SSPs to sell advertising space to those advertisers. Therefore, advertisers may not know who is selling
them advertising inventory, and publishers may not know who is purchasing such inventory. With the two sides of any auction not
connected, and likely not communicating with each other across different platforms, it is difficult to assign responsibility to
tracking down fraud after an ad sale has already occurred. We have created a marketplace where advertisers and publishers can interact
directly. This layer of direct transparency allows advertisers to more efficiently identify ad fraud, and to ensure that they are
only buying advertising space that delivers the expected value of a particular campaign. Furthermore, fraud prevention is also
fragmented as a result of advertisers and publishers using different platforms to conduct digital advertising auctions. Indeed,
many DSPs and SSPs do not even have built-in fraud prevention solutions, instead relying on third parties to identify ad fraud
after an ad is displayed. Our internally-developed fraud prevention solution is native to our platform and detects fraud before
the digital advertising auction is concluded.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the fragmented, complex
and inefficient infrastructure currently in use for programmatic advertising, fraud is rampant in the digital advertising marketplace.
Bad actors&#8217; use of fake websites and Bots to sell advertising space costs advertisers billions of dollars a year. A large
part of the reason that widespread fraud runs rampant in the digital advertising industry is that current machine learning and
fraud prevention solutions in our industry can only identify such fraud after an ad purchase has already occurred. We believe it
is much harder to stop fraud when trying to catch perpetrators after the fraud has already occurred because the fraudsters have
the ability to completely change the fingerprint of the Bot, which allows it to reenter the ecosystem and commit fraud again.</P>

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

</DIV>



<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: justify">We believe it is more effective to stop
fraud before it occurs than trying to catch perpetrators after the fraud has already occurred. Thus, we have developed what we
believe to be the first machine learning technology that can detect fraud within the 300-millisecond window known as the &ldquo;bid
stream&rdquo; prior to ad purchases. Our platform&rsquo;s fraud detection solution, called Kubient Artificial Intelligence (&ldquo;KAI&rdquo;),
is our patent-pending proprietary technology that uses artificial intelligence to analyze live advertising bid stream data to detect
potential ad fraud, a major issue within the digital advertising ecosystem. KAI&rsquo;s proprietary technology allows all advertisers
to make better-informed, real-time decisions within this brief window of time by identifying potentially fraudulent activity in
real-time. KAI is trained using different statistical and machine learning algorithms and is capable of detecting various types
of fraud, including user fraud, device fraud, content fraud and heuristic fraud. KAI analyzes 100% of real-time programmatic data
and industry-specific information to determine patterns and data points consistent with fraudulent activity, helping advertisers
maximize return on ad spend and protecting publishers. KAI can be fully integrated into Kubient&rsquo;s Audience Cloud marketplace,
or alternatively, can be deployed as a standalone application or enterprise solution on third party real time bidding platforms.
See &ldquo;<I>Customers and Revenues</I>&rdquo; below for a description of the successful beta testing of KAI that occurred during
the quarter ended March 31, 2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Latency Solution: Machine Learning</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-align: justify">We believe that our platform allows us
to process digital advertising auctions faster than the competition. Faster auctions ensure that ad campaigns create more impressions
that are seen by consumers, as consumers are less likely to become frustrated by slowly loading websites or apps (which normally
results in consumers leaving such websites or apps before the ad is displayed).</P>

<P STYLE="font: 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">To substantially reduce and minimize latency
issues across our fully integrated open marketplace, we use a highly-specialized programming language originally designed to be
used in extremely fast (but highly dependable) digital telephone communications switches, as well as quant-based speed trading
of securities on Wall Street. In addition, our platform&#8217;s proprietary machine-learning algorithms, sophisticated data processing,
high volume storage, detailed analytics capabilities, and a distributed infrastructure that supercharges our bidding process and
helps our customers place, and win, more bids for advertising space. We believe we are transforming the digital advertising industry
by analyzing billions of data points in record real time speed to enable our solution to make complex decisions in milliseconds,
and to execute over 1 million queries per second, billions of transactions per week and trillions of bid requests per month.</P>

<P STYLE="font: 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"><I>Additional Platform Functionalities</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-align: justify">Not only do we believe our platform
works faster, more efficiently and more safely in terms of fraud than our competition, we also believe that it provides added
functionality over our competitors, such as real time reporting of ad sales, and an open audience marketplace which enables
publishers, including websites, mobile applications, video and other digital media properties, to connect their advertising
inventory more efficiently and effectively to buyers across the entire advertising ecosystem, including brands, DSPs, ad
networks and advertising agencies.</P>

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

</DIV>



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, our platform&#8217;s functionality
allows us to quickly adapt to emerging media channels that might have been previously overlooked by the digital marketing ecosystem<FONT STYLE="background-color: white">.
</FONT>For example, outdoor advertising, often referred to as out of <FONT STYLE="background-color: white">home media, such as
billboards, bus-stop shelters, public elevators, airport monitors and gas station pump placards, has not traditionally been connected
to digital advertising sources. However, these traditional forms of out of home media are increasingly being converted to digital
signage. Unlike their traditional out of home counterparts, these updated digital signs, often referred to as digital out of home
(&#8220;DOOH&#8221;) media, can display programmatic advertising, such that all of the advantages of our Audience Cloud can be
applied to this rapidly proliferating media channel. By </FONT>allowing brands, <FONT STYLE="background-color: white">DSPs, ad
networks, advertising agencies and brands to bid on DOOH publishers&#8217; inventory in real-time, just as if DOOH screens were
video screens on a desktop computer or mobile device, our Audience Cloud will allow advertisers to scale campaigns across new and
thriving media channels, thereby maximizing inventory fill rates and increasing the audiences that advertisers may target by digital
means.</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-align: justify"><B>Intellectual Property</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">We have filed two provisional patents,
one relating to our inventory and decision management system we created that allows DOOH media buying agencies to purchase ads
on our programmatic and real-time-bidding marketplace, and one relating to our KAI real time, digital advertising fraud prevention
solution.</P>

<P STYLE="font: 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"><B>Customers and 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; text-align: justify">We provide our customers with a platform
to connect advertisers and publishers. Generally, our revenue generation process begins with publishers. When a publisher aims
to fill the available advertising space on its website or app, we typically enter into a twelve month master service agreement
allowing the publisher to sell advertising inventory through our platform. Once the publisher executes our master service agreement
and is accepted onto our platform, the publisher is allowed to electronically communicate with our platform through its ad server,
in order to provide us information about the publisher&#8217;s advertising inventory, user base, minimum sale prices and other
data signals, as applicable. We also enter into master service agreements to allow third-party exchanges that aggregate publishers&#8217;
available advertising inventory to sell such inventory on our platform. As we believe fee transparency is a key element to the
success of our platform, we never buy advertising inventory in order to resell it to our customers for a profit. Instead, we earn
a mark-up, which is the spread between what we collect from advertisers and what we remit to publishers. We only pay for inventory
when an advertiser is connected to a publisher and an impression is successfully delivered. We sometimes refer to the amount we
pay publishers for inventory upon the delivery of an impression as &#8220;cost pay.&#8221; As described further below, cost pay
is generally lower than what advertisers ultimately spend to have their ad impression delivered on a publisher&#8217;s website
or app.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We also enter into twelve month master
service agreements with advertisers that wish to purchase advertising inventory, either on our platform or through their DSP. Our
proprietary algorithms use the industry information available (from advertisers, publishers, third parties and our own internal
database) to automatically target and bid on publishers&#8217; inventory to meet an advertiser&#8217;s campaign objective. We generate
revenue from advertisers by charging them fees on a sliding scale based on a percentage of their spend on advertising purchased
through our platform, the total of which we sometimes refer to as &#8220;gross spend.&#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; text-align: justify">By having both publishers and advertisers
enter into twelve month master service agreements in order to use our platform, we believe we maintain high customer retention,
and very little, if any, customer loss (or &#8220;churn&#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; text-align: justify">Thanks to the speed of our platform, the
matching of publisher and advertiser occurs in fractions of a second, within the short time frame of the bidstream. We recognize
revenue upon the completion of each matching transaction, at the moment when an impression has been delivered to the consumer viewing
a website or application. We generally bill and collect the full purchase price of impressions from advertisers, unless the advertiser
pays through its DSP, in which case the DSP is the entity that pays our fees. In either case, our gross revenue from each impression
is equal to gross spend minus cost pay.</P>

<P STYLE="font: 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">We believe that growth of the programmatic
advertising market is important for our ability to continually grow our business. Adoption of programmatic advertising by advertisers
allows us to acquire new customers and grow revenue from existing customers. We also believe that current industry trends will
lead more advertisers to seek out a better fraud prevention solution to protect their advertising budgets, such as the one offered
on our platform.</P>

<P STYLE="font: 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">Similarly, we believe that the adoption
of programmatic advertising by unique advertising inventory owners, such as digital out of home content providers for which we
have developed a unique solution, will allow us to expand the volume and type of advertising inventory that we present to advertisers
using our platform.</P>



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

</DIV>



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

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

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the quarter ended March 31, 2020, we allowed two large
enterprise clients to beta test KAI in a live isolated environment. Kubient was able to successfully ingest hundreds of millions
of rows of data in real-time and provide our clients the ability to prevent the purchase of non-human or fraudulent advertising
traffic. The results from the two beta clients indicated that KAI was identifying and preventing approximately 300% more digital
ad fraud then the client's current partners. The large volume of data ingested helped to improve our proprietary algorithms including
the supervised and unsupervised version. This was invaluable as it provided us an opportunity to stress test our ability to handle
large scale, concurrent input of data into our system which is then analyzed using our patent-pending proprietary machine learning
technology. While KAI was monetized in the first quarter of 2020, we are currently determining the best pricing model based on
SMB and enterprise client usage and expect KAI to be widely adopted as a standalone enterprise product in the third fiscal quarter
of 2020.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our net revenue was $177,635 for the year ended December&nbsp;31,
2019 from 49 customers, and our net revenue was $1,381,913 for the quarter ended March&nbsp;31, 2020 from 35 customers. The increase
was primarily due to approximately $1,300,000 of revenue generated in connection with beta testing of KAI, our fraud detection
service, which commenced during this quarter. Our net loss was $4,132,873 for the year ended December&nbsp;31, 2019. Our net loss
was $58,098 for the quarter ended March&nbsp;31, 2020. Based on the growth strategy set forth below, we contemplate that our revenues
will continue to increase for 2020 and beyond and will also continue to become less concentrated among a small number of customers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Growth Strategy</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"><I>Organic Growth</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-align: justify">The key elements of our long-term growth
strategy are as follows:</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: 24px; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Enhancing our existing auction technology to improve adoption among publishers and advertisers, which we expect will increase our revenue.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Further developing our fraud prevention system, which is powered by our proprietary KAI machine learning technology, which we are expecting to be widely incorporated into our service offerings in the third fiscal quarter of 2020.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Growing our customer base by increasing our salesforce to engage brands, agencies, website owners, app owners and other connected device owners, to facilitate marketplace participation. This will allow us to reach more audiences and garner larger budgets, growing our revenue and building long lasting customer relationships.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Launching and scaling our reach with advertisers by introducing real-time auctions into a previously static corners of the marketplace, such as digital out of home channels, allowing for video advertising at gas stations, hotels and airports.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#9679;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#9679;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further developing our Audience Cloud platform
        to improve omni-channel relevance, and personalization at scale.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further diversifying both our products
        and revenue streams to include stand-alone applications that address advertisers&rsquo; business needs, such as KAI for real time
        fraud prevention, first party data hosting, and audience targeting solutions.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Increasing our global footprint across the globe, especially in Latin America, Asia-Pacific, Europe, the Middle East and Africa.</FONT></TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>M&nbsp;&amp;A Growth</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-align: justify">In addition to the long-term, organic growth
discussed above, we intend to opportunistically acquire companies that expand our core technologies and introduce the Company to
potential new client bases that are potentially accretive to the Company&#8217;s future earnings.</P>

<P STYLE="font: 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"><B>Risks That We Face</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business is subject to numerous risks and uncertainties, including those in the section captioned &#8220;<I>Risk Factors</I>&#8221;
beginning on page&nbsp;12</FONT> and elsewhere in this prospectus. These risks include, but are not limited to, the following:</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: 24px">&nbsp;</TD>
<TD STYLE="width: 24px"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
<TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our limited operating history makes it difficult to evaluate our business and prospects and may increase the risks associated with your investment; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
<TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We have incurred losses since our inception and we may continue to incur losses. If we fail to generate significant revenue through our platform, we may never achieve or sustain profitability;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
<TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We have concluded that there is substantial doubt about our ability to continue as a going concern within one year from the issuance date of this prospectus;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
<TD>&nbsp;</TD>
<TD><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
<TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Failure to maintain and grow the customer base on our platform may negatively impact our revenue and business;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">The loss of advertisers or publishers as customers could significantly harm our business, operating results and financial condition; </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

</DIV>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">If we fail to innovate and make the right investment decisions in offerings and platform, we may not attract and retain advertisers and publishers and our revenue and results of operations may decline; </FONT></TD></TR>
</TABLE>
<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"><FONT STYLE="background-color: lightgrey"></FONT></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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">The market for programmatic advertising campaigns is relatively new and evolving. If this market develops slower or differently than we expect, our business, growth prospects and financial condition would be adversely affected; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Failure to manage our growth effectively could cause our business to suffer and have an adverse effect on our financial condition and operating results; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">The market in which we participate is intensely competitive, and we may not be able to compete successfully with our current or future competitors; </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><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">We operate in a intensively competitive industry, and we may not be able to compete successfully;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">We are subject to payment-related risks and, if our customers do not pay or dispute their invoices, our business, financial condition and operating results may be adversely affected;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD STYLE="text-align: justify">Public health epidemics or outbreaks, such as COVID-19, could
materially and adversely impact our business; and</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">A decrease in the use of display advertising would harm our business, growth prospects, financial condition and results of operations.</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>Recent Developments</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"><I>Reverse Stock Split</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-align: justify">Prior to the closing of the offering, we plan to file a certificate
of amendment to our amended and restated certificate of incorporation with the Secretary of State of the State of Delaware to effectuate
a one-for-&nbsp;&nbsp; (1:&nbsp;&nbsp; ) reverse stock split of our common stock without any change to its par value. Such amendment will become effective
upon such filing. No fractional shares will be issued in connection with the reverse stock split as all fractional shares will
be adjusted to give effect to the reverse stock split.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Customer Contract with The Associated
Press</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-align: justify">Effective February&nbsp;5, 2020, the Company
entered into a Master Services Agreement (the &#8220;AP Agreement&#8221;) with The Associated Press whereby the Company agreed
to provide advertising and related business revenue consultation services to The Associated Press. In consideration for the services
provided, commencing on March&nbsp;1, 2020 and effective for a period of one year (subject to certain carve-outs), the Company
is entitled to certain revenue share amounts in connection with The Associated Press&#8217;s consumer offerings outlined in the
AP Agreement, which was entered into as of March&nbsp;27, 2020 and are summarized as follows:</P>

<P STYLE="font: 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">During the three months ended March&nbsp;31,
2020, the Company recognized revenue of $85,000 in connection with the AP Agreement. Although no assurances can be given, the Company
believes that by combining The Associated Press&rsquo; digital audience with new purchasing partners on the Company&rsquo;s platform,
revenue derived from the AP Agreement could reach as an estimated amount as high as $500,000 per fiscal quarter in 2021 (assuming
renewal of the AP Agreement).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Paycheck Protection Program Loan</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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April&nbsp;6, 2020, the Company received loan proceeds in the amount of approximately $327,000 (the &#8220;PPP Loan&#8221;) under
the Paycheck Protection Program (&#8220;PPP&#8221;) under the Coronavirus Aid, Relief and Economic Security Act </FONT>and applicable
regulations (the &#8220;CARES Act&#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; text-align: justify">Under the terms of the CARES Act, as amended
by the Paycheck Protection Program Flexibility Act of 2020, the Company is eligible to apply for and receive forgiveness for all
or a portion of its PPP Loan. Such forgiveness will be determined, subject to limitations, based on the use of the loan proceeds
for certain permissible purposes as set forth in the PPP, including, but not limited to, payroll costs (as defined under the PPP)
and mortgage interest, rent or utility costs (collectively, &#8220;Qualifying Expenses&#8221;) incurred during the 24 weeks subsequent
to funding, and on the maintenance of employee and compensation levels, as defined, following the funding of the PPP Loan. The
Company intends to use the proceeds of its PPP Loan for Qualifying Expenses. However, no assurance is provided that the Company
will be able to obtain forgiveness of the PPP Loan in whole or in part. Any amounts that are not forgiven incur interest at 1.0%
per annum and monthly repayments of principal and interest are deferred until the Small Business Administration makes a determination
on forgiveness. While the Company&#8217;s PPP Loan currently has a two-year maturity, the amended law will permit the Company to
request a five-year maturity.</P>

</DIV>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>EIDL Loan</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-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June&nbsp;20, 2020, the Company executed the loan documents required for securing a loan, which include the SBA Secured Disaster
Loan Note, the Loan Authorization and Agreement and the Security Agreement (the &#8220;EIDL Loan&#8221;) from the </FONT>United
States Small Business Administration (the &#8220;SBA&#8221;) under its&nbsp;Economic Injury Disaster Loan&nbsp;assistance program
in light of the impact of the&nbsp;COVID-19&nbsp;pandemic on the Company&#8217;s business. The principal amount of the EIDL Loan
is $78,900, with proceeds to be used for working capital purposes. Interest on the EIDL Loan accrues at the rate of 3.75% per annum.
Monthly installment payments in the amount of $385 per month, including principal and interest, will begin twelve months from the
date of the EIDL Loan and the balance of principal and interest will be payable thirty years from the date of the promissory note.
The EIDL Loan is collateralized by the assets of the Company. The Company received the proceeds from the EIDL Loan on June&nbsp;23,
2020. Such EIDL Loan amount will reduce the Company&#8217;s PPP loan forgiveness amount described above.</P>

<P STYLE="font: 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"><I>Notes Payable &#8211; Related Parties</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-align: justify">During 2020, the Company received proceeds
of $585,000 in connection with three-year notes issued to five executive officers of the Company, including entities associated
with such persons (&ldquo;Related Party Notes&rdquo;). All of these notes bear interest ranging from 0.91% and 1.60% per annum,
payable annually. The outstanding principal and accrued and unpaid interest shall become immediately due and payable upon an initial
public offering, sale of the Company or qualified financing with equity proceeds of at least $5,000,000. There can be no assurance
that the Company will complete an initial public offering, sale of the Company or qualified financing with equity proceeds of at
least $5,000,000. Furthermore, the holders of the Related Party Notes have agreed to amend such notes prior to the effectiveness
of this registration statement to provide for conversion of principal and interest thereunder into the units being issued in this
offering at the public offering price per unit.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Bridge Financing - Senior Notes</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-align: justify; background-color: white">In three separate
closings dated April&nbsp;26, May&nbsp;23, and June&nbsp;28, 2019, the Company sold 25 units of its securities for gross proceeds
of $2,500,000, with each unit priced at $100,000 (each, a &#8220;Unit&#8221; and, collectively, the &#8220;Units&#8221;). Each
Unit sold in the offering consisted of (i)&nbsp;a 5% Senior Secured Convertible Promissory Note in the principal amount of $110,000,
reflecting an Original Issue Discount of 10% of the Company that is convertible into shares of the Company&#8217;s common stock
(the &#8220;Senior Notes&#8221;), and (ii)&nbsp;a five-year warrant to purchase a number of shares of the Company&#8217;s common
stock equal to the quotient obtained by dividing $110,000 by the Conversion Price (as defined in the Senior Notes) at an exercise
price equal to 120% of the Conversion Price. Under certain circumstances, such as a Qualified IPO (as defined in the Senior Notes
and which the Offering would qualify), the conversion of the foregoing Senior Notes will be for the same securities issued in the
Qualified IPO which could be a combination of warrants and shares of the Company&#8217;s common stock. After the expiration of
a period of no less than 180 days following the effective date of this offering, holders of Units shall have one demand registration
right, if Rule&nbsp;144 under the Securities Act is not then available, and unlimited piggyback registration rights with respect
to the shares of common stock underlying the securities that make up the Units.</P>

<P STYLE="font: 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; background-color: white">There were cash debt issuance costs of $372,599. In addition,
Joseph Gunnar&nbsp;&amp; Co., LLC, who acted as the Company&rsquo;s placement agent for this transaction, is entitled to receive
warrants to purchase shares of common stock in connection with this private offering. See &ldquo;<I>Underwriting &ndash; Placement
Agent Warrants</I>.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Bridge Financing
- Junior Notes</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-align: justify; background-color: white">In two separate
closings dated October&nbsp;11 and November&nbsp;6, 2019, the Company sold 11.05 units of its securities for gross proceeds of
$1,105,000, with each unit priced at $100,000 (each, a &#8220;Subordinated Unit&#8221; and, collectively, the &#8220;Subordinated
Units&#8221;). Each Subordinated Unit sold in the offering consisted of (i)&nbsp;a 5% Subordinated Convertible Promissory Note
in the principal amount of $110,000, reflecting an Original Issue Discount of 10% of the Company that is convertible into shares
of the Company&#8217;s common stock (the &#8220;Junior Notes&#8221;) and (ii)&nbsp;a five-year warrant to purchase a number of
shares of the Company&#8217;s common stock equal to the quotient obtained by dividing $110,000 by the Conversion Price (as defined
in the Junior Notes) at an exercise price equal to 120% of the Conversion Price. Under certain circumstances, such as a Qualified
IPO (as defined in the Junior Notes and which the Offering would qualify), the conversion of the foregoing Junior Notes will be
for the same securities issued in the Qualified IPO which could be a combination of warrants and shares of the Company&#8217;s
common stock. After the expiration of a period of no less than 180 days following the effective date of this offering, holders
of Subordinated Units shall have one demand registration right, if Rule&nbsp;144 under the Securities Act is not then available,
and unlimited piggyback registration rights with respect to the shares of common stock underlying the securities that make up the
Subordinated Units.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">There were cash debt issuance costs of $238,985. In addition,
Joseph Gunnar&nbsp;&amp; Co., LLC, who acted as the Company&rsquo;s placement agent for this transaction, is entitled to receive
warrants to purchase shares of common stock in connection with this private offering. See &ldquo;<I>Underwriting &ndash; Placement
Agent Warrants</I>.&rdquo;</P>

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

</DIV>

<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: justify; background-color: white"><I>Amendments
of Senior and Junior Notes</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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Between
</FONT>May&nbsp;22, 2020 and June&nbsp;11, 2020, the Company and all of the holders of Senior Notes and Junior Notes entered to
a consent and first amendment to the Senior Notes and Junior Notes (the &#8220;Amended Senior Notes&#8221; and &#8220;Amended Junior
Notes&#8221;, respectively). The Amended Senior Notes were amended as follows: (i)&nbsp;the holders authorized the Company to incur
certain indebtedness, including certain government loans as well as non-government loans with a principal amount not to exceed
$1,000,000 in the aggregate (the &#8220;Permitted Indebtedness&#8221;), (ii)&nbsp;the Amended Senior Notes are subordinated to
the Permitted Indebtedness, (iii)&nbsp;effective May&nbsp;1, 2020, the interest rate increased from 5% to 10% per annum, (iv)&nbsp;the
original issuance discount was increased from 10% to 20%, (v)&nbsp;the maturity date of the Amended Senior Notes was extended to
October&nbsp;26, 2020 and (vi)&nbsp;in connection with the exercise price of the investor warrants, the date under which the Qualified
IPO must occur on or before was extended to October&nbsp;26, 2020. The Amended Junior Notes were amended as follows: (i)&nbsp;the
holders authorized the Company to incur the Permitted Indebtedness and (ii)&nbsp;the Amended Junior Notes are subordinated to the
Permitted Indebtedness, (iii)&nbsp;effective May&nbsp;1, 2020, the interest rate increased from 5% to 10% per annum, (iv)&nbsp;the
original issuance discount was increased from 10% to 20%, (v)&nbsp;the maturity date of the Amended Junior Notes was extended to
April&nbsp;11, 2021 and (vi)&nbsp;in connection with the exercise price of the investor warrants, the date under which the Qualified
IPO must occur on or before was extended to October&nbsp;26, 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; text-align: justify">As a result, there were outstanding Amended
Senior Notes and Amended Junior Notes in the aggregate principal amount of $3,000,000 and $1,326,000, 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; text-align: justify"><B>Corporate Information</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">Our mailing address is 228 Park Avenue
South, Suite&nbsp;72602, New York, New York 10003-1502. Our telephone number is (800) 409-9456. The address of our website is www.Kubient.com.
The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website
into this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Implications of Being an Emerging Growth
Company</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">We are an &#8220;emerging growth company&#8221;
as defined in the Jumpstart Our Business Startups Act of 2012 (the &#8220;JOBS Act&#8221;). For as long as we are an emerging growth
company, unlike public companies that are not emerging growth companies under the JOBS Act, we will not be required to:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide an auditor&#8217;s attestation report on management&#8217;s assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section&nbsp;404(b)&nbsp;of the Sarbanes-Oxley Act of 2002 (the &#8220;Sarbanes Oxley Act&#8221;);</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide more than two years of audited financial statements and related management&#8217;s discussion and analysis of financial condition and results of operations;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">comply with any new requirements adopted by the Public Company Accounting Oversight Board (the &#8220;PCAOB&#8221;) requiring mandatory audit firm rotation or a supplement to the auditor&#8217;s report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide certain disclosure regarding executive compensation required of larger public companies or hold stockholder advisory votes on the executive compensation required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the &#8220;Dodd-Frank Act&#8221;); or</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain stockholder approval of any golden parachute payments not previously approved.</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: justify">We will cease to be an emerging growth
company upon the earliest of the:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">last day of the fiscal year in which we have $1.07 billion or more in total annual gross revenues;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">date on which we become a &#8220;large accelerated filer&#8221; (the fiscal year-end on which the total market value of our common equity securities held by non-affiliates is $700 million or more as of June&nbsp;30);</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">date on which we issue more than $1.0 billion of non-convertible debt over a three-year period; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">last day of the fiscal year following the fifth anniversary of our initial public offering.</FONT></TD>



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

</DIV>

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

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

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<P STYLE="font: 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">We have elected to take advantage of certain
of the reduced disclosure obligations in this prospectus, and may elect to take advantage of other reduced reporting requirements
in future filings. As a result, the information that we provide to our stockholders may be different than you might receive from
other public reporting companies in which you hold equity interests.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, Section&nbsp;107 of the JOBS
Act also provides that an &#8220;emerging growth company&#8221; can take advantage of the extended transition period provided
in Section&nbsp;7(a)(2)(B)&nbsp;of the Securities Act for complying with new or revised accounting standards. In other words,
an &#8220;emerging growth company&#8221; can delay the adoption of certain accounting standards until those standards would otherwise
apply to private companies.</P>

</DIV>



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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities offered by us:</FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 48%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;units, each consisting of one share of common stock and one warrant to purchase one share of common stock. The warrants included within the units are exercisable immediately, have an exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; % of the public offering price of one unit) and expire five years from the date of issuance.&nbsp; The shares of our common stock and the warrants comprising the Units are immediately separable upon issuance and will be issued separately in this offering.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Assumed Public Offering Price:</P></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per unit, which is the mid-point of the estimated offering price range described on the cover of this prospectus<SUP>1</SUP></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common stock outstanding before the offering:</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Common stock to be outstanding after this offering</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares,
which includes the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;units sold in the offering at $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
unit (the mid-point of the offering price per unit as shown on the cover page) and approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of common stock issuable upon conversion of the Senior Notes, Junior Notes and the Related Party Notes based on the above assumed
offering price per unit.&nbsp;&nbsp;Excludes the securities described on page&nbsp;11 below.</FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 48%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Overallotment option:</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have granted the representative of the underwriters a 45 day option to purchase up to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional shares of our common stock at a public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share and/or warrants to purchase shares of our common stock at a public offering price of $ per warrant, solely to cover over-allotments, if any.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of proceeds</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We estimate that we will receive net proceeds of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million, assuming an initial public offering price of $ per share, the midpoint of the price range set forth on the cover page&nbsp;of this prospectus, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although we have not yet determined with certainty the manner in which we will allocate the net proceeds of this offering, we expect to use the net proceeds from this offering for product development, working capital, capital expenditures, repayment of debt, offering expenses, and other general corporate purposes, including investments in sales and marketing in the United States and internationally. We may also use a portion of the proceeds from this offering for acquisitions or strategic investments in complementary businesses, brands or technologies. We have not allocated specific amounts of net proceeds for any of these purposes. See &#8220;<I>Use of Proceeds</I>&#8221; for additional information.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk factors</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See &#8220;<I>Risk
Factors</I>&#8221; beginning on page&nbsp;12 and the other information included in this prospectus for a discussion of factors you
should carefully consider before deciding to invest in our common stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proposed Trading Symbol:</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have applied to The Nasdaq Capital Market to list our common stock under the symbol &#8220;KBNT&#8221; and our warrants under the symbol &#8220;&#8220;KBNTW.&#8221; No assurance can be given that our applications will be approved.</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 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1</SUP></FONT>
The assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per unit, the mid-point
of the range described on the cover of this prospectus. The actual number of units we will offer will be determined based on the
actual public offering price.</P>



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

</DIV>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%; font-size: 10pt"><FONT STYLE="font-size: 10pt">Lock-up:</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 48%; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">We and our directors, officers
and certain of our principal stockholders have agreed with the underwriters not to offer for sale, issue, sell, contract to sell,
pledge or otherwise dispose of any of our common stock or securities convertible into common stock for a period of 365 days after
the date of this prospectus, in the case of our directors and officers, and 180&nbsp;days after the date of this prospectus, in
the case of certain of our principal stockholders. See &ldquo;<I>Underwriting</I>&rdquo; on page&nbsp;74.</FONT></TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The total number of shares of our common stock that will be
outstanding after this offering is based on shares of common stock outstanding as of ________________, 2020, which reflects an
assumed reverse stock split of 1: . Unless otherwise indicated, the shares of common stock outstanding after this offering excludes
the following:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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-size: 10pt"><FONT STYLE="font-size: 10pt"><I>&bull;</I></FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares of common stock issuable upon exercise of outstanding warrants with a weighted average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR>
    <TD STYLE="vertical-align: top; width: 24px">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 24px; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="vertical-align: top; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares of common stock reserved for issuance pursuant to the
2017 Equity Incentive plan (the &ldquo;2017 Plan&rdquo;);</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; width: 24px"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares of common stock issuable upon exercise of outstanding options with a weighted average exercise price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under our equity compensation plans;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares of common stock issuable upon exercise of warrants being issued to holders of the Senior Notes and Junior upon the closing of this offering;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares of common stock issuable upon exercise of warrants to be issued to the underwriters in connection with this offering;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>shares of common stock issuable upon exercise of warrants sold in this offering; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&bull;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">any securities issuable upon exercise of the representative&rsquo;s over-allotment option</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

</DIV>

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



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="c_001"></A><B>RISK FACTORS</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"><I>An investment in our common stock involves
a high degree of risk. You should carefully consider the following risks and all of the other information contained in this prospectus
before deciding whether to invest in our common stock. If any of the following risks are realized, our business, financial condition
and results of operations could be materially and adversely affected. In that event, the trading price of our common stock could
decline, and you could lose all or part of your investment in our common stock. Some statements in this prospectus, including such
statements in the following risk factors, constitute forward-looking statements. See the section entitled &#8220;Cautionary Note
Regarding Forward-Looking Statements.&#8221;</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-align: center"><B>Risks Related to Our Company</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"><B><I>Our limited operating history makes
it difficult to evaluate our business and prospects and may increase the risks associated with your investment.</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: justify">We commenced operations in 2017 and consequently
have only a limited operating history upon which our business and future prospects may be evaluated. Despite the experience and
track record of our management team in the digital advertising industry, historical results are not indicative of, and may be substantially
different than, the results we achieve in the future. We cannot assure you that we will be able to operate our business successfully
or implement our operating policies and strategies as described above. We have encountered and will continue to encounter risks
and challenges frequently experienced by growing companies in rapidly developing industries, including risks related to our ability
to:</P>

<P STYLE="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>

<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: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">build a reputation for providing a superior platform and customer service, and for creating trust and long-term relationships with customers; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">distinguish ourselves from competitors; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">develop and offer a competitive platform that meets our customers&#8217; needs as they change; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">improve our current operational infrastructure and non-platform technology to support significant growth and to respond to the evolution of our market and competitors&#8217; developments;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">maintain and expand our relationships with suppliers of quality advertising inventory and 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">respond to evolving industry standards and government regulation that impact our business;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">prevent or mitigate failures or breaches of security; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">expand our business internationally; 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">hire and retain qualified and motivated employees.</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: justify">We cannot assure you that we will be successful
in addressing these and other challenges we may face in the future. If we are unable to do so, our business may suffer, our revenue
and operating results may decline and we may not be able to achieve further growth or sustain profitability.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have incurred losses since our
inception and we may continue to incur losses. If we fail to generate significant revenue through our platform, we may never achieve
or sustain profitability.</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: justify">We have incurred losses since our inception
in May&nbsp;2017 that have resulted principally from costs incurred in connection with our software engineering, research and development
efforts, bad debt expenses, professional fees, rent expense, marketing activities and other general and administrative expenses
associated with our operations, and we may continue to incur losses as we continue to invest capital in the marketing and development
of our platform, as well as the growth of our business generally. We cannot provide any assurance that we will ever achieve profitability
and, even if we achieve profitability, that we will be able to sustain or increase profitability on a quarterly or annual basis.
Further, because of our relatively limited history as a business, we have limited insight into the trends that may emerge and affect
our business. We may make errors in predicting and reacting to relevant business trends, which could harm our business and financial
condition. Any failure to achieve and maintain profitability would continue to have an adverse effect on our stockholders&#8217;
deficit and working capital and could result in a decline in our stock price or cause us to cease operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>There is substantial doubt about
our ability to continue as a going concern.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The report of our independent registered
public accounting firm on our consolidated financial statements for the years ended December&nbsp;31, 2019 and 2018 included an
explanatory paragraph expressing management&#8217;s assessment and conclusion that there is substantial doubt about our ability
to continue as a going concern within one year after the financial statement issuance date, citing our recurring losses and cash
used from operations among other factors. Our ability to continue as a going concern will be determined by our ability to generate
sufficient cash flow to sustain our operations and/or raise additional capital in the form of debt or equity financing. We believe
that the inclusion of a going concern explanatory paragraph in the report of our registered public accounting firm will make it
more difficult for us to secure additional financing or enter into strategic relationships with distributors on terms acceptable
to us, if at all, and likely will materially and adversely affect the terms of any financing that we might obtain. Our consolidated
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts
or amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.</P>

<P STYLE="font: 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"><B><I>Our failure to maintain and grow
the customer base on our platform may negatively impact our revenue and business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To sustain or increase our revenue,
we must regularly add both new advertiser and publisher customers, while simultaneously maintain existing customers to
maintain or increase the amount of advertising inventory purchased through our platform and adopt new features and
functionalities that we add to our platform. If competitors introduce lower cost or differentiated offerings that compete
with or are perceived to compete with ours, our ability to sell access to our platform to new or existing customers could be
impaired. While we generally have master services agreements in place for our customers, such agreements allow our customers
to change the amount of spending on our platform or terminate our services with limited notice. Our customers typically have
relationships with different providers and there is limited cost to moving budgets to our competitors. As a result, we may
have limited visibility as to our future advertising revenue streams. We cannot assure you that our customers will continue
to use our platform or that we will be able to replace, in a timely or effective manner, departing customers with new
customers that generate comparable revenue. If a major customer representing a significant portion of our business decides to
materially reduce its use of our platform or to cease using our platform altogether, it is possible that our revenue could be
significantly reduced.</P>

<P STYLE="font: 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"><B><I>The loss of advertisers and publishers
as customers could significantly harm our business, operating results and financial condition.</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: justify">Our customer base consists primarily of
advertisers and publishers. We do not have exclusive relationships with advertising agencies, companies that are advertisers, or
publishers, such that we largely depend on agencies to work with us as they embark on advertising campaigns for advertisers. The
loss of agencies as customers and referral sources could significantly harm our business, operating results and financial condition.
If we fail to maintain satisfactory relationships with an advertising agency, we risk losing business from the advertisers represented
by that agency.</P>

<P STYLE="font: 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">Furthermore, advertisers and publishers
may change advertising agencies. If an advertiser switches from an agency that utilizes our platform to one that does not, we will
lose revenue from that advertiser. In addition, some advertising agencies have their own relationships with publishers that are
different that our relationships, such that they might directly connect advertisers with such publishers. Our business may suffer
to the extent that advertising agencies and inventory suppliers purchase and sell advertising inventory directly from one another
or through intermediaries other than us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In most cases, we enter into separate contracts
and billing relationships with the individual agencies and account for them as separate customers. However, some holding companies
for these agencies may choose to exert control over the individual agencies in the future. If so, any loss of relationships with
such holding companies and, consequently, of their agencies, local branches or divisions, as customers could significantly harm
our business, operating results and financial condition.</P>

<P STYLE="font: 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"><B><I>If we fail to innovate and make the
right investment decisions in our offerings and platform, we may not attract and retain advertisers and publishers and our revenue
and results of operations may decline.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our industry is subject to rapid and frequent
changes in technology, evolving customer needs and the frequent introduction by our competitors of new and enhanced offerings.
We must constantly make investment decisions regarding our offerings and technology to meet customer demand and evolving industry
standards. We may make wrong decisions regarding these investments. If new or existing competitors have more attractive offerings
or functionalities, we may lose customers or customers may decrease their use of our platform. New customer demands, superior competitive
offerings or new industry standards could require us to make unanticipated and costly changes to our platform or business model.
If we fail to adapt to our rapidly changing industry or to evolving customer needs, demand for our platform could decrease and
our business, financial condition and operating results may be adversely affected.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The market for programmatic advertising
campaigns is relatively new and evolving. If this market develops slower or differently than we expect, our business, growth prospects
and financial condition would be adversely affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The substantial majority of our revenue
has been derived from customers that programmatically purchase and sell advertising inventory through our platform. We expect
that spending on programmatic ad buying and selling will continue to be our primary source of revenue for the foreseeable future,
and that our revenue growth will largely depend on increasing spend through our platform. The market for programmatic ad buying
is an emerging market, and our current and potential customers may not shift quickly enough to programmatic ad buying from other
buying methods, reducing our growth potential. Because our industry is relatively new, we will encounter risks and difficulties
frequently encountered by early-stage companies in similarly rapidly evolving industries, including the need to:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: lightgrey"></FONT></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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Maintain our reputation and build trust with advertisers and digital media property owners;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Offer competitive pricing to publishers, advertisers, and digital media agencies;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Maintain quality and expand quantity of our advertising inventory;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Continue to develop, launch and upgrade the technologies that enable us to provide our solutions;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Respond to evolving government regulations relating to the internet, telecommunications, mobile, privacy, marketing and advertising aspects of our business;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Identify, attract, retain and motivate qualified personnel; 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Cost-effectively manage our operations, including our international operations.</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: justify">If the market for programmatic ad buying
deteriorates or develops more slowly than we expect, it could reduce demand for our platform, and our business, growth prospects
and financial condition would be adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, revenue may not necessarily
grow at the same rate as spend on our platform. Growth in spend may outpace growth in our revenue as the market for programmatic
advertising matures due to a number of factors including quantity discounts and product, media, customer and channel mix shifts.
A significant change in revenue as a percentage of spend could reflect an adverse change in our business and growth prospectus.
In addition, any such fluctuations, even if they reflect our strategic decisions, could cause our performance to fall below the
expectations of securities analysts and investors, and adversely affect the price of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Failure to manage our growth effectively
could cause our business to suffer and have an adverse effect on our financial condition and operating results.</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: justify">We have experienced significant growth
in a short period of time. To manage our growth effectively, we must continually evaluate and evolve our organization. We must
also manage our employees, operations, finances, technology and development and capital investments efficiently. Our efficiency,
productivity and the quality of our platform and customer service may be adversely impacted if we do not train our new personnel,
particularly our sales and support personnel, quickly and effectively, or if we fail to appropriately coordinate across our organization.
Additionally, our rapid growth may place a strain on our resources, infrastructure and ability to maintain the quality of our platform.
In future periods, our revenue or profitability could decline or grow more slowly than we expect. Failure to manage our growth
effectively could cause our business to suffer and have an adverse effect on our financial condition and operating results.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We operate in a intensively competitive
industry, and we may not be able to compete successfully.</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: justify">The digital video advertising market is
intensely competitive, with many companies providing competing solutions. We will compete with Google (YouTube and DoubleClick),
The Trade Desk and Facebook as well as many ad exchanges, demand-side platforms for advertisers and ad networks. We also face competition
from direct response (search-based) advertisers who seek to target brands. Many of our competitors are significantly larger than
we are and have more capital to invest in their businesses. Our competitors may establish or strengthen cooperative relationships
with publishers and advertisers, or other parties, which limit our ability to promote our solutions and generate revenue. For example,
advertiser customers that adopt demand-side advertiser platforms disrupt our direct customer relationship with those customers.
Competitors could also seek to gain market share by reducing the prices they charge to publishers or advertisers, introducing products
and solutions that are similar to ours or introducing new technology tools for advertisers and digital media properties. Moreover,
increased competition for video advertising inventory from digital media properties could result in an increase in the portion
of advertiser revenue that we must pay to digital media property owners to acquire that advertising inventory.</P>

<P STYLE="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: justify">Some large advertising agencies that represent
advertising customers have their own relationships with digital media properties and can directly connect advertisers with digital
media properties. Our business will suffer to the extent that our advertisers and digital media properties purchase and sell advertising
inventory directly from one another or through other companies that act as intermediaries between advertisers and digital media
properties. Other companies that offer analytics, mediation,&nbsp;ad exchange or other third party solutions have or may become
intermediaries between advertisers and digital media properties and thereby compete with us. Any of these developments would make
it more difficult for us to sell our solutions and could result in increased pricing pressure, reduced profit margins, increased
sales and marketing expenses or the loss of market share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If we do not successfully address these
risks, our revenue could decline, our costs could increase, and our ability to pursue our growth strategy and attain profitability
could be compromised.</P>

<P STYLE="font: 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">Further, we derive our revenue from the
digital advertising industry, which is rapidly evolving, highly competitive, complex and fragmented. We face significant competition
in this market which we expect will intensify in the future. We currently compete for advertising spend with large, well-established
companies as well as smaller, privately-held companies. Some of our larger competitors with more resources may be better positioned
to execute on advertising campaigns conducted over multiple channels such as social media, mobile and video.</P>

<P STYLE="font: 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">We may also face competition from companies
that we do not yet know about or do not yet exist. If existing or new companies develop, market or resell competitive high-value
marketing products or services, acquire one of our existing competitors or form a strategic alliance with one of our competitors,
our ability to compete effectively could be significantly compromised and our results of operations could be harmed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our current and potential competitors
may have significantly more financial, technical, marketing and other resources than we have, allowing them to devote greater
resources to the development, promotion, sale and support of their products and services. They may also have more extensive
advertiser bases and broader publisher relationships than we have, and may have longer operating histories and greater name
recognition. As a result, these competitors may be better able to respond quickly to new technologies, develop deeper
advertiser relationships or offer services at lower prices. Any of these developments would make it more difficult for us to
sell our platform and could result in increased pricing pressure, increased sales and marketing expense or the loss of market
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; background-color: white"><B><I>We are subject to&nbsp;payment-related&nbsp;risks
and, if our customers do not pay or dispute their invoices, our business, financial condition and operating results may be adversely
affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Certain of our
contracts with publishers provide that if the advertiser does not pay the publisher, the publisher is not liable to us, and we
must seek payment solely from the advertiser, a type of arrangement called sequential liability. Increasingly, we have sought to
enter into agreements without sequential liability, as contracting with these kinds of publishers, which in some cases have or
may develop&nbsp;higher-risk&nbsp;credit profiles, may subject us to greater credit risk than if we were to contract directly with
advertisers. This credit risk may vary depending on the nature of a publisher&#8217;s aggregated advertiser base. We may also be
involved in disputes with agencies and their advertisers over the operation of our platform, the terms of our agreements or our
billings for purchases made by them through our platform. If we are unable to collect or make adjustments to bills to customers,
we could incur&nbsp;write-offs&nbsp;for bad debt, which could have a material adverse effect on our results of operations for the
periods in which the&nbsp;write-offs&nbsp;occur. In the future, bad debt may exceed reserves for such contingencies and our bad
debt exposure may increase over time. Any increase in&nbsp;write-offs&nbsp;for bad debt could have a materially negative effect
on our business, financial condition and operating results. Even if we are not paid by our customers on time or at all, we are
still obligated to pay for the advertising we have purchased for the advertising campaign, and as a consequence, our results of
operations and financial condition would be adversely impacted.</P>

<P STYLE="font: 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"><B><I>We may not be able to integrate,
maintain and enhance our advertising solutions to keep pace with technological and market developments.</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: justify">The market for digital video advertising
solutions is characterized by rapid technological change, evolving industry standards and frequent introductions of new products
and services. To keep pace with technological developments, satisfy increasing publisher and advertiser requirements, maintain
the attractiveness and competitiveness of our advertising solutions and ensure compatibility with evolving industry standards and
protocols, we will need to anticipate and respond to varying product lifecycles, regularly enhance our current advertising solutions
and develop and introduce new solutions and functionality on a timely basis. This requires significant investment of financial
and other resources. For example, we will need to invest significant resources into expanding and developing our platform in order
to maintain a comprehensive solution. Ad exchanges and other technological developments may displace us or introduce an additional
intermediate layer between us and our customers and digital media properties that could impair our relationships with those customers.</P>

<P STYLE="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: justify"><B><I>If we fail to detect advertising
fraud, we could harm our reputation and hurt our ability to execute our business plan.</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: justify">As our business expands to providing services
to publishers, advertisers and agencies, we must deliver effective digital advertising campaigns. Despite what we believe to be
unique fraud protection techniques that we expect to offer our advertising and agency customers, some of those campaigns may experience
fraudulent and other invalid impressions, clicks or conversions that advertisers may perceive as undesirable, such as non-human
traffic generated by computers designed to simulate human users and artificially inflate user traffic on websites. These activities
could overstate the performance of any given digital advertising campaign and could harm our reputation. It may be difficult for
us to detect fraudulent or malicious activity because we do not own content and rely in part on our digital media properties<B><I>&nbsp;</I></B>to
control such activity. Industry self-regulatory bodies, the U.S. Federal Trade Commission (the &#8220;FTC&#8221;) and certain influential
members of Congress have increased their scrutiny and awareness of, and have taken recent actions to address, advertising fraud
and other malicious activity. If we fail to detect or prevent fraudulent or other malicious activity, the affected advertisers
may experience or perceive a reduced return on their investment and our reputation may be harmed. High levels of fraudulent or
malicious activity could lead to dissatisfaction with our solutions, refusals to pay, refund or future credit demands or withdrawal
of future business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We depend on the proliferation of
digital video advertisements and anything that prevents this proliferation, including the possibility to opt out of services and
functionality, will negatively impact our business model.</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: justify">The success of our business model
depends on our ability to deliver digital video advertisements to consumers on a wide variety of internet-connected devices.
We believe that digital video advertising is most successful when targeted primarily through analysis of data. This data
might include a device&#8217;s location or data collected when device users view an ad or video or when they click on or
otherwise engage with an ad, or it could include demographic or other data about users&#8217;&nbsp;interests or activities
that is licensed or acquired from third parties. Users may elect not to allow data sharing for targeted advertising for many
reasons, such as privacy concerns, or to avoid usage charges based on the amount or type of data consumed on the device.
Users may opt out of interest-based advertising. In addition, internet-connected devices and operating systems controlled by
third parties increasingly contain features that allow device users to disable functionality that allows for the delivery of
ads on their devices. Device and browser manufacturers may include or expand these features as part of their standard device
specifications. For example, when Apple announced that UDID, a standard device identifier used in some applications, was
being superseded and would no longer be supported application developers were required to update their apps to utilize
alternative device identifiers such as universally unique identifier, or, more recently, identifier-for-Advertising, which
simplify the process for Apple users to opt out of behavioral targeting. In addition, many advertising companies may
participate in self-regulatory programs, such as the Network Advertising Initiative or Digital Advertising Alliance, through
which they agree to offer users the ability to opt out of behavioral advertising. If users elect to utilize the opt-out
mechanisms in greater numbers, our ability to deliver effective video advertising would suffer, which could hurt our ability
to generate revenue and profitability.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Seasonal fluctuations in digital
advertising activity could adversely affect our cash flows.</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: justify">Our cash flows from operations vary from
quarter to quarter due to the seasonal nature of advertiser spending. For example, many advertisers devote a disproportionate amount
of their advertising budgets to the fourth quarter of the calendar year to coincide with increased holiday purchasing. If and to
the extent that seasonal fluctuations become more pronounced, or are not offset by other factors, our operating cash flows could
fluctuate materially from period to period as a result.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B><I>Public health epidemics
or outbreaks, such as COVID-19, could materially and adversely impact our business.</I></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-align: justify">In
December&nbsp;2019, a novel strain of coronavirus (COVID-19) emerged in Wuhan, Hubei Province, China. While initially the outbreak
was largely concentrated in China and caused significant disruptions to its economy, it has now spread to several other countries
and infections have been reported globally.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Because
COVID-19 infections have been reported throughout the United States, certain federal, state and local governmental authorities
have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of COVID-19. Additional, more restrictive
proclamations and/or directives may be issued in the future. As a result, COVID-19 has had an impact on most brands and significantly
all advertising channels. When a large portion of the global population entered quarantine due to COVID-19, normal purchasing behavior
patterns were interrupted, with a result that advertising volumes decreased. With advertisers spending less money on advertising,
companies reliant on such advertising spend will likely be negatively impacted from a financial and budgeting perspective. The
Company&#8217;s collection of receivables will also be slowed as a result of the effect of COVID-19 on consumer purchasing behavior,
and advertisers&#8217; reaction to such downward trends.</FONT> Such a slowdown in collections will have a short-term, impact on
our business, financial condition and results of operations, and likely beyond.</P>

<P STYLE="font: 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">The ultimate impact
of the COVID-19 pandemic on the Company&#8217;s operations is unknown and will depend on future developments, which are highly
uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information which may emerge
concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the
Company, may direct, which may result in an extended period of continued business disruption, reduced customer traffic and reduced
operations. Any resulting financial impact cannot be reasonably estimated at this time but is anticipated to have a material adverse
impact on our business, financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The operational measures
taken to date will impact the Company&rsquo;s business for its fiscal second quarter and potentially into the future. Management
expects that all of its business segments will be impacted to some degree, but the significance of the impact of the COVID-19 outbreak
on the Company&rsquo;s business and the duration for which it may have an impact cannot be determined at this time.</P>

<P STYLE="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: justify"><B><I>Economic downturns and market conditions
beyond our control could adversely affect our business, financial condition and operating results.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business depends on the overall demand
for advertising and on the economic health of advertisers and publishers that benefit from our platform. Economic downturns or
unstable market conditions such as those potentially created by the outbreak of COVID-19 as a pandemic, may cause advertisers to
decrease their advertising budgets, which could reduce spend though our platform and adversely affect our business, financial condition
and operating results. As we explore new countries to expand our business, economic downturns or unstable market conditions in
any of those countries could result in our investments not yielding the returns we anticipate.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may experience fluctuations in our operating results, which could make our future operating results difficult to predict or cause
our operating results to fall below analysts' and investors' expectations</I></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-align: justify">Our quarterly and annual operating results
have fluctuated in the past and we expect our future operating results to fluctuate due to a variety of factors, many of which
are beyond our control. Fluctuations in our operating results could cause our performance to fall below the expectations of analysts
and investors, and adversely affect the price of our common stock. Because our business is changing and evolving rapidly, our historical
operating results may not be necessarily indicative of our future operating results. Factors that may cause our operating results
to fluctuate include the following:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes in demand for our platform, including related to the seasonal nature of spending on digital advertising campaigns; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes in our pricing policies, the pricing policies of our competitors and the pricing or availability of inventory, data or of other third-party services; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes in our customer base and platform offerings; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">the addition or loss of customers; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes in advertising budget allocations, agency affiliations or marketing strategies; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes to our product, media, customer or channel mix;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes and uncertainty in the regulatory environment for us, advertisers or publishers; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">changes in the economic prospects
of advertisers or the economy generally, which could alter advertisers' spending priorities, or could increase the time or costs
required to complete advertising inventory sales;&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><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">the possible effects of the widespread domestic and global impact of the COVID-19 pandemic, including on general economic conditions, public health, and consumer demand and financial markets;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes in the availability of advertising inventory through real-time advertising exchanges or in the cost of reaching end consumers through digital advertising; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">disruptions or outages on our platform; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">the introduction of new technologies or offerings by our competitors; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes in our capital expenditures as we acquire the hardware, equipment and other assets required to support our business; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">timing differences between our payments for advertising inventory and our collection of related advertising revenue; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">the length and unpredictability of our sales cycle; 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">costs related to acquisitions of businesses or technologies, or employee recruiting.</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: justify">Based upon the factors above and others
beyond our control, we have a limited ability to forecast our future revenue, costs and expenses, and as a result, our operating
results may, from time to time, fall below our estimates or the expectations of analysts and investors.</P>

<P STYLE="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: justify"><B><I>As our costs increase, we may not
be able to generate sufficient revenue to sustain profitability.</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: justify">We have expended significant resources
to grow our business in recent years by increasing the offerings of our platform, growing our number of employees and expanding
internationally. We anticipate continued growth that could require substantial financial and other resources to, among other things:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: lightgrey"></FONT></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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">develop our platform, including by investing in our engineering team, creating, acquiring or licensing new products or features, and improving the availability and security of our platform; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">expand internationally by growing our sales force and customer services team in an effort to increase our customer base and spend through our platform, and by adding inventory and data from countries our customers are seeking; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">improve our technology infrastructure, including investing in internal technology development and acquiring outside technologies; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">cover general and administrative expenses, including legal, accounting and other expenses necessary to support a larger organization; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">cover sales and marketing expenses, including a significant expansion of our direct sales organization; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">cover expenses relating to data collection and consumer privacy compliance, including additional infrastructure, automation and personnel; 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">explore further strategic acquisitions.</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: justify">Investing in the foregoing, however, may
not yield anticipated returns. Consequently, as our costs increase, we may not be able to generate sufficient revenue to sustain
profitability.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We will need to obtain a significant amount of additional financing
to continue the development of our software platform and implement our business plan.</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: justify">Since our inception, we have not generated
sufficient revenues from our operations to fund the development and expansion of our software platform by our engineering team
and to promote and roll out our products. We have funded a portion of our operations through the sale of our equity securities.
The implementation of our business plan will require the receipt of sufficient equity and/or debt financing necessary to fund our
expansion plan and otherwise fund our operations. Based on our working capital deficiency, outstanding debt, and forecast for continued
operating losses, prior to the receipt of the proceeds of this offering, we are funding our operations on a month-to-month basis.
We will, therefore, require additional cash resources due to fully implement our business plan. If these resources are insufficient
to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain one or more credit facilities.
The sale of additional equity securities could result in additional dilution to our stockholders and the terms of these securities
may include liquidation or other preferences that adversely affect your rights as a common stockholder. The incurrence of indebtedness
would result in increased debt service obligations and could result in operating and financing covenants that would restrict our
operations. It is uncertain whether financing will be available in amounts or on terms acceptable to us, if at all. Our inability
in the future to obtain additional equity capital or a corporate credit facility on attractive terms, or at all, could adversely
impact our ability to execute our business strategy, which could adversely affect our growth prospects and future stockholder returns.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Servicing our debt will require a
significant amount of cash, and we may not have sufficient cash flow from our business to pay our debt.</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: justify">Our ability to make scheduled payments
of the principal of, to pay interest on or to refinance our indebtedness depends on our future performance, which is subject to
economic, financial, competitive and other factors beyond our control. In the two years preceding the filing, we have experienced
two material instances of default on indebtedness:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD STYLE="text-align: justify">On October&nbsp;3, 2018, the Company entered into a promissory note in favor of Bright Mountain
Media,&nbsp;Inc. in the principal amount of $75,000, plus interest at the rate of 6% per annum, with a maturity date of January&nbsp;31,
2019 (the &#8220;Bright Mountain Note&#8221;). The Bright Mountain Note is currently in default and interest has been accruing
thereon at a penalty rate of 18% per annum since the scheduled maturity date. On November&nbsp;8, 2019, Bright Mountain Media,&nbsp;Inc.
filed suit against the Company (Bright Mountain Media,&nbsp;Inc. v. Kubient,&nbsp;Inc., Palm Beach County Circuit Court, Case No.&nbsp;502019-CA-014401XXXXMB)
in an effort to collect the amounts due under the Bright Mountain Note. On May&nbsp;13, 2020, the parties reached a settlement
agreement that requires the Company to make aggregate payments to the plaintiff of a total of $135,000 (which includes the amounts
due under the Bright Mountain Note), which is due in seven (7)&nbsp;installments between May&nbsp;20, 2020 and October&nbsp;20,
2020. If the Company pays a total of $125,000 by September&nbsp;15, 2020, the total amount due is automatically reduced to $125,000.
In the event the Company fails to make timely payments and the default is not cured by the conclusion of the specified grace period,
the plaintiff shall be entitled to the entry of a final judgment against the Company in the amount of $240,000, less any and all
payments made. As of the date hereof, the Company had paid $5,000 to the plaintiff in connection with the settlement agreement.</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>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-size: 10pt">&middot;</FONT></TD><TD STYLE="text-align: justify">On July&nbsp;25, 2018, the Company entered into a secured business loan agreement to pay WebBank
the principal amount of $100,000, plus interest, over the course of 39 weekly payments of principal and interest in the amount
of $2,977 (the &#8220;WebBank Loan&#8221;). The WebBank Loan is secured by present and future accounts, receivables, chattel paper,
deposit accounts, personal property, assets and fixtures, general intangibles, instruments, equipment and inventory, and was personally
guaranteed by Paul Roberts, our Chief Strategy Officer, President and Chairman. On September&nbsp;4, 2019, the Company entered
into a settlement agreement whereby the parties agreed to settle the WebBank Loan balance of approximately $45,000 for $16,000,
which was to be paid by September&nbsp;3, 2019 by the Company. As of the date of filing, the Company had not made the $16,000 payment
to the lender. The Company is currently is in settlement negotiations with regard to the WebBank Loan, and believes that it can
settle all amounts due under the WebBank Loan for approximately $16,000, which amount would be paid from a portion of the proceeds
of this offering.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our business may not generate cash flow
from operations in the future sufficient to service our debt and make necessary capital expenditures, especially if the offering
contemplated by this prospectus is unsuccessful. If we are unable to generate such cash flow, we may be required to adopt one or
more alternatives, such as selling assets, restructuring debt or obtaining additional equity capital on terms that may be onerous
or highly dilutive. Our ability to refinance our indebtedness will depend on the capital markets and our financial condition at
such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could
result in a default on our debt obligations.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>If we default on our credit obligations, our operations
may be interrupted and our business and financial results could be adversely affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Publishers extend us credit terms for the
purchase of advertising inventory, often for thirty to sixty days. We currently have outstanding payables to existing publishers.
If we are unable to pay our publishers in a timely fashion, they may elect to no longer sell us inventory to provide for sale to
advertisers.&nbsp; Also, it may be necessary for us to incur additional indebtedness to maintain operations of the Company. If
we default on our credit obligations, our lenders may, among other things:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">require repayment of any outstanding obligations or amounts drawn on our credit facilities;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">terminate our credit facilities;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">stop delivery of ordered equipment;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">discontinue our ability to acquire inventory that is sold to advertisers;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">require us to accrue interest at higher rates; or</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">require us to pay significant damages.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If some or all of these events were to
occur, our operations may be interrupted and our ability to fund our operations or obligations, as well as our business, financial
results, and financial condition, could be adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are dependent on a small number
of key customers. Changes in our relationships with these parties or changes in the economic environments in which they operate
could have a material adverse effect on our business, financial condition, results of operations and cash flows.</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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
revenues are concentrated with a small number of key customers. Relationships with these customers are fundamental to our success,
especially given the number of other choices in the digital advertising industry. For example, as of December&nbsp;31, 2019, we
had </FONT>two customers that accounted for 14% and 12% of our gross accounts receivable, respectively, and for the year ended
December&nbsp;31, 2019 , we had two customers that accounted for 75% and 10% of our gross billings, respectively. As of March&nbsp;31,
2020, we had two customers that accounted for 48% and 29% of our gross accounts receivable, respectively, and for the quarter ended
March&nbsp;31, 2020, we had two customers that accounted for 54% and 37% of our gross billings, respectively. No assurances can
be given that our relationship with these customers will continue to be good, such that these customers will use our platform to
buy and sell advertising inventory or utilize our services in the future. A termination of our contracts with these customers or
finding suitable customers with similar volume, would disrupt our operations, which could have a material adverse effect on our
business, cash flow, financial condition and results of operations.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>We may experience a loss of recurring revenue if customers
do not adopt our KAI fraud prevention technology.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A materially significant portion of our revenue for the quarter
ended March 31, 2020 was generated from our beta test of KAI with two large enterprise clients in an isolated environment. As we
believe the beta test was a success, we stopped running the test in preparation for KAI to be widely adopted as a standalone enterprise
product, and therefore will not generate future revenue from the beta test. If our customers, including the two large enterprise
clients that participated in the beta test of KAI, do not adopt KAI as their preferred fraud prevention technology solution, or
if we do not properly determine the best pricing model for KAI as a standalone enterprise product, we may experience a significant
loss of recurring revenue in future fiscal quarters. Furthermore, our competitors could introduce new products that are more competitive
than KAI in terms of percentage of fraud prevention, which could result in a loss of customers who do not convert or adopt KAI.
An inability to retain customers or convert them to KAI could harm our business, operating results and financial condition in the
future.</P>

<P STYLE="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: justify"><B><I>Our software could be susceptible
to errors, defects, or unintended performance problems that could result in loss of reputation, lost inventory or liability; we
have encountered difficulties in achieving our desired fill rates.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We develop and offer a complex software
platform that is used or embedded by our customers and digital media properties in devices, video technologies, software and operating
systems. Complex software often contains defects, particularly when first introduced or when new versions are released. For example,
we have encountered difficulties in selecting the right advertisement to serve when we win an impression and other factors which
have caused a negative impact on our fill rate with website publishers. In addition, we have encountered problems when scaling
our system to production volumes. While we expect this and other challenges to arise, we cannot guarantee they will be successfully
resolved in a timely manner which can impact our revenue and income. Determining whether our software has defects may occur after
versions are released into the market. Defects, errors or unintended performance problems with our software could unintentionally
jeopardize the performance of advertising campaigns and digital media properties&#8217;&nbsp;products. This could result in injury
to our reputation, loss of revenue, diversion of development and technical resources, increased insurance costs and increased warranty
costs. If our software contains any undetected defects, errors or unintended performance problems, our advertising customers may
refuse to use it, digital media properties may refuse to embed it into their products and we may be unable to collect data or acquire
advertising inventory from digital media properties. These defects, errors and unintended performance problems could also result
in product liability claims. Although we attempt to reduce the risk of losses resulting from these claims through warranty disclaimers
and limitation of liability clauses in our agreements, these contractual provisions may not be enforceable in every instance. If
a court refused to enforce the liability-limiting provisions of our contracts for any reason, or if liabilities arose that were
not contractually limited or adequately covered by insurance, our business could be materially harmed.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>We allow our customers to utilize
application programming interfaces, or APIs, with our platform, which could result in outages or security breaches and negatively
impact our business, financial condition and operating results.</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: justify; background-color: white">The use of application
programming interfaces, or APIs, by our customers has significantly increased in recent years. Our APIs allow customers to build
their own media buying and data management interface by using our APIs to develop custom integration of their business with our
platform. The increased use of APIs increases security and operational risks to our systems, including the risk for intrusion attacks,
data theft, or denial of service attacks. Furthermore, while APIs allow customers greater ease and power in accessing our platform,
they also increase the risk of overusing our systems, potentially causing outages. We have experienced system slowdowns due to
customer overuse of our systems through our APIs. While we have taken measures intended to decrease security and outage risks associated
with the use of APIs, we cannot guarantee that such measures will be successful. Our failure to prevent outages or security breaches
resulting from API use could result in government enforcement actions against us, claims for damages by consumers and other affected
individuals, costs associated with investigation and remediation damage to our reputation and loss of goodwill, any of which could
have a material adverse impact on our business, financial condition and operating results.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our business practices with respect
to data could give rise to liabilities, restrictions on our business or reputational harm as a result of evolving governmental
regulation, legal requirements or industry standards relating to consumer privacy and data protection.</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: justify">In the course of providing our solutions,
we collect, transmit and store information which is related to and seeks to correlate internet-connected devices, user activity
and the ads we place. Federal, state and international laws and regulations govern the collection, use, processing, retention,
sharing and security of data that we collect across our advertising solutions. We strive to comply with all applicable laws, regulations,
policies and legal obligations relating to privacy and data collection, processing use and disclosure. However, the applicability
of specific laws may be unclear in some cases and domestic and foreign government regulation and enforcement of data practices
and data tracking technologies is expansive, not clearly defined and rapidly evolving. In addition, it is possible that these requirements
may be interpreted and applied in a manner that is new or inconsistent from one jurisdiction to another and may conflict with other
rules&nbsp;or our practices. Any actual or perceived failure by us to comply with U.S. federal, state or international laws, including
laws and regulations regulating privacy, data, security or consumer protection, or disclosure or unauthorized access by third parties
to this information, could result in proceedings or actions against us by governmental entities, competitors, private parties or
others. Any proceedings or actions against us alleging violations of consumer or data protection laws or asserting privacy-related
theories could hurt our reputation, force us to spend significant amounts in defense of these proceedings, distract our management,
increase our costs of doing business, adversely affect the demand for our solutions and ultimately result in the imposition of
monetary liability. We may also be contractually liable to indemnify and hold harmless our customers from the costs or consequences
of litigation resulting from using our solutions or from the disclosure of confidential information, which could damage our reputation
among our current and potential customers, require significant expenditures of capital and other resources and cause us to lose
business and revenue.</P>

<P STYLE="font: 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">The regulatory framework for privacy issues
is evolving worldwide, and various government and consumer agencies and public advocacy groups have called for new regulation and
changes in industry practices, including some directed at the digital advertising industry in particular. It is possible that new
laws and regulations will be adopted in the United States and internationally, or existing laws and regulations may be interpreted
in new ways, that would affect our business, particularly with regard to collection or use of data to target ads and communication
with consumers and the international transfer of data from Europe to the U.S. The U.S. government, including the Federal Trade
Commission and the Department of Commerce, has announced that it is reviewing the need for greater regulation of the collection
of consumer information, including regulation aimed at restricting some targeted advertising practices. In Europe, in October&nbsp;2015
the Court of Justice of the European Union invalidated the &#8220;US-EU Safe Harbor framework,&#8221; which created a safe harbor
under the European Data Protection Directive for certain European data transfers to the U.S. We had not self-certified under this
regime, and therefore were not directly affected by this decision. In July&nbsp;2016, the European Commission approved the Privacy
Shield, which is a set of principles and related rules&nbsp;that are intended to replace the US-EU Safe harbor framework. The Company
is in the process of determining whether to join the Privacy Shield program. Stricter regulation of European data transfers to
U.S. in future may impact our ability to serve European customers effectively, or require us to open and operate data centers in
the European Union which would result in a higher cost of doing business in these jurisdictions.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In particular, Europe&#8217;s&nbsp;new
General Data Protection Regulation (&#8220;GDPR&#8221;) extends the jurisdictional scope of European data protection law. As a
result, we will be subject to the GDPR when we provide our targeting services in Europe. The GDPR imposes stricter data protection
requirements that may necessitate changes to our services and business practices. Potential penalties for non-compliance with the
GDPR include administrative fines of up to 4% of annual worldwide turnover. Complying with any new regulatory requirements could
force us to incur substantial costs or require us to change our business practices in a manner that could reduce our revenue or
compromise our ability to effectively pursue our growth strategy.</P>

<P STYLE="font: 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">The FTC has also adopted revisions to
the Children&#8217;s&nbsp;Online Privacy Protection Act (&#8220;COPPA&#8221;) that expands liability for the collection of
information by operators of websites and other electronic solutions that are directed to children. Questions exist as to how
regulators and courts may interpret the scope and circumstances for potential liability under COPPA, and the FTC continues to
provide guidance and clarification as to its 2013 revisions of COPPA. FTC guidance or enforcement precedent may make it
difficult or impractical for us to provide advertising on certain websites, services or applications. In addition, the FTC
recently fined an ad network for certain methods of collecting and using data from mobile applications, including certain
applications directed at children, and failing to disclose the data collection to mobile application developers in their
network.</P>

<P STYLE="font: 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">While we have not collected data that is
traditionally considered personal data, such as names, email addresses, physical addresses, phone numbers or social security numbers,
we typically collect and store IP addresses, geo-location information, and device or other persistent identifiers that are or may
be considered personal data in some jurisdictions or otherwise may be the subject of legislation or regulation.&nbsp;For example,
some jurisdictions in the EU regard IP addresses as personal data, and certain regulators, such as the California Attorney General&#8217;s
Office, have advocated for including IP addresses, GPS-level geolocation data, and unique device identifiers as personal data under
California law. Furthermore, Europe&#8217;s&nbsp;GDPR makes clear that online identifiers (such as IP addresses and other device
identifiers) will be treated as &#8220;personal data&#8221; going forward and therefore subject to stricter data protection rules.</P>

<P STYLE="font: 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">Evolving definitions of personal data within
the EU, the United States and elsewhere, especially relating to the classification of IP addresses, machine or device identifiers,
geo-location data and other such information, may cause us to change our business practices, diminish the quality of our data and
the value of our solution, and hamper our ability to expand our offerings into the EU or other jurisdictions outside of the United&nbsp;States.
Our failure to comply with evolving interpretations of applicable laws and regulations, or to adequately protect personal data,
could result in enforcement action against us or reputational harm, which could have a material adverse impact on our business,
financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to compliance with government
regulations, we voluntarily participate in trade associations and industry self-regulatory groups that promulgate best practices
or codes of conduct addressing the provision of internet advertising. We could be adversely affected by changes to these guidelines
and codes in ways that are inconsistent with our practices or in conflict with the laws and regulations of U.S. or international
regulatory authorities. For instance, new guidelines, codes, or interpretations, by self-regulatory organizations or government
agencies, may require additional disclosures, or additional consumer consents, such as &#8220;opt-in&#8221; permissions to share,
link or use data, such as health data from third parties, in certain ways. If we fail to abide by, or are perceived as not operating
in accordance with, industry best practices or any industry guidelines or codes with regard to privacy, our reputation may suffer
and we could lose relationships with advertisers and digital media properties.</P>

<P STYLE="font: 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"><B><I>Any inability to successfully deliver
digital advertising due to technological challenges or an inability to persuasively demonstrate success will prevent us from growing
or retaining our current advertiser base.</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: justify">It is critical that we successfully deliver
digital advertising. Factors that may adversely affect our ability to deliver successful digital advertising include:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">inability to accurately process data and extract meaningful insights and trends, such as the failure of the Audience Cloud to accurately process data to place ads effectively at digital media properties;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">faulty or out-of-date algorithms that fail to properly process data or result in inability to capture brand-receptive audiences at scale;</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>

<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: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">technical or infrastructure problems causing digital video not to function, display properly or be placed next to inappropriate context;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">inability to control video completion rates, maintain user attention or prevent end users from skipping advertisements;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">inability to detect and prevent advertising fraud and other malicious activity;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">inability to fulfill audience guarantee or viewability requirements of our advertiser customers;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">inability to integrate with third parties that measure our campaigns against audience guarantee or viewability requirements;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">unavailability of standard digital video audience ratings and brand receptivity measurements for brand advertisers to effectively measure the success of their campaigns; 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">access to quality inventory at sufficient volumes to meet the needs of our advertisers&#8217; campaigns.</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: justify">Our revenue depends on the
technological ability of our solutions to deliver ads and measure them. Sustained or repeated system failures that interrupt
our ability to provide solutions to customers, including&nbsp;security breaches and other technological failures affecting
our ability to deliver ads quickly and accurately and to collect and process data in connection with these ads, could
significantly reduce the attractiveness of our solutions to advertisers, negatively impact operations and reduce our revenue.
Our systems are vulnerable to damage from a variety of sources, including telecommunications failures, power outages, acts of
terrorism and natural disasters. In addition, any steps we take to increase the reliability and redundancy of our systems may
be expensive and may not be successful in preventing system failures. Also, advertisers may perceive any technical disruption
or failure in ad performance on digital media properties&#8217; platforms to be attributable to us, and our reputation could
similarly suffer, or advertisers may seek to avoid payment or demand future credits for disruptions or failures, any of which
could harm our business and results of operations. If we are unable to deliver successful advertising campaigns, our ability
to attract potential advertisers and retain and expand business with existing advertisers could be harmed and our business,
financial condition and operating results could be adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our sales efforts with advertisers
and publishers require significant time and expense.</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: justify">Attracting new advertisers and publishers
requires substantial time and expense, and we may not be successful in establishing new relationships or in maintaining or advancing
our current relationships. For example, it may be difficult to identify, engage and market to potential advertisers who do not
currently spend on digital video advertising or are unfamiliar with our current solutions.</P>

<P STYLE="font: 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">The novelty of our solutions, including
our programmatic solutions, and our business model often requires us to spend substantial time and effort educating our own sales
force and potential advertisers, advertising agencies, supply side platforms and digital media properties about our offerings,
including providing demonstrations and comparisons against other available solutions. This process is costly and time-consuming.
If we are not successful in targeting, supporting and streamlining our sales processes, our ability to grow our business may be
adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our inability to use software licensed
from third parties, or our use of open source software under license terms that interfere with our proprietary rights, could disrupt
our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our technologies incorporate software licensed
from third parties, including some software, known as open source software, which we use without charge. Although we monitor our
use of open source software, the terms of many open source licenses to which we are subject have not been interpreted by U.S. or
foreign courts, and there is a risk that these licenses could be construed in a manner that imposes unanticipated conditions or
restrictions on our ability to provide our solutions to our customers. In the future, we could be required to seek licenses from
third parties in order to continue offering our solutions, which licenses may not be available on terms that are acceptable to
us, or at all. Alternatively, we may need to re-engineer our solutions or discontinue use of portions of the functionality provided
by our solutions. In addition, the terms of open source software licenses may require us to provide software that we develop using
this software to others on unfavorable license terms. Further, if a digital media property owner who embeds our software in their
devices, video technologies, software and operating systems incorporates open source software into its software and our software
is integrated with such open source software in the final product, we could, under some circumstances, be required to disclose
the source code to our software. While we carefully monitor the use of all open source software and try to ensure that no open
source software is used in such a way as to require us to disclose the source code to our software, such use could inadvertently
occur. Our inability to use third party software or the requirement to disclose the source code to our software could result in
disruptions to our business, or delays in the development of future offerings or enhancements of existing offerings, which could
impair our business.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our failure to protect our intellectual
property rights could diminish the value of our solutions, weaken our competitive position and reduce our revenue.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We regard the protection of our intellectual
property, which includes pending patent applications, trade secrets, copyrights, trademarks and domain names, as critical to our
success. We strive to protect our intellectual property rights by relying on federal, state and common law rights, as well as contractual
restrictions. We enter into confidentiality and invention assignment agreements with our employees and contractors, and confidentiality
agreements with parties with whom we conduct business in order to limit access to, and disclosure and use of, our proprietary information.
However, these contractual arrangements and the other steps we have taken to protect our&nbsp;intellectual property may not prevent
the misappropriation of our proprietary information or deter independent development of similar technologies by others.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We could incur substantial costs
and disruption to our business as a result of any claim of infringement of another party&#8217;s&nbsp;intellectual property rights,
which could harm our business and operating results.</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: justify">In recent years, there has been
significant litigation in the United States over patents and other intellectual property rights. Although we have not faced
such issues, in the future we or customers who use our products may unintentionally infringe the trademarks, copyrights,
patents and other intellectual property rights of third parties, including allegations made by our competitors or by
non-practicing entities. We cannot predict whether assertions of third party intellectual property rights or claims arising
from these assertions will substantially harm our business and operating results. If we are forced to defend any infringement
claims, whether they are with or without merit or are ultimately determined in our favor, we may face costly litigation and
diversion of technical and management personnel. Some of our competitors have substantially greater resources than we do and
are able to sustain the cost of complex intellectual property litigation to a greater extent and for longer periods of time
than we could. Furthermore, an adverse outcome of a dispute may require us: to pay damages, potentially including treble
damages and attorneys&#8217;&nbsp;fees, if we are found to have willfully infringed a party&#8217;s&nbsp;patent or other
intellectual property rights; to cease making, licensing or using products that are alleged to incorporate or make use of the
intellectual property of others; to expend additional development resources to redesign our products; and to enter into
potentially unfavorable royalty or license agreements in order to obtain the rights to use necessary technologies. Royalty or
licensing agreements, if required, may be unavailable on terms acceptable to us, or at all. In any event, we may need to
license intellectual property which would require us to pay royalties or make one-time payments. Even if these matters do not
result in litigation or are resolved in our favor or without significant cash settlements, the time and resources necessary
to resolve them could harm our business, operating results, financial condition and reputation.</P>

<P STYLE="font: 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">In addition, if our advertising customers
do not own the copyright for advertising content included in their advertisements or if digital media property owners do not own
the copyright for content to the digital media next to which the advertisements appear, advertisers and digital media properties
could receive complaints from copyright owners, which could harm our reputation and our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We could become involved in litigation
matters that may be expensive and time consuming, and, if resolved adversely, could harm our business, financial condition, or
results of operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are involved in several litigation matters
that may be expensive and time consuming, and, if resolved adversely, could harm our business, financial condition, or results
of operations. See &#8220;<I>Legal Proceedings</I>.&#8221; Any litigation to which we are a party may result in an onerous or unfavorable
judgment that may not be reversed upon appeal, or we may decide to settle lawsuits on similarly unfavorable terms. Any negative
outcome could result in payments of substantial monetary damages or fines, or changes to our products or business practices, and
accordingly our business, financial condition, or results of operations could be materially and adversely affected. Although the
results of lawsuits and claims cannot be predicted with certainty, we do not believe that the final outcome of those matters that
we currently face will have a material adverse effect on our business, financial condition, or results of operations. However,
defending these claims is costly and can impose a significant burden on management and employees, and we may receive unfavorable
preliminary or interim rulings in the course of litigation, which could adversely affect the value of our common stock. There can
be no assurances that a favorable final outcome will be obtained in all cases.</P>

<P STYLE="font: 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"><B><I>We may acquire other businesses,
products or technologies in the future which could require significant management attention, disrupt our business, dilute shareholder
value and adversely affect our results of operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As part of our business growth strategy
and in order to remain competitive, we may acquire, or make investments in, complementary technologies, products or firms. However,
we may not be able to find suitable acquisition targets in the future, and we may not be able to complete such acquisitions on
favorable terms, if at all. If we do complete acquisitions, we may not ultimately strengthen our competitive position or achieve
our goals, and any acquisitions we complete could be viewed negatively by our customers, investors and securities analysts. In
addition, if we are unsuccessful at integrating such acquisitions or the technologies associated with such acquisitions, our revenue
and results of operations could be adversely affected. In addition, while we will make significant efforts to address any information
technology security and privacy compliance issues with respect to any acquisitions, we may still inherit such risks when we integrate
the acquired products and systems. Any integration process may require significant time and resources, and we may not be able to
manage the process successfully. We may not successfully evaluate or utilize the acquired technology or personnel, or accurately
forecast the financial impact of an acquired business, including accounting charges. We may have to pay cash, incur debt or issue
equity securities to pay for any such acquisitions, each of which could adversely affect our financial condition or the value of
our common stock. The sale of equity or issuance of debt to finance any such acquisitions could result in dilution to our stockholders.
The incurrence of indebtedness would result in increased fixed obligations and could also include covenants or other restrictions
that would impede our ability to manage our operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Security breaches, computer malware,
computer hacking attacks and other security incidents could harm our business, reputation, brand and operating results.</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: justify">Security incidents have become more prevalent
across industries and may occur on our systems. These security incidents may be caused by or result in but are not limited to security
breaches, computer malware or malicious software, ransomware, computer hacking, denial of service attacks, security system control
failures in our own systems or from vendors we use, email phishing, software vulnerabilities, social engineering, sabotage and
drive-by downloads. In particular, because we utilize a multi-tenant platform, any security breach would affect a significant amount
of our customers. Such security incidents, whether intentional or otherwise, may result from actions of hackers, criminals, nation
states, vendors, employees, contractors, customers or other threat actors. Although we have taken a number of measures to prevent
phishing attacks, we cannot be certain that our efforts will be effective.</P>

<P STYLE="font: 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">We may in the future experience
disruptions, outages and other performance problems on our internal systems due to service attacks, unauthorized access or
other security related incidents. Any security breach or loss of system control caused by hacking, which involves efforts to
gain unauthorized access to information or systems, or to cause intentional malfunctions or loss, modification or corruption
of data, software, hardware or other computer equipment and the inadvertent transmission of computer malware could harm our
business, operating results and financial condition, and expose us to claims arising from loss or unauthorized disclosure of
confidential or personal information and the related breach of privacy or data security laws. If an actual or perceived
security incident occurs, the market perception of the effectiveness of our security controls could be harmed, our brand and
reputation could be damaged, we could lose customers, and we could suffer financial exposure due to such events or in
connection with remediation efforts, investigation costs, regulatory fines, private lawsuits and changed security control,
system architecture and system protection measures.</P>

<P STYLE="font: 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">We may in the future experience disruptions,
outages and other performance problems on the systems that we host for our customers due to service attacks, unauthorized access
or other security related incidents. Any security breach or loss of system control caused by hacking, which involves efforts to
gain unauthorized access to information or systems, or to cause intentional malfunctions or loss, modification or corruption of
data, software, hardware or other computer equipment and the inadvertent transmission of computer malware could disrupt the services
that we provide to our customers, harm our customers&#8217; business, operating results and financial condition, and expose us
to claims from our customers for the damages that result, which could include, without limitation, claims arising from loss or
unauthorized access, acquisition or disclosure of personal information and the related breach of privacy or data security laws.
If an actual or perceived security incident occurs, the market perception of the effectiveness of our security controls could be
harmed, our brand and reputation could be damaged, we could lose customers, and we could suffer financial exposure due to such
events or in connection with remediation efforts, investigation costs, regulatory fines, private lawsuits and changed security
control, system architecture and system protection measures.</P>

<P STYLE="font: 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"><B><I>The loss of key personnel or the
inability of replacements to quickly and successfully perform in their new roles could adversely affect our business.</I></B></P>

<P STYLE="font: 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">We depend on the leadership and experience
of our relatively small number of key executive management personnel, particularly our Chief Executive Officer, Peter Bordes, Chief
Financial Officer, Joshua Weiss, and our Chief Strategy Officer, President and Chairman, Paul Roberts. The loss of the services
of these key executives or any of our executive management members could have a material adverse effect on our business and prospects,
as we may not be able to find suitable individuals to replace such personnel on a timely basis or without incurring increased costs,
or at all. Furthermore, if we lose or terminate the services of one or more of our key employees or if one or more of our current
or former executives or key employees joins a competitor or otherwise competes with us, it could impair our business and our ability
to successfully implement our business plan. Additionally, if we are unable to hire qualified replacements for our executive and
other key positions in a timely fashion, our ability to execute our business plan would be harmed. Even if we can quickly hire
qualified replacements, we would expect to experience operational disruptions and inefficiencies during any transition. We believe
that our future success will depend on our continued ability to attract and retain highly skilled and qualified personnel. There
is a high level of competition for experienced, successful personnel in our industry. Our inability to meet our executive staffing
requirements in the future could impair our growth and harm our business. We do not maintain &#8220;key person&#8221; insurance
on any of our officers or employees.</P>

<P STYLE="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: justify"><B><I>We rely on highly skilled personnel
and, if we are unable to attract, retain or motivate substantial numbers of qualified personnel or expand and train our sales force,
we may not be able to grow effectively.</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: justify">Our success largely depends on the talents
and efforts of key technical, sales and marketing employees and our future success depends on our continuing ability to identify,
hire, develop, motivate and retain highly skilled personnel for all areas of our organization. Competition in our industry is intense
and often leads to increased compensation and other personnel costs. In addition, competition for employees with experience in
our industry can be intense where our research and development operations are concentrated and where other technology companies
compete for management and engineering talent. Our continued ability to compete and grow effectively depends on our ability to
attract substantial numbers of qualified new employees and to retain and motivate our existing employees.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we do not effectively grow and
train our sales and support teams, we may be unable to add new customers or increase sales to our existing customers and our business
will be adversely affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are substantially dependent on our sales
and support teams to obtain new customers and to increase spend by our existing customers. We believe that there is significant
competition for sales personnel with the skills and technical knowledge that we require. Our ability to achieve revenue growth
will depend, in large part, on our success in recruiting, training, integrating and retaining sufficient numbers of sales personnel
to support our growth. Due to the complexity of our platform, new hires require significant training and it may take significant
time before they achieve full productivity. Our recent and planned hires may not become productive as quickly as we expect, and
we may be unable to hire or retain sufficient numbers of qualified individuals in the markets where we do business or plan to do
business. If we are unable to hire and train sufficient numbers of effective sales personnel, or the sales personnel are not successful
in obtaining new customers or increasing our existing customers&#8217; spend with us, our business will be adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our management team has limited experience
managing a public company.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The members of our management team
have limited or no experience managing a publicly-traded company, interacting with public company investors, and complying
with the increasingly complex laws, rules&nbsp;and regulations that govern public companies. There are significant
obligations we will now be subject to relating to reporting, procedures and internal controls, and our management team may
not successfully or efficiently manage our transition to being a public company. These new obligations and scrutiny will
require significant attention from our management and could divert their attention away from the day-to-day management of our
business, which could adversely affect our business, financial condition and operating results.</P>

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

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

<P STYLE="font: 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">Prior to, and in no event not later than,
the closing of the offering, we will obtain director and officer liability insurance in the amount of $2 million to cover liabilities
our directors and officers may incur in connection with their services to us. There is no guarantee that such insurance coverage
will protect us from any damages or loss claims filed against it.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Our ability to use certain net
operating loss carryforwards and certain other tax attributes may be limited.</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: justify; background-color: white">Under Sections
382 and 383 of the Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;), if a corporation undergoes an &quot;ownership
change,&quot; the corporation's ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes
to offset its post-change income and taxes may be limited. In general, an &quot;ownership change&quot; occurs if there is a cumulative
change in ownership of the relevant corporation by &quot;5% shareholders&quot; (as defined under U.S. income tax laws) that exceeds
50 percentage points over a rolling three-year period. Similar rules&nbsp;apply under state tax laws.</P>

<P STYLE="font: 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">Additionally, under the 2017 Tax Cuts and
Jobs Act, tax losses generated in taxable years beginning after December&nbsp;31, 2017 may be utilized to offset not more than
80% of taxable income annually. This change may require us to pay U.S. federal income taxes in future years despite generating
a loss for federal income tax purposes. There is also a risk that due to future changes in U.S. federal income tax laws, such as
suspensions on the use of net operating loss, or other unforeseen reasons, any net operating losses could be unavailable to offset
future income tax liabilities. For these reasons, we may not be able to realize a tax benefit from the use of our net operating
loss whether or not we attain profitability.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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>Risks Related to Our Common Stock and
This Offering</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"><B><I>Investors in this offering will experience
immediate and substantial dilution in net tangible book value.</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: justify">The public offering price per unit will
be substantially higher than the net tangible book value per share of our outstanding shares of common stock. As a result, investors
in this offering will incur immediate dilution of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, based on the
assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per unit, the mid-point of the estimated
offering price range described on the cover of this prospectus. Investors in this offering will pay a price per unit that substantially
exceeds the book value of our assets after subtracting our liabilities. To the extent that the warrants sold in this offering are
exercised, you will experience further dilution. See &#8220;<I>Dilution</I>&#8221; for a more complete description of how the value
of your investment will be diluted upon the completion of this offering.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have applied to list the shares of our
common stock and warrants on The Nasdaq Capital Market, or Nasdaq, under the symbols &#8220;KBNT&#8221; and &#8220;KBNTW&#8221;,
respectively. An approval of our listing application by Nasdaq will be subject to, among other things, our fulfilling all of the
listing requirements of Nasdaq. In addition, Nasdaq has rules&nbsp;for continued listing, including, without limitation, minimum
market capitalization and other requirements. Failure to maintain our listing, or de-listing from Nasdaq, would make it more difficult
for shareholders to sell our common stock and more difficult to obtain accurate price quotations on our common stock. This could
have an adverse effect on the price of our common stock. Our ability to issue additional securities for financing or other purposes,
or otherwise to arrange for any financing we may need in the future, may also be materially and adversely affected if our common
stock is not traded on a national securities exchange.</P>

<P STYLE="font: 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"><B><I>There has been no prior public trading
market for our common stock and an active trading market may not develop or be sustained following this offering.</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: justify">Prior to this offering there has been
no prior public trading market for our common stock or warrants. We cannot assure you that an active trading market for our
common stock and/or warrants will develop or, if developed, that any market will be sustained. Accordingly, we cannot assure
you of the liquidity of any trading market, your ability to sell your shares of our common stock or warrants when desired or
the prices that you may obtain for your shares of our common stock or warrants. Even if an active market for our common stock
and warrants does develop, the market price of such securities may be highly volatile. In addition to the uncertainties
relating to future operating performance and the profitability of operations, factors such as variations in interim financial
results or various, as yet unpredictable, factors, many of which are beyond our control, may have a negative effect on the
market price 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-align: justify"><B><I>The trading price of our common stock
and/or warrants could be volatile, and you could lose all or part of your investment.</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: justify">Prior to this offering, there has been
no public market for shares of our common stock or warrants. The initial public offering price of our Units was determined through
negotiation among us and the underwriters. This price does not necessarily reflect the price at which investors in the market will
be willing to buy and sell shares of our stock and warrants following this offering. The trading price of our common stock following
this offering may fluctuate substantially. Following the completion of this offering, the market price of our common stock may
be higher or lower than the price you pay in the offering, depending on many factors, some of which are beyond our control and
may not be related to our operating performance. These fluctuations could cause you to lose all or part of your investment in our
common stock. Factors that could cause fluctuations in the trading price of our common stock include the following:</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">announcements of new products or technologies, commercial relationships, acquisitions or other events by us or our competitors;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes in how customers perceive the benefits of our platform;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">shifts in the mix of billings and revenue attributable to perpetual licenses or term licenses from quarter to quarter;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">departures of key personnel;</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>

<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: Symbol; font-size: 10pt">&middot;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">price and volume fluctuations in the overall stock market from time to time;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">fluctuations in the trading volume of our shares or the size of our public float;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">sales of large blocks of our common stock;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">actual or anticipated changes or fluctuations in our operating results;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">changes in actual or future expectations of our operating results by investors or securities analysts;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">litigation involving us, our industry or both;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">regulatory developments in the United States, foreign countries or both;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">general economic conditions and trends, including the possible effects of the widespread domestic and global impact of the COVID-19 pandemic; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">major catastrophic events in our domestic and foreign markets.</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: justify">In addition, if the market for technology
stocks or the stock market in general experiences a loss of investor confidence, the trading price of our common stock or warrants
could decline for reasons unrelated to our business, operating results or financial condition. The trading price of our common
stock might also decline in reaction to events that affect other companies in our industry even if these events do not directly
affect us. In the past, following periods of volatility in the trading price of a company&#8217;s securities, securities class
action litigation has often been brought against that company.</P>

<P STYLE="font: 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"><B><I>In the event that our common stock
and warrants are listed on The Nasdaq Capital Market, our stock price could fall and we could be delisted in which case broker-dealers
may be discouraged from effecting transactions in shares of our common stock because they may be considered penny stocks and thus
be subject to the penny stock rules.</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: justify">The SEC has adopted a number of
rules&nbsp;to regulate &#8220;penny stocks&#8221; that restricts transactions involving stock which is deemed to be penny
stock. Such rules&nbsp;include Rules&nbsp;3a51-1, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, 15g-7, and 15g-9 under the
Securities and Exchange Act of 1934, as amended. These rules&nbsp;may have the effect of reducing the liquidity of penny
stocks. &#8220;Penny stocks&#8221; generally are equity securities with a price of less than $5.00 per share (other than
securities registered on certain national securities exchanges or quoted on Nasdaq if current price and volume information
with respect to transactions in such securities is provided by the exchange or system). Our securities may in the future
constitute, &#8220;penny stock&#8221; within the meaning of the rules. The additional sales practice and disclosure
requirements imposed upon U.S. broker-dealers may discourage such broker-dealers from effecting transactions in shares of our
common stock, which could severely limit the market liquidity of such shares and impede their sale in the secondary
market.</P>

<P STYLE="font: 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">A U.S. broker-dealer selling penny stock
to anyone other than an established customer or &#8220;accredited investor&#8221; (generally, an individual with net worth in excess
of $1,000,000 or an annual income exceeding $200,000, or $300,000 together with his or her spouse) must make a special suitability
determination for the purchaser and must receive the purchaser&#8217;s written consent to the transaction prior to sale, unless
the broker-dealer or the transaction is otherwise exempt. In addition, the &#8220;penny stock&#8221; regulations require the U.S.
broker-dealer to deliver, prior to any transaction involving a &#8220;penny stock&#8221;, a disclosure schedule prepared in accordance
with SEC standards relating to the &#8220;penny stock&#8221; market, unless the broker-dealer or the transaction is otherwise exempt.
A U.S. broker-dealer is also required to disclose commissions payable to the U.S. broker-dealer and the registered representative
and current quotations for the securities. Finally, a U.S. broker-dealer is required to submit monthly statements disclosing recent
price information with respect to the &#8220;penny stock&#8221; held in a customer&#8217;s account and information with respect
to the limited market in &#8220;penny stocks&#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; text-align: justify">Stockholders should be aware that, according
to the SEC, the market for &#8220;penny stocks&#8221; has suffered in recent years from patterns of fraud and abuse. Such patterns
include (i)&nbsp;control of the market for the security by one or a few broker-dealers that are often related to the promoter or
issuer, (ii)&nbsp;manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases,
(iii)&nbsp;&#8220;boiler room&#8221; practices involving high-pressure sales tactics and unrealistic price projections by inexperienced
sales persons, (iv)&nbsp;excessive and undisclosed bid-ask differentials and markups by selling broker-dealers, and (v)&nbsp;the
wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level,
resulting in investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market.
Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the
market, management will strive within the confines of practical limitations to prevent the described patterns from being established
with respect to 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"></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: justify"><B><I>Speculative nature of warrants.</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: justify">The warrants offered in this offering do
not confer any rights of common stock ownership on their holders, such as voting rights or the right to receive dividends, but
rather merely represent the right to acquire shares of our common stock at a fixed price for a limited period of time. Specifically,
commencing on the date of issuance, holders of the warrants may exercise their right to acquire the common stock and pay an exercise
price of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, prior to five years from the
date of issuance, after which date any unexercised warrants will expire and have no further value. Moreover, following this offering,
the market value of the warrants is uncertain and there can be no assurance that the market value of the warrants will equal or
exceed their public offering price. There can be no assurance that the market price of the common stock will ever equal or exceed
the exercise price of the warrants, and consequently, whether it will ever be profitable for holders of the warrants to exercise
the 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-align: justify"><B><I>There may be future issuances or
resales of our common stock in connection with financings, acquisitions, investments, our stock incentive plans or otherwise, which
may materially and adversely dilute the ownership interest of stockholders.</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: justify">We are not restricted from issuing additional
shares of our common stock in the future, including securities convertible into, or exchangeable or exercisable for, shares of
our common stock. Our issuance of such additional shares of common stock in the future will dilute the ownership interests of our
then existing stockholders. We may also raise capital through equity financings in the future. As part of our business strategy,
we may acquire or make investments in complementary companies, products or technologies and issue equity securities to pay for
any such acquisition or investment. Any such issuances of additional capital stock may cause stockholders to experience significant
dilution of their ownership interests and the per share value of our common stock to decline.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may issue preferred stock, the
terms of which could adversely affect the voting power or value of our common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our certificate of incorporation authorizes
us to issue, without the approval of our stockholders, one or more classes or series of preferred stock having such designations,
preferences, limitations and relative rights, including preferences over our common stock respecting dividends and distributions,
as our board of directors may determine. The terms of one or more classes or series of preferred stock could adversely impact the
voting power or value of our common stock. For example, we might grant holders of preferred stock the right to elect some number
of our directors in all events or on the happening of specified events or the right to veto specified transactions. Similarly,
the repurchase or redemption rights or liquidation preferences we might assign to holders of preferred stock could affect the residual
value of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If securities analysts were to downgrade
our stock, publish negative research or reports or fail to publish reports about our business, our competitive position could suffer,
and our stock price and trading volume could decline.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The trading market for our common
stock will, to some extent, depend on the research and reports that securities analysts may publish about us, our business,
our market or our competitors. We do not have any control over these analysts. We do not currently have and may never obtain
research coverage by securities analysts. If no or few securities analysts commence coverage of us, the trading price of our
stock would likely decrease. Even if we do obtain analyst coverage, if one or more of the analysts who cover us should
downgrade our stock or publish negative research or reports, cease coverage of our company or fail to regularly publish
reports about our business, our competitive position could suffer, and our stock price and trading volume could decline.</P>

<P STYLE="font: 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"><B><I>The requirements of being a public
company, including compliance with the reporting requirements of the Exchange Act, and the requirements of the Sarbanes-Oxley Act,
may strain our resources, increase our costs and divert management&#8217;s attention, and we may be unable to comply with these
requirements in a timely or cost-effective manner.</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: justify">As a public company, we will need to comply
with new laws, regulations and requirements, certain corporate governance provisions of the Sarbanes-Oxley Act, the Securities
Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;), related regulations of the SEC and the requirements of Nasdaq,
with which we are not required to comply as a private company. Complying with these statutes, regulations and requirements will
occupy a significant amount of time of our board of directors and management and will significantly increase our costs and expenses.
We will need to:</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">institute a more comprehensive compliance function;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">comply with rules&nbsp;promulgated by Nasdaq;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">continue to prepare and distribute periodic public reports in compliance with our obligations under the federal securities laws;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">establish new internal policies, such as those relating to insider trading; 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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">involve and retain to a greater degree outside counsel and accountants in the above activities.</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: justify">In addition, we expect that being a public
company subject to these rules&nbsp;and regulations may make it more difficult and more expensive for us to obtain director and
officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher
costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified individuals
to serve on our board of directors or as executive officers. We are currently evaluating these rules, and we cannot predict or
estimate the amount of additional costs we may incur or the timing of such costs.</P>

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

<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: justify"><B><I>Our internal control over financial
reporting may not be effective and our independent registered public accounting firm may not be able to certify as to their effectiveness
in the future, which could have a significant and adverse effect on our business, financial condition, results of operations and
reputation.</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: justify">After the completion of this offering,
we will be subject to a requirement, pursuant to Section&nbsp;404 of the Sarbanes-Oxley Act, to conduct an annual review and evaluation
of our internal control over financial reporting and furnish a report by management on, among other things, our assessment of the
effectiveness of our internal control over financial reporting each fiscal year beginning with the year following our first annual
report required to be filed with the SEC. However, because we are an emerging growth company, our independent registered public
accounting firm is not required to formally attest to the effectiveness of our internal control over financial reporting pursuant
to Section&nbsp;404 until the earlier of the fifth year following our first annual report required to be filed with the SEC or
the date we are no longer an emerging growth company. Ensuring that we have adequate internal control over financial reporting
in place so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that must
be evaluated frequently. Establishing and maintaining these internal controls will be costly and may divert management&#8217;s
attention.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When evaluating our internal control over
financial reporting, we may identify material weaknesses that we may not be able to remediate in time to meet the applicable deadline
imposed upon us for compliance with the requirements of Section&nbsp;404 of the Sarbanes-Oxley Act. In addition, if we fail to
achieve and maintain the adequacy of our internal control over financial reporting, as such standards are modified, supplemented
or amended from time to time, we may not be able to ensure that we can conclude, on an ongoing basis, that we have effective internal
control over financial reporting in accordance with Section&nbsp;404 of the Sarbanes-Oxley Act. We cannot be certain as to the
timing of completion of our evaluation, testing and any remediation actions or the impact of the same on our operations. If we
do not adequately implement or comply with the requirements of Section&nbsp;404 of the Sarbanes-Oxley Act, we may be subject to
sanctions or investigation by regulatory authorities, such as the SEC, or suffer other adverse regulatory consequences, including
penalties for violation of Nasdaq rules. As a result, there could be a negative reaction in the financial markets due to a loss
of confidence in the reliability of our financial statements. A loss of confidence in the reliability of our financial statements
also could occur if we or our independent registered public accounting firm were to report one or more material weaknesses in our
internal control over financial reporting. In addition, we may be required to incur costs in improving our internal control system,
including the costs of the hiring of additional personnel. Any such action could negatively affect our business, financial condition,
results of operations and cash flows and could also lead to a decline in the price of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our officers, directors and principal
stockholders currently own a substantial number of shares of our common stock and have, and following the offering will continue
to have, the power to significantly influence the vote on all matters submitted to a vote of our stockholders.</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: justify">As of July 1, 2020, our Chief Strategy
Officer, President and Chairman, Mr.&nbsp;Paul Roberts, beneficially owned 19,200,030 shares of our common stock, representing
58.78% of our issued and outstanding shares of our common stock. In the event of the sale of the maximum amount of our common stock
in this offering, Mr.&nbsp;Roberts will hold approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
of our issued and outstanding common stock. Thus, while the Company does not believe that it will be a &ldquo;controlled company&rdquo;
under Nasdaq Rule&nbsp;5615(c)&nbsp;after the offering, based on his significant ownership of our common stock, Mr.&nbsp;Roberts
will continue to maintain the ability to significantly influence the election of our directors and the outcome of corporate actions
requiring stockholder approval, such as: (i)&nbsp;a merger or a sale of our company, (ii)&nbsp;a sale of all or substantially all
of our assets, and (iii)&nbsp;amendments to our articles of incorporation and bylaws. This concentration of voting power and control
could have a significant effect in delaying, deferring or preventing an action that might otherwise be beneficial to our other
stockholders and be disadvantageous to our stockholders with interests different from those individuals. Mr.&nbsp;Roberts also
has significant control over our business, policies and affairs as an officer and director of our company. Therefore, you should
not invest in reliance on your ability to have any control over our company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Management will have broad discretion
over the use of our proceeds from this offering.</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: justify">The principal purposes of this offering
include increasing our capitalization and financial flexibility, creating a public market for our stock, thereby enabling access
to the public equity markets by our employees and stockholders, obtaining additional capital and increasing our visibility in the
marketplace. Although we have not yet determined with certainty the manner in which we will allocate the net proceeds of this offering,
we expect to use the net proceeds from this offering for product development, working capital, capital expenditures and other general
corporate purposes, including investments in sales and marketing in the United States and internationally. We may also use a portion
of the proceeds from this offering for acquisitions or strategic investments in complementary businesses, brands or technologies.
See &#8220;<I>Use of Proceeds</I>.&#8221; We have not allocated specific amounts of net proceeds for any of these purposes and
we cannot specify with certainty the particular uses of the net proceeds to us from this offering. Accordingly, we will have broad
discretion in using these proceeds and might not be able to obtain a significant return, if any, on investment of these net proceeds.
Investors in this offering will need to rely upon the judgment of our management with respect to the use of our proceeds. If we
do not use the net proceeds that we receive in this offering effectively, our business, operating results and financial condition
could be harmed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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: justify"><B><I>We do not anticipate that we will
pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation
in the price of our common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have never declared or paid any dividends
on our common stock. We intend to retain any earnings to finance the operation and expansion of our business, and we do not anticipate
paying any cash dividends in the foreseeable future. In addition, in the future we may enter into agreements that prohibit or restrict
our ability to declare or pay dividends on our common stock. As a result, you may only receive a return on your investment in our
common stock if the market price of our common stock increases.</P>

<P STYLE="font: 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"><B><I>Our charter documents and Delaware
law could discourage takeover attempts and other corporate governance changes.&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: lightgrey"></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-align: justify">Our certificate of incorporation and bylaws
contain provisions that could delay or prevent a change in control of our company. These provisions could also make it difficult
for stockholders to elect directors that are not nominated by the current members of our board of directors or take other corporate
actions, including effecting changes in our management. These provisions include the following provisions:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">permit the board of directors to establish the number of directors and fill any vacancies and newly created directorships;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">require super-majority voting to amend certain provisions in our certificate of incorporation and bylaws; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">eliminate the ability of our stockholders to call special meetings of stockholders; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">provide that the board of directors is expressly authorized to make, alter or repeal our bylaws; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">prohibit cumulative voting in the election of directors; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">restrict the forum for certain litigation against us to Delaware; </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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">permit our board of directors to alter our bylaws without obtaining stockholder approval; and </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">establish advance notice requirements for nominations for election to our board of directors or for proposing matters that can be acted upon by stockholders at annual stockholder meetings.</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: justify">In addition, as a Delaware corporation,
we are subject to Section&nbsp;203 of the Delaware General Corporation Law (the &#8220;DGCL&#8221;). These provisions may prohibit
large stockholders, in particular those owning 15% or more of our outstanding voting stock, from merging or combining with us for
a period of time.</P>

<P STYLE="font: 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"><B><I>Our amended and restated certificate
of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation that may
be initiated by our stockholders, which could limit our stockholders&#8217; ability to obtain a favorable judicial forum for disputes
with us.</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: justify">Pursuant to our amended and restated certificate
of incorporation, to the fullest extent permitted by law, unless we consent in writing to the selection of an alternative forum,
the Court of Chancery of the State of Delaware is the sole and exclusive forum for state law claims for (i)&nbsp;any derivative
action or proceeding brought on our behalf, (ii)&nbsp;any action asserting a claim of or based on a breach of a fiduciary duty
owed by any of our current or former directors, officers, or other employees to us or our stockholders, (iii)&nbsp;any action asserting
a claim against us arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation, or our
bylaws, or (iv)&nbsp;any action asserting a claim governed by the internal affairs doctrine. For the avoidance of doubt, this forum
selection clause will not apply to suits brought to enforce any liability or duty created by the Securities Act, the Exchange Act
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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We recognize that the forum selection clause
may impose additional litigation costs on stockholders who assert the provision is not enforceable and may impose more general
additional litigation costs in pursuing any such claims. Additionally, the forum selection clause in our bylaws may limit our stockholders&#8217;
ability to obtain a favorable judicial forum for disputes with us. The Court of Chancery of the State of Delaware may also reach
different judgments or results than would other courts, including courts where a stockholder considering an action may be located
or would otherwise choose to bring the action, and such judgments may be more or less favorable to us than our stockholders.</P>

<P STYLE="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: justify"><B><I>For as long as we are an emerging
growth company, we will not be required to comply with certain requirements that apply to other public 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: justify">We are an emerging growth company, as defined
in the JOBS Act. For as long as we are an emerging growth company, unlike other public companies, we will not be required to, among
other things: (i)&nbsp;provide an auditor&#8217;s attestation report on management&#8217;s assessment of the effectiveness of our
system of internal control over financial reporting pursuant to Section&nbsp;404(b)&nbsp;of the Sarbanes-Oxley Act, (ii)&nbsp;comply
with any new requirements adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotation or a
supplement to the auditor&#8217;s report in which the auditor would be required to provide additional information about the audit
and the financial statements of the issuer, (iii)&nbsp;provide certain disclosures regarding executive compensation required of
larger public companies, or (iv)&nbsp;hold nonbinding advisory votes on executive compensation and any golden parachute payments
not previously approved. In addition, the JOBS Act provides that an emerging growth company can take advantage of the extended
transition period provided in Section&nbsp;7(a)(2)(B)&nbsp;of the Securities Act for adopting new or revised financial accounting
standards. We intend to take advantage of the longer phase-in periods for the adoption of new or revised financial accounting standards
permitted under the JOBS Act until we are no longer an emerging growth company. If we were to subsequently elect instead to comply
with these public company effective dates, such election would be irrevocable pursuant to the JOBS Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will remain an emerging growth company
for up to five full fiscal years, although we will lose that status sooner if we have more than $1.07 billion of revenues in a
fiscal year, have more than $700 million in market value of our common stock held by non-affiliates (and have been a public company
for at least 12 months and have filed one annual report on Form&nbsp;10-K), or issue more than $1.0 billion of non-convertible
debt over a three-year 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: justify">To the extent that we rely on any of the
exemptions available to emerging growth companies, you will receive less information about our executive compensation and internal
control over financial reporting than issuers that are not emerging growth companies. We cannot predict if investors will find
our common stock less attractive because we will rely on these exemptions. If some investors find our common stock to be less attractive
as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.</P>

<P STYLE="font: 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"><B><I>Sales of a substantial number of
shares of our common stock following this offering may adversely affect the market price of our common stock and the issuance of
additional shares will dilute all other stockholders.</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: justify">Sales of a substantial number of
shares of our common stock in the public market or otherwise following this offering, or the perception that such sales could
occur, could adversely affect the market price of our common stock. After completion of this offering at an assumed offering
price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per unit, the mid-point of the estimated offering
price range described on the cover of this prospectus, our existing stockholders will own approximately
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our common stock assuming there is no exercise of the
underwriters&#8217; over-allotment option.</P>

<P STYLE="font: 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">After completion of this offering at an
assumed offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per unit, the mid-point of the estimated
offering price range described on the cover of this prospectus, there will be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
shares of our common stock outstanding. In addition, our certificate of incorporation, as amended, permits the issuance of up to
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional shares of common stock after the completion
of this offering. Thus, we have the ability to issue substantial amounts of common stock in the future, which would dilute the
percentage ownership held by the investors who purchase shares of our common stock in this 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-align: justify">We and our officers, directors and certain
stockholders have agreed, subject to customary exceptions, not to, without the prior written consent of Maxim Group LLC and Joseph
Gunnar&nbsp;&amp; Co. LLC, the representative of the underwriters, during the period ending 365 days from the date of this offering
in the case of us and our certain directors and officers, 90-180 days from the date of this offering in the case of our stockholders
who beneficially own more than 5% of our common stock, directly or indirectly, offer to sell, sell, pledge or otherwise transfer
or dispose of any of shares of our common stock, enter into any swap or other derivatives transaction that transfers to another
any of the economic benefits or risks of ownership of shares of our common stock, make any demand for or exercise any right or
cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of
common stock or securities convertible into or exercisable or exchangeable for common stock or any other securities of the Company
or publicly disclose the intention to do any of the foregoing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After the lock-up agreements with certain
of our principal stockholders pertaining to this offering expire, up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of the
shares that had been locked up will be eligible for future sale in the public market. After the lock-up agreements with our directors
and officers pertaining to this offering expire, up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of the shares (net of any
shares also restricted by lock-up agreements with our principal stockholders) that had been locked up will be eligible for future
sale in the public market. After the lock-up agreements with certain directors, officers and principal stockholders pertaining
to this offering expire, unless waived earlier by the managing underwriter, up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
of the shares (net of any shares also restricted by lock-up agreements with our principal stockholders) that had been locked up
will be eligible for future sale in the public market. Sales of a significant number of these shares of common stock in the public
market could reduce the market price of the common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="c_002"></A><B>SPECIAL NOTE REGARDING FORWARD-LOOKING
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-align: justify">This prospectus contains forward-looking
statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking
statements generally relate to future events or our future financial or operating performance. All statements of historical fact
included in this prospectus regarding our strategy, future operations, financial position, estimated revenues and losses, projected
costs, prospects, plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking
statements because they contain words such as &#8220;may,&#8221; &#8220;should,&#8221; &#8220;expects,&#8221; &#8220;plans,&#8221;
 &#8220;anticipates,&#8221; &#8220;could,&#8221; &#8220;intends,&#8221; &#8220;target,&#8221; &#8220;projects,&#8221; &#8220;contemplates,&#8221;
 &#8220;believes,&#8221; &#8220;estimates,&#8221; &#8220;predicts,&#8221; &#8220;potential&#8221; or &#8220;continue&#8221; or the
negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. When
considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under
the heading &#8220;<I>Risk Factors</I>&#8221; included in this prospectus. These forward-looking statements are based on management&#8217;s
current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements
contained in this prospectus include, but are not limited to, statements about:</P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our future financial performance, including our expectations regarding our revenue, annual recurring revenue, gross profit or gross margin, operating expenses, ability to generate cash flow, revenue mix and ability to maintain future profitability;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">our beliefs regarding the possible
effects of the widespread domestic and global impact of the COVID-19 pandemic, including on general economic conditions, public
health, and consumer demand and financial markets, as well as our results of operations, liquidity, capital resources, and general
performance in the future;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our expectations regarding the use of funds from our PPP loan and the potential for forgiveness of the PPP loan under the terms of the PPP;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">anticipated trends and growth rates in our business and in the markets in which we operate;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to maintain and expand our customer base;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to sell our platform and expand internationally;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to anticipate market needs and successfully develop new and enhanced solutions to meet those needs;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to hire and retain necessary qualified employees to grow our business and expand our operations;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the evolution of technology affecting our platform;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to adequately protect our intellectual property;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to service our debt obligations; 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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our anticipated uses of our net proceeds from this offering.</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: justify">We caution you that the foregoing list
may not contain all of the forward-looking statements made in this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You should not rely upon forward-looking
statements as predictions of future events. We have based the forward-looking statements contained in this prospectus primarily
on our current expectations and projections about future events and trends that we believe may affect our business, financial condition,
results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks,
uncertainties and other factors described in the section titled &#8220;<I>Risk Factors</I>&#8221; and elsewhere in this prospectus.
Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time
and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements
contained in this prospectus. We cannot assure you that the results, events and circumstances reflected in the forward-looking
statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described
in the forward-looking 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; text-align: justify">The forward-looking statements made in
this prospectus relate only to events as of the date on which the statements are made. We undertake no obligation to update any
forward-looking statements made in this prospectus to reflect events or circumstances after the date of this prospectus or to reflect
new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions
or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="d_001"></A><B>USE OF PROCEEDS</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">We estimate that the net proceeds from
our issuance and sale of shares of our common stock and warrants in this offering will be approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, or $&nbsp;&nbsp;
million if the underwriters exercise their over-allotment option in full.</P>

<P STYLE="font: 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">Our management will have sole control over
our accounts. As a result, investors in this offering are subject to the risk that creditors could attach to these funds.</P>

<P STYLE="font: 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">We currently expect to use the net proceeds
of this offering for product development, working capital, capital expenditures, repayment of debt totaling approximately $114,000,
offering expenses, and other general corporate purposes, including investments in sales and marketing in the United States and
internationally.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may also use a portion of the proceeds
from this offering for acquisitions or strategic investments in complementary businesses, brands or technologies. We have not allocated
specific amounts of net proceeds for any of these purposes.</P>

<P STYLE="font: 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">Each $1.00 increase or decrease in the
assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share would
increase or decrease the net proceeds to us from this offering by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
, assuming that the amount of shares of common stock offered by us, as set forth on the cover page&nbsp;of this prospectus, remains
the same, and after deducting underwriting discounts and commissions payable by us. We may also increase or decrease the number
of shares of common stock we are offering. An increase or decrease of shares of common stock offered by us in this offering would
increase or decrease the net proceeds to us by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
, assuming that the assumed price per unit to the public remains the same, and after deducting underwriting discounts and commissions
payable by us. We do not expect that a change by these amounts in the offering price to the public or the common stock offered
by us would have a material effect on our uses of the proceeds from this offering, although it may accelerate the time at which
we will need to seek additional capital.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Assuming the maximum amount of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
shares of common stock are sold by us, we expect that the net proceeds, together with our existing cash and cash equivalents will
enable us to fund our operating expenses and capital expenditure requirements for at least twenty-four months. In addition, we
have granted the representative of the underwriters a 45-day option to purchase up to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
additional shares of common stock solely to cover over-allotments of shares in this offering. We will use the proceeds from the
sale of these additional shares for working capital and general corporate purposes.</P>

<P STYLE="font: 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">The expected use of net proceeds represents
our intentions based upon our current plans and business conditions, which could change in the future as our plans and business
conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to working capital,
may vary significantly depending on numerous factors. As a result, our management will retain broad discretion over the allocation
of such net proceeds.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, we plan to invest these proceeds
in short term investments until needed for the uses described above.</P>

<P STYLE="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"><A NAME="d_002"></A><B>DIVIDEND 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-align: justify">We have not historically declared dividends
on our common stock, and we do not currently intend to pay dividends on our common stock. The declaration, amount and payment
of any future dividends on shares of our common stock, if any, will be at the sole discretion of our board of directors, out of
funds legally available for dividends. We anticipate that we will retain our earnings, if any, for the growth and development
of our business.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: lightgrey"></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-align: center"><A NAME="d_003"></A><B>CAPITALIZATION</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">The following table sets forth our cash
and cash equivalents and our capitalization as of March 31, 2020 as follows:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on an actual basis, reflecting our capitalization on a standalone basis;</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: 48px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">on a pro forma basis after giving effect to the sale and issuance of units, each consisting of one share of common stock and one warrant to purchase one share of common stock, pursuant to this public offering at a public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per unit, which is the mid-point of the estimated offering price range described on the cover of this prospectus, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us; 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: 48px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-size: 10pt">&bull;</FONT></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">on a pro forma as adjusted basis after giving effect to the
following upon the closing of this public offering: (i) the conversion of principal and accrued interest on the Senior Notes, Junior
Notes and Related Party Notes into the units in this offering calculated through &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2020; and (ii) the repayment of certain notes
payable.</P></TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our capitalization following the closing
of this offering will depend on the actual initial public offering price and other terms of this offering determined at pricing.
You should read this table together with our financial statements and the related notes appearing at the end of this prospectus
and the sections of this prospectus titled &#8220;<I>Management&#8217;s Discussion and Analysis of Financial Condition and Results
of Operations</I>&#8221; and &#8220;<I>Description of Securities</I>&#8221; sections of this prospectus.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&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">As of March 31, 2020</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Actual</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Pro Forma</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center">Pro Forma<BR> As Adjusted</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">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 58%; font-size: 10pt">Cash</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">21,017</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">Total indebtedness</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,217,618</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD 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">Stockholders' (Deficiency) Equity:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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">Preferred stock, $0.00001 par value; 5,000,000 shares authorized;</TD><TD 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: 12px">No shares issued and outstanding on an actual, pro forma and</TD><TD 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: 12px">pro forma as adjusted basis as of March 31, 2020</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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">Common stock, $0.00001 par value; 95,000,000 shares authorized;</TD><TD 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: 12px">32,413,686, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares issued and outstanding on an actual,</TD><TD 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pro forma and pro forma as adjusted basis as of March 31, 2020, respectively</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">324</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD 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: 12px">Additional paid-in capital</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,367,830</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD 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-bottom: 1pt; padding-left: 12px">Accumulated deficit</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">(8,461,515</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">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">Total Stockholders' (Deficiency) Equity</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(5,093,361</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">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Total Capitalization</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">(5,093,361</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>


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

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="d_004"></A><B>DILUTION</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">If you invest in our common stock, your
interest will be diluted to the extent of the difference between the public offering price per unit paid by purchasers of units
in this offering and the pro forma as adjusted net tangible book value per share of our common stock immediately after the completion
of this offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
historical net tangible book value (deficit) as of March&nbsp;31, 2020 was $(6,626,087) or $(</FONT>0.20) per share of common stock.
Our historical net tangible book value (deficit) per share represents our total tangible assets less our total liabilities, divided
by the shares of common stock outstanding as of March&nbsp;31, 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; text-align: justify">Our pro forma net tangible book value (deficit)
as of March&nbsp;31, 2020 was $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of common stock. Our pro forma net tangible book value (deficit) represents pro
forma total tangible assets less pro forma total liabilities and pro forma net tangible book value (deficit) per share represents
pro forma net tangible book value divided by the total number of shares outstanding as of March&nbsp;31, 2020, each after giving
effect to the sale and issuance of units, each consisting of one share of common stock and one warrant to purchase one share of
common stock, pursuant to this public offering at a public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per unit,
which is the mid-point of the estimated offering price range described on the cover of this prospectus, after deducting the estimated
underwriting discounts and commissions and estimated offering expenses payable by us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our pro forma as adjusted net tangible book value (deficit)
represents our pro forma net tangible book value (deficit), plus the effect of the following upon the closing of this public offering:
(i) principal and accrued interest on the Senior Notes, Junior Notes and Related Party Notes into the units in this offering; and
(ii) the repayment of certain notes payable. Our pro forma as adjusted net tangible book value as of March&nbsp;31, 2020 would
have been $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share of common stock.
This amount represents an immediate increase in historical net tangible book value of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share
to existing stockholders and an immediate dilution of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share
to new investors purchasing units in this offering.</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">The following table illustrates this dilution on a per share
basis to new investors:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Assumed public offering price per share</FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 87%"><FONT STYLE="font-size: 10pt">Historical net tangible book value per share as of March&nbsp;31, 2020</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-size: 10pt">(0.20</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Increase in pro forma net tangible book value (deficit) per share attributed to new investors purchasing shares from us in this offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Pro forma net tangible book value (deficit) per share as of March 31, 2020 after giving effect to this offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Increase in pro forma as adjusted net tangible book value (deficit) per share </FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-size: 10pt">Pro forma as adjusted net tangible book value (deficit) per share as of March&nbsp;31, 2020 </FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-size: 10pt">Dilution per share to new investors in this offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The dilution information discussed above
is illustrative only and will change based on the actual public offering price and other terms of this offering to be determined
at pricing. A $1.00 increase (decrease) in the assumed public offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share would
increase (decrease) the pro forma net tangible book value per share by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , assuming
the number of shares of common stock offered by us, as set forth on the cover page&nbsp;of this prospectus, remains the same, after
deducting the estimated underwriting discounts and commissions. Assuming a public offering price of $&nbsp;&nbsp;&nbsp;&nbsp; per
share, warrants to purchase an additional shares of our common stock could be exercised which would result in the increase to the
pro forma as adjusted net tangible book value by approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, assuming the offering
amount on the cover page&nbsp;of this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table summarizes as of March&nbsp;31,
2020, on the pro forma as adjusted basis described above, the number of shares of our common stock, the total consideration and
the average price per share (i)&nbsp;paid to us by our existing stockholders, and (ii)&nbsp;to be paid by investors purchasing
shares of our common stock in this offering at an assumed public offering price of $ per share, before deducting underwriting discounts
and commissions and estimated offering expenses payable by us:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shares <BR>
Purchased</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total <BR>
Consideration</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-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Weighted- <BR>
Average <BR>
Price</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</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>Number</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percent</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-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percent</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-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Per Share</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left; width: 35%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Existing stockholders</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: right; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</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">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New investors</FONT></TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;</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">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</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; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100.0</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">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-bottom: black 2.25pt double">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100.0</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD></TR>
</TABLE>
<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"></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: justify">The number of shares that will be outstanding
after this offering is based on 32,413,686 shares of common stock outstanding as of March&nbsp;31, 2020, but excludes:</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">all warrants outstanding or issuable in connection with this offering;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,119,300 shares of our common stock reserved for future issuance under our equity compensation plans;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">880,700 shares of our common stock issuable upon the exercise of options outstanding as of March&nbsp;31, 2020 with a weighted average exercise price of $1.85 per share;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,247,000 shares of our common stock issuable upon the exercise of warrants outstanding as of March&nbsp;31, 2020 with a weighted average exercise price of $0.55 per share; 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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">193,670 shares of our common stock issuable upon the conversion of convertible notes outstanding as of March&nbsp;31, 2020 with a weighted average conversion price of $0.45 per share, which such share and conversion price amounts e</FONT>xclude the effect of shares issuable upon conversion of the Senior and Junior Notes, which are not currently convertible and whose conversion price is not currently known.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent that warrants are exercised,
new options or other securities are issued under our equity incentive plan, or we issue additional shares of common stock or preferred
stock in the future, there will be further dilution to investors participating in this offering. In addition, we may choose to
raise additional capital because of market conditions or strategic considerations, even if we believe that we have sufficient funds
for our current or future operating plans. If we raise additional capital through the sale of equity or convertible debt securities,
the issuance of these securities could result in further dilution to our stockholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="d_005"></A><B>PRICE OF OUR 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-align: justify">Prior to this offering, shares of our common
stock have not been traded on an established public trading market and quotations for shares of our common stock were not reported
on any market. As a result, there has been no regular market for shares of our common stock. Although shares of our common stock
may have been sporadically traded in private transactions, the prices at which such transactions occurred may not necessarily reflect
the price that would be paid for our common stock in an active market. As of July 1, 2020, there were approximately 46 holders
of record of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We anticipate that this offering and the
successful listing of our common stock on The Nasdaq Capital Market will result in a more active trading market for our common
stock. However, we cannot assure you that a liquid trading market for our common stock will develop or be sustained after this
offering. You may not be able to sell your shares quickly or at the market price if trading in our common stock is not active.</P>

<P STYLE="font: 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"><A NAME="d_006"></A><B>MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION</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"><I>The following discussion and analysis
of our financial condition and results of operations for the years ended December&nbsp;31, 2019 and December&nbsp;31, 2018, as
well as for the quarters ended March&nbsp;31, 2020 and 2019, and should be read in conjunction with the information included under
 &#8220;Business,&#8221; and our consolidated financial statements and the accompanying notes included elsewhere in this prospectus.
The discussion and analysis below are based on comparisons between our historical financial data for different periods and include
certain forward-looking statements about our business, operations and financial performance. These forward-looking statements are
subject to risks, uncertainties, assumptions and other factors described in &#8220;Risk Factors.&#8221; Our actual results may
differ materially from those expressed in, or implied by, those forward-looking statements. See &#8220;Special Note Regarding Forward-Looking
Statements.&#8221;</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-align: justify"><B>Overview</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">Kubient, a Delaware corporation, was incorporated
in May&nbsp;2017 to solve some of the most significant problems facing the global digital advertising industry.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our experienced team of marketing and technology
veterans has developed the Audience Cloud, a modular, highly scalable, transparent, cloud-based software platform for real-time
trading of digital, programmatic advertising. Our platform&#8217;s open marketplace gives both advertisers (ad space buyers) and
publishers (ad space sellers) the ability to use machine learning in the most critical parts of any programmatic advertising inventory
auction, while simultaneously and significantly reducing those advertisers and publishers&#8217; exposure to fraud, even in a pre-bid
environment.</P>

<P STYLE="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: justify">By becoming a one stop shop for advertisers
and publishers, providing them with the technology to deliver meaningful messages to their target audience, all in one place, on
a single platform that is computationally efficient, transparent, and as safely fraud-free as possible, we believe that our platform
(and the application of its machine learning algorithms) leads to increased publisher revenue, lower advertiser cost, reduced latency
and increased economic transparency during the advertising auction process.</P>

<P STYLE="font: 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"><B>Components of Our Results of Operations</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"><U>Net Revenues</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-align: justify">Kubient provides a service to its customers
by providing its platform to connect advertisers and publishers as well as to analyze customers&rsquo; data for potential ad fraud.
For these services, we earn net revenue, which is the spread between what we collect from advertisers, who want to run an ad campaign,
and what we pay to publishers, who want to sell their ad space. In addition, during the quarter ended March 31, 2020, we allowed
two clients to beta test KAI, our fraud prevention technology powered by machine learning. This testing was invaluable as it provided
us an opportunity to stress test our ability to handle large scale, concurrent input of data into our system which is then analyzed
using our patent-pending proprietary machine learning technology. We were able to successfully ingest hundreds of millions of rows
of data in real-time and provide our clients the ability to prevent the purchase of non-human or fraudulent advertising traffic.
We were able to gather a tremendous amount of data from these two beta test clients which will lead to additional improvements
to our technology. While KAI was monetized in the first quarter during beta testing, it is expected to deploy as a commercially
available stand-alone enterprise product in the third quarter of 2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Technology</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-align: justify">Technology expenses consists costs associated
with the development and operation of our technology platform, including compensation expenses related to our technology personnel
(including salaries, commissions, bonuses, stock-based compensation and taxes), fees for independent contractors, computer hosting
and technology-related subscription costs, and amortization expense of our intangible assets.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>General and Administrative</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-align: justify">General and administrative expenses consists
primarily of compensation expenses related to our executive, finance and administrative personnel (including salaries, commissions,
bonuses, stock-based compensation and taxes), professional fees, selling and marketing fees, rent expense, general and administrative
related subscription costs fees for independent contractors and bad debt expense.</P>

<P STYLE="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: justify"><B>Results of Operations</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"><B><I>Three Months Ended March&nbsp;31,
2020 Compared With Three Months Ended March&nbsp;31, 2019</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: justify">The following table presents the results
of operations for the three months ended March&nbsp;31, 2020 and 2019:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">For the Three Months Ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left">&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">March&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; text-align: left">&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">2020</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">2019</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: bold 10pt Times New Roman, Times, Serif; width: 74%; text-align: left; padding-bottom: 1pt">Net Revenues</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">1,381,913</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">56,806</TD><TD STYLE="width: 1%; 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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left">Operating Expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Technology</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">480,401</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">372,951</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="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">General and administrative</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">663,926</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">132,607</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt">Total Operating 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">1,144,327</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">505,558</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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt">Income (Loss) From Operations</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">237,586</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">(448,752</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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left">Other (Expense) Income:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif; text-indent: 0.125in; text-align: left">Interest 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">(432,812</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">(16,436</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-indent: 0.125in; text-align: left">Interest expense - related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(100,914</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">-</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="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Gain on forgiveness of accounts payable - supplier</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">236,248</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">-</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="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Other income</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">1,794</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">244</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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt">Total Other Expense</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">(295,684</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">(16,192</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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 2.5pt">Net Loss</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(58,098</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(464,944</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Net Revenues</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-align: justify">For the three months ended March&nbsp;31,
2020, net revenues increased by $1,325,107, or 2,333%, to $1,381,913 from $56,806 for the three months ended March&nbsp;31, 2019.
The increase was primarily due to approximately $1,300,000 of revenue generated in connection with beta testing of KAI, our fraud
detection service, which commenced during the 2020 period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Technology</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-align: justify">For the three months ended March&nbsp;31,
2020, technology expenses increased by $107,450, or 29%, to $480,401 from $372,951 for the three months ended March&nbsp;31, 2019.
The increase is primarily due to an increase of approximately $51,000 in amortization expense of our intangible assets, increased
computer hosting and subscription costs of approximately $51,000, and an increase of approximately $23,000 of compensation expenses
resulting from an increase in headcount (6 employees at March&nbsp;31, 2020 versus 5 employees at March&nbsp;31, 2019), all partially
offset by a decrease of approximately $23,000 of independent contractor and consulting fees in 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; text-align: justify"><U>General and Administrative</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-align: justify">For the three months ended March&nbsp;31,
2020, general and administrative expenses increased by $531,319, or 401%, to $663,926 from $132,607 for the three months ended
March&nbsp;31, 2019. The increase is primarily due to increased legal, consulting and audit fees of approximately $248,000 associated
with work performed in connection with our public filings, an increase of approximately $144,000 of compensation expenses resulting
from an increase in headcount (6 employees at March&nbsp;31, 2020 versus 2 employees at March&nbsp;31, 2019), an increase of approximately
$46,000 of board of directors compensation expenses due to their appointment to our Board in late 2019 and an increase of approximately
$42,000 of rent expenses.</P>

<P STYLE="font: 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"><U>Other Expense</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-align: justify">For the three months ended March&nbsp;31,
2020, other expense increased by $279,472, or 1,726%, to $295,684 from $16,192 for the three months ended March&nbsp;31, 2019.
The increase is primarily due to an increase of interest expense of approximately $517,000 (including an increase in non-cash amortization
of debt discount and debt issuance costs of approximately $456,000) associated with notes payable issued subsequent to March&nbsp;31,
2019, partially offset a gain on forgiveness of accounts payable of approximately $236,000 in 2020.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Year Ended December&nbsp;31, 2019
Compared With Year Ended December&nbsp;31, 2018</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: justify">The following table presents the results
of operations for the years ended December&nbsp;31, 2019 and 2018:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">For the Years Ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left">&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">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; text-align: left">&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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; width: 74%; text-align: left; padding-bottom: 1pt">Net Revenues</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">177,635</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">106,422</TD><TD STYLE="width: 1%; 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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left">Operating Expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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="text-indent: 0.125in; text-align: left; font: 10pt Times New Roman, Times, Serif">Technology</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,486,056</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,058,660</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="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">General and administrative</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,007,362</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">1,820,942</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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt">Total Operating 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">3,493,418</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">3,879,602</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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt">Loss From Operations</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">(3,315,783</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">(3,773,180</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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left">Other Income (Expense):</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Gain on forgiveness of accounts payable - supplier</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">66,804</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="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Interest 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">(819,482</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">(51,129</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="text-indent: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Other income</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,392</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">28,408</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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 1pt">Total Other (Expense) Income</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">(817,090</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">44,083</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="text-align: left; font-size: 10pt">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-indent: 0.25in; text-align: left; padding-bottom: 2.5pt">Net Loss</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(4,132,873</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,729,097</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Net Revenues</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-align: justify">For the year ended December&nbsp;31, 2019,
net revenues increased by $71,213, or 67%, to $177,635 from $106,422 for the year ended December&nbsp;31, 2018. We experienced
the loss of a significant customer in 2018 (which was a result of consolidation within the industry wherein our customer was acquired
by a larger entity), which was partially offset by net revenue of approximately $91,000 and $104,000 generated from a single customer
in 2018 and 2019, 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; text-align: justify"><U>Technology</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-align: justify">For the year ended December&nbsp;31, 2019,
technology expenses decreased by $572,604, or 28%, to $1,486,056 from $2,058,660 for the year ended December&nbsp;31, 2018. The
decrease is primarily due to decreases of approximately $769,000 in non-cash stock-based compensation expense, decreased programming,
computer hosting and subscription costs of approximately $29,000, offset by an increase of approximately $208,000 of increased
compensation expenses due to an increase in headcount 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-align: justify"><U>General and Administrative</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-align: justify">For the year ended December&nbsp;31, 2019,
general and administrative expenses increased by $186,420, or 9%, to $2,007,362 from $1,820,942 for the year ended December&nbsp;31,
2018. The increase is primarily due to increased legal, consulting and audit fees of approximately $727,000, increased compensation
expenses of $219,000 resulting from an increase in headcount in 2019, an allowance of approximately $200,000 in connection with
a deposit, offset by a decrease of approximately $1,030,000 of non-cash stock based compensation expenses 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-align: justify"><U>Other (Expense) Income</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-align: justify">For the year ended December&nbsp;31, 2019,
other (expense) income increased by $861,173, or 1,954%, to expense of $(817,090) from income of $44,083 for the year ended December&nbsp;31,
2018. The increase is primarily due to an increase of interest expense of approximately $768,000 (including an increase in non-cash
amortization of debt discount and debt issuance costs of approximately $701,000) associated with notes payable issued in 2019,
a gain on forgiveness of accounts payable of approximately $67,000 in 2018 and a decrease in other income of approximately $26,000
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"></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>Liquidity and Capital Resources</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>Liquidity</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">We measure our liquidity in a number of ways, including 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: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; text-align: left; font-size: 10pt">&nbsp;</TD><TD STYLE="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;31, 2020</TD><TD STYLE="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December&nbsp;31, 2019</TD><TD STYLE="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&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; width: 74%">Cash</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">21,017</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">33,785</TD><TD STYLE="padding-bottom: 2.5pt; 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; padding-bottom: 2.5pt; text-align: left">Working Capital (Deficit)</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(6,467,107</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,413,735</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to March&nbsp;31, 2020, the
Company received approximately $327,000 in the form of a loan in connection with the PPP, approximately $79,000 in connection with
the EIDL loan, and approximately $60,000 in the form of a three-year note payable from a related party. See Recent Developments
for details.</P>

<P STYLE="font: 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">As of March&nbsp;31, 2020 and as of the
date of filing, notes payable with an aggregate principal amount of $133,967 were past due. The Company is in negotiations to either
extend the maturity dates of such notes or to settle the amounts due.</P>

<P STYLE="font: 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"><B><I>Availability of Additional Funds</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: justify">Based upon our cash and working capital
deficiency, we require additional equity and/or debt financing to continue our operations. These conditions indicate that there
is substantial doubt about our ability to continue as a going concern within one from the date of this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are currently funding our operations
on a month-to-month basis prior to the receipt of the proceeds of this offering. Although we believe that we have access to capital
resources, there are currently no commitments in place for new financing at this time and there is no assurance that we will be
able to obtain funds on commercially acceptable terms, if at all. If we are unable to obtain adequate funds on reasonable terms,
we may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on
unattractive terms. Our operating needs include the planned costs to operate our business, including amounts required to fund working
capital and capital expenditures. Our future capital requirements and the adequacy of our available funds will depend on many factors,
including our ability to successfully commercialize our products and services, competing technological and market developments,
and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement
our product and service offerings. Subsequent to March&nbsp;31, 2020, we received approximately $327,000 in the form of a loan
in connection with the PPP and approximately $60,000 in the form of a three-year note payable from a related party.</P>

<P STYLE="font: 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">Our consolidated financial statements included
elsewhere in this registration statement have been prepared in conformity with accounting principles generally accepted in the
United States of America, or U.S. GAAP, which contemplate our continuation as a going concern and the realization of assets and
satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial
statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any
adjustment that might result from the outcome of this uncertainty.</P>

<P STYLE="font: 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"><B><I>Three Months Ended March&nbsp;31,
2020 Compared With Three Months Ended March&nbsp;31, 2019</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: justify">Our sources and uses of cash were as follows:</P>

<P STYLE="font: 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"><U>Cash Flows From Operating Activities</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-align: justify">We experienced negative cash flows from
operating activities for the three months ended March&nbsp;31, 2020 and positive cash flows from operating activities for the three
months ended March&nbsp;31, 2019 in the amounts of $(166,662) and $20,183, respectively. The net cash used in operating activities
for the three months ended March&nbsp;31, 2020 was primarily a result of cash used to fund a net loss of $58,098, adjusted for
net non-cash expenses of $302,981, and $411,545 of net cash used in changes in the levels of operating assets and liabilities.
The net cash provided by operating activities for the three months ended March&nbsp;31, 2019 was primarily a result of cash used
to fund a net loss $464,944, adjusted for net non-cash expenses of $12,700, and $472,427 of net cash provided by changes in the
levels of operating assets and liabilities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Cash Flows From Investing Activities</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-align: justify">Net cash used in investing activities for
the three months ended March&nbsp;31, 2020 was $356,106, which was attributable to purchases of intangible assets, and property
and equipment. We did not have any cash flows from investing activities during the three months ended March&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"></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: justify"><U>Cash Flows From Financing Activities</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-align: justify">We experienced positive cash flows from
financing activities for the three months ended March&nbsp;31, 2020 and negative cash flows from financing activities for the three
months ended March&nbsp;31, 2019 in the amounts of $510,000 and $(27,369), respectively. During the three months ended March&nbsp;31,
2020, $525,000 of proceeds were received from debt financings, partially offset by $15,000 used for payment of deferred offering
costs. During the three months ended March&nbsp;31, 2019, $27,369 was used for repayments of notes payable.</P>

<P STYLE="font: 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"><B><I>Year Ended December&nbsp;31, 2019
Compared With Year Ended December&nbsp;31, 2018</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: justify">Our sources and uses of cash were as follows:</P>

<P STYLE="font: 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"><U>Cash Flows From Operating Activities</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-align: justify">We experienced negative cash flows from
operating activities for the years ended December&nbsp;31, 2019 and 2018 in the amounts of $(2,692,400) and $(1,193,347), respectively.
The net cash used in operating activities for the year ended December&nbsp;31, 2019 was primarily a result of cash used to fund
a net loss of $4,132,873, adjusted for net non-cash expenses of $945,636, and $494,837 of net cash provided by changes in the levels
of operating assets and liabilities. The net cash used in operating activities for the year ended December&nbsp;31, 2018 was primarily
a result of cash used to fund a net loss $3,729,097, adjusted for net non-cash expenses of $1,879,387, and $656,363 of net cash
provided by changes in the levels of operating assets and liabilities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Cash Flows From Investing Activities</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-align: justify">Net cash used in investing activities for
the year ended December&nbsp;31, 2019 was $105,013, which was attributable to aggregate purchases of intangible assets, property
and equipment of $105,013 as well as an advance to a related party in the amount of $75,000 and the subsequent repayment of the
same advance. We did not have any cash flows from investing activities during the year ended December&nbsp;31, 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-align: justify"><U>Cash Flows From Financing Activities</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-align: justify">We experienced positive cash flows from
financing activities for the years ended December&nbsp;31, 2019 and 2018 in the amounts of $2,823,680 and $1,191,762, respectively.
During the year ended December&nbsp;31, 2019, $2,880,047 of net proceeds were from debt financings and other borrowings (net of
repayments) and $56,367 was used for payment of deferred offering costs. During the year ended December&nbsp;31, 2018, $439,394
of net proceeds were from debt financings and other borrowings (net of repayments) and $752,368 of proceeds were from equity financings.</P>

<P STYLE="font: 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"><B>Off-Balance Sheet Arrangements</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">We did not have, during the periods presented,
and we do not currently have, any relationships with any organizations or financial partnerships, such as structured finance or
special purpose entities, that would have been established for the purpose of facilitating off-balance sheet arrangements or other
contractually narrow or limited purposes.</P>

<P STYLE="font: 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"><B>Critical Accounting Policies and Significant
Accounting Estimates</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">Our management&#8217;s discussion and analysis
of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance
with accounting principles generally accepted in the United States, or GAAP. The preparation of these financial statements requires
us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities as of the date of the financial statements as well as the reported expenses during the reporting periods.
The accounting estimates that require our most significant, difficult, and subjective judgments have an impact on revenue recognition,
the determination of share-based compensation, and financial instruments. We evaluate our estimates and judgments on an ongoing
basis. Actual results may differ materially from these estimates under different assumptions or conditions.</P>

<P STYLE="font: 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">Our significant accounting policies are
more fully described in our financial statements (Note 3 in our financial statements for the years ended December&nbsp;31, 2019
and 2018 and Note 3 in our financial statements for the three months ended March&nbsp;31, 2020 and 2019) included elsewhere in
this registration statement.</P>

<P STYLE="font: 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"><B>Recently Issued Accounting Standards</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">Our analysis of recently issued accounting
standards are more fully described in our financial statements (Note 3 in our audited consolidated financial statements for the
years ended December&nbsp;31, 2019 and 2018 and Note 3 in our condensed consolidated financial statements for the three months
ended March&nbsp;31, 2020 and 2019) included elsewhere in this registration statement.</P>

<P STYLE="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>

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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"><A NAME="s_003"></A><B>BUSINESS</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">Kubient, a Delaware corporation, was incorporated
in May&nbsp;2017 to solve some of the most significant problems facing the global digital advertising industry.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our experienced team of marketing and technology
veterans has developed the Audience Cloud, a modular, highly scalable, transparent, cloud-based software platform for real-time
trading of digital, programmatic advertising. Our platform&#8217;s open marketplace gives both advertisers (ad space buyers) and
publishers (ad space sellers) the ability to use machine learning in the most critical parts of any programmatic advertising inventory
auction, while simultaneously and significantly reducing those advertisers and publishers&#8217; exposure to fraud, even in a pre-bid
environment.</P>

<P STYLE="font: 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">By becoming a one stop shop for advertisers
and publishers, providing them with the technology to deliver meaningful messages to their target audience, all in one place, on
a single platform that is computationally efficient, transparent, and as safely fraud-free as possible, we believe that our platform
(and the application of its machine learning algorithms) leads to increased publisher revenue, lower advertiser cost, reduced latency
and increased economic transparency during the advertising auction process.</P>

<P STYLE="font: 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">Furthermore, we believe that our technology
allows advertisers to reach entire audiences rather than buying single impressions from disparate sources. We call this approach
Audience-Based Marketing. Combining this approach with our proprietary solutions for fraud prevention and the reduction of latency
in auctions, we are confident that we are poised to alter the status quo as the next generation of the industry&#8217;s advertising
inventory auction infrastructure.</P>

<P STYLE="font: 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"><B>What We Do: Audience-Based Marketing
on Our Full Stack Platform</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">Our Audience Cloud&#8217;s platform enables
advertisers and publishers to transact directly between each other on an open, end to end real-time bidding platform for programmatic
digital advertising. The advertising inventory on our platform is available in any channel: desktop, mobile, digital out-of-home,
and connected devices; and in any format: video, display, audio, and native. Indeed, we believe our single, fully integrated audience
platform provides a comprehensive, fraud-minimized, transparent, independent advertising marketplace that facilitates intelligent
decision-making, and automated transaction execution for the programmatic advertising industry. We optimize the liquidity and effectiveness
of the advertising supply chain, increasing revenue for publishers and improving return on investment for advertisers.</P>

<P STYLE="font: 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">Our platform offers a machine learning-powered
fraud prevention solution, extremely low latency times and an audience management platform which provides omni-channel access into
all advertising channels, inventory and ad formats. Thanks to our management and development teams&#8217; deep experience with
artificial intelligence applications, our platform is constantly self-optimizing, using our software&#8217;s ability to analyze
and learn from vast volumes of data. We are confident that the additional data we obtain from the volume of transactions on our
platform helps to make our machine-learning algorithms more intelligent over time.</P>

<P STYLE="font: 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">Advertising is sometimes defined as the
transfer of a message from one party to another for the purpose of education, motivation or suggestion. Advertisers who pay to
send a message, should be confident that it arrives to the individual it was intended for and delivers its expected outcome. Our
solution consistently ensures this is the case, by verifying each and every message and intended audience. As a result, we believe
that we process, analyze and connect billions of audience participants and devices faster and more efficiently than the industry
standard.</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"></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"><IMG SRC="tm2023792d1_s1imga001.jpg" ALT="" STYLE="height: 306px; width: 511px">&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-align: justify"><I>Digital Advertising Fraud Solution:
Machine Learning Combined with Artificial Intelligence</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-align: justify">Thanks to advances in technology, the advertising
inventory that is bought and sold in these real time auctions during the bid stream is customized to each individual viewer. This
viewer customization is often called programmatic advertising, a new form of advertising where advertisers are able to specifically
target their preferred audiences and demographics (rather than placing ads in generic public forums such as billboards or during
live events, in hopes that the coveted audience or demographic sees the ad). According to eMarketer, programmatic digital advertising
is one of the fastest growing sectors in the advertising industry, which is expected to reach $517 billion by 2023; rising from
$283 billion in 2018. Digital programmatic advertising&#8217;s reach includes channels such as online, mobile browsing, in-app,
text messages, &#8220;out of home&#8221; video advertising (in locations such as gas stations and airports) and digital or internet
television services. The explosive growth of programmatic digital advertising has created unique challenges for advertisers and
publishers that want to connect and engage their audiences. One of the primary challenges facing the digital advertising industry
is that, like the meteoric growth of digital advertising itself, fraud is also growing rapidly. According to Forrester Research,
digital advertising cost advertisers $42 billion dollars in 2019, which is a 21% increase from 2018. D<FONT STYLE="background-color: white">espite
attempts by advertisers and publishers to prevent fraud and conduct quality assurance checks</FONT>, both Forrester Research and
Juniper Research estimates that the losses experienced by advertisers will more than double to $100 billion in 2023, with advertisers
losing an estimated 25% of every dollar spent due to fraud.</P>

<P STYLE="font: 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">Digital advertising fraud occurs when an
ad is displayed to a fake website or Bot in an effort to falsely inflate web traffic numbers, rather than being displayed to a
legitimate web site to be viewed by a human being. An advertiser that pays for an ad that is displayed to a Bot has wasted the
budget spent for the placement of that ad, as it is human beings that might spend money on the product or service being advertised,
as opposed to a Bot. Thus, brands and advertisers that cannot prevent their ads being shown to Bots become victims to the billions
of dollars lost to ad fraud annually, as calculated by Juniper Research and Forrester Consulting.</P>

<P STYLE="font: 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">We believe that digital advertising fraud
is further exacerbated by the fact that our industry is increasingly fragmented. The most popular solutions that have emerged in
the marketplace for selling digital advertising are not connected to the solutions used by industry participants for purchases
of digital advertising. In other words, advertisers use DSPs to purchase digital advertising, whereas publishers use completely
different platforms called SSPs to sell advertising space to those advertisers. Therefore, advertisers may not know who is selling
them advertising inventory, and publishers may not know who is purchasing such inventory. With the two sides of any auction not
connected, and likely not communicating with each other across different platforms, it is difficult to assign responsibility to
tracking down fraud after an ad sale has already occurred. We have created a marketplace where advertisers and publishers can interact
directly. This layer of direct transparency allows advertisers to more efficiently identify ad fraud, and to ensure that they are
only buying advertising space that delivers the expected value of a particular campaign. Furthermore, fraud prevention is also
fragmented as a result of advertisers and publishers using different platforms to conduct digital advertising auctions. Indeed,
many DSPs and SSPs do not even have built-in fraud prevention solutions, instead relying on third parties to identify ad fraud
after an ad is displayed. Our internally-developed fraud prevention solution is native to our platform and detects fraud before
the digital advertising auction is concluded.</P>

<P STYLE="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: justify">As a result of the fragmented,
complex and inefficient infrastructure currently in use for programmatic advertising, fraud is rampant in the digital
advertising marketplace. Bad actors&#8217; use of fake websites and Bots to sell advertising space costs advertisers billions
of dollars a year. A large part of the reason that widespread fraud runs rampant in the digital advertising industry is that
current machine learning and fraud prevention solutions in our industry can only identify such fraud after an ad purchase has
already occurred. We believe it is much harder to stop fraud when trying to catch perpetrators after the fraud has already
occurred because the fraudsters have the ability to completely change the fingerprint of the Bot, which allows it to reenter
the ecosystem and commit fraud again.</P>

<P STYLE="font: 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">We believe it is more effective to stop
fraud before it occurs than trying to catch perpetrators after the fraud has already occurred. Thus, we have developed what we
believe to be the first machine learning technology that can detect fraud within the 300-millisecond window known as the &ldquo;bid
stream&rdquo; prior to ad purchases. Our platform&rsquo;s fraud detection solution, called Kubient Artificial Intelligence (&ldquo;KAI&rdquo;)
is our patent-pending proprietary technology that uses artificial intelligence to analyze live advertising bid stream data to detect
potential ad fraud, a major issue within the digital advertising ecosystem. KAI&rsquo;s proprietary technology allows all advertisers
to make better-informed, real-time decisions within this brief window of time by identifying potentially fraudulent activity in
real-time. KAI is trained using different statistical and machine learning algorithms and is capable of detecting various types
of fraud, including user fraud, device fraud, content fraud and heuristic fraud. KAI analyzes 100% of real-time programmatic data
and industry-specific information to determine patterns and data points consistent with fraudulent activity, helping advertisers
maximize return on ad spend and protecting publishers. KAI can be fully integrated into Kubient&rsquo;s Audience Cloud marketplace,
or alternatively, can be deployed as a standalone application or enterprise solution on third party real time bidding platforms.
See &ldquo;<I>Customers and Revenues</I>&rdquo; below for a description of the successful beta testing of KAI that occurred during
the quarter ended March 31, 2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Latency Solution: Machine Learning</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-align: justify">We believe that our platform allows us
to process digital advertising auctions faster than the competition. Faster auctions ensure that ad campaigns create more impressions
that are seen by consumers, as consumers are less likely to become frustrated by slowly loading websites or apps (which normally
results in consumers leaving such websites or apps before the ad is displayed).</P>

<P STYLE="font: 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">To substantially reduce and minimize latency
issues across our fully integrated open marketplace, we use a highly-specialized programming language originally designed to be
used in extremely fast (but highly dependable) digital telephone communications switches, as well as quant-based speed trading
of securities on Wall Street. In addition, our platform&#8217;s proprietary machine-learning algorithms, sophisticated data processing,
high volume storage, detailed analytics capabilities, and a distributed infrastructure that supercharges our bidding process and
helps our customers place, and win, more bids for advertising space. We believe we are transforming the digital advertising industry
by analyzing billions of data points in record real time speed to enable our solution to make complex decisions in milliseconds,
and to execute over 1 million queries per second, billions of transactions per week and trillions of bid requests per month.</P>

<P STYLE="font: 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"><I>Additional Platform Functionalities</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-align: justify">Not only do we believe our platform works
faster, more efficiently and more safely in terms of fraud than our competition, we also believe that it provides added functionality
over our competitors, such as real time reporting of ad sales, and an open audience marketplace which enables publishers, including
websites, mobile applications, video and other digital media properties, to connect their advertising inventory more efficiently
and effectively to buyers across the entire advertising ecosystem, including brands, DSPs, ad networks and advertising agencies.</P>

<P STYLE="font: 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">In addition, our platform&#8217;s functionality
allows us to quickly adapt to emerging media channels that might have been previously overlooked by the digital marketing ecosystem<FONT STYLE="background-color: white">.
</FONT>For example, outdoor advertising, often referred to as out of <FONT STYLE="background-color: white">home media, such as
billboards, bus-stop shelters, public elevators, airport monitors and gas station pump placards, has not traditionally been connected
to digital advertising sources. However, these traditional forms of out of home media are increasingly being converted to digital
signage. Unlike their traditional out of home counterparts, these updated digital signs, often referred to as digital out of home
(&#8220;DOOH&#8221;) media, can display programmatic advertising, such that all of the advantages of our Audience Cloud can be
applied to this rapidly proliferating media channel. By </FONT>allowing brands, <FONT STYLE="background-color: white">DSPs, ad
networks, advertising agencies and brands to bid on DOOH publishers&#8217; inventory in real-time, just as if DOOH screens were
video screens on a desktop computer or mobile device, our Audience Cloud will allow advertisers to scale campaigns across new and
thriving media channels, thereby maximizing inventory fill rates and increasing the audiences that advertisers may target by digital
means.</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-align: justify"><B>Intellectual Property</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">We have filed two provisional patents,
one relating to our inventory and decision management system we created that allows DOOH media buying agencies to purchase ads
on our programmatic and real-time-bidding marketplace, and one relating to our KAI real time, digital advertising fraud prevention
solution.</P>

<P STYLE="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: justify"><B>Customers and 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; text-align: justify">We provide our customers with a
platform to connect advertisers and publishers. Generally, our revenue generation process begins with publishers. When a
publisher aims to fill the available advertising space on its website or app, we typically enter into a twelve month master
service agreement allowing the publisher to sell advertising inventory through our platform. Once the publisher executes our
master service agreement and is accepted onto our platform, the publisher is allowed to electronically communicate with our
platform through its ad server, in order to provide us information about the publisher&#8217;s advertising inventory, user
base, minimum sale prices and other data signals, as applicable. We also enter into master service agreements to allow
third-party exchanges that aggregate publishers&#8217; available advertising inventory to sell such inventory on our
platform. As we believe fee transparency is a key element to the success of our platform, we never buy advertising inventory
in order to resell it to our customers for a profit. Instead, we earn a mark-up, which is the spread between what we collect
from advertisers and what we remit to publishers. We only pay for inventory when an advertiser is connected to a publisher
and an impression is successfully delivered. We sometimes refer to the amount we pay publishers for inventory upon the
delivery of an impression as &#8220;cost pay.&#8221; As described further below, cost pay is generally lower than what
advertisers ultimately spend to have their ad impression delivered on a publisher&#8217;s website or app.</P>

<P STYLE="font: 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">We also enter into twelve month master
service agreements with advertisers that wish to purchase advertising inventory, either on our platform or through their DSP. Our
proprietary algorithms use the industry information available (from advertisers, publishers, third parties and our own internal
database) to automatically target and bid on publishers&#8217; inventory to meet an advertiser&#8217;s campaign objective. We generate
revenue from advertisers by charging them fees on a sliding scale based on a percentage of their spend on advertising purchased
through our platform, the total of which we sometimes refer to as &#8220;gross spend.&#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; text-align: justify">By having both publishers and advertisers
enter into twelve month master service agreements in order to use our platform, we believe we maintain high customer retention,
and very little, if any, customer loss (or &#8220;churn&#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; text-align: justify">Thanks to the speed of our platform, the
matching of publisher and advertiser occurs in fractions of a second, within the short time frame of the bidstream. We recognize
revenue upon the completion of each matching transaction, at the moment when an impression has been delivered to the consumer viewing
a website or application. We generally bill and collect the full purchase price of impressions from advertisers, unless the advertiser
pays through its DSP, in which case the DSP is the entity that pays our fees. In either case, our gross revenue from each impression
is equal to gross spend minus cost pay.</P>

<P STYLE="font: 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">We believe that growth of the programmatic
advertising market is important for our ability to continually grow our business. Adoption of programmatic advertising by advertisers
allows us to acquire new customers and grow revenue from existing customers. We also believe that current industry trends will
lead more advertisers to seek out a better fraud prevention solution to protect their advertising budgets, such as the one offered
on our platform.</P>

<P STYLE="font: 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">Similarly, we believe that the adoption
of programmatic advertising by unique advertising inventory owners, such as digital out of home content providers for which we
have developed a unique solution, will allow us to expand the volume and type of advertising inventory that we present to advertisers
using our platform.</P>

<P STYLE="font: 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">During the quarter ended March 31, 2020,
we allowed two large enterprise clients to beta test KAI in a live isolated environment. Kubient was able to successfully ingest
hundreds of millions of rows of data in real-time and provide our clients the ability to prevent the purchase of non-human or fraudulent
advertising traffic. The results from the two beta clients indicated that KAI was identifying and preventing approximately 300%
more digital ad fraud then the client's current partners. The large volume of data ingested helped to improve our proprietary algorithms
including the supervised and unsupervised version. This was invaluable as it provided us an opportunity to stress test our ability
to handle large scale, concurrent input of data into our system which is then analyzed using our patent-pending proprietary machine
learning technology. While KAI was monetized in the first quarter of 2020, we are currently determining the best pricing model
based on SMB and enterprise client usage and expect KAI to be widely adopted as a standalone enterprise product in the third fiscal
quarter of 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; text-align: justify">Our net revenue was $177,635 for the year ended December&nbsp;31,
2019 from 49 customers, and our net revenue was $1,381,913 for the quarter ended March&nbsp;31, 2020 from 35 customers. The increase
was primarily due to approximately $1,300,000 of revenue generated in connection with beta testing of KAI, our fraud detection
service, which commenced during the 2020 period. Our net loss was $4,132,873 for the year ended December&nbsp;31, 2019. Our net
loss was $58,098 for the quarter ended March&nbsp;31, 2020. Based on the growth strategy set forth below, we contemplate that our
revenues will continue to increase for 2020 and beyond and will also continue to become less concentrated among a small number
of customers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Key Customer Contracts</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-align: justify"><U>The Associated Press</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-align: justify">Effective February&nbsp;5, 2020, the Company
entered into a Master Services Agreement (the &#8220;AP Agreement&#8221;) with The Associated Press whereby the Company agreed
to provide advertising and related business revenue consultation services to The Associated Press. In consideration for the services
provided, commencing on March&nbsp;1, 2020 and effective for a period of one year (subject to certain carve-outs), the Company
is entitled to certain revenue share amounts in connection with The Associated Press&#8217;s consumer offerings outlined in the
AP Agreement, which was entered into as of March&nbsp;27, 2020 and are summarized as follows:</P>

<P STYLE="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: justify">During the three months ended March&nbsp;31, 2020, the Company
recognized revenue of $85,000 in connection with the AP Agreement. Although no assurances can be given, the Company believes that
by combining The Associated Press&rsquo; digital audience with new purchasing partners on the Company&rsquo;s platform, revenue
derived from the AP Agreement could reach as an estimated amount as high as $500,000 per fiscal quarter in 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"><U>Sphere Digital</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-align: justify">Effective June&nbsp;1, 2018, the Company entered into a License
Agreement (the &ldquo;Sphere Agreement&rdquo;) with Sphere Digital, LLC, whereby the Company agreed to license use of its proprietary,
programmatic advertising platform to Sphere Digital, LLC for a monthly fee of $20,000, plus $400 per hour for any customizations
on the platform carried out by the Company pursuant to a Master Services Agreement executed by the Company and Sphere Digital,
LLC also on June&nbsp;1, 2018. The Sphere Agreement&rsquo;s term is for six months, which term automatically renews for an additional
six months. The Sphere Agreement was terminated by the Company on November 1, 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-align: justify"><B>Growth Strategy</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"><I>Organic Growth</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-align: justify">The key elements of our long-term growth
strategy are as follows:</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: 24px; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Enhancing our existing auction technology to improve adoption among publishers and advertisers, which we expect will increase our revenue.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Further developing our fraud prevention system, which is powered by our proprietary KAI machine learning technology, which we are expecting to be widely incorporated into our service offerings in the third fiscal quarter of 2020.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Growing our customer base by increasing our salesforce to engage brands, agencies, website owners, app owners and other connected device owners, to facilitate marketplace participation. This will allow us to reach more audiences and garner larger budgets, growing our revenue and building long lasting customer relationships.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Launching and scaling our reach with advertisers by introducing real-time auctions into a previously static corners of the marketplace, such as digital out of home channels, allowing for video advertising at gas stations, hotels and airports.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&#9679;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further developing our Audience
Cloud platform to improve omni-channel relevance, and personalization at scale.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify">Further diversifying both our products
        and revenue streams to include stand-alone applications that address advertisers&rsquo; business needs, such as KAI for real time
        fraud prevention, first party data hosting, and audience targeting solutions.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Increasing our global footprint across the globe, especially in Latin America, Asia-Pacific, Europe, the Middle East and Africa.</FONT></TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>M&nbsp;&amp;A Growth</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-align: justify">In addition to the long-term, organic growth
discussed above, we intend to opportunistically acquire companies that expand our core technologies and introduce the Company to
potential new client bases that are potentially accretive to the Company&#8217;s future earnings.</P>

<P STYLE="font: 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"><B>Industry Overview</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">Most consumers are unaware that when they
browse a webpage, watch a video on the internet, use a mobile app or watch an internet-connected TV, there is often a behind-the-scenes
auction for the purchase and sale of digital advertising space as the consumer&#8217;s desired content loads. In such auctions,
advertisers (i.e., ad space buyers, such as sporting goods or consumer products manufacturers) purchase advertising space from
publishers (i.e., ad space sellers, such as mobile app developers or website operators). Advertisers bid on each impression and
if the bid is won, the ad is displayed on the publisher&#8217;s website or app being viewed by the consumer.</P>

<P STYLE="font: 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">As the technology behind these auctions
began to develop, traditional methods of digital advertising were used, where manual negotiations conducted by human brokers played
a vital role in deciding the prices of digital advertising inventory to be bought and sold. Similarly, human brokers sought to
place ad inventory in the digital equivalents of traditional public forums such as billboard-like banner ads or during digitally-broadcast
sporting events, in hopes that the largest audience possible might see an ad.</P>

<P STYLE="font: 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">However, in recent years, the technology
behind these auctions has changed dramatically. Now, &#8220;real time bidding&#8221; has become an automated process that enables
the buying and selling of individual impressions for each digital ad in milliseconds. In the blink of an eye, real time digital
auctions determine what ad will display, where the ad will be displayed and what price the advertiser has to pay to the publisher
for displaying the ad. The real time auction process is currently in the process of completely replacing the role of a human broker,
by automating the buying and selling of ad space in a 300 millisecond window called the &#8220;bid stream.&#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; text-align: justify">Another significant challenge facing participants
in the digital marketing industry is the problem of latency, or loading wait times. Existing participants in the digital advertising
marketplace have invested billions of dollars in large and cumbersome system infrastructures that are costly and slow by today&#8217;s
standards. Their outdated infrastructure has caused hundreds of companies to provide a patchwork of solutions to address the slow
and costly nature of the current digital advertising infrastructure that we believe are ineffective when compared with our solution.
As a result of this patchwork of solutions, we believe the digital advertising marketplace has become complex and inefficient,
with relatively long delays before an ad is displayed becoming commonplace. These delays often result in a user leaving a website
or smartphone app before the advertiser&#8217;s content loads. If the user does not view the ad which the advertiser paid to place
on the publisher&#8217;s website or app, then the advertiser has wasted the budget spent for the placement of that ad.</P>




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The problem of ineffective digital advertising
has created large-scale lost revenue in our industry. For example, Proctor and Gamble,&nbsp;Inc. announced that it reduced its
digital advertising spend by approximately $200 million in 2017 due to issues caused by ineffective ads and digital safety. Furthermore,
Proctor and Gamble,&nbsp;Inc.&#8217;s Chief Brand Officer, Marc <FONT STYLE="color: #1d1c1d; background-color: white">Pritchard
has stated that he believes the digital media industry needs to move beyond &#8220;endless retrofitting and clean-up&#8221; to
instead create a &#8220;new media supply chain&#8221; focused on quality, civility, transparency, privacy and control.</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-align: justify"><B>Industry Alliances</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">Given the developmental stage of digital
advertising, industry practices are rapidly evolving. We are participating members of the Trustworthy Accountability Group (&#8220;T.A.G.&#8221;).
T.A.G is a Who&#8217;s Who of trusted partners for any company involved in digital advertising, and creating a protected system
of supply chain participants and other advertising technology companies that demonstrate their commitment to higher standards of
transparency and disclosure to their partners.</P>

<P STYLE="font: 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">We are active members of the AdClub of
NY and also participate in a wide range of Interactive Advertising Bureau (&#8220;IAB&#8221;) committees, councils and working
groups, as well as other industry groups such as the Forbes Agency Council that are focused on establishing best practices for
the digital advertising industry.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Competition</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">We derive our revenue from the digital
advertising market, which is rapidly evolving, highly competitive, complex and fragmented. We currently compete for advertising
spend with large, well-established companies as well as smaller, privately-held companies. Some of our larger competitors with
more resources may be better positioned to execute on advertising campaigns conducted over multiple channels such as social media,
mobile and video, yet we provide unique channels not found in the digital advertising market typically, such as the true programmatic
DOOH auctions we perform. We believe that this, coupled with our other capabilities, will allow us to keep step with the larger
competitors in the short term and surpass them in the long term.</P>

<P STYLE="font: 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">While the majority of the market is dominated
by two companies, Facebook and Google, we do not consider them to be our competitors. Our growth is focused in the rest of the
available market and there are many companies who compete with us for that share. The Trade Desk is one of our fastest growing
competitors for brand and advertiser budgets with a solid foundation and strong cash flow and client base. Their product known
as a Demand Side Platform competes with our own Demand Side Platform however we believe our platform has key advantages, such as
built in proprietary fraud prevention, direct publisher connections, a Supply Side Platform and a centralized auction hub. These
advantages, in our opinion, provide us with more leverage when approaching advertisers and requesting budget. There are other platforms
and exchanges that can be considered a competitor to one or more of our products as well.</P>

<P STYLE="font: 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">A substantial majority of our competitors
are significantly larger than we are and have more capital to invest in their businesses however they operate on technology we
consider to be outdated and inferior to our newer more agile technology. Competitors could also seek to gain market share by reducing
the prices they charge to advertisers, introducing products and solutions that are similar to ours or introducing new technology
tools for advertisers and digital media properties, yet the failure of these competitors to offer transparency on pricing as we
do is likely to reduce or negate such impact. Moreover, increased competition for video advertising inventory from digital media
properties could result in an increase in the portion of advertiser revenue that we must pay to digital media property owners to
acquire that advertising inventory which is beneficial to us as our technology offers a more efficient auction thus allowing us
to reduce cost for advertisers and increase revenue for publishers.</P>

<P STYLE="font: 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">Some large advertising agencies that represent
advertising customers have their own relationships with digital media properties and can directly connect advertisers with digital
media properties. Our business will suffer to the extent that our advertisers and digital media properties purchase and sell advertising
inventory directly from one another or through other companies that act as intermediaries between advertisers and digital media
properties. Other companies that offer analytics, mediation,&nbsp;ad exchange or other third party solutions have or may become
intermediaries between advertisers and digital media properties and thereby compete with us. Any of these developments would make
it more difficult for us to sell our solutions and could result in increased pricing pressure, reduced profit margins, increased
sales and marketing expenses or the loss of market 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"></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: justify">Other companies that offer analytics, mediation,
ad exchange or other third party solutions have or may become intermediaries between advertisers and digital media properties and
thereby compete with us. Despite this, we believe that they do not offer a full software suite like us, as such, the long term
effect of any interruption caused by such companies will be limited.</P>

<P STYLE="font: 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">Our fraud prevention solution competes
with the small landscape of other fraud prevention companies such as WhiteOps, Double Verify and Integral Ad Science. However,
we believe that our product is the only product in this space that has patent pending technology allowing it to perform instream
prevention as opposed to the landscapes standard.</P>

<P STYLE="font: 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"><B>Sales and Marketing</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">Given our self-serve business model, we
focus on supporting, advising and training our customers to use our platform independently as soon as they are ready to transact.
There is an element of education about our platform that requires us to invest in sales and marketing programs and personnel to
grow our business. We focus our efforts to build this awareness through trade shows and sponsored events.</P>

<P STYLE="font: 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">As of July&nbsp;1, 2020, our sales and
marketing team consisted of 5 employees. The team employs a consultative approach to both new and existing customers. Once a new
customer has access to our platform, they work closely with our customer service teams as they onboard the new customer and provide
continuous support throughout the early campaigns. Typically, once a customer has gained some initial experience, it will move
to a fully self-serve model and request support as needed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Seasonality</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">Our cash flows from operations vary from
quarter to quarter due to the seasonal nature of advertiser spending. For example, many advertisers devote a disproportionate amount
of their advertising budgets to the fourth quarter of the calendar year to coincide with increased holiday purchasing. Indeed,
in digital advertising, seasonal downswings typically occur at the start in January&nbsp;(the beginning of the calendar year) and
October&nbsp;(the beginning of the fiscal year for many companies). Upswings occur in December&nbsp;(the end of the calendar year)
and September&nbsp;(the end of the fiscal year for many companies). This is due to the timing of when budgets are negotiated and
distributed. Other swings occur around holidays, and other large consumer focused events such as Black Friday and Cyber Monday.</P>

<P STYLE="font: 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"><B>Platform Development</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">Part&nbsp;of our dedication to innovation
means that we are constantly improving our platform, with new features and products being routinely released. We empower our development
teams by encouraging them to release updated features and increase functionality fast and often. As a company, we are always exploring
new and better ways to continuously improve the performance of our technology. Our development teams are intentionally lean and
nimble in nature, providing for transparency and accountability.</P>

<P STYLE="font: 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">An example of our recent platform efforts
is the development of our DOOH advertising solution, which is focused on marketing to consumers when they are &#8220;out of home&#8221;
and &#8220;on the go&#8221; in public places, in transit, and/or in specific commercial locations such as airports, beauty salons,
and gas stations. According to MarketsandMarkets.com, the global DOOH market was $15.7 billion in 2018, and is expected to reach
USD $26.2 billion by 2023, at a CAGR of 10.7%.</P>

<P STYLE="font: 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">While this traditional advertising vertical
has been transforming into being digitized. It has significantly lagged the other digital channels by not being connected to the
open real-time bidding ecosystem of buyers, making it difficult to buy and sell at scale, causing media inventory to not be monetized
effectively, and significant budgets not being spent.</P>

<P STYLE="font: 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">We believe that we have solved one of the
biggest challenges in the DOOH channel with our proprietary patent pending technology that introduces real time bidding to the
DOOH industry. Enabling the DOOH industry to connect to the real-time digital advertising ecosystem will open a whole new channel
to digital advertisers, allowing them the ability to place advertising on DOOH screens along with all the other channels already
available for digital ads on websites and mobile devices.</P>

<P STYLE="font: 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"><B>Privacy and Data Protection Regulation</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">Privacy and data protection legislation
and regulation play a significant role in our business. We and our customers use non-identifiable data about Internet users collected
through our platform to manage and execute digital advertising campaigns in a variety of ways, including delivering advertisements
to Internet users based on their particular geographic locations, the type of device they are using, or their interests as inferred
from their web browsing or app usage activities. We do not use this data to identify specific individuals, and we do not seek to
associate this data with information that can be used to identify specific individuals. We take steps not to collect or store personally
identifiable information, or personal data. The definitions of personally identifiable information and personal data, however,
vary by jurisdiction and are evolving. As a result, our platform and business practices must be assessed regularly in each jurisdiction
where we do business to avoid violating applicable legislation and regulation.</P>

<P STYLE="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: justify">In the United States, both state and federal
legislation govern activities such as the collection and use of data by companies like us. Digital advertising in the United States
has primarily been subject to regulation by the Federal Trade Commission, or the FTC, which has primarily relied upon Section&nbsp;5
of the Federal Trade Commission Act, which prohibits companies from engaging in &#8220;unfair&#8221; or &#8220;deceptive&#8221;
trade practices, including alleged violations of representations concerning privacy protections and acts that allegedly violate
individuals' privacy interests. Because our platform reaches users throughout the world, including Europe, Australia and Asia,
some of our activities may also be subject to foreign legislation. As we continue to expand internationally, we will be subject
to additional legislation and regulation, and these laws may affect how we conduct business.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additionally, U.S. and foreign governments have enacted or
are considering enacting legislation that could significantly restrict our ability to collect, augment, analyze, use and share
data collected through cookies and similar technologies, such as by regulating the level of consumer notice and consent required
before a company can employ cookies or other electronic tools to track people online. In the United States, the FTC has commenced
the examination of privacy issues that arise when marketers track consumers across multiple devices, otherwise known as cross-device
tracking. In the European Union, or EU, Directive 2009/136/EC, commonly referred to as the Cookie Directive, directs EU member
states to ensure that accessing information on an Internet user's computer, such as through a cookie, is allowed only if the Internet
user has given his or her consent. In response, some member states have adopted and implemented, and may continue to adopt and
implement legislation that impacts the use of cookies for online advertising. The EU also recently enacted the General Data Protection
Regulation, which took effect in May&nbsp;2018 and similarly restricts the collection and use of IP addresses, cookie identifiers,
and device identifiers for advertising purposes.</P>

<P STYLE="font: 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">In prior years, some government regulators
and privacy advocates advocated vigorously for a Do Not Track standard that would allow Internet users to express a preference,
independent of cookie settings in their browsers, not to have their online browsing activities tracked. In 2010, the FTC issued
a staff report emphasizing the need for simplified notice, choice and transparency to the consumer regarding the collection, use
and sharing of data, and suggested implementing a Do Not Track browser setting that would allow consumers to choose whether or
not to allow tracking of their online browsing activities. All major Internet browsers have implemented some version of a Do Not
Track setting. However, there is no commonly accepted definition of &quot;tracking,&quot; no consensus regarding what message is
conveyed by a Do Not Track setting and no industry standards regarding how to respond to a Do Not Track preference. The World Wide
Web Consortium chartered a &#8220;Tracking Protection Working Group&#8221; in 2011 to convene a multi-stakeholder group of academics,
thought leaders, companies, industry groups and consumer advocacy organizations, to create a voluntary Do Not Track standard for
the World Wide Web. The group has yet to agree upon a standard that has the backing of industry. On the state level, California
amended its main privacy law, the California Online Privacy Protection Act, or CalOPPA, to require companies to declare in their
privacy policies how they respond to Do Not Track signals or similar mechanisms, and Delaware enacted a similar requirement in
the Delaware Online Privacy and Protection Act, or DOPPA. Neither CalOPPA nor DOPPA, however, requires any particular response
to those signals.</P>

<P STYLE="font: 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"><B>Corporate Information</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">Our mailing address is 228 Park Avenue
South, Suite&nbsp;72602, New York, New York 10003-1502. Our telephone number is (866) 668-2567. The address of our website is www.Kubient.com.
The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website
into this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Facilities</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">We do not maintain physical offices currently,
in large part as a result of the necessities of social distancing dictated by COVID-19, but plan to eventually enter into a lease
for physical office space after the offering, at such time when our workforce needs demand such a physical workspace. On June&nbsp;24,
2020, we entered into an agreement with Earth Class&nbsp;Mail,&nbsp;Inc. for the use of our mailing at address located at 228 Park
Avenue South, Suite&nbsp;72602, New York, New York 10003-1502 for $139 per month. Previously, our offices were located at 330 Seventh
Avenue, 10th Floor, New York, NY 10001 and consisted of approximately 1800 square feet of leased office space. The lease for 330
Seventh Avenue, 10th Floor, New York, NY 10001 was supposed to expire on June&nbsp;1, 2021. The rent under such lease was $9,000
per month based on the use of 15 desks in the office space per month. On June&nbsp;18, 2020, we entered into that certain Sublease
Termination Agreement and terminated the lease for 330 Seventh Avenue, 10th Floor, New York, NY 10001. We believe that our facilities
are adequate for our current needs and that suitable additional or substitute space would be available if needed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Our Employees and Culture</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">We were selected by Inc. Magazine as one
of the top workplaces in the country in 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-align: justify">As of July&nbsp;1, 2020, we had 11 full
time employees, and 13 consultants. None of our employees are represented by a union or parties to a collective bargaining agreement.
We believe our employee relations to be good.</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"></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: justify"><B>Legal Proceedings</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">We are currently a party to two material
legal proceedings.</P>

<P STYLE="font: 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">On May&nbsp;8, 2018, the Company
entered into a Master Services Agreement with AdKernel, LLC whereby AdKernel, LLC would provide the Company with certain
exchange integration services in order to assist the Company in the purchase and placement of ads. On November&nbsp;25, 2019,
AdKernel LLC filed suit against the Company (AdKernel, LLC v. Kubient,&nbsp;Inc., Superior Court of California, County of Los
Angeles, Case No.&nbsp;19-STLC-10891) in an effort to collect outstanding payables due under such Master Services Agreement
in the amount of $20,764. On April&nbsp;21, 2020, the Company made a settlement offer to pay $20,000 within 90 days of
execution of a settlement agreement, however, that settlement offer was rejected by Adkernel LLC. As of the date of filing,
the parties had not executed a settlement agreement. On May&nbsp;28, 2020, the Company filed a motion to dismiss AdKernel
LLC&#8217;s lawsuit.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October&nbsp;6, 2017, the Company entered into a Master Service Agreement for Buyers and Sellers, and an &#8220;Engage Buyer Addendum&#8221;,
with Engage BDR, LLC whereby the Company could gain access to the Engage BDR, LLC proprietary trading technology platform in order
to both offer and purchase inventory for the placement of ads. On August&nbsp;31, 2018, Engage BDR, LLC filed suit against the
Company (Engage BDR, LLC v. Kubient,&nbsp;Inc., Los Angeles County Superior Court Case No.&nbsp;SC129764) setting forth claims
of breach of contract, unjust enrichment, quantum meruit, accounts stated, and breach of implied covenant of good faith and fair
dealing. On November&nbsp;14, 2018, Engage BDR, LLC obtained a summary default judgment against the Company for $35,936. A Writ
of Execution was issued against the Company in the amount of $40,997 on April&nbsp;16, 2020. On </FONT>June&nbsp;12, 2020, the
Company filed a motion to vacate default and default judgement in Engage BDR, LLC&#8217;s lawsuit and a January&nbsp;12, 2021 hearing
date has been set.</P>

<P STYLE="font: 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">In addition, two material legal proceedings
have been threatened against the Company.</P>

<P STYLE="font: 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">In March&nbsp;2019, the Company entered
into a binding LOI to acquire substantially all of the assets of Aureus Holdings, LLC d/b/a Lo70s (&ldquo;Lo70s&rdquo;). In connection
with this LOI, the Company made a good faith deposit of $200,000. Subsequently, during the diligence phase of the LOI it became
apparent that Lo70s projections were grossly inaccurate and misstated. Diligence inquiries made to them on this subject continuously
went ignored. As a result, the Company terminated the LOI under the clause that there was a material adverse change in the business.
In connection with this termination, the Company received a legal dispute letter from Lo70s in February&nbsp;2020. The Company
responded with its intentions to vigorously defend itself with respect to these demands and as of July 1, 2020, has not received
further correspondence from Lo70s.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July&nbsp;25, 2018, the Company entered
into a secured business loan agreement to pay WebBank the principal amount of $100,000, plus interest, over the course of 39 weekly
payments of principal and interest in the amount of $2,977 (the &#8220;WebBank Loan&#8221;). The WebBank Loan is secured by present
and future accounts, receivables, chattel paper, deposit accounts, personal property, assets and fixtures, general intangibles,
instruments, equipment and inventory, and was personally guaranteed by Paul Roberts, our Chief Strategy Officer, President and
Chairman. As of September&nbsp;10, 2019, approximately $45,000 was due under the WebBank Loan and is currently in default. The
Company is currently in settlement negotiations with regard to the WebBank Loan, and believes that it can settle all amounts due
under the WebBank Loan for approximately $16,000, which amount would be paid from a portion of the proceeds of this 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-align: justify">Apart from the foregoing legal proceedings
and threatened legal proceedings, from time to time, we may be subject to various other legal proceedings and claims that are routine
and incidental to our business. Although some of the legal proceedings set forth herein may result in adverse decisions or settlements,
Management believes that the final disposition of such matters will not have a material adverse effect on our business, financial
position, results of operations or cash flows.</P>

<P STYLE="font: 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="s_002"></A>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"><B>Directors and Executive Officers</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">The following table sets forth information about our directors
and executive officers.</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; 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">Age</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; border-bottom: Black 1pt solid">Position(s)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: italic bold 10pt Times New Roman, Times, Serif; text-align: left">Executive Officers</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 33%; font: 10pt Times New Roman, Times, Serif; text-align: left">Peter Anthony Bordes,&nbsp;Jr.</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 33%; font: 10pt Times New Roman, Times, Serif; text-align: center">52</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 32%; font: 10pt Times New Roman, Times, Serif; text-align: left">Chief Executive Officer and Director</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">Joshua Weiss</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">36</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Chief Financial Officer</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Paul Roberts</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">42</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Chief Strategy Officer, President and Chairman</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">Christopher Andrews</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Chief Digital Officer</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Pavel Medvedev</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">44</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Chief Technology Officer</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">Christopher Francia</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">34</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Chief Product Officer</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: italic bold 10pt Times New Roman, Times, Serif; text-align: left">Non-Employee Directors</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Grainne Coen (1)(2)(3)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">47</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Director</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">Elisabeth DeMarse (2)(4)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">66</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Director</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Jeanie Mun (1)(2)(3)(4)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">43</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Director</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">Christopher H. &ldquo;Toby&rdquo; Smith (1)(3)(4)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">80</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Director</TD></TR>
</TABLE>

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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">(1)&nbsp;Member of the Audit Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(2)&nbsp;Member of the Business Development and Marketing
Committee</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(3)&nbsp;Member of the Compensation Committee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(4)&nbsp;Member of the Nominating and Corporate Governance
Committee</P>

<P STYLE="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>Executive Officers</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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Peter
Anthony Bordes,&nbsp;Jr.</I></B></FONT> has served as our Chief Executive Officer since May&nbsp;15, 2019. Prior to joining the
Company, from January&nbsp;2011 to June&nbsp;2019, Mr.&nbsp;Bordes acted as the Founder and Chief Executive Officer of OneQube,&nbsp;Inc.,
a digital Audience Management Platform, which enables its customers to develop, manage and market to custom digital audiences.
Mr.&nbsp;Bordes continues to serve as Chairman of the Board of OneQube,&nbsp;Inc. From June&nbsp;2004 to August&nbsp;2011, Mr.&nbsp;Bordes
was a Co-Founder and Chief Executive Officer of MediaTrust, a real-time performance marketing advertising exchange for direct response
marketing. From November&nbsp;2018 to June&nbsp;2019, Mr.&nbsp;Bordes acted as the Chairman and Co-Founder of MainBloq, a cloud-based
modular Full Stack Execution Management platform for trading digital currencies and investing in digital assets. From January&nbsp;2017
to June&nbsp;2019, Mr.&nbsp;Bordes worked as the Co-Founder and Director of TruVest a sustainable affordable housing, real estate
investment, development and technology company. Mr.&nbsp;Bordes&#8217; current board service includes seats on the board of directors
of Beasley Broadcast Group (NASDAQ: BBGI), Brooklyn School of Music, New England College, Fraud.net, Hoo.be, Ocearch and RevTrax.
Mr.&nbsp;Bordes holds a Bachelor of Arts from New England College.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Joshua
Weiss</I></B></FONT> has served as our Chief Financial Officer since December&nbsp;23, 2019.&nbsp;&nbsp;From October&nbsp;2016
to June&nbsp;2019, Mr.&nbsp;Weiss was employed as a Vice President, Finance at Cambridge Information Group, a family office specializing
in education and education technology. From October&nbsp;2011 to October&nbsp;2016, Mr.&nbsp;Weiss held various positions at an
international accounting firm, including Senior Audit Manager, specializing in the firm's SEC and Transaction Advisory groups.
From August&nbsp;2005 to October&nbsp;2011, Mr.&nbsp;Weiss held various positions at a different international accounting firm,
including Audit Manager, specializing in Real Estate and Hospitality. Mr.&nbsp;Weiss holds a Bachelor of Science degree in Accounting
from Yeshiva University and is a licensed Certified Public Accountant in the State of New York.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Paul
Roberts</I></B></FONT> has served as Chief Strategy Officer, President and Chairman since May&nbsp;15, 2019, prior to which he
acted as our Chief Executive Officer and Chairman since May&nbsp;2017, overseeing the development and commercialization of our
Company. Prior to holding that position, Mr.&nbsp;Roberts was the Chief Executive Officer of CenterPoint Media from August&nbsp;2012
to February&nbsp;2018, an online marketing company that helped brands engage with their customers over live-style blogs. Mr.&nbsp;Roberts
has over 15 years of experience in digital media, holding positions at Locial Media, TanzAct Media, Yahoo!, Hotjobs and Attain
Media. Mr.&nbsp;Roberts is experienced in building and growing companies in the technology industry, with particular expertise
in sales, marketing strategy, brand development and customer engagement. Mr.&nbsp;Roberts attended Long Island University.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Christopher
Andrews</I></B></FONT> has served as our Chief Digital Officer since June&nbsp;17, 2019. From March&nbsp;2017 to June&nbsp;2019,
he was employed as the Chief Technology Officer of Ogilvy CommonHealth Worldwide, a healthcare-focused marketing, branding and
advertising agency that is a subsidiary of WPP plc (NYSE:WPP), arguably the world&#8217;s largest advertising company. From November&nbsp;2006
to February&nbsp;2017, he was the Chief Information Officer of Ogilvy CommonHealth Worldwide. Mr.&nbsp;Andrews holds a Bachelor
of Science and Masters of Business Administration from the New Jersey Institute of Technology.</P>

<P STYLE="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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Pavel
Medvedev</I></B></FONT> has served as our Chief Technology Officer since April&nbsp;2018, and has lived and worked at the intersection
of media, advertising and technology for over two decades. From December&nbsp;2017 to April&nbsp;2018, he was employed as a Senior
Vice President-Programmatic at DoubleVerify, a digital marketing agency. From January&nbsp;2017 to September&nbsp;2017, he was
a Programmatic Consultant at LiveIntent,&nbsp;Inc., a digital marketing and advertising agency. From March&nbsp;2013 to August&nbsp;2017,
he was a Director of Client Solutions for IPONWEB, a British digital advertising software firm. Prior to his career digital advertising,
he held positions in e-commerce and software development, including five years as the Chief Technology Officer for Diligent Board
Member Services,&nbsp;Inc., a board of director software management developer, where he managed technology teams for Fortune 500
companies. Mr.&nbsp;Medvedev holds a Master of Science from Moscow Institute of Electronics and Mathematics.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Christopher
Francia</I></B></FONT> has served as our Chief Product Officer since May&nbsp;26, 2017, and has been involved in the digital media
space for close to a decade. From September&nbsp;2015 to June&nbsp;2017, Mr.&nbsp;Francia was a Media Director at CenterPoint
Media. From July&nbsp;2013 to September&nbsp;2015, he was Director of Development at Secco Squared, a marketing and advertising
firm. From September&nbsp;2012 to June&nbsp;2013, he was a Production Coordinator at HooplaHa.com, a marketing and advertising
firm. Mr.&nbsp;Francia is also a full stack developer specializing in PHP and Go. His extensive knowledge of programming and architecture
theory make him a strong asset in the digital product space. Mr.&nbsp;Francia holds a Bachelor of Arts in New (Digital) Media
Arts from Brigham Young University.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: lightgrey"></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-align: justify"><B><I>Non-Employee Directors</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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Grainne
Coen </I></B></FONT>has been a member of our board of directors since October&nbsp;2, 2019. In February&nbsp;2019, Ms.&nbsp;Coen
founded Elevation Investment Partners, LLC, a diversified investment group that operates in multiple industries both as strategic
consultants and early stage investors. Since January&nbsp;2015, Ms.&nbsp;Coen has also served as Co-Founder of AREA4, an experiential
marketing agency. From January&nbsp;2001 to December&nbsp;2015, she was a Principal at Columbia Partners, a hedge fund engaged
in the research and investment of public companies. Ms.&nbsp;Coen holds a Bachelor of Science from London Guildhall University.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Elisabeth
DeMarse </I></B></FONT>has been a member of our board of directors since January&nbsp;7, 2020. From September&nbsp;2014 to the
present, Ms.&nbsp;DeMarse has served on the board of directors of AppNexus Inc., a digital advertising software company, as the
board&#8217;s compensation committee chair. From March&nbsp;2012 to February&nbsp;2016, she was the Chairman, Chief Executive Officer
and President of TheStreet,&nbsp;Inc., a digital financial media company. From September&nbsp;2010 to March&nbsp;2012, Ms.&nbsp;DeMarse
was the Chief Executive Officer of Newser, LLC, a digital news curation company. From January&nbsp;2005 to March&nbsp;2012, she
was the Entrepreneur in Residence at Austin Ventures LP. From October&nbsp;2006 to August&nbsp;2010, she was Chief Executive Officer,
President and a member of the board of directors of CreditCards.com, a credit card application aggregation website. Ms.&nbsp;DeMarse
holds a Bachelor of Arts from Wellesley College, and a Master of Business Administration from Harvard University.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Jeannie
Mun&nbsp;</I></B></FONT>has been a member of our board of directors since January&nbsp;7, 2020. From January&nbsp;2016 to the present,
Ms.&nbsp;Mun has been employed as a consultant for JMM Capital, LLC, a CFO advisory firm. From March&nbsp;2015 to September&nbsp;2015,
she was the Chief Financial Officer of Oyster Books, a predecessor to the Google Books service. From February&nbsp;2009 to February&nbsp;2015,
Ms.&nbsp;Mun was the Chief Financial Officer of MediaMath,&nbsp;Inc., a programmatic marketing technology provider. From May&nbsp;2007
to January&nbsp;2009, she was employed as a Vice President of Finance and Strategy at SintecMedia Ltd. d/b/a Operative, a media
technology company. Ms.&nbsp;Mun holds a Bachelor of Arts from the University of California Los Angeles, and a Master of Business
Administration from Harvard University.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Christopher
H. &#8220;Toby&#8221; Smith </I></B></FONT>has been a member of our board of directors since October&nbsp;2, 2019, and was elected
as our board&#8217;s lead independent director on January&nbsp;7, 2020. From May&nbsp;1990 to the present, Mr.&nbsp;Smith has served
as the Founder and Managing Principal of Alexander, Smith&nbsp;&amp; Company,&nbsp;Inc., a performance improvement, compliance
consulting and financial advisory services firm that has successfully completed engagements with Barnes Engineering Co., Sylvania
Lighting International, Oneida Ltd., The Wildlife Conservation Society, Atkins Nutritionals,&nbsp;Inc. (NASDAQ:SMPL), Heartland
Publications, SunCrest Healthcare, Medical Staffing Network Holdings,&nbsp;Inc., MCA Logistics, LLC, Thompson Media Group, LLC,
TICO Manufacturing,&nbsp;Inc., and First Coast Security Services. From May&nbsp;1998 to June&nbsp;2003, he served as a member of
the board of directors of London Fog Industries,&nbsp;Inc., a designer, marketer and distributor of quality men&#8217;s and women&#8217;s
outerwear that is currently owned by Iconix Brand Group,&nbsp;Inc. (NASDAQ:ICON). From 1993 to August&nbsp;1996, Mr.&nbsp;Smith
was employed as International Counsel to the Managing Board of Escada AG, a luxury women&#8217;s designer clothing company headquartered
in Munich, Germany that was previously traded on the Frankfurt Stock Exchange. From 1989 to 1993, he was the Chairman and Chief
Executive Officer of Puma USA, which is now owned by Puma SE (FRA:PUM). Mr.&nbsp;Smith holds a Bachelor of Arts from Williams College
and a Juris Doctor from Yale University. In addition, Mr.&nbsp;Smith is a member of the bar in the states of New York and Connecticut,
as well as the District of Columbia.</P>

<P STYLE="font: 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"><B>Family Relationships</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">There are no family relationships among
any of our executive officers or directors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Corporate Governance Overview</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">We are committed to having sound corporate
governance principles, which are essential to running our business efficiently and maintaining our integrity in the marketplace.
We understand that corporate governance practices change and evolve over time, and we seek to adopt and use practices that we believe
will be of value to our stockholders and will positively aid in the governance of the Company. To that end, we regularly review
our corporate governance policies and practices and compare them to the practices of other peer institutions and public companies.
We will continue to monitor emerging developments in corporate governance and enhance our policies and procedures when required
or when our Board determines that it would benefit our Company and our stockholders.</P>

<P STYLE="font: 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">In this section, we describe the roles
and responsibilities of our board of directors and its committees and describe our corporate governance policies, procedures and
related-documents. The charters of the audit, nominating and corporate governance, and compensation committees of our board of
directors, our Corporate Governance Guidelines and Code of Business Conduct and Ethics can be accessed electronically under the
 &#8220;Governance&#8221; link on the Investor Relations page&nbsp;of our website at https://www.Kubient.com. We will also provide
a copy of the audit and compensation committee charters, our Corporate Governance Guidelines and our Code of Business Conduct and
Ethics without charge upon written request sent to our Investor Relations department at Attn: Investor Relations, Kubient,&nbsp;Inc.,
c/o Joshua Weiss, 228 Park Avenue South, Suite&nbsp;72602, New York, New York 10003-1502. (The inclusion of our website address
in this section does not include or incorporate by reference the information on our website into this prospectus.)</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Board Composition and Leadership Structure</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">Paul Roberts serves as our Chief Strategy
Officer, President and Chairman. Although the roles of Chief Strategy Officer, President and Chairman of our board of directors
are currently performed by the same person, we do not have a policy regarding the separation of these roles, as our board of directors
believes that it is in the best interests of the Company and our stockholders to make that determination from time to time based
upon the position and direction of the Company and the membership of our board of directors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board of directors has determined that
our leadership structure is appropriate for the Company and our stockholders as it helps to ensure that the board of directors
and management act with a common purpose and provides a single, clear chain of command to execute our strategic initiatives and
business plans. In addition, our board of directors believes that a combined role of Chief Strategy Officer, President and Chairman
is better positioned to act as a bridge between management and our board of directors, facilitating the regular flow of information.
Our board of directors also believes that it is advantageous to have a Chairman with an extensive history with and knowledge of
our technology and industry (as is the case with our Chief Strategy Officer and President, Paul Roberts).</P>

<P STYLE="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>Director Independence</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">Applicable Nasdaq rules&nbsp;require a
majority of a listed company&#8217;s board of directors to be comprised of independent directors within one (1)&nbsp;year of listing.
In addition, Nasdaq rules&nbsp;require that, subject to specified exceptions, each member of a listed company&#8217;s audit, compensation
and nominating and corporate governance committees be independent, and that audit committee members also satisfy independence criteria
set forth in Rule&nbsp;10A-3 under the Exchange Act. The Nasdaq independence definition includes a series of objective tests, such
as that the director is not, and has not been for at least three (3)&nbsp;years, one of our employees, that neither the director
nor any of his family members has engaged in various types of business dealings with us and that the director is not associated
with the holders of more than five percent (5%) of our common stock. In addition, under applicable Nasdaq rules, a director will
only qualify as an &#8220;independent director&#8221; if, in the opinion of the listed company&#8217;s board of directors, that
person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities
of a director.</P>

<P STYLE="font: 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">Our board of directors has undertaken a
review of the independence of each director. Based on information provided by each director concerning his background, employment
and affiliations, our board of directors has determined that three of our five directors, do not have relationships that would
interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors
is &#8220;independent&#8221; as that term is defined under the listing standards of Nasdaq. In making such determination, our board
of directors considered the relationships that each such non-employee director has with us and all other facts and circumstances
that our board of directors deemed relevant in determining his independence, including the beneficial ownership of our capital
stock by each non-employee director.</P>

<P STYLE="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>Board&#8217;s Role in Risk Oversight and 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-align: justify">Our board of directors, as a whole and
through its committees, is responsible for the oversight of risk management, while our management is responsible for the day-to-day
management of risks faced by us. The board of directors receives regular reports from members of senior management on areas of
material risk to the Company, including operational, financial, legal, regulatory, strategic and reputational risks as more fully
discussed in the section titled &#8220;<I>Risk Factors</I>&#8221; appearing elsewhere in this prospectus. In its risk oversight
role, our board of directors has the responsibility to satisfy itself that the risk management processes designed and implemented
by management are adequate and functioning as designed.</P>

<P STYLE="font: 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"><B>Committees of Our Board of 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: 0pt 0; text-align: justify">Our board of directors has established
an audit committee, a compensation committee, and a nominating and corporate governance committee. The composition and responsibilities
of each committee of our board of directors are described below. Members serve on these committees until their resignation or until
otherwise determined by our board of directors. Our board of directors may establish other committees as it deems necessary or
appropriate from time to time.</P>

<P STYLE="font: 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">Although each committee is directly responsible
for evaluating certain enumerated risks and overseeing the management of such risks, the entire board of directors is generally
responsible for and is regularly informed through committee reports about such risks and any corresponding remediation efforts
designed to mitigate such risks. In addition, appropriate committees of the board of directors receive reports from senior management
within the organization in order to enable the board of directors to understand risk identification, risk management and risk mitigation
strategies. When a committee receives such a report, the chairman of the relevant committee reports on the discussion to the full
board of directors during the committee reports portion of the next board of directors meeting. This enables the board of directors
and its committees to coordinate the risk oversight role.</P>

<P STYLE="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: justify"><B><I>Audit Committee</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: justify">The members of our audit committee are
Grainne Coen, Jeannie Mun, and Christopher H. &#8220;Toby&#8221; Smith. Ms.&nbsp;Coen chairs the audit committee. The audit committee&#8217;s
main function is to oversee our accounting and financial reporting processes, internal systems of control, independent registered
public accounting firm relationships and the audits of our financial statements. The committee&#8217;s responsibilities include,
among other things:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">appointing, approving the compensation of and assessing the independence of our registered public accounting firm;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing the work of our independent registered public accounting firm, including through the receipt and consideration of reports from such firm;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and discussing with management and the independent registered public accounting firm our annual and quarterly financial statements and related disclosures;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">monitoring our internal control over financial reporting, disclosure controls and procedures and code of business conduct and ethics;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing our internal audit function;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing our risk assessment and risk management policies;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establishing policies regarding hiring employees from the independent registered public accounting firm and procedures for the receipt and retention of accounting related complaints and concerns;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">meeting independently with our internal auditing staff, independent registered public accounting firm and management;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and approving or ratifying any related person transactions; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">preparing the audit committee report required by SEC rules.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All audit and non-audit services, other
than&nbsp;<I>de minimis</I>&nbsp;non-audit services, to be provided to us by our independent registered public accounting firm
must be approved in advance by our audit committee.</P>

<P STYLE="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>Business Development and Marketing Committee</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: justify">The members of our business development
and marketing committee are Grainne Coen, Elisabeth DeMarse, and Jeanie Mun. Ms.&nbsp;DeMarse chairs the business development and
marketing committee. This committee&#8217;s responsibilities include, among other things:</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; text-align: justify">
<TD STYLE="width: 24px"></TD><TD STYLE="width: 24px; text-align: left"><FONT STYLE="background-color: white">&#8226;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: white">identifying and
creating plans to fulfill relevant short and long-term goals from the Kubient strategic plan;</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; text-align: justify">
<TD STYLE="width: 24px"></TD><TD STYLE="width: 24px; text-align: left"><FONT STYLE="background-color: white">&#8226;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: white">maintaining the
integrity and increasing the awareness of the Kubient brand;</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; text-align: justify">
<TD STYLE="width: 24px"></TD><TD STYLE="width: 24px; text-align: left"><FONT STYLE="background-color: white">&#8226;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: white">recommending an
annual marketing budget;</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; text-align: justify">
<TD STYLE="width: 24px"></TD><TD STYLE="width: 24px; text-align: left"><FONT STYLE="background-color: white">&#8226;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: white">developing and
implementing a comprehensive marketing and communications strategy;</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; text-align: justify">
<TD STYLE="width: 24px"></TD><TD STYLE="width: 24px; text-align: left"><FONT STYLE="background-color: white">&#8226;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: white">working with the
executive team on short and long-term marketing needs;</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; text-align: justify">
<TD STYLE="width: 24px"></TD><TD STYLE="width: 24px; text-align: left"><FONT STYLE="background-color: white">&#8226;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: white">setting priorities
for marketing efforts;</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; text-align: justify">
<TD STYLE="width: 24px"></TD><TD STYLE="width: 24px; text-align: left"><FONT STYLE="background-color: white">&#8226;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: white">assisting with
the continued development of the website and ensuring relevant and current content;</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; text-align: justify">
<TD STYLE="width: 24px"></TD><TD STYLE="width: 24px; text-align: left"><FONT STYLE="background-color: white">&#8226;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: white">determining and
engaging audience through various media channels; 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; text-align: justify">
<TD STYLE="width: 24px"></TD><TD STYLE="width: 24px; text-align: left"><FONT STYLE="background-color: white">&#8226;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="background-color: white">identifying collaborative
opportunities with businesses and organizations on new and existing events.</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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Compensation Committee&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: lightgrey"></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-align: justify">The members of our compensation
committee are Grainne Coen, Jeannie Mun, and Christopher H. &#8220;Toby&#8221; Smith. Ms.&nbsp;Mun chairs the compensation
committee. The primary purpose of our compensation committee is to discharge the responsibilities of our board of directors
in overseeing our compensation policies, plans and programs and to review and determine the compensation to be paid to our
executive officers, directors and other senior management, as appropriate. Specific responsibilities of our compensation
committee include, among other things:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and recommending corporate goals and objectives relevant to the compensation of our chief executive officer and other executive officers;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">making recommendations to our board of directors with respect to, the compensation level of our executive officers;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and recommending to our board of directors employment agreements and significant arrangements or transactions with executive officers;</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reviewing and recommending to our board of directors with respect to director compensation; 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing and administering our equity-based incentive plan or plans.</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: justify">Each member of our compensation committee
is a non-employee director, as defined in Rule&nbsp;16b-3 promulgated under the Exchange Act and an outside director, as defined
pursuant to Section&nbsp;162(m)&nbsp;of the Internal Revenue Code of 1986, as amended, or the &#8220;Code.&#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; text-align: justify">With respect to director compensation,
our compensation committee is responsible for reviewing the compensation paid to members of the Board and recommending modifications
to Board compensation that the compensation committee determines are appropriate and advisable to the Board for its approval from
time to time. In this regard, the compensation committee may request that management report to the compensation committee periodically
on the status of the Board&#8217;s compensation in relation to other similarly situated companies.</P>

<P STYLE="font: 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">In determining compensation for our executive
officers, the compensation committee typically considers, but is not required to accept, the recommendations of our Chief Executive
Officer regarding the performance and proposed base salary and bonus and equity awards for the other executive officers, as well
as himself. The compensation committee may also request the assistance of our Chief Financial Officer in evaluating the financial,
accounting and tax implications of various compensation awards paid to the executive officers. However, our Chief Financial Officer
does not determine the amounts or types of compensation paid to the executive officers. Our Chief Executive Officer and certain
of our other executive officers may attend compensation committee meetings, as requested by the compensation committee. None of
our executive officers, including our Chief Executive Officer, will attend any portion of the compensation committee meetings during
which the executive officer&#8217;s compensation is established and approved.</P>

<P STYLE="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>Nominating and Corporate Governance Committee</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: justify">The members of our nominating and corporate
governance committee are Elisabeth DeMarse, Jeannie Mun, and Christopher H. &#8220;Toby&#8221; Smith. Mr.&nbsp;Smith chairs the
nominating and corporate governance committee. This committee&#8217;s responsibilities include, among other things:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">identifying and evaluating candidates, including the nomination of incumbent directors for reelection and nominees recommended by stockholders, to serve on our board of directors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">considering and making recommendations to our board of directors regarding the composition and chairmanship of the committees of our board of directors;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">developing and recommending to our board of director&#8217;s corporate governance principles, codes of conduct and compliance mechanisms; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">overseeing periodic evaluations of the board of directors&#8217; performance, including committees of the board of directors.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When evaluating director candidates, the
nominating and corporate governance committee may consider several factors, including relevant experience, independence, commitment,
compatibility with the Chief Executive Officer and the board of directors&#8217; culture, prominence and understanding of the Company&#8217;s
business, as well as any other factors the corporate governance and nominating committee deems relevant at the time. The corporate
governance and nominating committee makes a recommendation to the full board of directors as to any person it believes should be
nominated by our board of directors, and our board of directors determines the nominees after considering the recommendation and
report of the corporate governance and nominating committee.</P>

<P STYLE="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: justify">Any director or executive officer of
the Company may recommend a candidate to the nominating and corporate governance committee for its consideration. The
nominating and corporate governance committee will also consider nominees to our board of directors recommended by
stockholders if stockholders comply with the advance notice requirements in our bylaws. Our bylaws provide that a stockholder
who wishes to nominate a person for election as a director at a meeting of stockholders must deliver timely written notice to
our Corporate Secretary at the following address:</P>

<P STYLE="font: 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">Peter Anthony Bordes,&nbsp;Jr.</P>

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

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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;228 Park Avenue South</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;Suite&nbsp;72602</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New
York, New York 10003-1502</FONT> (800-409-9456)</P>

<P STYLE="font: 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">This notice must contain, as to each nominee,
all of the information relating to such person as would be required to be disclosed in a proxy statement meeting the requirements
of Regulation 14A under the Exchange Act and certain other information, including: the name and address of the stockholder delivering
the notice as it appears on our books; the class and number of shares owned beneficially and of record by such stockholder; information
about derivative instruments beneficially owned by such stockholder and any opportunity to profit or share in any profit derived
from any increase or decrease in the value of the shares of our stock; any proxy, contract, arrangement, understanding or relationship
pursuant to which such stockholder has a right to vote any shares of our stock; any short interest in any of our securities held
by such stockholder; any rights to dividends on shares of our stock owned beneficially or of record by such stockholder that are
separated or separable from the underlying shares of stock; any proportionate interest in shares of our stock or derivative instruments
held by a general or limited partnership in which such stockholder is, or owns a beneficial interest in, the general partner; any
performance-related fees to which such stockholder is entitled based on the value of our securities; any arrangement or understanding
between such stockholder and the proposed nominee; and whether such stockholder intends to deliver a solicitation notice, as more
fully described in our bylaws. The foregoing summary does not include all requirements a stockholder must satisfy in order to nominate
a candidate to our board of directors. Stockholders who wish to recommend a nominee to our board of directors should carefully
read our bylaws, which are available at https://Kubient.com. (The inclusion of our website address in this prospectus does not
include or incorporate by reference the information on our website into this prospectus.)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Compensation Committee Interlocks and Insider Participation</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">Not applicable to smaller reporting companies.</P>

<P STYLE="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>Compensation Committee Report</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">Not applicable to smaller reporting companies.</P>

<P STYLE="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>Board Diversity</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">Our nominating and corporate governance
committee is responsible for reviewing with board of directors, on an annual basis, the appropriate characteristics, skills and
experience required for the board of directors as a whole and its individual members. In evaluating the suitability of individual
candidates (both new candidates and current members), the nominating and corporate governance committee, in recommending candidates
for election, and the board of directors, in approving (and, in the case of vacancies, appointing) such candidates, will take into
account many factors, including the following:</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">personal and professional integrity, ethics and values;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">experience in corporate management, such as serving as an officer or former officer of a publicly-held company;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">development or commercialization experience in large consumer products companies;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">experience as a board member or executive officer of another publicly-held company;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">strong finance experience;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">diversity of expertise and experience in substantive matters pertaining to our business relative to other board members;</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>

<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">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">diversity of background and perspective, including with respect to age, gender, race, place of residence and specialized experience;</FONT></TD></TR>
</TABLE>
<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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">conflicts of interest; 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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">practical and mature business judgment.</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: justify">Currently, our board of directors evaluates
each individual in the context of the board of directors as a whole, with the objective of assembling a group that can best maximize
the success of the business and represent stockholder interests through the exercise of sound judgment using its diversity of experience
in these various areas.</P>

<P STYLE="font: 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"><B>Director Nomination Process</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">Our board of directors believes that its
directors should have the highest professional and personal ethics and values, consistent with the Company&#8217;s longstanding
values and standards. They should have broad experience at the policy-making level in business, government or civic organizations.
They should be committed to enhancing stockholder value and should have sufficient time to carry out their duties and to provide
insight and practical wisdom based on their own unique experience. Each director must represent the interests of all stockholders.
When considering potential director candidates, our board of directors also considers the candidate&#8217;s independence, character,
judgment, diversity, age, skills, including financial literacy, and experience in the context of our needs and those of our board
of directors. Our board of directors believe that diversity is an important attribute of the members who comprise our board of
directors and that the members should represent an array of backgrounds and experiences and should be capable of articulating a
variety of viewpoints. Our board of directors priority in selecting board members is the identification of persons who will further
the interests of our stockholders through his or her record of professional and personal experiences and expertise relevant to
our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Stockholder Nominations to the Board
of 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: 0pt 0; text-align: justify">Our bylaws provides that our board of directors
will accept for consideration submissions from stockholders of recommendations for the nomination of directors. Acceptance of a
recommendation for consideration does not imply that the board of directors will nominate the recommended candidate. Director nominations
by a stockholder or group of stockholders for consideration by our stockholders at our annual meeting of stockholders, or at a
special meeting of our stockholders that includes on its agenda the election of one or more directors, may only be made pursuant
to our bylaws or as otherwise provided by law. Nominations pursuant to our bylaws are made by delivering to our Corporate Secretary,
within the time frame described in our bylaws, all of the materials and information that our bylaws require for director nominations
by stockholders.</P>

<P STYLE="font: 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">No person shall be eligible to serve as
a director of the Company unless nominated in accordance with the procedures set forth in our bylaws and any nominee proposed by
a stockholder not nominated in accordance with our bylaws shall not be considered or acted upon for execution at such meeting.
Stockholders&#8217; notice for any proposals requested to be included in our prospectus pursuant to Rule&nbsp;14a-8 under the Exchange
Act (including director nominations), must be made in accordance with that rule.</P>

<P STYLE="font: 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"><B>Role of Board in Risk Oversight Process</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">Our board of directors has responsibility
for the oversight of the Company&#8217;s risk management processes and, either as a whole or through its committees, regularly
discusses with management our major risk exposures, their potential impact on our business and the steps we take to manage them.
The risk oversight process includes receiving regular reports from board committees and members of senior management to enable
our board to understand the company&#8217;s risk identification, risk management and risk mitigation strategies with respect to
areas of potential material risk, including operations, finance, legal, regulatory, strategic and reputational risk.</P>

<P STYLE="font: 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">The audit committee reviews information
regarding liquidity and operations, and oversees our management of financial risks. Periodically, the audit committee reviews our
policies with respect to risk assessment, risk management, loss prevention and regulatory compliance. Oversight by the audit committee
includes direct communication with our external auditors, and discussions with management regarding significant risk exposures
and the actions management has taken to limit, monitor or control such exposures. The compensation committee is responsible for
assessing whether any of our compensation policies or programs has the potential to encourage excessive risk-taking. The nominating
and corporate governance committee manages risks associated with the independence of the board, corporate disclosure practices,
and potential conflicts of interest. While each committee is responsible for evaluating certain risks and overseeing the management
of such risks, the entire board is regularly informed through committee reports about such risks. Matters of significant strategic
risk are considered by our board of directors as a whole.</P>

<P STYLE="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: justify"><B>Code of Business Conduct and Ethics</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">We have adopted a written code of
business conduct and ethics that applies to our directors, officers and employees, including our principal executive officer,
principal financial officer, principal accounting officer or controller, or persons performing similar functions. A current
copy of the code is posted on the Corporate Governance section of our website, www.Kubient.com. In addition, we post on our
website all disclosures that are required by law or the listing standards of The Nasdaq Capital Market concerning any
amendments to, or waivers from, any provision of the code. The reference to our website address does not constitute
incorporation by reference of the information contained at or available through our website, and you should not consider it
to be a part of this prospectus.</P>

<P STYLE="text-indent: 0.25in; font: 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="s_001"></A>EXECUTIVE AND DIRECTOR 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-align: justify"><B>Summary 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-align: justify">The following table provides information
regarding the compensation awarded to or earned during 2019 and 2018, as applicable, by the named executive officers of Kubient
during the historical periods presented:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Option
    and</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Stock
    Awards</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Warrant</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Name
    and Principal Position</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Fiscal
    Year</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Salary</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Bonus</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">(1)</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Awards
    (1)</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">Total</FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 22%; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">Peter
    Anthony Bordes,&nbsp;Jr.</FONT></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: center"><FONT STYLE="font-size: 8pt">2019</FONT></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">75,000</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">479</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">(3)</FONT></TD><TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">75,479</FONT></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: italic 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">Chief Executive
    Officer (2)</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&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-size: 8pt">Paul Roberts</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">2019</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">155,760</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">155,760</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: italic 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">Chief Strategy
    Officer</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">2018</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">110,250</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">110,250</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">Pavel Medvedev</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">2019</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">230,460</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">230,460</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: italic 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">Chief Technology
    Officer (4)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-size: 8pt">2018</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">141,667</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-size: 8pt">412,500</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 8pt">(5)</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">103,633</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">(6)</FONT></TD><TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="font-size: 10pt; text-align: right"><FONT STYLE="font-size: 8pt">657,800</FONT></TD><TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify; width: 97%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The amounts reported in these columns represent the grant date fair value of the stock, option and warrant awards granted during the years ended December&nbsp;31, 2019 and 2018, calculated in accordance with FASB ASC Topic 718.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Peter Anthony Bordes,&nbsp;Jr. began his employment with the Company on May&nbsp;15, 2019.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On October&nbsp;2, 2019, Peter Anthony Bordes,&nbsp;Jr. was issued a four-year option to purchase 26,700 shares of common stock at an exercise price of $3.75 per share that vests over four years.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pavel Medvedev began his employment with the Company on April&nbsp;16, 2018.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: justify; width: 97%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During 2018, Pavel Medvedev was transferred 750,000 shares of the Company&#8217;s common stock from Paul Roberts for services Mr.&nbsp;Medvedev provided to the Company.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="text-align: justify; width: 97%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April&nbsp;16, 2018, Pavel Medvedev was issued a five-year warrant to purchase 250,000 shares of common stock at an exercise price of $0.55 per share that vested immediately.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Employment 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: justify">We do not presently offer a 401(k)&nbsp;plan
or other health or welfare benefits to our executive officers. We have entered into agreements with Peter A. Bordes, Joshua Weiss,
Paul Roberts, Pavel Medvedev, Christopher Francia and Christopher Andrews.</P>

<P STYLE="font: 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">The terms of Mr.&nbsp;Bordes&#8217; employment
agreement, which was entered into on May&nbsp;15, 2019, provide for an annual base salary of $220,000, plus an annual bonus of
up to 30% of his base salary based upon the achievement of certain performance goals to be established by the Board of Directors
or a committee of the Board of Directors. Upon a termination for any reason, Mr.&nbsp;Bordes is entitled to any unpaid but accrued
portion of his base salary earned through the date of his termination, payment for any accrued but unused vacation pay, any expenses
owed to him pursuant to his employment agreement, and any amounts owed under the Company&#8217;s benefit plans. In the event Mr.&nbsp;Bordes
is terminated without cause or that Mr.&nbsp;Bordes resigns for Good Reason (as defined in his employment agreement), Mr.&nbsp;Bordes
shall be entitled to three month&#8217;s salary, six months continued healthcare coverage plus one additional month of salary for
each full year of his service to the Company, and immediate vesting of any equity awards that would have become vested and exercisable
during the three months after his termination. Mr.&nbsp;Bordes was also granted options to purchase 26,700 shares of the Company&#8217;s
common stock at $3.75 per share for a three year period, pursuant to the terms, conditions and vesting schedule set forth in the
corresponding Non-Qualified Option 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-align: justify">The terms of Mr.&nbsp;Weiss&#8217;
employment agreement, which was entered into on December&nbsp;23, 2019, provide for an annual base salary of $150,000, until
March&nbsp;22, 2020, when Mr.&nbsp;Weiss&#8217; base salary was increased to $275,000. Upon execution of his employment
agreement, Mr.&nbsp;Weiss was granted options to purchase 150,000 shares of the Company&#8217;s common stock at $3.75 per
share for a five-year period, pursuant to the terms, conditions and vesting schedule set forth in the corresponding
Non-Qualified Option Agreement. Pursuant to the terms of his employment agreement, Mr.&nbsp;Weiss was awarded 20,000 shares
of the Company&#8217;s common stock on March&nbsp;22, 2020. Mr.&nbsp;Weiss is also entitled to an annual bonus of up to 30%
of his base salary based upon the achievement of certain performance goals to be established by the Board of Directors or a
committee of the Board of Directors. Upon a termination for any reason, Mr.&nbsp;Weiss is entitled to any unpaid but accrued
portion of his base salary earned through the date of his termination, payment for any accrued but unused vacation pay, any
expenses owed to him pursuant to his employment agreement, and any amounts owed under the Company&#8217;s benefit plans. In
the event Mr.&nbsp;Weiss is terminated without cause or that Mr.&nbsp;Weiss resigns for Good Reason (as defined in his
employment agreement), Mr.&nbsp;Weiss shall be entitled to six month&#8217;s salary paid in one lump sum, six months
continued healthcare coverage plus one additional month of salary for each full year of his service to the Company, and
immediate vesting of any equity awards that would have become vested and exercisable during the three months after his
termination.</P>

<P STYLE="font: 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">The terms of Mr.&nbsp;Roberts&#8217; employment
agreement, which was entered into on May&nbsp;26, 2017 and amended October&nbsp;2, 2019 solely to reflect his change in position
at the Company to Chief Strategy Officer and President, provide for an annual base salary of $120,000, plus an annual bonus of
up to 30% of his base salary based upon the achievement of certain performance goals to be established by the Board of Directors
or a committee of the Board of Directors. Upon a termination for any reason, Mr.&nbsp;Roberts is entitled to any unpaid but accrued
portion of his base salary earned through the date of his termination, payment for any accrued but unused vacation time, any expenses
owed to him pursuant to his employment agreement, and any amounts owed under the Company&#8217;s benefit plans. In the event Mr.&nbsp;Roberts
is terminated without cause or that Mr.&nbsp;Roberts resigns for Good Reason (as defined in his employment agreement), Mr.&nbsp;Roberts
shall be entitled to six month&#8217;s salary plus one additional month of salary for each full year of his service to the Company,
continued healthcare coverage for the earlier of (i)&nbsp;six months plus one additional month of additional coverage for each
full year of his service to the Company or (ii)&nbsp;until such time as Mr.&nbsp;Roberts becomes eligible for health coverage under
another employer&#8217;s plan, and immediate vesting of any equity awards that would have become vested and exercisable during
the six months after his termination, plus one additional month of salary for each full year of his service to the Company. Mr.&nbsp;Roberts
was also granted options to purchase 300,000 shares of the Company&#8217;s common stock at $0.55 per share for a five year period,
pursuant to the terms, conditions and vesting schedule set forth in the corresponding Non-Qualified Option 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; text-align: justify">The terms of Mr.&nbsp;Medvedev&#8217;s
employment agreement, which was entered into on April&nbsp;16, 2018, provide for an annual base salary of $200,000, plus quarterly
bonuses of eight percent of all net revenue generated by introductions made by Mr.&nbsp;Medvedev to us. Mr.&nbsp;Medvedev was granted
250,000 warrants to purchase our common stock, as well as 750,000 warrants to purchase common stock which might be issued upon
the achievement of certain performance goals set forth in the agreement. Upon termination for any reason, Mr.&nbsp;Medvedev is
entitled to the continuation of his Net Revenue Bonus (as defined in his employment agreement) for the earlier of: eighteen months
from the date such bonus commences, or three months from the termination of his employment with the Company. Mr.&nbsp;Medvedev
was also granted options to purchase 200,000 shares of the Company&#8217;s common stock at $0.55 per share that vest over a three
year period, pursuant to the terms, conditions and vesting schedule set forth in the corresponding Non-Qualified Option Agreement
and conditions of his employment agreement. However, Mr.&nbsp;Medvedev&#8217;s employment agreement was subsequently amended on
November&nbsp;21, 2019 to reflect that Mr.&nbsp;Medvedev has received a total of 750,000 shares of common stock from Mr.&nbsp;Paul
Roberts, the Company&#8217;s Chief Strategy Officer, President and Chairman, and 250,000 five-year warrants at an exercise price
of $0.55 per share in lieu of the warrants and options originally set forth in his employment agreement, and that no further equity
awards will be made to Mr.&nbsp;Medvedev pursuant to the terms of his employment agreement with the Company.</P>

<P STYLE="font: 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">The terms of Mr.&nbsp;Francia&#8217;s employment
agreement, which was entered into on May&nbsp;26, 2017, provide for an annual base salary of $94,000. Mr.&nbsp;Francia was also
granted four-year options to purchase 29,000 shares of the Company&#8217;s common stock at $0.33 per share that vest over four
years, pursuant to the terms, conditions and vesting schedule set forth in the corresponding Non-Qualified Option Agreement. Upon
a termination for any reason, Mr.&nbsp;Francia is entitled to any unpaid but accrued portion of his base salary earned through
the date of his termination, payment for any accrued but unused vacation time, any expenses owed to him pursuant to his employment
agreement, and any amounts owed under the Company&#8217;s benefit plans.</P>

<P STYLE="font: 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">The terms of Mr.&nbsp;Andrews&rsquo; employment
agreement, which was entered into on June&nbsp;17, 2019, provide for an annual base salary of $180,000, plus commissions of: (i)&nbsp;for
the first $320,000 in commission, 15% of the net revenue of Mr.&nbsp;Andrews&rsquo; division (ii)&nbsp;for commissions between
$320,000 to $570,000, up to 15% of the net revenue of Mr.&nbsp;Andrews&rsquo; division, which amount can include up to $250,000
in common stock, and (iii)&nbsp;for any commissions above $570,000, 7% the net revenue of Mr.&nbsp;Andrews&rsquo; division. Mr.&nbsp;Andrews
was also granted options to purchase 180,000 shares of the Company&rsquo;s common stock at $3.75 per share for a ten year period,
pursuant to the terms, conditions and vesting schedule set forth in the corresponding Non-Qualified Option Agreement. Additionally,
pursuant to the terms of his employment agreement, Mr.&nbsp;Andrews was issued 20,000 shares of our common stock on July&nbsp;17,
2019. Upon a termination for any reason, Mr.&nbsp;Andrews is entitled to any unpaid but accrued portion of his base salary earned
through the date of his termination, payment for any accrued but unused vacation time, any expenses owed to him pursuant to his
employment agreement, and any amounts owed under the Company&rsquo;s benefit plans. In the event Mr.&nbsp;Andrews is terminated
without cause or that Mr.&nbsp;Andrews resigns for Good Reason (as defined in his employment agreement), Mr.&nbsp;Andrews shall
be entitled to twelve month&rsquo;s salary, continued healthcare coverage for the earlier of (i)&nbsp;six months plus one additional
month of additional coverage for each full year of his service to the Company, or (ii)&nbsp;until such time as Mr.&nbsp;Andrews
becomes eligible for health coverage under another employer&rsquo;s plan, and immediate vesting of any equity awards that would
have become vested and exercisable during the three months after his termination.</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"></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>Stock Option and Other Compensation Plans</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">Our 2017 Equity Incentive Plan was originally
adopted by our board of directors and approved by our stockholders on September&nbsp;12, 2017, and was subsequently amended and
restated on June&nbsp;5, 2019 (the &#8220;2017 Plan&#8221;). The purposes of the 2017 Plan are to attract and retain the best available
personnel for positions of substantial responsibility, to provide additional incentive to our service providers and to promote
the success of the Company&#8217;s business. We have reserved 3,000,000 shares of our common stock to issue awards under our 2017
Plan which shall be increased to equal 10% of our issued and outstanding common stock at the time of each award.</P>

<P STYLE="font: 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"><I>Shares Available for Awards</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-align: justify">As of March&nbsp;31, 2020, there were options
to purchase 880,700 shares of our common stock with a weighted average exercise price of $1.85 per share that were outstanding
under the 2017 Plan and 2,119,300 shares of common stock remained available for future issuance under the 2017 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; text-align: justify"><I>Eligibility</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-align: justify">The persons eligible to receive awards
under our 2017 Plan are our employees, directors and consultants. However, only employees are eligible to receive awards of incentive
stock options (&#8220;ISOs&#8221;) within the meaning of Section&nbsp;422 of the Code.</P>

<P STYLE="font: 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"><I>Administration</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-align: justify">Our 2017 Plan provides that it shall be
administered by our board of directors or, if so delegated, a committee appointed by our board of directors. The party administering
our 2017 Plan, whether it is our board of directors or a committee appointed by our board of directors, is referred to under the
2017 Plan as the &#8220;administrator&#8221;. Subject to the terms of our 2017 Plan, the administrator is authorized to (i)&nbsp;determine
the fair market value of our common stock, (ii)&nbsp;select eligible persons to receive awards, (iii)&nbsp;determine the number
of shares of our common stock to which awards will relate, (iv)&nbsp;approve forms of award agreement for use under the 2017 Plan,
(v)&nbsp;determine the terms and conditions of awards, including exercise price, time or timing of award exercisability, or any
vesting acceleration or waiver of forfeiture restrictions, (vi)&nbsp;determine whether to institute and determine the conditions
of an award exchange program, (vii)&nbsp;construe the terms of the 2017 Plan and awards granted thereunder, (viii)&nbsp;prescribe,
amend and rescind rules&nbsp;and regulations relating to the 2017 Plan (including any foreign sub-plans), (ix)&nbsp;modify or amend
any award, including discretion to extend the post-termination exercisability period or maximum term of an option, (x)&nbsp;determine
how participants may satisfy tax withholding obligations and the acceptable form of consideration for exercising an option, (xi)&nbsp;authorize
any person to execute any award agreement previously granted by the administrator, (xii)&nbsp;allow a participant to defer the
receipt of the payment of cash or receipt of common shares that otherwise would be due to such participant, and (xiii)&nbsp;make
all other determinations deemed necessary or advisable for administering the 2017 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; text-align: justify"><I>Stock 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-align: justify">Incentive and nonstatutory stock options
are granted pursuant to stock option agreements adopted by the administrator. The term of an option will be no more than ten years,
and no more than five years with respect to any ISO granted to a participant who, at the time of grant, owns stock representing
more than 10% of the total combined voting power of all classes of stock of the Company, or any parent or subsidiary (a &#8220;10%
Stockholder&#8221;). Generally, the exercise price for an incentive stock option or a nonstatutory stock option cannot be less
than 100% of the fair market value of the common stock subject to the option on the date of grant. However, any ISO granted to
a 10% Stockholder may not have an exercise price per share less than 110% of the fair market value per share on the date of grant.
Notwithstanding the above, options may be granted with a per share exercise price of less than 100% of fair market value per share
on the date of grant pursuant to certain transactions and in a manner consistent with Section&nbsp;424(a)&nbsp;of the Code. A stock
option agreement may provide for early exercise prior to vesting and the administrator may at any time offer to buy out any option
previously granted.</P>

<P STYLE="font: 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">For purposes of the 2017 Plan, &#8220;fair
market value&#8221; means (i)&nbsp;if our common stock is listed on an established stock exchange, the closing sales price on such
exchange on the date of determination, or if no closing bid was reported for such date, the next earliest date or (ii)&nbsp;if
our common stock is not listed on an established stock exchange, the value determined in good faith by the administrator. At the
time of grant, the administrator shall determine the acceptable form of consideration for exercising an option, which may consist
of cash, check, promissory note (to the extent permitted by law), other shares of our common stock, consideration received by the
Company through a cashless exercise program, by net exercise or by any other consideration or method of payment. Options will be
exercisable as provided under the terms of the 2017 Plan and at such times set forth in the applicable award agreement. An option
will be deemed exercised when the Company receives (i)&nbsp;written or electronic notice of exercise, (ii)&nbsp;full payment for
the exercised shares (including any applicable tax withholding), and (iii)&nbsp;such representations and documents deemed necessary
or advisable by the administrator.</P>

<P STYLE="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: justify">If an optionee ceases to be a service
provider, other than upon termination due to death or disability, the optionee may exercise his or her option within 30 days
of termination, or such longer period of time specified in the award agreement (but in no case after the expiration date of
the option), to the extent such option is vested on the date of termination. If an optionee ceases to be a service provider
due to death or disability, the optionee or his or her beneficiary, may exercise any vested options up to six months
following termination (but in no case after the expiration date of the option). Any shares covered by any unvested portion of
the option which is forfeited will revert to the 2017 Plan and again be available for grant. The option agreement may provide
for early exercise prior to vesting or a right of repurchase.</P>

<P STYLE="font: 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"><I>Limitations</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-align: justify">The aggregate fair market value, determined
at the time of grant, of shares of our common stock with respect to ISOs that are exercisable for the first time by an optionee
during any calendar year under all of our stock plans may not exceed $100,000. The options or portions of options that exceed this
limit are treated as nonstatutory stock options.</P>

<P STYLE="font: 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"><I>Restricted Stock</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-align: justify">Our 2017 Plan also permits the issuance
of restricted stock. Restricted stock represents the purchase of our common stock that is subject to restrictions with respect
to sale and transferability of such shares until the stock vests pursuant to the terms of the award 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; text-align: justify"><I>Restricted Stock Units</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-align: justify">Our 2017 Plan also permits the issuance
of restricted stock units, or RSUs, to our service providers. RSUs granted under our 2017 Plan represent the right to receive shares
of our common stock or a cash payment at a specified future date or event and may be subject to vesting requirements.</P>

<P STYLE="font: 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"><I>Other Stock-Based Awards</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-align: justify">Our 2017 Plan permits the issuance of other
awards may be paid in shares of common stock, cash or other property as standalone payment and or payment in lieu of compensation.</P>

<P STYLE="font: 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"><I>Adjustments</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-align: justify">In the event of an equity restructuring
as defined in the 2017 Plan, such as a stock split, stock dividend, merger or other recapitalization, the 2017 Plan provides for
the proportional adjustment of the number of shares reserved under the 2017 Plan and the number of shares and exercise or purchase
price, if applicable, of all outstanding stock awards.</P>

<P STYLE="font: 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"><I>Merger or Change in Control</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-align: justify">Unless otherwise provided in the award
agreement, in the event of certain corporate transactions, any or all outstanding stock awards under the 2017 Plan may be treated
as the administrator determines absent participant consent: that the awards will (i)&nbsp;be assumed or substituted for by any
successor corporation, (ii)&nbsp;terminate upon or immediately prior to any such transaction, (iii)&nbsp;vest and become exercisable
or payable in whole or in part upon the effectiveness of such transaction, (iv)&nbsp;be terminated in exchange or in replacement
for cash or property that would have been realized upon the exercise or realization of such award, or (v)&nbsp;be handled in any
combination of the above. If the successor corporation elects not to assume or substitute for such awards, the vesting of such
stock awards will accelerate and all restrictions shall lapse. In the event of our dissolution or liquidation, all outstanding
options and stock appreciation rights under the 2017 Plan will terminate immediately prior to such event.</P>

<P STYLE="font: 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"><I>Amendment and Termination</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-align: justify">Our board of directors has the authority
to amend, alter, suspend or terminate the 2017 Plan with stockholders approval as required by law. However, no amendment or termination
of the plan may adversely affect any rights under awards already granted to a participant without the affected participant&#8217;s
consent.</P>

<P STYLE="font: 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"><I>Founder Employee Incentive Program</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 2, 2020, the Company&rsquo;s board of directors adopted
the Founder Employee Incentive Program (the &ldquo;Founder Program&rdquo;) under the 2017 Plan. The purposes of the Founder Program
are to offer near-term and long-term incentives to founder employees of the Company that are intended to keep such employees in
the employ of the Company, and that are based on individual performance, the achievement of financial goals of the Company and
the total return to the Company&rsquo;s stockholders. </P>

<P STYLE="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>

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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>Outstanding Equity Awards at December&nbsp;31, 2019</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">The following table provides information
with respect to holdings of options, warrants and stock awards held by our named executive officers, 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" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Option Awards</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; border-bottom: Black 1pt solid">Name</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">Number of&nbsp;<BR> securities&nbsp;<BR> underlying&nbsp;<BR> unexercised&nbsp;<BR> option&nbsp;<BR> exercisable&nbsp;<BR> (#)</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">Number of&nbsp;<BR> securities&nbsp;<BR> underlying&nbsp;<BR> unexercised&nbsp;<BR> option&nbsp;<BR> unexercisable&nbsp;<BR> (#)</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">Option&nbsp;<BR> exercise price&nbsp;<BR> ($)</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">Option&nbsp;<BR> expiration&nbsp;<BR> date</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: 20%; font: 10pt Times New Roman, Times, Serif; text-align: left">Paul Roberts</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: 17%; font: 10pt Times New Roman, Times, Serif; text-align: right">168,750</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: 17%; font: 10pt Times New Roman, Times, Serif; text-align: right">131,250</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: 17%; font: 10pt Times New Roman, Times, Serif; text-align: right">0.33</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: 17%; font: 10pt Times New Roman, Times, Serif; text-align: right">9/15/2021</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">Peter Anthony Bordes,&nbsp;Jr.</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">26,700</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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3.75</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">10/2/2029</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: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">Warrant Awards</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; border-bottom: Black 1pt solid">Name</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">Number of&nbsp;<BR> securities&nbsp;<BR> underlying&nbsp;<BR> unexercised&nbsp;<BR> warrant&nbsp;<BR> exercisable&nbsp;<BR> (#)</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">Number of&nbsp;<BR> securities&nbsp;<BR> underlying&nbsp;<BR> unexercised&nbsp;<BR> warrant&nbsp;<BR> unexercisable&nbsp;<BR> (#)</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">Warrant<BR> exercise price&nbsp;<BR> ($)</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">Warrant<BR> expiration&nbsp;<BR> date</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: 20%; font: 10pt Times New Roman, Times, Serif; text-align: left">Pavel Medvedev</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: 17%; font: 10pt Times New Roman, Times, Serif; text-align: right">250,000</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: 17%; font: 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</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: 17%; font: 10pt Times New Roman, Times, Serif; text-align: right">0.55</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: 17%; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4/16/2023</FONT></TD><TD STYLE="width: 1%; 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: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Long-Term Incentive Plans</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">We currently have no long-term incentive
plans.</P>

<P STYLE="font: 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"><B>Salary Reduction 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-align: justify">On April&nbsp;30, 2020, in response to
the impact of the COVID-19 pandemic on the Company&#8217;s operations, the Company&#8217;s board of directors approved an employee
salary reduction program, whereby we can issue shares of our common stock in lieu of salaries to employees. The value of such an
equity award shall be equivalent to 150% of the cash compensation that otherwise would have been payable, based on the market value
of the Company&#8217;s common stock on the date of issuance.</P>

<P STYLE="font: 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"><B>Non-Employee Director 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-align: justify">As of July 1, 2020, we have not offered
or paid non-employee directors any compensation for their services. However, we reimburse our officers and directors for reasonable
expenses incurred during the course of their performance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Employee Director 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-align: justify">Directors who are also our employees receive
no additional compensation for their service as a director.</P>

<P STYLE="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"><FONT STYLE="text-transform: uppercase"><B><A NAME="s6_001"></A>CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS</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"><B>Policies and Procedures for Related Person Transactions</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">Our board of directors has adopted written
policies and procedures for the review of any transaction, arrangement or relationship in which we are a participant, the amount
involved exceeds $120,000 and one of our executive officers, directors, director nominees or 5% stockholders, or their immediate
family members, each of whom we refer to as a &#8220;related person,&#8221; has a direct or indirect material interest.</P>

<P STYLE="font: 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">If a related person proposes to enter into
such a transaction, arrangement or relationship, which we refer to as a &#8220;related person transaction,&#8221; the related person
must report the proposed related person transaction to our Chief Financial Officer. The policy calls for the proposed related person
transaction to be reviewed and, if deemed appropriate, approved by our audit committee. Whenever practicable, the reporting, review
and approval will occur prior to entry into the transaction. If advance review and approval is not practicable, the committee will
review, and, in its discretion, may ratify the related person transaction. The policy also permits the chairman of the committee
to review and, if deemed appropriate, approve proposed related person transactions that arise between committee meetings, subject
to ratification by the committee at its next meeting. Any related person transactions that are ongoing in nature will be reviewed
annually.</P>

<P STYLE="font: 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">A related person transaction reviewed under
the policy will be considered approved or ratified if it is authorized by the committee after full disclosure of the related person&#8217;s
interest in the transaction. As appropriate for the circumstances, the committee will review and consider:</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the related person&#8217;s interest in the related person transaction;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the approximate dollar value of the amount involved in the related person transaction;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the approximate dollar value of the amount of the related person&#8217;s interest in the transaction without regard to the amount of any profit or loss;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether the transaction was undertaken in the ordinary course of our business;</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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">whether the terms of the transaction are no less favorable to us than terms that could have been reached with an unrelated third party; 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: 48px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the purpose of, and the potential benefits to us of, the transaction.</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: justify">The audit committee may approve or ratify
the transaction only if the committee determines that, under all of the circumstances, the transaction is in our best interests.
The committee may impose any conditions on the related person transaction that it deems appropriate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to the transactions that are
excluded by the instructions to the SEC&#8217;s related person transaction disclosure rule, our board of directors has determined
that the following transactions do not create a material direct or indirect interest on behalf of related persons and, therefore,
are not related person transactions for purposes of this policy:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">interests arising solely from the related person&#8217;s position as an executive officer of another entity (whether or not the person is also a director of such entity) that is a participant in the transaction, where (i)&nbsp;the related person and all other related persons own in the aggregate less than a 10% equity interest in such entity, (ii)&nbsp;the related person and his or her immediate family members are not involved in the negotiation of the terms of the transaction and do not receive any special benefits as a result of the transaction, and (iii)&nbsp;the amount involved in the transaction is less than the greater of&#8201;&#8201; $200,000 or 5% of the annual gross revenues of the company receiving payment under the transaction; and</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a transaction that is specifically contemplated by provisions of our certificate of incorporation, as amended and restated, or bylaws.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The policy provides that transactions involving
compensation of executive officers shall be reviewed and approved by the compensation committee in the manner specified in its
charter.</P>

<P STYLE="font: 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">We have a written policy regarding the
review and approval of related person transactions. With respect to such transactions, it is our policy for our board of directors
to consider the nature of and business reason for such transactions, how the terms of such transactions compared to those which
might be obtained from unaffiliated third parties and whether such transactions were otherwise fair to and in the best interests
of, or not contrary to, our best interests. In addition, all related person transactions required prior approval, or later ratification,
by our board of directors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Related Party Transactions</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">On May&nbsp;26, 2017, we issued shares
of our common stock to the stockholders of CenterPoint Media LLC, including Mr.&nbsp;Roberts, for consideration consisting of cash
at $0.0000005 per share (post-split) and the stockholder&#8217;s agreement to the transfer of our business plan and all intellectual
property associated with the development of our ad server and real time bidding technology (the &#8220;AdServer Technology&#8221;)
developed at CenterPoint Media LLC. On June&nbsp;6 2017, CenterPoint and Kubient entered into a Technology Transfer Agreement where
all of the AdServer Technology and contracts with customers related thereto were transferred to us for $100. CenterPoint entered
into an agreement to sell all of its assets and liabilities to a third party unrelated to Kubient, except for a certain bank&#8217;s
line of credit amounting to $350,000 and all obligations relating to the CenterPoint master lease of our former premises at 111
West 28th Street.</P>

<P STYLE="font: 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">On May&nbsp;1, 2017 and effective June&nbsp;1,
2017, Kubient entered into a sublease agreement with CenterPoint whereby Kubient agreed to sublease office space from CenterPoint
for $5,500 per month plus common charges for a period of one year. On March&nbsp;6, 2018 and effective April&nbsp;14, 2018, the
Company extended their lease agreement with CenterPoint whereby the Company and CenterPoint committed themselves jointly and severally
to all obligations of the lease for $9,139 per month including common maintenance charges for a period of ten months and ending
on February&nbsp;14, 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-align: justify">During the year ended December&nbsp;31,
2018, our founder agreed to transfer an aggregate of 1,985,000 shares of common stock out of his personal holdings to certain parties
(one party was the Company&#8217;s Chief Technology Officer) in connection with services provided for the Company&#8217;s benefit.
The fair value of $1,091,750 of shares of common stock is reflected as stock-based compensation on the Company&#8217;s statements
of operations during the year ended December&nbsp;31, 2018 with a corresponding credit to 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-align: justify">During the year ended December&nbsp;31,
2018, Kubient and CenterPoint made various payments to one another for operating expenses that were paid for on the other party&#8217;s
behalf. During the year ended December&nbsp;31, 2018, Kubient made aggregate of payments of approximately $109,000 for the benefit
of CenterPoint (of which, $71,000 was paid directly to CenterPoint and $38,000 was for CenterPoint expenses paid by Kubient) and
CenterPoint made aggregate of payments of approximately $56,000 on behalf of Kubient.</P>

<P STYLE="font: 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">During the year ended December&nbsp;31,
2018, we wrote-off receivables from CenterPoint in the amount of approximately $61,000, which we deemed to be uncollectible.</P>

<P STYLE="font: 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended December&nbsp;31, 2018, the Company received a non-interest-bearing advance in the amount of $45,000 from its </FONT>founder
and Board member. The Company repaid this amount during the year ended 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-align: justify">In March&nbsp;2019, we entered into a sublease
(license) agreement with OneQube,&nbsp;Inc. that provides for rent payments by Kubient equal to $600 per desk per month and ends
in June&nbsp;2021. On June&nbsp;18, 2020, the sublease (license) agreement was terminated. Our Chief Executive Officer, Peter Bordes,
is a stockholder of OneQube,&nbsp;Inc. He stepped down as Chief Executive Officer of OneQube,&nbsp;Inc. in June&nbsp;2019 and continues
to serve as Chairman of the Board of OneQube,&nbsp;Inc.</P>

<P STYLE="font: 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">During the years ended December&nbsp;31,
2019 and 2018, rent expense was $91,169 and $106,779, respectively, which included the rent paid to related parties discussed above.
During the three months ended March&nbsp;31, 2020 and 2019, rent expense associated with the OneQube,&nbsp;Inc. sublease was $35,821
and $3,600, respectively. As of March&nbsp;31, 2020 and December&nbsp;31, 2019, the Company had a liability to OneQube,&nbsp;Inc.
of $23,881 and $0, 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; text-align: justify">During the year ended December&nbsp;31,
2019, the Company advanced an aggregate of $75,000 to OneQube,&nbsp;Inc. in connection with a non-binding letter of intent between
the parties that was eventually mutually terminated by the parties. $75,000 was repaid by OneQube,&nbsp;Inc. during the year ended
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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the year ended December&nbsp;31, 2019, the Company&#8217;s Chief Executive Officer purchased a Senior Note in the amount of $165,000
for gross proceeds of $150,000. During the year ended December&nbsp;31, 2019, t</FONT>he Company&#8217;s Chief Executive Officer,
Chief Digital Officer and Board member each purchased Junior Notes in the amount of $308,000, $330,000 and $27,500, respectively,
for aggregate gross proceeds of $605,000.</P>

<P STYLE="font: 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">As of March&nbsp;31, 2020, the Company
had outstanding notes payable &#8211; related parties, convertible notes payable &#8211; related parties and an advance due to
a related party of $525,000, $830,500 and $29,000, respectively. As of December&nbsp;31, 2019, the Company had outstanding convertible
notes payable - related parties and an advance due to a related party of $830,500 and $29,000, respectively.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the year ended December&nbsp;31,
2019, the Company received non-interest-bearing advances in the aggregate amount of $29,905 from a company controlled by an executive
officer. The Company repaid $905 during the year ended 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-align: justify">During the three months ended March&nbsp;31, 2020, the Company
received aggregate proceeds of $525,000 in connection with three-year notes payable issued to three of its executive officers.
The notes bear interest ranging from 1.50% and 1.60% per annum, payable annually. The outstanding principal and accrued and unpaid
interest shall become immediately due and payable upon an initial public offering, sale of the Company or qualified financing with
equity proceeds of at least $5,000,000. There can be no assurance that the Company will complete an initial public offering, sale
of the Company or qualified financing with equity proceeds of at least $5,000,000. Furthermore, the holders of the Related Party
Notes have agreed to amend such notes prior to the effectiveness of this registration statement to provide for conversion of principal
and interest thereunder into the units being issued in this offering at the public offering price per unit.</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"><FONT STYLE="text-transform: uppercase"><B><A NAME="s6_002"></A>PRINCIPAL
STOCKHOLDERS</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"><B>Security Ownership of Management and Certain Beneficial Owners</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">The following table sets forth the beneficial
ownership of our common stock as of July 1, 2020 by:</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; text-align: justify">
<TD STYLE="width: 48px"></TD><TD STYLE="width: 24px; text-align: left">&#8226;</TD><TD STYLE="text-align: justify">each stockholder known by us to beneficially own more
than 5% of our outstanding common stock;</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; text-align: justify">
<TD STYLE="width: 48px"></TD><TD STYLE="width: 24px; text-align: left">&#8226;</TD><TD STYLE="text-align: justify">each of our directors;</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; text-align: justify">
<TD STYLE="width: 48px"></TD><TD STYLE="width: 24px; text-align: left">&#8226;</TD><TD STYLE="text-align: justify">each of our named executive officers; and</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; text-align: justify">
<TD STYLE="width: 48px"></TD><TD STYLE="width: 24px; text-align: left">&#8226;</TD><TD STYLE="text-align: justify">all of our directors and executive officers as a group.</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have determined beneficial ownership
in accordance with the rules&nbsp;of the SEC. These rules&nbsp;generally provide that a person is the beneficial owner of securities
if such person has or shares the power to vote or direct the voting of securities, or to dispose or direct the disposition of securities.
A security holder is also deemed to be, as of any date, the beneficial owner of all securities that such security holder has the
right to acquire within 60 days after such date through (i)&nbsp;the exercise of any option or warrant, (ii)&nbsp;the conversion
of a security, (iii)&nbsp;the power to revoke a trust, discretionary account or similar arrangement or (iv)&nbsp;the automatic
termination of a trust, discretionary account or similar arrangement. Except as disclosed in the footnotes to this table and subject
to applicable community property laws, we believe that each person identified in the table has sole voting and investment power
over all of the shares shown opposite such person&#8217;s name.</P>

<P STYLE="font: 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">The percentage of beneficial ownership is based on 32,423,686
shares of our common stock outstanding as of July 1, 2020.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="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">Number of</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</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">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Name of Beneficial Owner</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">Shares</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">Percentage</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: bold 10pt Times New Roman, Times, Serif; text-align: left">Executive Officers and Directors</TD><TD 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: 10pt Times New Roman, Times, Serif; text-align: left">Peter Anthony Bordes,&nbsp;Jr.<SUP>(1)</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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font: 10pt Times New Roman, Times, Serif">Paul Roberts<SUP>(2)</SUP></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">19,200,030</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">58.78</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">Christopher Andrews<SUP>(3)</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"><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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Pavel Medvedev<SUP>(4)</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">1,000,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3.06</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">Christopher Francia<SUP>(5)</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">721,140</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">2.22</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">Josh Weiss<SUP>(6)</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"><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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Grainne Coen</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Jeannie Mun</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Elisabeth Demarse</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Christopher H. "Toby" Smith<SUP>(7)</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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">All directors and executive officers as a group</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">20,961,170</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">63.65</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">Greater than 5% Shareholders</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif">Benjamin Neuman<SUP>(8)</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">2,152,181</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6.61</TD><TD STYLE="font: 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 0pt 0.25in">* Less than 1%</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: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Does not include 26,700 shares of common stock underlying unvested stock options. Also does not include $473,000 of promissory notes that are not currently convertible but are contingently convertible at the time of a Qualified IPO.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 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: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes 218,750 shares of common stock underlying stock options that are exercisable or will become exercisable within 60 days. Does not include 81,250 shares of common stock underlying unvested stock options. Also includes 6,000,000 shares of common stock held by the Paul Roberts 2019 Annuity Trust, of which Mr.&nbsp;Roberts is a partial beneficiary.</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: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Does not include 180,000 shares of common stock underlying unvested stock options. Also does not include $330,000 of a promissory note that is not currently convertible but is contingently convertible at the time of a Qualified IPO.</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: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes 250,000 shares of common stock underlying warrants that are exercisable or will become exercisable within 60 days.</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: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes 21,140 shares of common stock underlying stock options that are exercisable or will become exercisable within 60 days. Does not include 7,860 shares of common stock underlying unvested stock options.</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: 24px"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(6)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Does not include 150,000 shares of common stock underlying unvested stock options.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(7) </TD>
    <TD STYLE="text-align: justify">Does not include $27,500 of a promissory note that is not currently convertible but is contingently convertible at the time of a Qualified IPO. &nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>(8)</TD>
    <TD STYLE="text-align: justify">Includes 120,397 shares of common stock underlying a convertible promissory note.</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"><A NAME="s6_003"></A><B>DESCRIPTION OF SECURITIES</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>General</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">The following description of our capital
stock and provisions of our certificate of incorporation and bylaws, each as amended and restated, are summaries and are qualified
by reference to our certificate of incorporation and bylaws, each as amended and restated, themselves. By becoming a stockholder
in our Company, you will be deemed to have notice of and consented to these provisions of our certificate of incorporation and
bylaws, each as amended and restated.</P>

<P STYLE="font: 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">On September&nbsp;12, 2017, we executed
a 20:1 forward stock split. All shares and per share information in this prospectus reflects this stock split. We have two authorized
classes of stock: (i)&nbsp;preferred stock, par value $0.00001 per share, with 5,000,000 shares authorized, and (ii)&nbsp;common
stock, par value $0.00001 per share, with 95,000,000 shares authorized.</P>

<P STYLE="font: 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">Prior to the closing of the offering, we
plan to file a certificate of amendment to our amended and restated certificate of incorporation with the Secretary of State of
the State of Delaware to effectuate a one-for- &nbsp;&nbsp;(1: &nbsp;) reverse stock split of our common stock without any change to its par value.
Such amendment will become effective on upon such filing. No fractional shares will be issued in connection with the reverse stock
split as all fractional shares will be rounded down to the next whole share. All share and per share amounts of our common stock
listed in this prospectus have been adjusted to give effect to the reverse stock split.</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"><B>Units</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">Each unit consists of one share of common
stock, $0.00001 par value per share, and one warrant to purchase one share of our common stock, each as described further below.
The common stock and warrants will be immediately separable and will be issued separately.</P>

<P STYLE="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>Authorized 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: 0pt 0; text-align: justify">We are currently authorized to issue up
to 100,000,000 shares of capital stock consisting of: 95,000,000 shares of common stock, par value $0.00001 per share and 5,000,000
shares of preferred stock, par value of $0.00001 per share. As of March&nbsp;31, 2020, 32,413,686 shares of common stock were issued
and outstanding and there were no shares of preferred stock 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"><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; text-align: justify">Holders of our common stock are entitled
to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An
election of directors by our stockholders shall be determined by a plurality of the votes cast by the stockholders entitled to
vote on the election. Holders of common stock are entitled to receive proportionately any dividends as may be declared by our board
of directors, subject to any preferential dividend rights of outstanding preferred stock. Our Board of Directors is not obligated
to declare a dividend. It is not anticipated that dividends will be paid in the foreseeable future.</P>

<P STYLE="font: 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">In the event of our liquidation or dissolution,
the holders of common stock are entitled to receive proportionately all assets available for distribution to stockholders after
the payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. Holders of common
stock have no preemptive, subscription, redemption or conversion rights. The rights, preferences and privileges of holders of common
stock are subject to and may be adversely affected by the rights of the holders of shares of any series of preferred stock that
we may designate and issue in the future.</P>

<P STYLE="font: 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">Holders of our common stock do not have
preemptive rights to subscribe to additional shares if issued. There is no conversion, redemption, sinking fund or similar provisions
regarding the common stock. All outstanding shares of common stock are fully paid and non-assessable.</P>

<P STYLE="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>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: 0pt 0; text-align: justify">Under the terms of our certificate of incorporation,
as amended and restated, our board of directors is authorized to issue shares of preferred stock in one or more classes or series
without stockholder approval. Our board of directors has the discretion to determine the rights, preferences, privileges and restrictions,
including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series
of preferred stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The purpose of authorizing our board of
directors to issue preferred stock and to determine such preferred stock&#8217;s rights and preferences is to eliminate delays
associated with a stockholder vote on specific issuances. The 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.
Presently, our board of directors has not authorized the creation or issuance of any shares or series of preferred stock, and there
will be no shares of preferred stock issued or outstanding upon the closing of this 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"><B>Authorized but Unissued Shares of Common Stock and 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: 0pt 0; text-align: justify">The authorized but unissued shares of our
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 Capital Market. These additional shares may be used for a variety of corporate finance transactions,
acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock
could make more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or
otherwise.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrants Offered Hereby</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"><I>The following summary of certain terms
and provisions of the warrants offered hereby is not complete and is subject to, and qualified in its entirety by, the provisions
of the form of the warrant, which is filed as an exhibit to the registration statement of which this prospectus is a part of. Prospective
investors should carefully review the terms and provisions set forth in the form of warrant.</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-align: justify"><I>Exercisability</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-align: justify">The warrants are exercisable immediately
upon issuance and at any time up to the date that is five&nbsp;years from the date of issuance. The warrants will be exercisable,
at the option of each holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied by payment in
full for the number of shares of our common stock purchased upon such exercise (except in the case of a cashless exercise as discussed
below). Unless otherwise specified in the warrant, the holder will not have the right to exercise any portion of the warrant if
the holder (together with its affiliates) would beneficially own in excess of 4.99% of the number of shares of our common stock
outstanding immediately after giving effect to the exercise (or, upon election by a Holder prior to the issuance of any Warrants,
9.99%), as such percentage ownership is determined in accordance with the terms of the warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Cashless Exercise</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-align: justify">In the event that a registration statement
covering shares of common stock underlying the warrants, is not available for the issuance of such shares of common stock underlying
the warrants, the holder may, in its sole discretion, exercise the warrant in whole or in part and, in lieu of making the cash
payment otherwise contemplated to be made to us upon such exercise in payment of the aggregate exercise price, elect instead to
receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the warrant.
In no event shall we be required to make any cash payments or net cash settlement to the registered holder in lieu of issuance
of common stock underlying the 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-align: justify"><I>Certain Adjustments</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-align: justify">The exercise price and the number of shares
of common stock purchasable upon the exercise of the warrants are subject to adjustment upon the occurrence of specific events,
including stock dividends, stock splits, combinations and reclassifications of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Transferability</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-align: justify">Subject to applicable laws, the warrants
may be transferred at the option of the holders upon surrender of the warrants to our Transfer Agent together with the appropriate
instruments of transfer.</P>

<P STYLE="font: 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"><I>Warrant Agent and Exchange Listing</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-align: justify">The warrants will be issued in registered
form under a warrant agency agreement between VStock Transfer, LLC, as warrant agent, and us.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Fundamental Transactions</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-align: justify">If, at any time while the warrants are
outstanding, (1)&nbsp;we consolidate or merge with or into another corporation and we are not the surviving corporation, (2)&nbsp;we
sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of our assets, (3)&nbsp;any purchase
offer, tender offer or exchange offer (whether by us or another individual or entity) is completed pursuant to which holders of
our shares of common stock are permitted to sell, tender or exchange their shares of common stock for other securities, cash or
property and has been accepted by the holders of 50% or more of our outstanding shares of common stock, (4)&nbsp;we effect any
reclassification or recapitalization of our shares of common stock or any compulsory share exchange pursuant to which our shares
of common stock are converted into or exchanged for other securities, cash or property, or (5)&nbsp;we consummate a stock or share
purchase agreement or other business combination with another person or entity whereby such other person or entity acquires more
than 50% of our outstanding shares of common stock, each a &#8220;Fundamental Transaction,&#8221; then upon any subsequent exercise
of the warrants, the holder thereof will have the right to receive the same amount and kind of securities, cash or property as
it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to
such Fundamental Transaction, the holder of the number of warrant shares then issuable upon exercise of the warrant, and any additional
consideration payable as part of the Fundamental Transaction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Rights as a Stockholder</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-align: justify">Except as otherwise provided in the warrants
or by virtue of such holder&#8217;s ownership of shares of our common stock, the holder of a warrant does not have the rights or
privileges of a holder of our common stock, including any voting rights, until the holder exercises the warrant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Beneficial Ownership Limitation</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-align: justify">Holder&#8217;s exercise shall be limited
4.99% of the Company&#8217;s outstanding common stock (or, upon election by a Holder prior to the issuance of any Warrants, 9.99%)
of the number of shares of the common stock outstanding immediately after giving effect to the issuance of shares of common stock
issuable upon exercise. The Holder, upon notice to the Company, may increase or decrease the beneficial ownership limitation provided
that the beneficial ownership limitation in no event exceeds 9.99% of the number of shares of the common stock outstanding immediately
after giving effect to the issuance of shares of common stock upon exercise of the warrant held by the Holder. Any increase in
the beneficial ownership limitation will not be effective until the 61st day after such notice is delivered to the Company.</P>

<P STYLE="font: 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"><I>Governing Law</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-align: justify">The warrants and the warrant agency agreement
are governed by Delaware law.</P>

<P STYLE="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>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-align: justify">As of March&nbsp;31, 2020, there were 10,247,000
shares of our common stock issuable upon exercise of outstanding stock warrants with a weighted average exercise price of $0.55
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>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: 0pt 0; text-align: justify">As of March&nbsp;31, 2020, there were 880,700
shares of our common stock issuable upon exercise of outstanding stock options pursuant to our equity plans with a weighted average
exercise price of $1.85 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>Registration Rights</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"><I>Senior Notes</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-align: justify; background-color: white">In three separate
closings dated April&nbsp;26, May&nbsp;23, and June&nbsp;28, 2019, the Company sold 25 Units of its securities for gross proceeds
of $2,500,000, with each Unit priced at $100,000. After the expiration of a period of no less than 180 days following the effective
date of this offering, holders of Units shall have one demand registration right, if Rule&nbsp;144 under the Securities Act is
not then available, and unlimited piggyback registration rights with respect to the shares of common stock underlying the securities
that make up the Units.</P>

<P STYLE="font: 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">In connection with the Unit offering described
above, we are required to issue a five year warrant to Joseph Gunnar&nbsp;&amp; Co., LLC, the placement agent in such offering,
to purchase shares of our common stock. See &ldquo;<I>Underwriting &ndash; Placement Agent Warrants</I>.&rdquo; The warrant issued
to the placement agent will provide for unlimited piggyback registration rights and customary anti-dilution rights consistent with
FINRA Rule&nbsp;5110.</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"></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: justify"><I>Junior Notes</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-align: justify">In two separate closings dated October&nbsp;11
and November&nbsp;6, 2019, the Company sold 11.05 Subordinated Units of its securities for gross proceeds of $1,105,000, with each
Subordinated Unit priced at $100,000. After the expiration of a period of no less than 180 days following the effective date of
this offering, holders of Subordinated Units shall have one demand registration right, if Rule&nbsp;144 under the Securities Act
is not then available, and unlimited piggyback registration rights with respect to the shares of common stock underlying the securities
that make up the Subordinated Units.</P>

<P STYLE="font: 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">In connection with the Subordinated Unit offering described
above, we are required to issue a five year warrant to Joseph Gunnar&nbsp;&amp; Co., LLC, the placement agent in such offering,
to purchase shares of our common stock. See &ldquo;<I>Underwriting &ndash; Placement Agent Warrants</I>.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Between
</FONT>May&nbsp;22, 2020 and June&nbsp;11, 2020, the Company and certain noteholders entered to a consent and first amendment to
Senior Notes and the Junior Notes, which do not affect the registration rights granted to the Senior Note holders and Junior Note
holders discussed above.</P>

<P STYLE="font: 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"><B>Anti-Takeover Matters</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"><I>Bylaw Provisions</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-align: justify">The DGCL and our bylaws include a number
of provisions that may have the effect of delaying, deferring or discouraging another person from acquiring control of our company
and discouraging takeover bids. These provisions may also have the effect of encouraging persons considering unsolicited tender
offers or other unilateral takeover proposals to negotiate with our board of directors rather than pursue non-negotiated takeover
attempts. These provisions include the items described 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-align: justify"><I>No Cumulative Voting</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-align: justify">The DGCL provides that stockholders are
not entitled to the right to cumulate votes in the election of directors unless our certificate of incorporation provides otherwise.
Our bylaws provide that there shall be no cumulative voting.</P>

<P STYLE="font: 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"><I>Written Consent of Stockholders</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-align: justify">Our bylaws provide that all stockholder
actions are required to be taken by a vote of the stockholders at an annual or special meeting, and that stockholders may take
any action by written consent in lieu of a meeting.</P>

<P STYLE="font: 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"><I>Meetings of Stockholders</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-align: justify">Our bylaws will provide that a majority
of the members of our board of directors then in office, the Chairman of the Board, the Chief Executive Officer, the President,
or the holders of outstanding shares of common stock entitled to cast not less than 75% of the votes in a meeting may call special
meetings of stockholders and only those matters set forth in the notice of the special meeting may be considered or acted upon
at a special meeting of stockholders. Our bylaws limit the business that may be conducted at an annual meeting of stockholders
to those matters properly brought before the meeting.</P>

<P STYLE="font: 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"><I>Advance Notice Requirements</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-align: justify">Our bylaws establish advance notice procedures
for stockholders seeking to bring business before an annual or special meeting of stockholders or to nominate candidates for election
as directors at our annual meeting of stockholders. These procedures provide that notice of stockholder proposals must be timely
given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice
must be received at our principal executive offices not less than 120 days prior to the first anniversary date of the annual meeting
for the preceding year. The notice must contain certain information specified in the bylaws.</P>

<P STYLE="font: 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"><I>Amendment to Bylaws and Certificate
of Incorporation</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-align: justify">The amendment of the provisions in our
certificate of incorporation will require approval by holders of at least 66 <SUP>2</SUP>/<SUB>3</SUB>% of our outstanding capital
stock entitled to vote generally in the election of directors, in addition to any rights of the holders of our outstanding capital
stock to vote on such amendment under the DGCL. The amendment of the provisions in our bylaws will require approval by either
a majority of our board of directors or holders of at least 66 <SUP>2</SUP>/<SUB>3</SUB>% of our outstanding capital stock entitled
to vote generally in the election of directors, in addition to any rights of the holders of our outstanding capital stock to vote
on such amendment under the DGCL.</P>

<P STYLE="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: justify"><I>Blank Check Preferred Stock</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-align: justify">Our certificate of incorporation provides
for 5,000,000 authorized shares of preferred stock. The existence of authorized but unissued shares of preferred stock may enable
our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender
offer, proxy contest, or otherwise. For example, if in the due exercise of its fiduciary obligations, our board of directors were
to determine that a takeover proposal is not in the best interests of us or our stockholders, our board of directors could cause
shares of preferred stock to be issued without stockholder approval in one or more private offerings or other transactions that
might dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder group. In this regard,
our certificate of incorporation grants our board of directors broad power to establish the rights and preferences of authorized
and unissued shares of preferred stock. The issuance of shares of preferred stock could decrease the amount of earnings and assets
available for distribution to holders of shares of common stock. The issuance may also adversely affect the rights and powers,
including voting rights, of these holders and may have the effect of delaying, deterring, or preventing a change in control of
us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Delaware General Corporation Law</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-align: justify">Upon completion of this offering, we will
be subject to the provisions of Section&nbsp;203 of the DGCL. In general, Section&nbsp;203 prohibits a publicly held Delaware corporation
from engaging in a &#8220;business combination&#8221; with an &#8220;interested stockholder&#8221; for a three-year period following
the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner.
A &#8220;business combination&#8221; includes, among other things, a merger, asset or stock sale, or other transaction resulting
in a financial benefit to the interested stockholder. An &#8220;interested stockholder&#8221; is a person or entity who, together
with affiliates and associates, owns, or did own within three years prior to the determination of interested stockholder status,
15% or more of the corporation&#8217;s voting stock. Under Section&nbsp;203, a business combination between a corporation and an
interested stockholder is prohibited unless it satisfies one of the following conditions:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 24px; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">before the stockholder became interested, our board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder; </FONT></TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee stock plans, in some instances; or </FONT></TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">at or after the time the stockholder became interested, the business combination was approved by our board of directors and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any provision of our certificate of incorporation,
bylaws or Delaware law that has the effect of delaying, preventing or deterring a change in control could limit the opportunity
for our stockholders to receive a premium for their shares of our common stock, and could also affect the price that some investors
are willing to pay for our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Exclusive Forum for Resolution of Disputes</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">Pursuant to our amended and restated certificate
of incorporation, to the fullest extent permitted by law, unless we consent in writing to the selection of an alternative forum,
the Court of Chancery of the State of Delaware is the sole and exclusive forum for state law claims for (i)&nbsp;any derivative
action or proceeding brought on our behalf, (ii)&nbsp;any action asserting a claim of or based on a breach of a fiduciary duty
owed by any of our current or former directors, officers, or other employees to us or our stockholders, (iii)&nbsp;any action asserting
a claim against us arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation, or our
bylaws, or (iv)&nbsp;any action asserting a claim governed by the internal affairs doctrine. For the avoidance of doubt, this forum
selection clause will not apply to suits brought to enforce any liability or duty created by the Securities Act, the Exchange Act
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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We recognize that the forum selection clause
may impose additional litigation costs on stockholders who assert the provision is not enforceable and may impose more general
additional litigation costs in pursuing any such claims. Additionally, the forum selection clause in our bylaws may limit our stockholders&#8217;
ability to obtain a favorable judicial forum for disputes with us. The Court of Chancery of the State of Delaware may also reach
different judgments or results than would other courts, including courts where a stockholder considering an action may be located
or would otherwise choose to bring the action, and such judgments may be more or less favorable to us than our stockholders.</P>

<P STYLE="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: justify"><B>Limitations of Director Liability and
Indemnification of Directors and Officers</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">As permitted by the DGCL, provisions in
our certificate of incorporation and bylaws that will be in effect upon the closing of this offering will limit or eliminate the
personal liability of our directors. Consequently, directors will not be personally liable to us or our stockholders for monetary
damages or breach of fiduciary duty as a director, except for liability for:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 24px; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any breach of the director&#8217;s duty of loyalty to us or our stockholders; </FONT></TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law; </FONT></TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any unlawful payments related to dividends or unlawful stock repurchases, redemptions or other distributions; or </FONT></TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any transaction from which the director derived an improper personal benefit. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These limitations of liability do not alter
director liability under the federal securities laws and do not affect the availability of equitable remedies, such as an injunction
or rescission.</P>

<P STYLE="font: 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">In addition, our bylaws provide that:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 24px; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we will indemnify our directors, officers and, in the discretion of our board of directors, certain employees, to the fullest extent permitted by the DGCL, subject to limited exceptions, including an exception for indemnification in connection with a proceeding (or counterclaim) initiated by such persons; and </FONT></TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we will advance expenses, including attorneys&#8217; fees, to our directors and, in the discretion of our board of directors, certain officers and employees, in connection with legal proceedings, subject to limited exceptions. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the completion of this offering,
we intend to enter into indemnification agreements with each of our executive officers and directors. These agreements provide
that, subject to limited exceptions and among other things, we will indemnify each of our executive officers and directors to the
fullest extent permitted by law and advance expenses to each indemnitee in connection with any proceeding in which a right to indemnification
is available.</P>

<P STYLE="font: 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">We also intend to maintain general liability
insurance that covers certain liabilities of our directors and officers arising out of claims based on acts or omissions in their
capacities as directors or officers, including liabilities under the Securities Act. Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers, or persons who control us, we have been informed that
in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.</P>

<P STYLE="font: 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">These provisions may discourage stockholders
from bringing a lawsuit against our directors for breach of their fiduciary duty. 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. Furthermore, a stockholder&#8217;s investment may be adversely affected to the extent
we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. We
believe that these provisions, the indemnification agreements and the insurance are necessary to attract and retain talented and
experienced directors and officers.</P>

<P STYLE="font: 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">At present, there is no pending litigation
or proceeding involving any of our directors or officers where indemnification will be required or permitted. We are not aware
of any threatened litigation or proceeding that might result in a claim for such indemnification.</P>

<P STYLE="font: 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"><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-align: justify">The transfer agent and registrar for our
common stock is VStock Transfer, LLC. The transfer agent&#8217;s address is 18 Lafayette Place, Woodmere, NY 11598, and its telephone
number is (212) 828-8436.</P>

<P STYLE="font: 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"><B>The Nasdaq Capital Market</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">We have applied to list our common stock
on The Nasdaq Capital Market under the symbol &#8220;KBNT.&#8221; In conjunction therewith, we also applied to have the warrants
listed on The Nasdaq Capital Market under the symbol &#8220;KBNTW&#8221;. No assurance can be given that our application will be
approved.</P>

<P STYLE="font: 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="s6_004"></A>SHARES ELIGIBLE FOR FUTURE SALE</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">Prior to this offering, there has been
no public market for our shares. Future sales of our common stock in the public market, or the availability of such shares for
sale in the public market, could adversely affect market prices prevailing from time to time. As described below, only a limited
number of shares will be available for sale shortly after this offering due to contractual and legal restrictions on resale. Nevertheless,
sales of our common stock in the public market after such restrictions lapse, or the perception that those sales may occur, could
adversely affect the prevailing market price at such time and our ability to raise equity capital in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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: justify">Based on the number of shares outstanding
as of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2020, upon the completion of this offering&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock will be outstanding, assuming the automatic conversion of all convertible notes into an aggregate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
of our common stock upon the closing of this offering, no exercise of the representative of the underwriter&#8217;s option to purchase
additional shares and no exercise of outstanding warrants or options. Of the outstanding shares, all of the shares sold in this
offering will be freely tradable, except that any shares held by our affiliates, as that term is defined in Rule&nbsp;144 under
the Securities Act, may only be sold in compliance with the limitations described below. All remaining shares of common stock held
by existing stockholders immediately prior to the completion of this offering will be &#8220;restricted securities&#8221; as such
term is defined in Rule&nbsp;144. These restricted securities were issued and sold by us, or will be issued and sold by us, in
private transactions and are eligible for public sale only if registered under the Securities Act or if they qualify for an exemption
from registration under the Securities Act, including the exemptions provided by Rule&nbsp;144 or Rule&nbsp;701, summarized 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-align: justify"><B>Rule&nbsp;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: justify">In general, under Rule&nbsp;144, beginning
90 days after the date of this prospectus, any person who is not our affiliate and has not been our affiliate at any time during
the preceding three months and has held their shares for at least six months, including the holding period of any prior owner other
than one of our affiliates, may sell shares without restriction, subject to the availability of current public information about
us. In addition, under Rule&nbsp;144, any person who is not our affiliate and has not been our affiliate at any time during the
preceding three months and has held their shares for at least one year, including the holding period of any prior owner other than
one of our affiliates, would be entitled to sell an unlimited number of shares immediately upon the closing of this offering without
regard to whether current public information about us is available.</P>

<P STYLE="font: 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">Beginning 90 days after the date of this
prospectus, a person who is our affiliate or who was our affiliate at any time during the preceding three months may sell any unrestricted
securities, as well as restricted securities that the person has beneficially owned for at least six months, including the holding
period of any prior owner other than one of our affiliates, under Rule&nbsp;144. Affiliates selling restricted or unrestricted
securities may sell a number of shares within any three-month period that does not exceed the greater of:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1% of the number of shares then outstanding, which will equal approximately shares immediately after this offering, assuming no exercise of the representative of the underwriter&#8217;s option to purchase additional shares; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the average weekly trading volume in our common stock on The Nasdaq Capital Market during the four calendar weeks preceding the filing of a notice on Form&nbsp;144 with respect to such sale.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sales under Rule&nbsp;144 by our affiliates are also subject
to 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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Rule&nbsp;701</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">In general, under Rule&nbsp;701 of the
Securities Act, any of our employees, consultants or advisors, other than our affiliates, who purchased shares from us in connection
with a qualified compensatory stock plan or other written agreement is eligible to resell these shares 90 days after the date of
this prospectus in reliance on Rule&nbsp;144, but without compliance with the holding period requirements of Rule&nbsp;144 and
without regard to the volume of such sales or the availability of public information about us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">However, substantially all Rule&nbsp;701
shares are subject to lock-up agreements as described below and under &#8220;Underwriting&#8221; included elsewhere in this prospectus
and will become eligible for sale upon the expiration of the restrictions set forth in those agreements.</P>

<P STYLE="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>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: justify">In connection with this offering, we, our directors and officers
and holders of more than 5% of our equity securities outstanding immediately prior to this offering, have agreed, subject to certain
exceptions, not to offer, sell or transfer any shares of common stock or securities convertible into or exchangeable for our common
stock for&nbsp;360 days after the date of this prospectus without the prior written consent of Maxim Group LLC and Joseph Gunnar&nbsp;&amp;
Co. LLC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to the restrictions contained
in the lock-up agreements described above, we have entered into agreements with certain of our security holders, including our
investors&#8217; rights agreement and agreements governing our equity awards, that contain market stand-off provisions imposing
restrictions on the ability of such security holders to offer, sell or transfer our equity securities for a period of&nbsp;180
days following the date of this prospectus.</P>

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

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

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

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

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon completion of this offering, certain holders of our securities
will be entitled to various rights with respect to registration of their shares under the Securities Act. Registration of these
shares under the Securities Act would result in these shares becoming fully tradable without restriction under the Securities
Act immediately upon the effectiveness of the registration. See the section entitled &#8220;<I>Description of&nbsp;Securities
- Registration Rights</I>&#8221; appearing elsewhere in this prospectus for more information.</P>

<P STYLE="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>Equity Incentive Plans</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">We intend to file one or more registration
statements on Form&nbsp;S-8 under the Securities Act to register our shares issued or reserved for issuance under our equity incentive
plans. The first such registration statement is expected to be filed soon after the date of this prospectus and will automatically
become effective upon filing with the SEC. Accordingly, shares registered under such registration statement will be available for
sale in the open market, unless such shares are subject to vesting restrictions with us or the lock-up restrictions described above.</P>

<P STYLE="font: 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"><A NAME="s6_005"></A><B>UNDERWRITING</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">Maxim Group LLC (&ldquo;Maxim Group&rdquo;)
and Joseph Gunnar &amp; Co. LLC (&ldquo;Joseph Gunnar&rdquo;) are acting as co-representatives of the underwriters (collectively,
the &ldquo;Representative&rdquo;). Subject to the terms and conditions of an underwriting agreement between us and the Representative,
we have agreed to sell to each underwriter named below, and each underwriter named below has severally agreed to purchase, at the
public offering price less the underwriting discounts set forth on the cover page&nbsp;of this prospectus, the number of units
listed next to its name in the following table:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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; border-bottom: Black 1pt solid">Name of Underwriter</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">Number of Units</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: 87%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt">Maxim Group LLC</TD><TD STYLE="width: 1%; font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font-size: 10pt; 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; text-indent: -10pt; padding-left: 10pt">Joseph Gunnar&nbsp;&amp; Co. LLC</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">&nbsp;</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: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt">The Benchmark Company, LLC</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriters are committed to purchase
all the units offered by us other than those covered by the over-allotment option described below, if any, are purchased. The underwriting
agreement also provides that if an underwriter defaults, the purchase commitments of non-defaulting underwriters may be increased
or the offering may be terminated. The underwriters are not obligated to purchase the units covered by the underwriters&#8217;
over-allotment option described below. The underwriters are offering the units, subject to prior sale, when, as and if issued to
and accepted by them, subject to approval of legal matters by their counsel, and other conditions contained in the underwriting
agreement, such as the receipt by the underwriters of officer&#8217;s certificates and legal opinions. The underwriters reserve
the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.</P>

<P STYLE="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>Discounts and Commissions</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">The underwriters propose initially to offer
the units to the public at the public offering price set forth on the cover page&nbsp;of this prospectus and to dealers at those
prices less a concession not in excess of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per unit.
If all of the units offered by us are not sold at the public offering price, the underwriters may change the offering price and
other selling terms by means of a supplement to this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table shows the public offering
price, underwriting discounts and commissions and proceeds before expenses to us. The information assumes either no exercise or
full exercise of the over-allotment option we granted to the Representative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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; 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">Per Unit</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 Without<BR> Over-Allotment <BR> Option</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 With Full<BR> Over-Allotment <BR> Option</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: 61%; font: 10pt Times New Roman, Times, Serif; text-indent: -10pt; padding-left: 10pt">Public offering price</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -10pt; padding-left: 10pt">Underwriting discount</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&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">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</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: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -10pt; padding-left: 10pt">Non-accountable expense allowance</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</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">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: -10pt; padding-left: 10pt">Proceeds, before expenses, to us</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&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">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to pay a non-accountable
expense allowance to the Representative equal to 1% of the gross proceeds received at the closing of the offering (excluding any
proceeds received upon any subsequent exercise of the over-allotment option).</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"></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: justify">We have also agreed to pay the Representative&rsquo;s expenses
relating to the offering, including (a)&nbsp;all actual filing fees incurred in connection with the review of this offering by
the Financial Industry Regulatory Authority, or FINRA, and all fees and expenses relating to the listing of our shares of common
stock and warrants on Nasdaq; (b)&nbsp;all fees, expenses and disbursements relating to background checks of our officers and directors
in an amount not to exceed $10,000 in the aggregate; (c)&nbsp;all actual fees, expenses and disbursements relating to the registration
or qualification of securities offered under state securities laws, or &ldquo;blue sky&rdquo; laws, or under the securities laws
of foreign jurisdictions designated by the Representative, including reasonable fees and disbursements of &ldquo;blue sky&rdquo;
counsel not to exceed $15,000; (d)&nbsp;all actual fees, expenses and disbursements relating to the registration, qualification
or exemption of our shares of common stock and warrants under the securities laws of such foreign jurisdictions as the Representative
may reasonably designate; (e)&nbsp;the costs of all mailing and printing of the underwriting documents as the Representative may
reasonably deem necessary; (f)&nbsp;the costs associated with two sets of bound volumes of the public offering materials as well
as commemorative mementos and lucite tombstones in aggregate not to exceed $10,000; (g)&nbsp;the fees and expenses of the Representative&rsquo;s
legal counsel not to exceed $100,000, $20,000 of which has been paid in advance and will be returned to us to the extent that offering
expenses are not actually incurred in compliance with FINRA Rule&nbsp;5110(f)(2)(C); (h)&nbsp;$26,500 for the underwriters&rsquo;
use of Ipreo&rsquo;s book-building, prospectus tracking and compliance software for this offering; (i)&nbsp;up to $25,000 of the
Representative&rsquo;s actual accountable road show expenses for the offering, (j)&nbsp;the $4,800 cost associated with the use
of Finsight&rsquo;s deal road show presentation software and (k)&nbsp;the Representatives&rsquo; cost of mailing prospectuses to
potential investors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We estimate that the total expenses of
the offering payable by us, excluding the total underwriting discount and non-accountable expense allowance, will be approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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"><B>Over-Allotment Option</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">We have granted the underwriters an over-allotment
option. This option, which is exercisable for up to 45 days after the date of this prospectus, permits the underwriters to purchase
up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; additional shares of our common stock and/or warrants
to purchase up to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock
from us, to cover over-allotments. If the underwriters exercise all or part of this option, they will purchase shares and/or warrants
included in the units covered by the option at the public offering price per share or warrant that appears on the cover page&nbsp;of
this prospectus, less the underwriting discount. If this option is exercised in full, the total price to the public will be $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and the total net proceeds, before expenses, to us will be $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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"><B>Representative&#8217;s 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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have agreed to issue to the Representative (or its permitted assignees) warrants to purchase up to a total of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of common
stock (5% of the shares of common stock included in the Units, excluding the over-allotment, if any). </FONT>We are registering
hereby the issuance of the Representative&#8217;s warrants and the shares of common stock issuable upon exercise of the warrants.
The warrants will be exercisable at any time, and from time to time, in whole or in part, during the four and one half year period
commencing 180 days from the effective date of the registration statement of which this prospectus is a part, which period is in
compliance with FINRA Rule&nbsp;5110(f)(2)(G)(i). The warrants are exercisable for cash or on a cashless basis at a per share price
equal to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; per share, or 125% of the public offering price per Unit in the offering. The warrants have been deemed compensation
by FINRA and are therefore subject to a 180-day lock-up pursuant to Rule&nbsp;5110(g)(1)&nbsp;of FINRA. The Representative (or
permitted assignees under Rule&nbsp;5110(g)(1)) will not sell, transfer, assign, pledge, or hypothecate these warrants or the securities
underlying these warrants, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result
in the effective economic disposition of the warrants or the underlying securities for a period of 180 days from the effective
date of the registration statement of which this prospectus is a part. In addition, the warrants provide for certain demand and
piggyback registration rights. The piggyback registration rights provided will terminate 5 years from the effective date of the
registration statement of which this prospectus is a part in compliance with FINRA Rule&nbsp;5110(f)(2)(G)(v). We will bear all
fees and expenses attendant to registering the securities issuable on exercise of the warrants other than underwriting commissions
incurred and payable by the holders. The exercise price and number of shares issuable upon exercise of the warrants may be adjusted
in certain circumstances including in the event of a stock dividend, extraordinary cash dividend or our recapitalization, reorganization,
merger or consolidation. However, the warrant exercise price or underlying shares will not be adjusted for issuances of shares
of common stock at a price below the warrant exercise price.</P>

<P STYLE="font: 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"><B>Placement Agent 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-align: justify">In connection with the Company&rsquo;s
private placement (the &ldquo;Senior Note Private Placement&rdquo;) of $2,750,000 principal amount of convertible notes and warrants,
Joseph Gunnar&nbsp;and the Company entered into a letter agreement, dated March&nbsp;11, 2019 (the &ldquo;March&nbsp;2019 Agreement&rdquo;).
In connection with the Company&rsquo;s private placement (the &ldquo;Subordinated Note Private Placement&rdquo;) of $1,215,500
principal amount of convertible notes and warrants, Joseph Gunnar and the Company entered into a letter agreement, dated September&nbsp;18,
2019 (the &ldquo;September&nbsp;2019 Agreement&rdquo;). Both the March&nbsp;2019 Agreement and the September&nbsp;2019 Agreement
provided that Joseph Gunnar is entitled to receive warrants (the &ldquo;Agent Warrants&rdquo;) to purchase 10% of the sum of (i)&nbsp;shares
into which the notes sold in the offering are convertible at an exercise price equal to the offering price per share sold in the
Qualified IPO, and (ii)&nbsp;shares for which the investor warrants are exercisable, at an exercise price equal to the warrant
exercise price of the warrant included in the Subordinated Units. Notwithstanding the foregoing, if a Qualified IPO does not occur
on or before the one-year anniversary of each of such agreements, then each Agent Warrant will be exercisable for that number of
shares of common stock equal to 20% of the principal amount of the notes sold in the offering divided by $0.55, at a per share
exercise price of $0.55.</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"></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: justify">The Company and Joseph Gunnar have agreed to amend the March
2019 Agreement and the September 2019 Agreement, pursuant to which effective immediately prior the effectiveness of this registration
statement, the right to receive all Placement Agent Warrants as contemplated in such agreements will be amended so that Joseph
Gunnar (or its designees) shall be entitled to receive warrants to purchase &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Common Stock (the &ldquo;Replacement
Agent Warrants&rdquo;). The Replacement Agent Warrants will be exercisable for cash or on a cashless basis at a per share exercise
price equal to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, which price reflects 110% of the public offering price of the Units issued in the Offering. The Replacement
Agent Warrants shall expire on a date which is five years from the effectiveness of this registration statement and shall be subject
to a 180-day lock up pursuant to Rule&nbsp;5110(g)(1)&nbsp;of FINRA. We will bear all fees and expenses attendant to registering
the shares of our common stock issuable upon exercise of the Replacement Agent Warrants The exercise price and the number of shares
of our common stock issuable upon exercise of the Agent Warrants may be proportionately adjusted in the event of a stock split,
stock dividend, recapitalization, reorganization, or similar event involving us in compliance with FINRA Rule&nbsp;5110(f)(2)(G)(vi).
Notwithstanding the foregoing, if a Qualified IPO does not occur on or before December 31, 2020, then the Replacement Agent Warrants
will be exercisable for an aggregate number of shares of common stock equal to 20% of the original principal amount of the notes
sold in the Senior Note Private Placement and the Junior Note Private Placement divided by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, at a per share exercise price
of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</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"><B>Discretionary Accounts</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">The underwriters do not intend to confirm
sales of the securities offered hereby to any accounts over which they have discretionary authority.</P>

<P STYLE="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>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: justify">Pursuant to &#8220;lock-up&#8221; agreements,
we, our executive officers and directors, and certain of our stockholders, have agreed, without the prior written consent of the
Representative not to directly or indirectly, offer to sell, sell, pledge or otherwise transfer or dispose of any of shares of
(or enter into any transaction or device that is designed to, or could be expected to, result in the transfer or disposition by
any person at any time in the future of) our common stock, enter into any swap or other derivatives transaction that transfers
to another, in whole or in part, any of the economic benefits or risks of ownership of shares of our common stock, make any demand
for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the
registration of any shares of common stock or securities convertible into or exercisable or exchangeable for common stock or any
other securities of the Company or publicly disclose the intention to do any of the foregoing, subject to customary exceptions,
for a period of 360 days from the date of this prospectus, in the case of our directors and officers, 180 days from the date of
this prospectus, in the case of certain of our principal stockholders.</P>

<P STYLE="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>Right of First Refusal and Certain Post Offering Investments</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">Subject to the closing of this offering
and certain conditions set forth in the underwriting agreement, for a period of twenty-four (24) months after the closing of the
offering, each of Maxim Group and Joseph Gunnar shall have a right of first refusal to act as lead managing underwriters and book-runners
and/or placement agents for any and all future public or private equity, equity-linked or debt (excluding commercial bank debt)
offerings undertaken during such period by us, or any of our successors or subsidiaries, on terms customary to each of Maxim Group
and Joseph Gunnar. In the event that both Maxim Group and Joseph Gunnar exercise their respective right of first refusal as to
the same public equity offering, the economic participation between Maxim Group and Joseph Gunnar for this right of first refusal
on such future public equity offering shall be 50% to Maxim and 50% to Joseph Gunnar. Each of Maxim Group and Joseph Gunnar in
conjunction with us, shall have the sole right to determine whether or not any other broker-dealer shall have the right to participate
in any such offering and the economic terms of any such participation. In addition, the Company has also agreed to pay Maxim Group
and Joseph Gunnar an aggregate cash fee of 7% in the event investors previously directly introduced to the Company by such parties
provide capital to the Company during the period commencing 91 days following the closing of the offering and continuing for a
period of 18 months thereafter.</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"><B>Indemnification</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">We have agreed to indemnify the underwriters
against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that the underwriters
may be required to make for these liabilities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Stabilization</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">In connection with this offering, the underwriters
may engage in stabilizing transactions, over-allotment transactions, syndicate-covering transactions, penalty bids and purchases
to cover positions created by short sales.</P>

<P STYLE="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>

<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">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stabilizing transactions permit bids to purchase securities so long as the stabilizing bids do not exceed a specified maximum, and are engaged in for the purpose of preventing or retarding a decline in the market price of the securities while the offering is in progress.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Over-allotment transactions involve sales by the underwriters of securities in excess of the number of securities that underwriters are obligated to purchase. This creates a syndicate short position which may be either a covered short position or a naked short position. In a covered short position, the number of securities over-allotted by the underwriters is not greater than the number of securities that they may purchase in the over-allotment option. In a naked short position, the number of securities involved is greater than the number of securities in the over-allotment option. The underwriters may close out any short position by exercising their over-allotment option and/or purchasing securities in the open market.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Syndicate covering transactions involve purchases of securities in the open market after the distribution has been completed in order to cover syndicate short positions. In determining the source of securities to close out the short position, the underwriters will consider, among other things, the price of securities available for purchase in the open market as compared with the price at which they may purchase securities through exercise of the over-allotment option. If the underwriters sell more securities than could be covered by exercise of the over-allotment option and, therefore, have a naked short position, the position can be closed out only by buying securities in the open market. A naked short position is more likely to be created if the underwriters are concerned that after pricing there could be downward pressure on the price of the securities in the open market that could adversely affect investors who purchase in the offering.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Penalty bids permit the Representative to reclaim a selling concession from a syndicate member when the securities originally sold by that syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.</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: justify">These stabilizing transactions, syndicate
covering transactions and penalty bids may have the effect of raising or maintaining the market price of our securities or preventing
or retarding a decline in the market price of our securities. As a result, the price of our securities in the open market may be
higher than it would otherwise be in the absence of these transactions. Neither we nor the underwriters make any representation
or prediction as to the effect that the transactions described above may have on the price of our securities. These transactions
may be effected on The Nasdaq Capital Market, in the over-the-counter market or otherwise and, if commenced, may be discontinued
at any time.</P>

<P STYLE="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>Passive Market Making</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">In connection with this offering, the underwriters
and selling group members may also engage in passive market making transactions in the our common stock. Passive market making
consists of displaying bids limited by the prices of independent market makers and effecting purchases limited by those prices
in response to order flow. Rule&nbsp;103 of Regulation M promulgated by the SEC limits the amount of net purchases that each passive
market maker may make and the displayed size of each bid. Passive market making may stabilize the market price of the shares of
common stock at a level above that which might otherwise prevail in the open market and, if commenced, may be discontinued at any
time.</P>

<P STYLE="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>Electronic Offer, Sale and Distribution of Shares</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">A prospectus in electronic format may be
made available on the websites maintained by one or more underwriters or selling group members, if any, participating in the offering.
The underwriters may agree to allocate a number of shares of securities to underwriters and selling group members for sale to their
online brokerage account holders. Internet distributions will be allocated by the Representative to underwriters and selling group
members that may make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format,
the information on the underwriters&rsquo; websites and any information contained in any other website maintained by the underwriters
is not part of this prospectus or the registration statement of which this prospectus forms a part.</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"><B>Other Relationships</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">From time to time, certain of the underwriters
and their affiliates have provided, and may provide in the future, various advisory, investment and commercial banking and other
services to us in the ordinary course of business, for which they have received and may continue to receive customary fees and
commissions. However, except as disclosed in this prospectus, we have no present arrangements with any of the underwriters for
any further services.</P>

<P STYLE="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>Market Information</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">The public offering price will be determined
by discussions between us and the Representative. In addition to prevailing market conditions, the factors to be considered in
these discussions will include:</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"></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<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">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an assessment of our management and the underwriters as to the price at which investors might be willing to participate in this offering;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the history of, and prospects for, our company and the industry in which we compete;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our past and present financial information;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our past and present operations, and the prospects for, and timing of, our future revenues;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the present state of our development; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the above factors in relation to market values and various valuation measures of other companies engaged in activities similar to ours.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An active trading market for the shares
may not develop. It is also possible that after the offering the shares will not trade in the public market at or above the public
offering price.</P>

<P STYLE="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>Offer and Sale Restrictions Outside the United States</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">Other than in the United States, no action
has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any
jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly
or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of
any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance
with the applicable rules&nbsp;and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised
to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This
prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus
in any jurisdiction in which such an offer or a solicitation is unlawful.</P>

<P STYLE="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>Australia</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">This prospectus is not a disclosure document
under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian Securities and Investments Commission
and does not purport to include the information required of a disclosure document under Chapter 6D of the Australian Corporations
Act. Accordingly, (i)&nbsp;the offer of the securities under this prospectus is only made to persons to whom it is lawful to offer
the securities without disclosure under Chapter 6D of the Australian Corporations Act under one or more exemptions set out in section
708 of the Australian Corporations Act, (ii)&nbsp;this prospectus is made available in Australia only to those persons as set forth
in clause (i)&nbsp;above, and (iii)&nbsp;the offeree must be sent a notice stating in substance that by accepting this offer, the
offeree represents that the offeree is such a person as set forth in clause (i)&nbsp;above, and, unless permitted under the Australian
Corporations Act, agrees not to sell or offer for sale within Australia any of the securities sold to the offeree within 12 months
after its transfer to the offeree under this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Canada</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">The securities may be sold in Canada only
to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument
45-106 Prospectus Exemptions or subsection 73.3(1)&nbsp;of the Securities Act (Ontario), and are permitted clients, as defined
in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the securities
must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable
securities laws.</P>

<P STYLE="font: 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">Securities legislation in certain provinces
or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment
thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within
the time limit prescribed by the securities legislation of the purchaser&#8217;s province or territory. The purchaser should refer
to any applicable provisions of the securities legislation of the purchaser&#8217;s province or territory for particulars of these
rights or consult with a legal advisor.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to section 3A.3 of National Instrument
33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105
regarding underwriter conflicts of interest in connection with this offering.</P>

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

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

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

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

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information in this document does not constitute a public
offer of the securities, whether by way of sale or subscription, in the People&#8217;s Republic of China (excluding, for purposes
of this paragraph, Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan). The securities may
not be offered or sold directly or indirectly in the PRC to legal or natural persons other than directly to &#8220;qualified domestic
institutional investors.&#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>European Economic Area &#8212; Belgium, Germany, Luxembourg
and Netherlands</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">In relation to each Member State of the
European Economic Area that has implemented the Prospectus Regulation (each, a &#8220;Relevant Member State&#8221;) an offer to
the public of our securities may not be made in that Relevant Member State, except that an offer to the public in that Relevant
Member State of our securities may be made at any time under the following exemptions under the Prospectus Regulation:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to any legal entity which is a qualified investor as defined in the Prospectus Regulation;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Regulation), subject to obtaining the prior consent of the representative for any such offer; or</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in any other circumstances falling within Article&nbsp;1(4)&nbsp;of the Prospectus Regulation,</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">provided that no such offer of our securities
shall result in a requirement for the publication by us or any underwriter of a prospectus pursuant to Article&nbsp;3 of the Prospectus
Regulation.</P>

<P STYLE="font: 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">For the purposes of this provision, the
expression an &#8220;offer to the public&#8221; in relation to our securities in any Relevant Member State means the communication
in any form and by any means of sufficient information on the terms of the offer and our securities to be offered so as to enable
an investor to decide to purchase our securities, and the expression &#8220;Prospectus Regulation&#8221; means Regulation (EU)
2017/1129 (as amended).</P>

<P STYLE="font: 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">This European Economic Area selling restriction
is in addition to any other selling restrictions set out 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>France</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">This document is not being distributed
in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning
of Article&nbsp;L.411-1 of the French Monetary and Financial Code (Code mon&eacute;taire et financier) and Articles 211-1 et seq.
of the General Regulation of the French Autorit&eacute; des march&eacute;s financiers (&#8220;AMF&#8221;). The securities have
not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France.</P>

<P STYLE="font: 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">This document and any other offering material
relating to the securities have not been, and will not be, submitted to the AMF for approval in France and, accordingly, may not
be distributed or caused to distributed, directly or indirectly, to the public in France.</P>

<P STYLE="font: 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">Such offers, sales and distributions have
been and shall only be made in France to (i)&nbsp;qualified investors (investisseurs qualifi&eacute;s) acting for their own account,
as defined in and in accordance with Articles L.411-2-II-2&deg; and D.411-1 to D.411-3, D. 744-1, D.754-1 and D.764-1 of the French
Monetary and Financial Code and any implementing regulation and/or (ii)&nbsp;a restricted number of non-qualified investors (cercle
restreintd&#8217;investisseurs) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2&deg; and
D.411-4, D.744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation.</P>

<P STYLE="font: 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">Pursuant to Article&nbsp;211-3 of the General
Regulation of the AMF, investors in France are informed that the securities cannot be distributed (directly or indirectly) to the
public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 to L.621-8-3 of the French
Monetary and Financial Code.</P>

<P STYLE="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>Ireland</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">The information in this document does not
constitute a prospectus under any Irish laws or regulations and this document has not been filed with or approved by any Irish
regulatory authority as the information has not been prepared in the context of a public offering of securities in Ireland within
the meaning of the Irish Prospectus (Directive 2003/71/EC) Regulations 2005 (the &#8220;Prospectus Regulations&#8221;). The securities
have not been offered or sold, and will not be offered, sold or delivered directly or indirectly in Ireland by way of a public
offering, except to (i)&nbsp;qualified investors as defined in Regulation 2(l)&nbsp;of the Prospectus Regulations and (ii)&nbsp;fewer
than 100 natural or legal persons who are not qualified investors.</P>

<P STYLE="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: justify"><B>Hong Kong</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">The securities may not be offered or sold
in Hong Kong by means of any document other than (i)&nbsp;in circumstances which do not constitute an offer to the public within
the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) (&#8220;Companies
(Winding Up and Miscellaneous Provisions) Ordinance&#8221;) or which do not constitute an invitation to the public within the meaning
of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) (&#8220;Securities and Futures Ordinance&#8221;), or
(ii)&nbsp;to &#8220;professional investors&#8221; as defined in the Securities and Futures Ordinance and any rules&nbsp;made thereunder,
or (iii)&nbsp;in other circumstances which do not result in the document being a &#8220;prospectus&#8221; as defined in the Companies
(Winding Up and Miscellaneous Provisions) Ordinance, and no advertisement, invitation or document relating to our securities may
be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere),
which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted
to do so under the securities laws of Hong Kong) other than with respect to our securities that are or are intended to be disposed
of only to persons outside Hong Kong or only to &#8220;professional investors&#8221; in Hong Kong as defined in the Securities
and Futures Ordinance and any rules&nbsp;made thereunder</P>

<P STYLE="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>Israel</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">The securities offered by this prospectus
have not been approved or disapproved by the Israeli Securities Authority (the ISA), nor have such securities been registered for
sale in Israel. The shares may not be offered or sold, directly or indirectly, to the public in Israel, absent the publication
of a prospectus. The ISA has not issued permits, approvals or licenses in connection with the offering or publishing the prospectus;
nor has it authenticated the details included herein, confirmed their reliability or completeness, or rendered an opinion as to
the quality of the securities being offered. Any resale in Israel, directly or indirectly, to the public of the securities offered
by this prospectus is subject to restrictions on transferability and must be effected only in compliance with the Israeli securities
laws and regulations.</P>

<P STYLE="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>Italy</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">The offering of the securities in the Republic
of Italy has not been authorized by the Italian Securities and Exchange Commission (Commissione Nazionale per le Societ &#8212;
$$ &#8212; Aga e la Borsa, &#8220;CONSOB&#8221; pursuant to the Italian securities legislation and, accordingly, no offering material
relating to the securities may be distributed in Italy and such securities may not be offered or sold in Italy in a public offer
within the meaning of Article&nbsp;1.1(t)&nbsp;of Legislative Decree No.&nbsp;58 of 24 February&nbsp;1998 (&#8220;Decree No.&nbsp;58&#8221;),
other than:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to Italian qualified investors, as defined in Article&nbsp;100 of Decree no. 58 by reference to Article&nbsp;34-ter of CONSOB Regulation no. 11971 of 14 May&nbsp;1999 (&#8220;Regulation no. 1197l&#8221;) as amended (&#8220;Qualified Investors&#8221;); and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in other circumstances that are exempt from the rules&nbsp;on public offer pursuant to Article&nbsp;100 of Decree No.&nbsp;58 and Article&nbsp;34-ter of Regulation No.&nbsp;11971 as amended.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any offer, sale or delivery of the securities
or distribution of any offer document relating to the securities in Italy (excluding placements where a Qualified Investor solicits
an offer from the issuer) under the paragraphs above must be:</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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">made by investment firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with Legislative Decree No.&nbsp;385 of 1 September&nbsp;1993 (as amended), Decree No.&nbsp;58, CONSOB Regulation No.&nbsp;16190 of 29 October&nbsp;2007 and any other applicable laws; and</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#8226;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in compliance with all relevant Italian securities, tax and exchange controls and any other applicable laws.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any subsequent distribution of the securities
in Italy must be made in compliance with the public offer and prospectus requirement rules&nbsp;provided under Decree No.&nbsp;58
and the Regulation No.&nbsp;11971 as amended, unless an exception from those rules&nbsp;applies. Failure to comply with such rules&nbsp;may
result in the sale of such securities being declared null and void and in the liability of the entity transferring the securities
for any damages suffered by the investors.</P>

<P STYLE="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>Japan</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">The securities have not been and will not
be registered under the Financial Instruments and Exchange Act of Japan (Act No.&nbsp;25 of 1948, as amended), or the FIEA. The
securities may not be offered or sold, directly or indirectly, in Japan or to or for the benefit of any resident of Japan (including
any person resident in Japan or any corporation or other entity organized under the laws of Japan) or to others for reoffering
or resale, directly or indirectly, in Japan or to or for the benefit of any resident of Japan, except pursuant to an exemption
from the registration requirements of the FIEA and otherwise in compliance with any relevant laws and regulations of Japan.</P>

<P STYLE="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>Portugal</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">This document is not being distributed
in the context of a public offer of financial securities (oferta p&uacute;blica de valores mobili&aacute;rios) in Portugal, within
the meaning of Article&nbsp;109 of the Portuguese Securities Code (C&oacute;digo dos Valores Mobili&aacute;rios). The securities
have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal. This document
and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese Securities
Market Commission (Comiss&atilde;o do Mercado de Valores Mobili&aacute;rios) for approval in Portugal and, accordingly, may not
be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances that
are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales and distributions of securities
in Portugal are limited to persons who are &#8220;qualified investors&#8221; (as defined in the Portuguese Securities Code). Only
such investors may receive this document and they may not distribute it or the information contained in it to any other person.</P>

<P STYLE="font: 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"><B>Singapore</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">This prospectus has not been registered
as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection
with the offer or sale, or invitation for subscription or purchase, of our securities may not be circulated or distributed, nor
may our securities be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or
indirectly, to persons in Singapore other than (i)&nbsp;to an institutional investor (as defined under Section&nbsp;4A of the Securities
and Futures Act, Chapter 289 of Singapore, or the SFA) under Section&nbsp;274 of the SFA, (ii)&nbsp;to a relevant person (as defined
in Section&nbsp;275(2)&nbsp;of the SFA) pursuant to Section&nbsp;275(1)&nbsp;of the SFA, or any person pursuant to Section&nbsp;275(1A)
of the SFA, and in accordance with the conditions specified in Section&nbsp;275 of the SFA or (iii)&nbsp;otherwise pursuant to,
and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth
in the SFA.</P>

<P STYLE="font: 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">Where our securities are subscribed or
purchased under Section&nbsp;275 of the SFA by a relevant person which is a corporation (which is not an accredited investor (as
defined in Section&nbsp;4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which
is owned by one or more individuals, each of whom is an accredited investor, the securities (as defined in Section&nbsp;239(1)&nbsp;of
the SFA) of that corporation shall not be transferable for 6 months after that corporation has acquired the shares under Section&nbsp;275
of the SFA except: (1)&nbsp;to an institutional investor under Section&nbsp;274 of the SFA or to a relevant person (as defined
in Section&nbsp;275(2)&nbsp;of the SFA), (2)&nbsp;where such transfer arises from an offer in that corporation&#8217;s securities
pursuant to Section&nbsp;275(1A) of the SFA, (3)&nbsp;where no consideration is or will be given for the transfer, (4)&nbsp;where
the transfer is by operation of law, (5)&nbsp;as specified in Section&nbsp;276(7)&nbsp;of the SFA, or (6)&nbsp;as specified in
Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore (&#8220;Regulation
32&#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; text-align: justify">Where our securities are subscribed or
purchased under Section&nbsp;275 of the SFA by a relevant person which is a trust (where the trustee is not an accredited investor
(as defined in Section&nbsp;4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited
investor, the beneficiaries&#8217; rights and interest (howsoever described) in that trust shall not be transferable for 6 months
after that trust has acquired the shares under Section&nbsp;275 of the SFA except: (1)&nbsp;to an institutional investor under
Section&nbsp;274 of the SFA or to a relevant person (as defined in Section&nbsp;275(2)&nbsp;of the SFA), (2)&nbsp;where such transfer
arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than $200,000
(or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of
securities or other assets), (3)&nbsp;where no consideration is or will be given for the transfer, (4)&nbsp;where the transfer
is by operation of law, (5)&nbsp;as specified in Section&nbsp;276(7)&nbsp;of the SFA, or (6)&nbsp;as specified in Regulation 32.</P>

<P STYLE="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>Sweden</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">This document has not been, and will not
be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document
may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances that are deemed
not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980) om handel med finansiella
instrument). Any offering of securities in Sweden is limited to persons who are &#8220;qualified investors&#8221; (as defined in
the Financial Instruments Trading Act). Only such investors may receive this document and they may not distribute it or the information
contained in it to any other person.</P>

<P STYLE="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>Switzerland</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">The securities may not be publicly offered
in Switzerland and will not be listed on the SIX Swiss Exchange (&#8220;SIX&#8221;) or on any other stock exchange or regulated
trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses
under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27
ff. of the SIX Listing Rules&nbsp;or the listing rules&nbsp;of any other stock exchange or regulated trading facility in Switzerland.
Neither this document nor any other offering material relating to the securities may be publicly distributed or otherwise made
publicly available in Switzerland.</P>

<P STYLE="font: 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"></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Neither this document nor any other offering
material relating to the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular,
this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory
Authority (FINMA).</P>

<P STYLE="font: 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">This document is personal to the recipient
only and not for general circulation in Switzerland.</P>

<P STYLE="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>United Arab Emirates</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">Neither this document nor the securities
have been approved, disapproved or passed on in any way by the Central Bank of the United Arab Emirates or any other governmental
authority in the United Arab Emirates, nor has the Company received authorization or licensing from the Central Bank of the United
Arab Emirates or any other governmental authority in the United Arab Emirates to market or sell the securities within the United
Arab Emirates. This document does not constitute and may not be used for the purpose of an offer or invitation. No services relating
to the securities, including the receipt of applications and/or the allotment or redemption of such shares, may be rendered within
the United Arab Emirates by the Company.</P>

<P STYLE="font: 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">No offer or invitation to subscribe for
securities is valid or permitted in the Dubai International Financial Centre.</P>

<P STYLE="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>United Kingdom</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">Neither the information in this document
nor any other document relating to the offer has been delivered for approval to the Financial Services Authority in the United
Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended (&#8220;FSMA&#8221;))
has been published or is intended to be published in respect of the securities. This document is issued on a confidential basis
to &#8220;qualified investors&#8221; (within the meaning of section 86(7)&nbsp;of FSMA) in the United Kingdom, and the securities
may not be offered or sold in the United Kingdom by means of this document, any accompanying letter or any other document, except
in circumstances which do not require the publication of a prospectus pursuant to section 86(1)&nbsp;FSMA. This document should
not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by recipients to any other
person in the United Kingdom.</P>

<P STYLE="font: 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">Any invitation or inducement to engage
in investment activity (within the meaning of section 21 of FSMA) received in connection with the issue or sale of the securities
has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United
Kingdom in circumstances in which section 21(1)&nbsp;of FSMA does not apply to the Company.</P>

<P STYLE="font: 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">In the United Kingdom, this document is
being distributed only to, and is directed at, persons (i)&nbsp;who have professional experience in matters relating to investments
falling within Article&nbsp;19(5)&nbsp;(investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions)
Order 2005 (&#8220;FPO&#8221;), (ii)&nbsp;who fall within the categories of persons referred to in Article&nbsp;49(2)(a)&nbsp;to
(d)&nbsp;(high net worth companies, unincorporated associations,&nbsp;etc.) of the FPO, or (iii)&nbsp;to whom it may otherwise
be lawfully communicated (together &#8220;relevant persons&#8221;). The investments to which this document relates are available
only to, and any invitation, offer or agreement to purchase will be engaged in only with, relevant persons. Any person who is not
a relevant person should not act or rely on this document or any of its contents.</P>

<P STYLE="font: 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="s_004"></A>LEGAL MATTERS</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">The validity of the shares of common stock
offered hereby and certain other legal matters will be passed upon for us by Waller Lansden Dortch&nbsp;&amp; Davis, LLP, Nashville,
Tennessee. Littman Krooks LLP, New York, New York is acting as counsel 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-align: center"><B><A NAME="s_005"></A>EXPERTS</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">The consolidated financial statements of Kubient,&nbsp;Inc.
as of December 31, 2019 and 2018 and for each of the two years in the period ended December 31, 2019 appearing in this prospectus
and registration statement, have been audited by Marcum LLP, independent registered public accounting firm, as set forth in their
report, which contains an explanatory paragraph as to the Company&rsquo;s ability to continue as a going concern, thereon appearing
elsewhere herein, and are included in reliance upon such report, given on 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-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="s_006"></A>WHERE YOU CAN FIND MORE INFORMATION</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">We have filed with the SEC a registration
statement on Form&nbsp;S-1 under the Securities Act, with respect to the shares of common stock being offered by this prospectus.
This prospectus does not contain all of the information in the registration statement and its exhibits. For further information
with respect to Kubient,&nbsp;Inc. and the common stock offered by this prospectus, we refer you to the registration statement
and its exhibits. Statements contained in this prospectus as to the contents of any contract or any other document referred to
are not necessarily complete, and in each instance, we refer you to the copy of the contract or other document filed as an exhibit
to the registration statement. Each of these statements is qualified in all respects by this reference.</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"></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You can read our SEC filings, including
the registration statement, over the Internet at the SEC&#8217;s website at http://www.sec.gov.</P>

<P STYLE="font: 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">We are subject to the information reporting
requirements of the Exchange Act, and we will file reports, proxy statements and other information with the SEC. These reports,
proxy statements and other information will be available for inspection and copying at the public reference room and website of
the SEC referred to above. We also maintain a website at www.Kubient.com, at which you may access these materials free of charge
as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. The information contained
in, or that can be accessed through, our website is not part of this prospectus.</P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="s_019"></A>INDEX TO FINANCIAL STATEMENTS</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 95%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 5%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Page</B></FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#i_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Condensed Consolidated
    Balance Sheets as of March&nbsp;31, 2020 (unaudited) and December&nbsp;31, 2019</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#i_001">F-1</A></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#i_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unaudited Condensed
    Consolidated Statements of Operations for the Three Months Ended March&nbsp;31, 2020 and 2019</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#i_002">F-2</A></FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#i_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unaudited Condensed
    Consolidated Statements of Changes in Stockholders&#8217; Deficiency for the Three Months Ended March&nbsp;31, 2020 and 2019</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#i_003">F-3</A></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#s_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unaudited Condensed
    Consolidated Statements of Cash Flows for the Three Months Ended March&nbsp;30, 2020 and 2019</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#s_010">F-4</A></FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#s_011"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to Unaudited
    Condensed Consolidated Financial Statements</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#s_011">F-5</A></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#s_012"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Report of Independent
    Registered Public Accounting Firm</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#s_012">F-15</A></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#s_013"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Balance
    Sheets as of December&nbsp;31, 2019 and 2018</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#s_013">F-16</A></FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#s_014"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements
    of Operations for the Years Ended December&nbsp;31, 2019 and 2018</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#s_014">F-17</A></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#s_015"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements
    of Changes in Stockholders&#8217; Deficiency for the Years Ended December&nbsp;31, 2019 and 2018</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#s_015">F-18</A></FONT></TD></TR>
<TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#s_016"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements
    of Cash Flows for the Years Ended December&nbsp;31, 2019 and 2018</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#s_016">F-19</A></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#s_017"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to Consolidated
    Financial Statements </FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#s_017">F-20</A></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">&nbsp;&nbsp;</P>

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

<!-- Field: Page; Sequence: 90 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><A NAME="i_001"></A>Kubient,&nbsp;Inc.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Condensed Consolidated Balance Sheets</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&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></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&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">March&nbsp;31,</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">December&nbsp;31,</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2020</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&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="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(unaudited)</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif">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">&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: 10pt Times New Roman, Times, Serif; text-align: left">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">&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: 10pt Times New Roman, Times, Serif; padding-left: 0.125in; width: 74%">Cash</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">21,017</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">33,785</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; padding-left: 0.125in; text-align: left">Accounts receivable, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">534,081</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">38,704</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-left: 0.125in; text-align: left">Prepaid expenses and other current assets</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">44,629</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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">28,072</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.375in; text-align: left">Total 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">599,727</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">100,561</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">Intangible assets, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,532,726</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">83,333</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">Property and equipment, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,128</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,549</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">Deferred offering costs</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">360,892</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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">285,196</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.375in; text-align: left">Total Assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,498,473</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">473,639</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left">Liabilities and Stockholders' Deficiency</TD><TD 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">&nbsp;</TD><TD 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: 10pt Times New Roman, Times, Serif; text-align: left">Current 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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left">Accounts payable - suppliers</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">534,161</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">785,180</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; padding-left: 0.125in; text-align: left">Accounts payable - trade</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,109,786</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">867,554</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-left: 0.125in; text-align: left">Accrued expenses and other 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">483,235</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">478,674</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; padding-left: 0.125in; text-align: left">Accrued expenses and other current liabilities - related party</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23,881</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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-left: 0.125in; text-align: left">Accrued interest</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">173,204</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">117,912</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; padding-left: 0.125in; text-align: left">Accrued interest - related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">20,949</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">4,204</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-left: 0.125in; text-align: left">Due to related party</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">29,000</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">29,000</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; padding-left: 0.125in; text-align: left">Notes payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">113,967</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">113,967</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-indent: -0.125in; padding-left: 0.25in">Convertible notes payable, net of discount of $254,316 and $630,994 as
    of March&nbsp;31, 2020 and December&nbsp;31, 2019, respectively</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,945,684</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">2,569,006</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-indent: -0.125in; padding-left: 0.25in">Convertible notes payable - related parties, net of
    discount of $197,533 and $281,701 as of March&nbsp;31, 2020 and December&nbsp;31, 2019, respectively</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">632,967</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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">548,799</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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-left: 0.375in; text-align: left">Total 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">7,066,834</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">5,514,296</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">Notes payable - related parties</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">525,000</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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-left: 0.375in; text-align: left">Total Liabilities</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">7,591,834</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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">5,514,296</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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">Commitments and contingencies (Note 9)</TD><TD 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: 10pt Times New Roman, Times, Serif; text-align: left">Stockholders' Deficiency:</TD><TD 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: 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in">Preferred stock, $0.00001 par value; 5,000,000 shares authorized; No
    shares issued and outstanding as of March&nbsp;31, 2020 and December&nbsp;31, 2019</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.25in">Common stock, $0.00001 par value; 95,000,000 shares authorized; 32,413,686 shares issued and outstanding as of March&nbsp;31, 2020 and
    December&nbsp;31, 2019</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">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">324</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; padding-left: 0.125in; text-align: left">Additional paid-in capital</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,367,830</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,362,436</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-left: 0.125in; text-align: left">Accumulated deficit</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">(8,461,515</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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">(8,403,417</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left">Total Stockholders' Deficiency</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">(5,093,361</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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">(5,040,657</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; 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; padding-left: 0.25in; text-align: left">Total Liabilities and Stockholders' Deficiency</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,498,473</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; 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 medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">473,639</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">The accompanying notes are an integral part of these condensed consolidated financial statements.</P>



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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><A NAME="i_002"></A>Kubient,&nbsp;Inc.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Condensed Consolidated Statements of Operations</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&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></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">(unaudited)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&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></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">For the Three Months Ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;31,</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="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">2020</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="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="border-bottom: Black 1pt solid; 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: bold 10pt Times New Roman, Times, Serif; width: 74%; text-align: left">Net Revenues</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">1,381,913</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">56,806</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Operating Expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif; padding-left: 0.125in">Technology</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">480,401</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">372,951</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; padding-left: 0.125in; text-align: left">General and administrative</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">663,926</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">132,607</TD><TD STYLE="border-bottom: Black 1pt solid; 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-left: 0.25in; text-align: left">Total Operating Expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">1,144,327</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">505,558</TD><TD STYLE="border-bottom: Black 1pt solid; 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-left: 0.25in; text-align: left">Income (Loss) From Operations</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">237,586</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">(448,752</TD><TD STYLE="border-bottom: Black 1pt solid; 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">Other (Expense) Income:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-align: left">Interest 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">(432,812</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">(16,436</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; padding-left: 0.125in; text-align: left">Interest expense - related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(100,914</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">-</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; padding-left: 0.125in; text-align: left">Gain on forgiveness of accounts payable - supplier</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">236,248</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">-</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-left: 0.125in; text-align: left">Other income</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">1,794</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">244</TD><TD STYLE="border-bottom: Black 1pt solid; 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-left: 0.25in; text-align: left">Total Other Expense</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">(295,684</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">(16,192</TD><TD STYLE="border-bottom: Black 1pt solid; 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; padding-left: 0.25in; text-align: left">Net Loss</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">(58,098</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">(464,944</TD><TD STYLE="border-bottom: Black medium double; 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; padding-left: 0.25in; text-align: left">Net Loss Per Share - Basic and Diluted</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.00</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.01</TD><TD STYLE="border-bottom: Black medium double; 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-indent: -0.125in; padding-left: 0.375in; text-align: left">Weighted Average Common Shares
    Outstanding - Basic and Diluted</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,413,686</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,393,686</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">The accompanying notes are an integral part of these condensed 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"></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 COLSPAN="21" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><A NAME="i_003"></A>Kubient,&nbsp;Inc.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&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">&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">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="21" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Condensed Consolidated Statements of Changes in Stockholders' Deficiency</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="21" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">(unaudited)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="18" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">For the Three Months Ended March&nbsp;31, 2020</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="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">Additional</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&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></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Common Stock</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="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Paid-In</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="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Accumulated</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&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></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="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">Shares</TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="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">Amount</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="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Capital</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="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Deficit</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="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Total</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="font: bold 10pt Times New Roman, Times, Serif; width: 35%">Balance - January&nbsp;1, 2020</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: 10%; text-align: right">32,413,686</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">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">324</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">3,362,436</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">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">(8,403,417</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">(5,040,657</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; 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">Stock-based compensation:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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="font: 10pt Times New Roman, Times, Serif; padding-left: 0.125in">Options</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,394</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,394</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">Net loss</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">(58,098</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="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">(58,098</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">Balance - March&nbsp;31, 2020</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,413,686</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">324</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,367,830</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,461,515</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,093,361</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-size: 10pt">&nbsp;</TD><TD 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="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD COLSPAN="17" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>For the Three Months Ended March&nbsp;31, 2019</B></FONT></TD><TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Additional</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD COLSPAN="5" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Common Stock</B></FONT></TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Paid-In</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Accumulated</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD 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"><B>Shares</B></FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD 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"><B>Amount</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD 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"><B>Capital</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD 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"><B>Deficit</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD 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"><B>Total</B></FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif">Balance - January&nbsp;1, 2019</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">32,393,686</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">324</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,717,250</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,270,544</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,552,970</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">Stock-based compensation:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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="font: 10pt Times New Roman, Times, Serif; padding-left: 0.125in">Options</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,502</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,502</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">Net loss</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">(464,944</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="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">(464,944</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">Balance - March&nbsp;31, 2019</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,393,686</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">324</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">2,722,752</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">(4,735,488</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; text-align: right">(2,012,412</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">The accompanying notes are an integral part of these condensed 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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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Kubient,&nbsp;Inc.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center"><A NAME="s_010"></A>Condensed Consolidated Statements of Cash Flows</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">(unaudited)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">For the Three Months Ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center">&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">March&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;</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">2020</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">2019</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: bold 10pt Times New Roman, Times, Serif; text-align: left">Cash Flows From 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 74%; text-align: left; text-indent: 20pt">Net loss</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(58,098</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(464,944</TD><TD STYLE="width: 1%; 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; text-indent: 20pt">Adjustments to reconcile net loss
    to net cash (used in) provided by 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 40pt">Depreciation and amortization</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">51,115</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">-</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; text-indent: 40pt">Bad debt 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">5,749</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,215</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; text-indent: 40pt">Gain on forgiveness of accounts payable - supplier</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(236,248</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">-</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; text-indent: 40pt">Stock-based compensation:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 50pt">Stock options</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,394</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,502</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; text-indent: 50pt">Common stock</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">16,125</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">1,500</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; text-indent: 40pt">Contribution of capital - related party share transfer</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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; text-indent: 40pt">Amortization of debt discount and debt issuance costs</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">376,678</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,483</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; text-indent: 40pt">Amortization of debt discount and debt issuance costs - related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">84,168</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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; text-indent: 20pt">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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 40pt">Accounts receivable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(501,126</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">(18,315</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; text-indent: 40pt">Prepaid expenses and other 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">(16,557</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">(8,710</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; text-indent: 40pt">Accounts payable - suppliers</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(14,771</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">150,256</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; text-indent: 40pt">Accounts payable - trade</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">112,251</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23,354</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; text-indent: 40pt">Accrued expenses and other 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">(87,260</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">316,285</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; text-indent: 40pt">Accrued expenses and other current liabilities - related party</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23,881</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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; text-indent: 40pt">Accrued interest</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">55,292</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">9,557</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; padding-bottom: 1pt; text-indent: 40pt">Accrued interest - related parties</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">16,745</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-size: 10pt; text-align: center">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 60.25pt">Net Cash (Used In) Provided By Operating 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">(166,662</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">20,183</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-size: 10pt; text-align: center">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 40pt">Purchase of intangible 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">(355,019</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">-</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; padding-bottom: 1pt; text-indent: 40pt">Purchase of property and equipment</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">(1,087</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">-</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-size: 10pt; text-align: center">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 60.25pt">Net Cash Used In Investing 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">(356,106</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">-</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-size: 10pt; text-align: center">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 40pt">Proceeds from issuance of notes payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">525,000</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">-</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; text-indent: 40pt">Repayment of notes payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(27,369</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; padding-bottom: 1pt; text-indent: 40pt">Payment of deferred offering costs</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">(15,000</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">-</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; text-indent: 60.25pt">Net Cash Provided By (Used In) 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">510,000</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">(27,369</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-size: 10pt; text-align: center">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 60.25pt">Net 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">(12,768</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">(7,186</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-size: 10pt; text-align: center">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Cash - Beginning of the 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">33,785</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">7,518</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Cash - End of the 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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">21,017</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">332</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD 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: bold 10pt Times New Roman, Times, Serif; text-align: left">Supplemental Disclosures of Cash Flow Information:</TD><TD 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: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 20pt">Cash paid during the period for:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 40pt">Interest</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,396</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; text-indent: 40pt">Income taxes</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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-size: 10pt">&nbsp;</TD><TD 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: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 20pt">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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 40pt">Accrual of intangible 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">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,144,981</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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; text-indent: 40pt">Accrual of deferred offering costs</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">75,696</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">37,476</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: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part of these condensed 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"></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>KUBIENT,&nbsp;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><A NAME="s_011"></A>Notes to Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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"><B>NOTE 1 &#8211; BUSINESS ORGANIZATION,
NATURE OF OPERATIONS, RISKS AND UNCERTAINTIES AND BASIS OF PRESENTATION</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"><U>Organization and Operations</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-align: justify">Kubient,&nbsp;Inc. (&#8220;Kubient&#8221;
or the &#8220;Company&#8221;) was incorporated in the State of Delaware on May&nbsp;24, 2017 and established a fiscal year end
of December&nbsp;31.&nbsp; Kubient has developed a cloud-based software platform for real-time trading of digital, programmatic
advertising. The platform allows both advertisers (ad space buyers) and publishers (ad space sellers) the ability to use machine
learning during any programmatic ad space auction.</P>

<P STYLE="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>Risks and Uncertainties</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-align: justify">In March&nbsp;2020, the World Health Organization
declared the outbreak of a novel strain of coronavirus (&#8220;COVID-19&#8221;) as a pandemic which continues to spread throughout
the United States. The Company is closely monitoring the outbreak of COVID-19 and its impact on the Company&#8217;s operations,
financial position, cash flows, supply chains, customer purchasing trends, customer payments, and the industry in general in addition
to the impact on the Company&#8217;s employees. The Company has concluded that while it is reasonably possible that the virus could
have a negative impact on the results of operations, the specific impact is not readily determinable as of the date of these financial
statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. However,
if the pandemic continues to cause significant negative impacts to economic conditions, the Company&#8217;s results of operations,
financial condition and liquidity could be adversely impacted.</P>

<P STYLE="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>Basis of Presentation</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-align: justify">The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
(&#8220;U.S. GAAP&#8221;) for interim financial information. Accordingly, they do not include all of the information and footnotes
required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments
(consisting only of normal recurring items) which are considered necessary for a fair presentation of the unaudited condensed consolidated
financial statements of the Company as of March&nbsp;31, 2020 and for the three months ended March&nbsp;31, 2020 and 2019. The
results of operations for the three months ended March&nbsp;31, 2020 are not necessarily indicative of the operating results for
the full year ending December&nbsp;31, 2020 or any other period. These unaudited condensed consolidated financial statements should
be read in conjunction with the audited consolidated financial statements and related disclosures as of December&nbsp;31, 2019
and 2018 and for the years then ended which are included elsewhere in this filing.</P>

<P STYLE="font: 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"><B>NOTE 2 &#8211; GOING CONCERN AND MANAGEMENT&#8217;S
PLANS</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">The Company has not yet achieved profitability
and expects to continue to incur cash outflows from operations. It is expected that its operating expenses will continue to increase
and, as a result, the Company will eventually need to generate significant revenues to achieve profitability. These conditions
indicate that there is substantial doubt about the Company&#8217;s ability to continue as a going concern within one year after
the issuance date of the 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; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is currently funding its operations on a month-to-month basis via proceeds received from the debt financing described below.&nbsp;Although
the Company&#8217;s management believes that it has access to capital resources, there are currently no commitments in place for
new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms,
if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly curtail or
discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company&#8217;s operating
needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures.</FONT>
Subsequent to March&nbsp;31, 2020, the Company received approximately $327,000 in the form of a loan in connection with the Paycheck
Protection Program, approximately $79,000 in the form of a loan in connection with the Economic and Disaster Loan assistance program
and approximately $60,000 in the form of a three-year note payable from a related party. See Note 11 &#8211; Subsequent Events
for additional details.</P>

<P STYLE="font: 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">The accompanying condensed
consolidated financial statements have been prepared in conformity U.S. GAAP, which contemplate continuation of the Company
as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The
financial statements do not include any adjustment that might become necessary should the Company be unable to continue as a
going concern.</P>

<P STYLE="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>KUBIENT,&nbsp;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 Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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"><B>NOTE 3 &#8211; SIGNIFICANT ACCOUNTING
POLICIES</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">There have been no material changes to
the significant accounting policies included in the audited consolidated financial statements as of December&nbsp;31, 2019 and
2018 and for the years then ended, which are included elsewhere in this filing, except as disclosed in this 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; text-align: justify"><U>Accounts Receivable</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-align: justify">Accounts receivable are carried at their
contractual amounts, less an estimate for uncollectible amounts. As of March&nbsp;31, 2020 and December&nbsp;31, 2019, there was
an allowance for uncollectible amounts of $40,689 and $34,115, respectively. Management estimates the allowance for bad debts based
on existing economic conditions, the financial conditions of the customers, and the amount and age of past due 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; text-align: justify"><U>Intangible 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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Intangible
assets are comprised of costs to acquire and develop </FONT>computer software, including (i)&nbsp;the costs to acquire third-party
data which is used to improve the Company&#8217;s artificial intelligence platform for client use as well as (i)&nbsp;the costs
to acquire third-party software as well as the related source code. The intangible assets have estimated useful lives of two years
for the computer software and five years for the capitalized data. Once placed into service, the Company amortizes the cost of
the intangible assets over their estimated useful lives on a straight-line 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; background-color: white"><U>Software Development&nbsp;Costs</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-align: justify">The Company develops and utilizes software
in connection with its ability to generate customer revenue (which is further explained in Note 3 &#8211; Significant Accounting
Policies &#8211; Revenue Recognition). Costs incurred in this effort are accounted for under the provisions of ASC 985-20, Software
 &#8211; Cost of Software to be Sold, Leased or Marketed, whereby costs for the development of new software products and substantial
enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which
time any additional costs would be capitalized. <FONT STYLE="background-color: white">The Company capitalizes subsequent additions,
modifications, or upgrades to internally developed software only to the extent that such changes allow the software to perform
a task it previously did not perform.</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-align: justify"><U>Revenue Recognition</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-align: justify">The Company recognizes revenue under ASC
606, &#8220;Revenue from Contracts with Customers&#8221; (&#8220;ASC 606&#8221;). 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Identification of a contract with a 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Identification of 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Determination of 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Allocation of the transaction price to the 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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><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">Recognition of revenue when or as the performance obligations are satisfied.</FONT></TD></TR>
</TABLE>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company maintains a contract with each
customer and supplier, which specify the terms of the relationship and access to the Company&#8217;s platform. The Company provides
a service to its customers (the buy-side ad networks who work for advertisers) by providing its platform to connect advertisers
and publishers. For this service, the Company earns a mark-up, which is the spread between what the Company collects from the advertiser,
who wants to run an ad campaign, and what the Company remits to the publisher, who wants to sell its ad space. The transaction
price is determined based on the consideration to which it expects to be entitled, including the impact of any implicit price concessions
over the course of the contract. The Company&#8217;s performance obligation is to facilitate the publication of advertisements.
The performance obligation is satisfied at the point in time that the ad is placed. Subsequent to a bid being won, the associated
fees are generally not subject to refund or adjustment. Historically, any refunds and adjustments have not been material.</P>

<P STYLE="font: 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">The revenue recognized is the difference
between (i)&nbsp;the amount the Company is responsible to collect from the customer related to the placement of an ad (the &#8220;Gross
Billing&#8221;) and (ii)&nbsp;the amount the Company remits to the supplier for the ad space (the &#8220;Supplier Cost&#8221;).
The determination of whether the Company is the principal or agent, and hence whether to report revenue on a gross basis equal
to the Gross Billing or on a net basis for the difference between the Gross Billing and Supplier Cost, requires judgment. The Company
acts as an agent in arranging via its platform for the specified good (the ad space) to be purchased by the advertiser, as it does
not control the goods or services being transferred to the end customer, it does not take responsibility for the quality or acceptability
of the ad space, it does not bear inventory risk, nor does it have discretion in establishing price of the ad space. As a result,
the Company recognizes revenue on a net basis for the difference between the Gross Billing and the Supplier Cost. During the three
months ended March&nbsp;31, 2020 and 2019, the Company recognized aggregate revenue of $81,575 and $56,806, respectively, in connection
with contracts where it acts as an agent.</P>

<P STYLE="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>KUBIENT,&nbsp;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 Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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">The Company invoices customers on a monthly
basis for the amount of Gross Billings in the relevant period. Invoice payment terms, negotiated on a customer-by- customer basis,
are typically between 45 to 90 days. However, for certain agency customers with sequential liability terms as specified by the
Interactive Advertising Bureau, (i)&nbsp;payments are not due to the Company until such agency customers has received payment from
its customers (ii)&nbsp;the Company is not required to make a payment to its supplier until payment is received from the Company&#8217;s
customer and (iii)&nbsp;the supplier is responsible to pursue collection directly with the advertiser. As a result, once the Company
has met the requirements of each of the five steps under ASC 606, the Company&#8217;s accounts receivable are recorded at the amount
of Gross Billings which represent amounts it is responsible to collect and accounts payable are recorded at the amount payable
to suppliers. In the event step 1 under ASC 606 is not met, the Company does not record either the accounts receivable or accounts
payable. Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>KUBIENT,&nbsp;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 Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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">Beginning during the three months ended
March&nbsp;31, 2020, the Company recognized revenue in connection with contracts to scan a customers&#8217; first-party anonymized
data with the Company&#8217;s proprietary patent-pending artificial intelligence product (&#8220;KAI&#8221;). Upon completion of
the scan, the Company delivered a report to the customer, which is the point in time the Company satisfied the performance obligation.
The Company acts as the principal for these contracts, as it is primarily responsible for fulfilling the promise to provide the
services and has discretion in establishing the price of service. As a result, the Company recognizes revenue on a gross basis.
During the three months ended March&nbsp;31, 2020 and 2019, the Company recognized aggregate revenue of $1,300,338 and $0, respectively,
in connection with the contracts.</P>

<P STYLE="font: 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">As of March&nbsp;31, 2020 and December&nbsp;31,
2019, the Company did not have any contract assets from contracts with customers. As of March&nbsp;31, 2020 and December&nbsp;31,
2019, the Company had $15,000 of contract liabilities where performance obligations have not yet been satisfied. The Company expects
to satisfy its remaining performance obligations and recognize the revenue within the next twelve months. During the three months
ended March&nbsp;31, 2020 and 2019, no revenue was recognized from performance obligations satisfied (or partially satisfied) in
previous periods.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Net Loss Per Common Share</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-align: justify">Basic net loss per common share is computed
by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common
share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding
during each period. Dilutive common-equivalent shares consist of shares of options, warrants and convertible notes, if not 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-align: justify">The following shares were excluded from
the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:</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: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">For the Three Months Ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">March&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="padding-bottom: 1pt; font-size: 10pt">&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: right">2020</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: right">2019</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: 74%; font: 10pt Times New Roman, Times, Serif; text-align: left">Stock options</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">880,700</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">524,000</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">Warrants</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">10,247,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,595,000</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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">Convertible notes [1]</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">193,670</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif"></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">167,628</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="padding-bottom: 2.5pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&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">11,321,370</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&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">2,286,628</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-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">[1] Excludes shares issuable upon conversion
of the Senior and Junior Notes, which are not currently convertible and whose conversion price is not currently known.</P>

<P STYLE="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>Reclassifications</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">Certain prior period balance sheet amounts have been reclassified
to conform to the fiscal 2020 presentation. These reclassifications have no impact on the previously reported net loss.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>KUBIENT,&nbsp;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 Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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"><B>NOTE 4 &#8211; 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">Intangible assets 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: 65%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;31,</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="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">December&nbsp;31,</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2020</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="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></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">Acquired data</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">1,500,000</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">-</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; padding-bottom: 1pt">Acquired software</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">100,000</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">100,000</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,600,000</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">100,000</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">Less: accumulated amortization</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">(67,274</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">(16,667</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; padding-bottom: 2.5pt">Intangible assets, net</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">1,532,726</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">83,333</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March&nbsp;31,
2020, the Company acquired third-party data with a cost of $1,500,000 as a means using the data to support the evolution and growth
of the Company&#8217;s artificial intelligence platform. As of March&nbsp;31, 2020, the Company had a remaining liability in connection
with purchase of third-party data of $1,144,981, which is included within accounts payable &#8211; trade on the condensed 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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amortization
expense related to intangible assets was $50,607 and $0 for the three months ended March&nbsp;31, 2020 and 2019, respectively.
</FONT>The Company&#8217;s intangible assets have a remaining weighted average amortization period of 4.7 years.</P>

<P STYLE="font: 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">The estimated future amortization expense
is 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: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font: bold 10pt Times New Roman, Times, Serif">For the Years Ending December&nbsp;31,</TD><TD STYLE="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">Total</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="font: 10pt Times New Roman, Times, Serif; width: 87%; text-align: left">2020</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">262,500</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">2021</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">333,333</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">2022</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">300,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">2023</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">300,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">2024</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">300,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif">Thereafter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">36,893</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="padding-bottom: 2.5pt; text-align: left; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&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">1,532,726</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 5 &#8211; ACCRUED EXPENSES AND
OTHER CURRENT 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-align: justify">Accrued expenses and other current liabilities
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: 75%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">March&nbsp;31,</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="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">December&nbsp;31,</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2020</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="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></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">Accrued payroll taxes</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">163,746</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">Accrued supplier 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">115,605</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">39,026</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">Accrued legal and professional fees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">167,415</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">172,801</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">Accrued commissions</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">27,000</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">-</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">Credit card payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">32,420</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">30,113</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">Accrued director fees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">38,128</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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">Accrued programming 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">50,513</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">36,993</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">Accrued issuable equity</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">16,125</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">-</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">Deferred revneue</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">15,000</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">15,000</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; padding-bottom: 1pt">Other</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">21,029</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">20,995</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">Total accrued expenses and other current liabilities</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">483,235</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">478,674</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-align: justify">&nbsp;</P>

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

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<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"><B>KUBIENT,&nbsp;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 Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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"><B>NOTE 6 &#8211; NOTES PAYABLE</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">As of March&nbsp;31, 2020 and as of the
date the condensed consolidated financial statements were issued, notes payable with an aggregate principal amount of $133,967
were past due and are classified as current liabilities on the condensed consolidated balance sheet as of March&nbsp;31, 2020.
Such notes continue to accrue interest, which has been accrued as of March&nbsp;31, 2020. See Note 9 - Commitments and Contingencies
 &#8211; Litigation for additional details. The Company is in negotiations to either extend the maturity dates of such notes or
to settle the amounts due.</P>

<P STYLE="font: 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">During the three months ended March&nbsp;31,
2020 and 2019, the Company recorded interest expense of $56,134 and $11,953, respectively, and non-cash amortization of debt discount
and debt issuance costs of $376,678 and $4,483, respectively, which is included in interest expense on the condensed consolidated
statements of operations. As of March&nbsp;31, 2020 and December&nbsp;31, 2019, the Company had $173,204 and $117,912, respectively,
of accrued interest related to notes payable.</P>

<P STYLE="font: 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">During the three months ended March&nbsp;31,
2020 and 2019, the Company recorded interest expense &#8211; related parties of $16,746 and $0, respectively, and non-cash amortization
of debt discount and debt issuance costs &#8211; related parties of $84,168 and $0, respectively, which is included in interest
expense &#8211; related parties on the condensed consolidated statements of operations. As of March&nbsp;31, 2020 and December&nbsp;31,
2019, the Company had $20,949 and $4,204, respectively, of accrued interest - related parties related notes payable.</P>

<P STYLE="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>Notes Payable &#8211; Related Parties</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-align: justify">During the three months ended March&nbsp;31, 2020, the Company
received aggregate proceeds of $525,000 in connection with three-year notes payable issued to three of its executive officers.
The notes bear interest ranging from 1.50% and 1.60% per annum, payable annually. The outstanding principal and accrued and unpaid
interest shall become immediately due and payable upon an initial public offering, sale of the Company or qualified financing with
equity proceeds of at least $5,000,000. There can be no assurance that the Company will complete an initial public offering, sale
of the Company or qualified financing with equity proceeds of at least $5,000,000. Furthermore, the holders have agreed to amend
such notes prior to the effectiveness of this registration statement to provide for conversion of principal and interest thereunder
into the units being issued in this offering at the public offering price per unit.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 7 &#8211; STOCKHOLDERS&#8217; DEFICIENCY</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"><U>Stock-Based Compensation</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-align: justify">During the three months ended March&nbsp;31,
2020 and 2019, the Company recognized aggregate stock-based compensation expense of $21,519 ($16,125 related to common stock that
was not issued as of March&nbsp;31, 2020 and, accordingly, was included in accrued expenses and other current liabilities and $5,394
related to stock options) and $7,002 ($1,500 related to common stock that was not issued as of March&nbsp;31, 2019 and, accordingly,
was included in accrued expenses and other current liabilities and $5,502 related to stock options), respectively. As of March&nbsp;31,
2020, there was $21,999 of unrecognized stock-based compensation expense, which will be recognized over approximately 2.1 years.</P>

<P STYLE="font: 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"><B>NOTE 8 - RELATED PARTY TRANSACTIONS</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">As of March&nbsp;31, 2020, the Company
had outstanding notes payable &#8211; related parties, convertible notes payable &#8211; related parties and an advance due to
a related party of $525,000, $830,500 and $29,000, respectively. As of December&nbsp;31, 2019, the Company had outstanding convertible
notes payable - related parties and an advance due to a related party of $830,500 and $29,000, respectively. See Note 6 &#8211;
Notes Payable for details of related party 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-align: justify"><U>Sublease Agreement</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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March&nbsp;2019, Kubient entered into a sublease agreement with </FONT>OneQube,&nbsp;Inc. (&#8220;OneQube&#8221;) that provides
for rent payments by Kubient to the sublessor equal to $600 per desk per month and ends in June&nbsp;2021. The Company&#8217;s
current Chief Executive Officer is a stockholder of OneQube and serves as Chairman of the Board of OneQube.&nbsp;During the three
months ended March&nbsp;31, 2020 and 2019, rent expense associated with the OneQube sublease was $35,821 and $3,600, respectively,
which is included in general and administrative expenses on the condensed consolidated statements of operations. As of March&nbsp;31,
2020 and December&nbsp;31, 2019, the Company had a liability of $23,881 and $0, respectively, which is included within accrued
expenses and other current liabilities - related party on the condensed consolidated balance sheets. See Note 11 &#8211; Subsequent
Events for additional details.</P>

<P STYLE="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>KUBIENT,&nbsp;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 Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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"><B>NOTE 9 &#8211; COMMITMENTS AND CONTINGENCIES</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"><U>Litigation</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-align: justify">From time to time, the Company is a defendant
or plaintiff in various legal actions that arise in the normal course of business. Liabilities for loss contingencies arising from
claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been
incurred and the amount of the assessment can be reasonably estimated.</P>

<P STYLE="font: 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">On August&nbsp;31, 2018, the Company received
a summons from the Los Angeles County Superior Court of California in connection with a civil action filed by a vendor against
the Company in the amount of $33,461 for breach of contract. On November&nbsp;14, 2018, counsel representing the vendor filed a
request for default judgement against the Company in the amount of $35,936 which included legal costs of $785 and interest of $1,690.
On November&nbsp;21, 2018, judgement was entered by the court against the Company. On April&nbsp;16, 2020, a Writ of Execution
was issued against the Company in the amount of $40,997. On June&nbsp;12, 2020, the Company filed a motion to vacate the default
judgement and the Court set a January&nbsp;12, 2021 hearing date. As of March&nbsp;31, 2020 and December&nbsp;31, 2019, the Company
had accrued for all amounts.</P>

<P STYLE="font: 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">On November&nbsp;27, 2019, the Company
received a summons from the Los Angeles County Superior Court of California in connection with a civil action filed by a vendor
on November&nbsp;25, 2019 against the Company in the amount of $20,764. On April&nbsp;21, 2020, the Company made a settlement offer
to pay $20,000 within 90 days of execution of a settlement agreement. As of the date the financial statements were issued, the
parties had not executed a settlement agreement, however, that settlement offer was rejected by the vendor. On May&nbsp;28, 2020,
the Company filed a motion to dismiss. As of March&nbsp;31, 2020 and December&nbsp;31, 2019, the Company had accrued approximately
$20,000.</P>

<P STYLE="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>KUBIENT,&nbsp;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 Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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">In March&nbsp;2019 the Company entered
into a binding letter of intent to acquire substantially all of the assets of Aureus Holdings, LLC d/b/a Lo70s (&#8220;Lo70s&#8221;).
In connection with the letter of intent, the Company paid a good faith deposit to Lo70s of $200,000. Subsequently, during the diligence
phase of the letter of intent, the Company received information such that it believes that Lo70s made material misrepresentations
regarding its business and diligence inquiries made by the Company to Lo70s. As a result, the Company terminated the letter of
intent under the clause that there was a material adverse change in the business. During the year ended December&nbsp;31, 2019,
the Company recorded an allowance of $200,000 related to the deposit. The Company received a legal dispute letter dated February&nbsp;20,
2020 from legal counsel representing Lo70s that indicated that Lo70s is prepared to file its claim against the Company in an amount
that exceeds $5 million. On February&nbsp;28, 2020, the Company subsequently responded with its intention to vigorously defend
itself with respect to such demands made by Lo70s that the Company believes are without merit. As of March&nbsp;31, 2020 and December&nbsp;31,
2019, the Company had accrued for all probable and estimable amounts in its condensed 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>Release of Liability</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-align: justify">On March&nbsp;10, 2020, the Company received
a letter from one of its vendors releasing it from aggregate liabilities of $236,248, which were accrued as of December&nbsp;31,
2019. The Company recognized the gain on release of liability effective March&nbsp;10, 2020, which is included in other expense
on the condensed consolidated statement 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"><U>Settlement Agreements</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-align: justify">On September&nbsp;4, 2019, the Company
entered into a settlement agreement whereby the parties agreed to settle an outstanding note payable balance of approximately $45,000
for $16,000, which was to be paid by September&nbsp;3, 2019 by the Company. As of March&nbsp;31, 2020 and December&nbsp;31, 2019,
the outstanding note payable balance was $38,967 on the condensed consolidated balance sheets.</P>

<P STYLE="font: 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">On November&nbsp;12, 2019, the Company
received a summons from the Palm Beach County Circuit Court of Florida in connection with a civil action filed by the plaintiff
against the Company in the aggregate amount of $207,502 ($132,502 for breach of contract and $75,000 for default under a promissory
note). On May&nbsp;13, 2020, the parties reached a settlement agreement that requires the Company to make aggregate payments to
the plaintiff of a total of $135,000, which is due in seven (7)&nbsp;installments between May&nbsp;20, 2020 and October&nbsp;20,
2020. If the Company pays a total of $125,000 by September&nbsp;15, 2020, the total amount due is automatically reduced to $125,000.
In the event the Company fails to make timely payments and the default is not cured by the conclusion of the specified grace period,
the plaintiff shall be entitled to the entry of a final judgment against the Company in the amount of $240,000, less any and all
payments made. As of the date the financial statements were issued, the Company had paid $5,000 to the plaintiff in connection
with the settlement agreement. As of March&nbsp;31, 2020 and December&nbsp;31, 2019, the Company had accrued approximately $177,000.</P>

<P STYLE="font: 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"><B>NOTE 10 &#8211; CONCENTRATIONS</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"><U>Customer Concentrations</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-align: justify">The following table sets forth information
as to each customer that accounted for 10% or more of the Company&#8217;s Gross Billings for the following periods:</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: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">For the Three Months Ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">March&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="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Customer</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">2020</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">2019</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: 74%; text-align: center">Customer A</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</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">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">78.70</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: center">Customer F</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">36.94</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: center">Customer G</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">53.51</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left">&nbsp;</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">N/A</FONT></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="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: center">Total</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">90.44</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black medium double; font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">78.70</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
</TABLE>

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




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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<!-- Field: Split-Segment; Name: 9 -->
<P STYLE="font: 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>KUBIENT,&nbsp;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 Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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: justify">The following table sets forth information
as to each customer that accounted for 10% or more of the Company&#8217;s gross accounts receivable as of:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center">March&nbsp;31,</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center">December&nbsp;31,</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Customer</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center">2020</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 74%; text-align: left">Customer D</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: 10%; text-align: right"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">*</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: 10%; text-align: right">13.73</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; 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">Customer E</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="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">*</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">12.23</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">Customer F</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">29.37</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</FONT></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">Customer G</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&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">48.11</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="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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif">Total</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">77.48</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="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">25.96</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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: justify">Less than 10%.</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A reduction in sales from or loss of these
customers would have a material adverse effect on the Company&#8217;s results of operations and financial condition.</P>

<P STYLE="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>Supplier Concentrations</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-align: justify">The following table sets forth information
as to each supplier that accounted for 10% or more of the Company&#8217;s Supplier Costs for the following periods:</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: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center">For
    the Three Months Ended March&nbsp;31,</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Supplier</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2020</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&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="font: bold 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 74%; text-align: left">Supplier A</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: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</FONT></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: 10%; text-align: right">80.76</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; 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">Supplier B</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">19.96</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</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">Supplier C</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">13.72</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</FONT></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">Supplier D</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">12.87</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">N/A</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">Supplier E</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="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">10.29</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="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">N/A</FONT></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">Total</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">56.83</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="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">80.76</TD><TD STYLE="font: 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; text-align: justify"><B>NOTE 11 &#8211; SUBSEQUENT EVENTS</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">The Company has evaluated events that
have occurred after the balance sheet and through the date the financial statements were issued. Based upon the evaluation, the
Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure
in the financial statements, except as disclosed 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"><U>Note Payable &#8211; Related Parties</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-align: justify">Subsequent to March&nbsp;31, 2020, the Company received proceeds
of $60,000 in connection with a three-year note payable issued to an executive officer. The note bears interest at 0.91% per annum,
payable annually. The outstanding principal and accrued and unpaid interest shall become immediately due and payable upon an initial
public offering, sale of the Company or qualified financing with equity proceeds of at least $5,000,000. There can be no assurance
that the Company will complete an initial public offering, sale of the Company or qualified financing with equity proceeds of at
least $5,000,000. Furthermore, the holders have agreed to amend such notes prior to the effectiveness of this registration statement
to provide for conversion of principal and interest thereunder into the units being issued in this offering at the public offering
price per unit.</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"></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>KUBIENT,&nbsp;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 Unaudited Condensed 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-align: center"><B>For the Three Months Ended March&nbsp;31,
2020 and 2019</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"><U>Convertible Notes Payable</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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Between
</FONT>May&nbsp;22, 2020 and June&nbsp;11, 2020, the Company and all of the holders of Senior Notes and Junior Notes entered to
a consent and first amendment to the Senior Notes and Junior Notes (the &#8220;Amended Senior Notes&#8221; and &#8220;Amended
Junior Notes&#8221;, respectively). The Amended Senior Notes were amended as follows: (i)&nbsp;the holders authorized the Company
to incur certain indebtedness, including certain government loans as well as non-government loans with a principal amount not
to exceed $1,000,000 in the aggregate (the &#8220;Permitted Indebtedness&#8221;), (ii)&nbsp;the Amended Senior Notes are subordinated
to the Permitted Indebtedness, (iii)&nbsp;effective May&nbsp;1, 2020, the interest rate increased from 5% to 10% per annum, (iv)&nbsp;the
original issuance discount was increased from 10% to 20%, (v)&nbsp;the maturity date of the Amended Senior Notes was extended
to October&nbsp;26, 2020 and (vi)&nbsp;in connection with the exercise price of the investor warrants, the date under which the
Qualified IPO must occur on or before was extended to October&nbsp;26, 2020. The Amended Junior Notes were amended as follows:
(i)&nbsp;the holders authorized the Company to incur the Permitted Indebtedness and (ii)&nbsp;the Amended Junior Notes are subordinated
to the Permitted Indebtedness, (iii)&nbsp;effective May&nbsp;1, 2020, the interest rate increased from 5% to 10% per annum, (iv)&nbsp;the
original issuance discount was increased from 10% to 20%, (v)&nbsp;the maturity date of the Amended Junior Notes was extended
to April&nbsp;11, 2021 and (vi)&nbsp;in connection with the exercise price of the investor warrants, the date under which the
Qualified IPO must occur on or before was extended to October&nbsp;26, 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; text-align: justify">As a result, there were outstanding Amended
Senior Notes and Amended Junior Notes in the aggregate principal amount of $3,000,000 and $1,326,000, 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"><U>Paycheck Protection Program Loan</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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April&nbsp;6, 2020, the Company received loan proceeds in the amount of approximately $327,000 (the &#8220;PPP Loan&#8221;) under
the Paycheck Protection Program (&#8220;PPP&#8221;) under the Coronavirus Aid, Relief and Economic Security Act </FONT>and applicable
regulations (the &#8220;CARES Act&#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; text-align: justify">Under the terms of the CARES Act, as amended
by the Paycheck Protection Program Flexibility Act of 2020, the Company is eligible to apply for and receive forgiveness for all
or a portion of its PPP Loan. Such forgiveness will be determined, subject to limitations, based on the use of the loan proceeds
for certain permissible purposes as set forth in the PPP, including, but not limited to, payroll costs (as defined under the PPP)
and mortgage interest, rent or utility costs (collectively, &#8220;Qualifying Expenses&#8221;) incurred during the 24 weeks subsequent
to funding, and on the maintenance of employee and compensation levels, as defined, following the funding of the PPP Loan. The
Company intends to use the proceeds of its PPP Loan for Qualifying Expenses. However, no assurance is provided that the Company
will be able to obtain forgiveness of the PPP Loan in whole or in part. Any amounts that are not forgiven incur interest at 1.0%
per annum and monthly repayments of principal and interest are deferred until the Small Business Administration makes a determination
on forgiveness. The loan forgiveness amount will be reduced for the EIDL loan that the Company received, which is discussed further
below. While the Company&#8217;s PPP Loan currently has a two-year maturity, the amended law will permit the Company to request
a five-year maturity.</P>

<P STYLE="font: 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"><U>EIDL Loan</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-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June&nbsp;20, 2020, the Company executed the loan documents required for securing a loan, which include the SBA Secured Disaster
Loan Note, the Loan Authorization and Agreement and the Security Agreement (the &#8220;EIDL Loan&#8221;) from the </FONT>United
States Small Business Administration (the &#8220;SBA&#8221;) under its&nbsp;Economic Injury Disaster Loan&nbsp;assistance program
in light of the impact of the&nbsp;COVID-19&nbsp;pandemic on the Company&#8217;s business. The principal amount of the EIDL Loan
is $78,900, with proceeds to be used for working capital purposes. Interest on the EIDL Loan accrues at the rate of 3.75% per
annum. Monthly installment payments in the amount of $385 per month, including principal and interest, will begin twelve months
from the date of the EIDL Loan and the balance of principal and interest will be payable thirty years from the date of the promissory
note. The EIDL Loan is collateralized by the assets of the Company. The Company received the proceeds from the EIDL Loan on June&nbsp;23,
2020. Such EIDL Loan amount will reduce the Company&#8217;s PPP loan forgiveness amount described above.</P>

<P STYLE="font: 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"><U>Common Stock</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-align: justify">Subsequent to March&nbsp;31, 2020, the
Company issued an aggregate of 10,000 shares of common stock to nonemployees in connection with services provided to the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Sublease Agreement</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-align: justify">On June&nbsp;18, 2020, the Company&rsquo;s
sublease agreement was terminated effective March&nbsp;31, 2020. Pursuant to the termination agreement, the parties agreed that
the Company shall have no obligation to pay the sublessor any amount arising from its obligations under the sublease for rent during
the period from January&nbsp;1 to March&nbsp;31, 2020.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 2, 2020, the Company&rsquo;s board
of directors adopted the Founder Employee Incentive Program (the &ldquo;Founder Program&rdquo;) under the 2017 Plan. The purposes
of the Founder Program are to offer near-term and long-term incentives to founder employees of the Company that are intended to
keep such employees in the employ of the Company, and that are based on individual performance, the achievement of financial goals
of the Company and the total return to the Company&rsquo;s stockholders.&nbsp;</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"></P>

<P STYLE="font: 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="s_012"></A>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the Shareholders and Board of Directors
of</P>

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

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

<P STYLE="font: 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"><B>Opinion on the 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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have audited the accompanying </FONT>consolidated balance sheets of Kubient,&nbsp;Inc. (the &#8220;Company&#8221;) as of December&nbsp;31,
2019 and 2018, the related consolidated statements of operations, changes in stockholders&#8217; deficiency and cash flows for
each of the two years in the period ended December&nbsp;31, 2019, and the related notes (collectively referred to as the &#8220;financial
statements&#8221;). In our opinion, the financial statements present fairly, in all material respects, the financial position
of the Company as of December&nbsp;31, 2019 and 2018, and the results of its operations and its cash flows for each of the two
years in the period ended 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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Explanatory Paragraph &#8211; Going Concern</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">The accompanying financial statements
have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 2, the Company
has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a
going concern. Management's plans in regard to these matters are also described in Note 2. The 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">&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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (&quot;PCAOB&quot;)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules&nbsp;and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 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">We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have,
nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required
to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audits included performing procedures
to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide
a reasonable basis for our opinion.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ Marcum <FONT STYLE="font-variant: small-caps">llp</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">Marcum <FONT STYLE="font-variant: small-caps">llp</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">We have served as the Company&#8217;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, NY</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">May&nbsp;6, 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"></P>

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

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

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

<P STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><A NAME="s_013"></A>Consolidated
Balance Sheets</P>



<P STYLE="margin: 0"><FONT STYLE="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-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&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="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&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="text-align: center; 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: bold 10pt Times New Roman, Times, Serif">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">&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: 10pt Times New Roman, Times, Serif; text-align: left">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">&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: 10pt Times New Roman, Times, Serif; width: 74%">Cash</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">33,785</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">7,518</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Accounts receivable, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">38,704</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">372,630</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Prepaid expenses
    and other current assets</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">28,072</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-left: 0.25in; text-align: left">Total 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">100,561</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">380,148</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Property and equipment, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">4,549</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Intangible assets, net</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">83,333</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">-</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Deferred offering
    costs</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">285,196</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-left: 0.25in; text-align: left; padding-bottom: 2.5pt">Total Assets</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">473,639</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">380,148</TD><TD STYLE="padding-bottom: 2.5pt; 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">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;</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="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">Liabilities and Stockholders' Deficiency</TD><TD 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: 10pt Times New Roman, Times, Serif; text-align: left">Current 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Accounts payable - suppliers</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">785,180</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">961,414</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Accounts payable - trade</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">867,554</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">265,846</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Accrued expenses and other 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">585,790</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">393,167</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Deferred revenue</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">15,000</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">15,000</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Due to related party</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">29,000</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">45,000</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left">Notes payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">113,967</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">204,394</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="text-indent: -0.125in; font: 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left">Convertible notes payable, current
    portion, net of discount of $912,695 and $16,703 as of December&nbsp;31,
    2019 and December&nbsp;31, 2018, respectively</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">3,117,805</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">3,297</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; padding-left: 0.25in; text-align: left">Total Current Liabilities</TD><TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">5,514,296</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,888,118</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">Convertible notes payable, non-current
    portion</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">45,000</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; padding-left: 0.25in; text-align: left; padding-bottom: 1pt">Total Liabilities</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">5,514,296</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">1,933,118</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">Commitments and contingencies (Note 10)</TD><TD 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: 10pt Times New Roman, Times, Serif; text-align: left">Stockholders' Deficiency:</TD><TD 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: 10pt Times New Roman, Times, Serif">Preferred stock, $0.00001 par value; 5,000,000 shares
    authorized;</TD><TD 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: 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left">No shares issued and outstanding</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif">Common stock, $0.00001 par value; 95,000,000 shares
    authorized;</TD><TD 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: 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left">32,413,686 and 32,393,686 shares
    issued and outstanding</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">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">324</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">Additional paid-in capital</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3,362,436</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,717,250</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; padding-bottom: 1pt">Accumulated
    deficit</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">(8,403,417</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">(4,270,544</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: 10pt Times New Roman, Times, Serif; padding-left: 0.25in; text-align: left; padding-bottom: 1pt">Total Stockholders'
    Deficiency</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">(5,040,657</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">(1,552,970</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; padding-left: 0.25in; text-align: left; padding-bottom: 2.5pt">Total Liabilities
    and Stockholders' Deficiency</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">473,639</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">380,148</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">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in">The accompanying notes are an integral part of these
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"></P>

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><A NAME="s_014"></A>Consolidated
Statements of Operations</P>



<P STYLE="margin: 0"><FONT STYLE="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-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">For the Years Ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; 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="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; 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="text-align: center; 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="padding-bottom: 1pt; width: 74%; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Net Revenues</TD><TD STYLE="padding-bottom: 1pt; width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">177,635</TD><TD STYLE="padding-bottom: 1pt; width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: right">106,422</TD><TD STYLE="padding-bottom: 1pt; 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: bold 10pt Times New Roman, Times, Serif; text-align: left">Operating Expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif; padding-left: 15pt">Technology</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,486,056</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,058,660</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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 15pt">General and
    administrative</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,007,362</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">1,820,942</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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 30pt">Total Operating
    Expenses</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">3,493,418</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">3,879,602</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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 30pt">Loss From
    Operations</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">(3,315,783</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">(3,773,180</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">Other Income (Expense):</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 15pt">Gain on forgiveness of accounts
    payable - supplier</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">66,804</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; padding-left: 15pt">Interest 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">(819,482</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">(51,129</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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 15pt">Other income</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">2,392</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">28,408</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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 30pt">Total Other
    (Expense) Income</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">(817,090</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">44,083</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: bold 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left; padding-left: 30pt">Net Loss</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(4,132,873</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,729,097</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; 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; padding-bottom: 2.5pt; text-align: left; padding-left: 30pt">Net Loss Per
    Share - Basic and Diluted</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.13</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(0.12</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left; padding-left: 30pt">Weighted
    Average Common Shares Outstanding - Basic and Diluted</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,402,837</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">31,879,846</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">The accompanying
notes are an integral part of these 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"></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Kubient,&nbsp;Inc.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="s_015"></A>Consolidated
Statements of Changes in Stockholders' Deficiency</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>



<P STYLE="margin: 0"><FONT STYLE="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="white-space: nowrap; font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Additional</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; white-space: nowrap; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Common
    Stock</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">Paid-In</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="text-align: center; font: bold 10pt Times New Roman, Times, Serif">Accumulated</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; white-space: nowrap; font-size: 10pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; 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">Shares</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; 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">Amount</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; 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">Capital</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; 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">Deficit</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; 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">Total</TD><TD STYLE="padding-bottom: 1pt; 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="white-space: nowrap; width: 35%; font: bold 10pt Times New Roman, Times, Serif">Balance - January&nbsp;1, 2018</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">30,649,416</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">306</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(45,082</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(541,447</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(586,223</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left">Shares issued for 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">1,367,941</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="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</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">752,354</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">752,368</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left">Shares issued upon conversion
    of notes payable and accrued interest</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">246,329</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">3</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">135,478</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">135,481</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left">Stock-based compensation:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 6pt">Common stock</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">130,000</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">1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">71,499</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">71,500</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; padding-left: 6pt">Options</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">32,300</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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">32,300</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; padding-left: 6pt">Warrants</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">661,020</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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">661,020</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left">Beneficial conversion feature
    of convertible note payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">17,931</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">17,931</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left">Contribution of capital - related
    party share transfer</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,091,750</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,091,750</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="padding-bottom: 1pt; white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left">Net loss</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; 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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">(3,729,097</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">(3,729,097</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="white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif">Balance - December&nbsp;31, 2018</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">32,393,686</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">324</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,717,250</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(4,270,544</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,552,970</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left">Issuance of investor and placement
    agent warrants in connection with</TD><TD 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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 6pt">issuance of
    convertible notes payable, net of issuance costs [1]</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">617,911</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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">617,911</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left">Stock-based compensation:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 6pt">Common stock</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6,000</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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">6,000</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="white-space: nowrap; font: 10pt Times New Roman, Times, Serif; padding-left: 6pt">Options</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">21,275</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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">21,275</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="padding-bottom: 1pt; white-space: nowrap; font: 10pt Times New Roman, Times, Serif; text-align: left">Net loss</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; 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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">(4,132,873</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&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">(4,132,873</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="padding-bottom: 2.5pt; white-space: nowrap; font: bold 10pt Times New Roman, Times, Serif">Balance - December&nbsp;31,
    2019</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">32,413,686</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">324</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">3,362,436</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(8,403,417</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">(5,040,657</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD></TR>
</TABLE>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: left; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">[1] Net of issuance
costs of $127,122.</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; text-align: center; margin-top: 0pt; margin-bottom: 0pt">The accompanying
notes are an integral part of these 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"></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Kubient,&nbsp;Inc.</B></FONT></P>

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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="s_016"></A>Consolidated
Statements of Cash Flows</B></FONT></P>



<P STYLE="margin: 0"><FONT STYLE="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-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">For the Years Ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&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="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&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="text-align: center; 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: bold 10pt Times New Roman, Times, Serif; text-align: left">Cash Flows From 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 74%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 12pt">Net loss</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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(4,132,873</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">(3,729,097</TD><TD STYLE="width: 1%; 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-left: 12pt">Adjustments to reconcile net loss
    to net 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 24pt">Depreciation and amortization</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">17,131</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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; padding-left: 24pt">Bad debt 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">285</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">88,393</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-left: 24pt">Non-cash interest 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">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,228</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; padding-left: 24pt">Gain on forgiveness of accounts
    payable - supplier</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(66,804</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; padding-left: 24pt">Allowance for other asset</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">200,000</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">-</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; padding-left: 24pt">Stock-based compensation</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">27,275</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">764,820</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-left: 24pt">Contribution of capital - related
    party share transfer</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,091,750</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; padding-left: 24pt">Amortization of debt discount and
    debt issuance costs</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">700,945</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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-left: 12pt">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></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-left: 24pt">Accounts receivable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">333,641</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">(221,612</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; padding-left: 24pt">Prepaid expenses and other 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">(28,072</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">-</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; padding-left: 24pt">Other asset</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(200,000</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">-</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-left: 24pt">Accounts payable - suppliers</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(176,234</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">299,933</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; padding-left: 24pt">Accounts payable - trade</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">601,708</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">265,846</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-left: 24pt">Accrued expenses and other 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">(36,206</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">297,196</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; padding-bottom: 1pt; padding-left: 24pt">Deferred 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">-</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">15,000</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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 35pt">Net Cash
    Used In Operating 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">(2,692,400</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">(1,193,347</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">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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 24pt">Purchase of intangible 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">(100,000</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">-</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; padding-left: 24pt">Purchase of property and equipment</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(5,013</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">-</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-left: 24pt">Advances to related party</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(75,000</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">-</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; padding-bottom: 1pt; padding-left: 24pt">Repayment
    of related party advances</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">75,000</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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 35pt">Net Cash
    Used In Investing 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">(105,013</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">-</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: bold 10pt Times New Roman, Times, Serif; 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 24pt">Proceeds from sale of common stock</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">752,368</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; padding-left: 24pt">Proceeds from related party</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">45,000</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-left: 24pt">Advances from related parties</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">29,905</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</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; padding-left: 24pt">Repayment of advances from related
    party</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(45,905</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">-</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-left: 24pt">Proceeds from issuance of convertible
    notes payable and investor warrants [1]</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,986,474</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">190,000</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; padding-left: 24pt">Proceeds from issuance of notes
    payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">278,700</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-left: 24pt">Repayment of notes payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(90,427</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">(74,306</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; padding-left: 24pt">Payment of
    deferred offering costs</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">(56,367</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">-</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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; padding-left: 35pt">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">2,823,680</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">1,191,762</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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-left: 35pt">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">26,267</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">(1,585</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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Cash - Beginning of the Year</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">7,518</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">9,103</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: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Cash - End of the Year</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">33,785</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">7,518</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">&nbsp;&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[1] The amount for the year ended December 31, 2019 includes
gross proceeds of $3,605,000, less issuance costs of $618,526 deducted directly from the offering proceeds.</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; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold">Supplemental Disclosures of Cash Flow Information:</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><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font-size: 10pt; text-align: left">Cash paid during the period for:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 74%; font-size: 10pt; text-align: left; padding-left: 36px">Interest</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">7,346</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">25,001</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 36px">Income taxes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left"></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD 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: 18px">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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 36px">Shares issued upon conversion of notes payable and accrued
    interest</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">135,481</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: 36px">Beneficial conversion feature of convertible note payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">17,931</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: 36px">Original issue discount in connection with convertible notes
    payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">360,500</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</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: 36px">Issuance of investor and placement agent warrants in connection
    with</TD><TD 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: 45px">issuance of convertible notes payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">617,911</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 36px">Accrual of deferred offering costs</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">228,829</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 36px">Equity issuance costs - placement agent warrants</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">24,033</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">The accompanying
notes are an integral part of these consolidated financial statements.</P>




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

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

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<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; color: Black; background-color: White"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B><A NAME="s_017"></A>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>NOTE
1 &#8211; BUSINESS ORGANIZATION AND NATURE OF OPERATIONS&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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Organization
and Operations</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Kubient,&nbsp;Inc.
(&#8220;Kubient&#8221; or the &#8220;Company&#8221;) was incorporated in the State of Delaware on May&nbsp;24, 2017 and established
a fiscal year end of December&nbsp;31.&nbsp; Kubient has developed a cloud-based software platform for real-time trading of digital,
programmatic advertising. The platform allows both advertisers (ad space buyers) and publishers (ad space sellers) the ability
to use machine learning during any programmatic ad space auction.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
2 &#8211; GOING CONCERN AND MANAGEMENT&#8217;S PLANS</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company has not yet achieved profitability and expects to continue to incur cash outflows from operations. It is expected that
its operating expenses will continue to increase and, as a result, the Company will eventually need to generate significant revenues
to achieve profitability. These conditions indicate that there is substantial doubt about the Company&#8217;s ability to continue
as a going concern within one year after May&nbsp;6, 2020, the date the financial statements were issued.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company is currently funding its operations on a month-to-month basis via proceeds received from the debt financing described
below.&nbsp;Although the Company&#8217;s management believes that it has access to capital resources, there are currently no commitments
in place for new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially
acceptable terms, if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly
curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company&#8217;s
operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital
expenditures. Subsequent to December&nbsp;31, 2019, the Company raised aggregate net proceeds of $585,000 in the form of notes
payable from related parties as well as approximately $327,000 in the form of a loan in connection with the Paycheck Protection
Program. See Note 12 &#8211; Subsequent Events for additional details.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted
in the United States of America (&#8220;U.S. GAAP&#8221;), which contemplate continuation of the Company as a going concern and
the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include
any adjustment that might become necessary should the Company be unable to continue as a going concern.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
3 &#8211; SIGNIFICANT 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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Use
of Estimates</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, 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. The Company&#8217;s significant
estimates used in these financial statements include, but are not limited to, fair value calculations for equity securities, revenue
recognition, stock-based compensation, the collectability of receivables and the valuation allowance related to the Company&#8217;s
deferred tax assets. Certain of the Company&#8217;s estimates could be affected by external conditions, including those unique
to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on
the Company&#8217;s estimates and may cause actual results to differ from those estimates.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Principles
of Consolidation</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
August&nbsp;20, 2019, the Company formed its wholly owned subsidiary, Fidelity Media, LLC (&#8220;Fidelity&#8221;), by filing
a certificate of formation with the State of Delaware. The consolidated financial statements of the Company include the accounts
of Fidelity. All intercompany transactions have been eliminated in the consolidation.</FONT></P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company maintains cash in bank accounts, which, at times, may exceed Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;)
insured limits. The Company has not experienced any losses in such accounts, periodically evaluates the creditworthiness of the
financial institutions and has determined the credit exposure to be negligible. As of December&nbsp;31, 2019 and 2018, the Company
did not have cash balances in excess of FDIC insured limits. The Company considers all highly liquid investments with an original
maturity of three months or less when purchased to be cash equivalents. As of December&nbsp;31, 2019 and 2018, the Company did
not have any cash equivalents.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Accounts
Receivable and Accounts Payable</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Accounts
receivable are carried at their contractual amounts, less an estimate for uncollectible amounts. As of December&nbsp;31, 2019
and 2018, there was an allowance for uncollectible amounts of $34,115 and $41,728, respectively. Management estimates the allowance
for bad debts based on existing economic conditions, the financial conditions of the customers, and the amount and age of past
due accounts.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Receivables
are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off
against the corresponding accounts payable in the event that the Company&#8217;s contract contains sequential liability terms,
with the excess receivable being written off against the allowance for bad debts only after all collection attempts have been
exhausted.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company&#8217;s accounts receivable are recorded at the amount the Company is responsible to collect from the customer related
to the placement of an ad (the &#8220;Gross Billing&#8221;) and accounts payable are recorded at the amount the Company remits
to the supplier for the ad space (the &#8220;Supplier Cost&#8221;). See Note 3 &#8211; Significant Accounting Policies &#8211;
Revenue Recognition for additional details. In the event that the Company does not collect the Gross Billing amount from the customer,
the Company generally is not contractually obligated to pay the associated Supplier Cost. In such instances when the Gross Billing
amount is not collected, the Company in its sole discretion may, from time-to-time, determine that it is in its best interests
to voluntarily pay the Supplier Cost in order to maintain business relationships with its suppliers. During the years ended December&nbsp;31,
2019 and 2018, voluntary payments made by the Company were not material.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company evaluates its convertible instruments to determine if those contracts or embedded components of those contracts qualify
as derivative financial instruments to be separately accounted for in accordance with the Financial Accounting Standards Board
(&#8220;FASB&#8221;) Accounting Standards Codification (&#8220;ASC&#8221;) Topic 815 &#8220;Derivatives and Hedging&#8221; (&#8220;ASC
815&#8221;). The accounting treatment of derivative financial instruments requires that the Company record embedded conversion
options and any related freestanding instruments at their fair values as of the inception date of the agreement and at fair value
as of each subsequent balance sheet date. Any change in fair value is recorded in earnings each period as non-operating, non-cash
income or expense. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the
classification changes as a result of events during the period, the contract is reclassified as of the date of the event that
caused the reclassification. Embedded conversion options and any related freestanding instruments are recorded as a discount to
the host instrument. The Company allocates proceeds based on the relative fair values of the debt and equity components.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">If
the instrument is not determined to be a derivative liability, the Company then evaluates for the existence of a beneficial conversion
feature by comparing the fair value of the Company&#8217;s common stock as of the commitment date to the effective conversion
price of the instrument (the intrinsic value). The intrinsic value of the beneficial conversion feature is recorded as a debt
discount with a corresponding amount to additional paid-in capital.</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; color: Black; background-color: White"></FONT></P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><U>Deferred
Offering Costs</U></FONT></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Deferred
offering costs, which consist of direct, incremental professional fees incurred in connection with the Company&#8217;s future
offerings of equity (including the Company&#8217;s contemplated initial public offering) and debt securities that have yet to
close, are capitalized as non-current assets on the consolidated balance sheet. Upon the closing of the offering, the deferred
offering costs are either (i)&nbsp;charged off against the offering proceeds in connection with an equity offering or (ii)&nbsp;reclassified
such that they represent a reduction in the carrying amount of the face value of the debt security.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Property
and Equipment</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Property
and equipment are stated at cost, net of accumulated depreciation which is recorded commencing at the in-service date using the
straight-line method at rates sufficient to charge the cost of depreciable assets to operations over their estimated useful lives,
which is three years. Leasehold improvements are amortized over the lesser of (a)&nbsp;the useful life of the asset; or (b)&nbsp;the
remaining lease term. Maintenance and repairs are charged to operations as incurred. The Company capitalizes cost attributable
to the betterment of property and equipment when such betterment extends the useful life of the assets.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Intangible
assets are comprised of computer software, as well as the related source code, which has an estimated useful life of two years.
Once placed into service, the Company amortizes the cost of the intangible assets over their estimated useful lives on a straight-line
basis.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Impairment
of Long-lived Assets</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company reviews for the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying
amount of an asset might not be recoverable. An impairment would be recognized when estimated future cash flows expected to result
from the use of the asset and its eventual disposition are less than its carrying amount. The Company did not record any impairment
losses during the years ended December&nbsp;31, 2019 and 2018.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Fair
Value of Financial Instruments</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 &#8220;Fair Value Measurements
and Disclosures&#8221; (&#8220;ASC 820&#8221;).</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">ASC
820 defines fair value 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. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may
be used to measure fair value:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Level
1 &#8212; quoted prices in active markets for identical assets or liabilities</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Level
2 &#8212; quoted prices for similar assets and liabilities in active markets or inputs that are observable</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Level
3 &#8212; inputs that are unobservable (for example, cash flow modeling inputs based on assumptions)</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
carrying amounts of the Company&#8217;s financial instruments, such as cash, accounts receivable, accounts payable, convertible
notes and notes payable approximate fair value due to the short-term nature of these instruments. The carrying amounts of the
Company&#8217;s short&#8211;term credit obligations approximate fair value because the effective yields on these obligations,
which include contractual interest rates, are comparable to rates of returns for instruments of similar credit risk.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><U>Income
Taxes</U></FONT></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company is subject to Federal, New York State and City, and State of California income taxes and files tax returns in those jurisdictions.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included
or excluded in the financial statements or tax returns. Deferred tax assets and liabilities are determined on the basis of the
difference between the tax basis of assets and liabilities and their respective financial reporting amounts (&#8220;temporary
differences&#8221;) at enacted tax rates in effect for the years in which the temporary differences are expected to reverse.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company utilizes a recognition threshold and measurement process for financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company&#8217;s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general
and administrative expenses in the consolidated statements of operations.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company recognizes revenue under ASC 606, &#8220;Revenue from Contracts with Customers&#8221; (&#8220;ASC 606&#8221;). The Company
determines revenue recognition through the following steps:</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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; width: 24px">&bull;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Identification
    of a contract with a customer;</FONT></TD></TR>

<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; width: 24px">&bull;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Identification
    of the performance obligations in the contract;</FONT></TD></TR>

<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 24px"></TD>
    <TD STYLE="font-size: 10pt; width: 24px">&bull;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Determination
    of the transaction price;</FONT></TD></TR>

<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; width: 24px">&bull;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Allocation
    of the transaction price to the performance obligations in the contract; and</FONT></TD></TR>

<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; width: 24px">&bull;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Recognition
    of revenue when or as the performance obligations are satisfied.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company maintains a contract with each customer and supplier, which specify the terms of the relationship and access to the Company&#8217;s
platform. The Company provides a service to its customers (the buy-side ad networks who work for advertisers) by providing its
platform to connect advertisers and publishers. For this service, the Company earns a mark-up, which is the spread between what
the Company collects from the advertiser, who wants to run an ad campaign, and what the Company remits to the publisher, who wants
to sell its ad space. The transaction price is determined based on the consideration to which it expects to be entitled, including
the impact of any implicit price concessions over the course of the contract. The Company&#8217;s performance obligation is to
facilitate the publication of advertisements. The performance obligation is satisfied at the point in time that the ad is placed.
Subsequent to a bid being won, the associated fees are generally not subject to refund or adjustment. Historically, any refunds
and adjustments have not been material.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
revenue recognized is the difference between (i)&nbsp;the Gross Billing and (ii)&nbsp;the Supplier Cost. The determination of
whether the Company is the principal or agent, and hence whether to report revenue on a gross basis equal to the Gross Billing
or on a net basis for the difference between the Gross Billing and Supplier Cost, requires judgment. The Company acts as an agent
in arranging via its platform for the specified good (the ad space) to be purchased by the advertiser, as it does not control
the goods or services being transferred to the end customer, it does not take responsibility for the quality or acceptability
of the ad space, it does not bear inventory risk, nor does it have discretion in establishing price of the ad space. As a result,
the Company recognizes revenue on a net basis for the difference between the Gross Billing and the Supplier Cost.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company invoices customers on a monthly basis for the amount of Gross Billings in the relevant period. Invoice payment terms,
negotiated on a customer-by- customer basis, are typically between 45 to 90 days. However, for certain agency customers with
sequential liability terms as specified by the Interactive Advertising Bureau, (i)&nbsp;payments are not due to the Company
until such agency customers has received payment from its customers (ii)&nbsp;the Company is not required to make a payment
to its supplier until payment is received from the Company&#8217;s customer and (iii)&nbsp;the supplier is responsible to
pursue collection directly with the advertiser. As a result, once the Company has met the requirements of each of the five
steps under ASC 606, the Company&#8217;s accounts receivable are recorded at the amount of Gross Billings which represent
amounts it is responsible to collect and accounts payable are recorded at the amount payable to suppliers. In the event step
1 under ASC 606 is not met, the Company does not record either the accounts receivable or accounts payable. Accordingly, both
accounts receivable and accounts payable appear large in relation to revenue reported on a net basis.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White">As
of December&nbsp;31, 2019 and 2018, the Company did not have any contract assets from contracts with customers. As of December&nbsp;31,
2019 and 2018, the Company had $15,000 of contract liabilities where performance obligations have not yet been satisfied. The
Company expects to satisfy its remaining performance obligations and recognize the revenue within the next twelve months. During
the years ended December&nbsp;31, 2019 and 2018, $0 of revenue was recognized from performance obligations satisfied (or partially
satisfied) in previous periods.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Advertising
costs are charged to operations in the year incurred and totaled approximately $68,000 and $1,500 for the year ended December&nbsp;31,
2019 and 2018 and are reflected in general and administrative expenses in the consolidated statements of operations.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Stock-Based
Compensation</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award.
The fair value of the award is measured on the grant date. The fair value amount is then recognized over the period during which
services are required to be provided in exchange for the award, usually the vesting period. Upon the exercise of an award, the
Company issues new shares of common stock out of its authorized shares.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, the Company estimated the fair value of its common stock using the most recent selling
price available. See Note 8 &#8211; Stockholders&#8217; Deficiency &#8211; Common Stock for details.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2019, the Company obtained a third-party 409A valuation of its common stock, which was also considered
in management&#8217;s estimation of the value of the equity instruments issued during that period. The estimates used by management
are considered highly complex and subjective. The third-party valuation, which utilized the Backsolve method that analyzed the
2019 closings of the Company&#8217;s convertible debt offerings, was done in accordance with the guidance outlined in the American
Institute of Certified Public Accountants&#8217; Accounting and Valuation Guide,&nbsp;<I>Valuation of Privately-Held-Company Equity
Securities Issued as Compensation</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Fair
Value of Stock Options and Warrants</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company has computed the fair value of stock options and warrants granted using the Black-Scholes option pricing model. Option
forfeitures are accounted for at the time of occurrence. The expected term used for options is the estimated period of time that
options granted are expected to be outstanding. The expected term used for warrants is the contractual life. The Company utilizes
the &#8220;simplified&#8221; method to develop an estimate of the expected term of &#8220;plain vanilla&#8221; option grants.
The Company does not currently have a sufficient trading history to support its historical volatility calculations. Accordingly,
the Company is utilizing an expected volatility figure based on a review of the historical volatility of comparable entities over
a period of time equivalent to the expected life of the instrument being valued. The risk-free interest rate was determined from
the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument
being valued.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Net
Loss Per Common Share</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Basic
net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during
the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive
common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of options, warrants
and convertible notes, if not anti-dilutive.</FONT></P>

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

<P STYLE="font: 10pt 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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

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

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to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White">The
following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have
been anti-dilutive:</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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">For the Years Ended</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Stock options</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 16%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">845,700</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 16%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">524,000</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">Warrants</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">10,247,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1,595,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Convertible notes [1]</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">180,648</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">161,117</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">11,273,348</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">2,280,117</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">[1]
Excludes shares issuable upon conversion of the Senior and Junior Notes. See Note 7 - Notes Payable for additional details.</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; color: Black; background-color: White">&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; color: Black; background-color: White"><U>Reclassifications</U></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; color: Black; background-color: White">&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; color: Black; background-color: White">Certain
prior period operating expenses have been reclassified to conform to the fiscal 2019 presentation. These reclassifications have
no impact on the previously reported net loss.</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; color: Black; background-color: White">&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; color: Black; background-color: White"><U>Recently
Issued Accounting Standards</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
February&nbsp;2016, the FASB&nbsp;issued ASU 2016-02, &#8220;Leases (Topic 842)&#8221; (&#8220;ASU 2016-02&#8221;). ASU 2016-02
requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the
statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing
its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to
make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition,
lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified
retrospective approach. The FASB issued ASU No.&nbsp;2018-10 &#8220;Codification Improvements to Topic 842, Leases&#8221; (&#8220;ASU
2018-10&#8221;), ASU No.&nbsp;2018-11 &#8220;Leases (Topic 842) Targeted Improvements&#8221; (&#8220;ASU 2018-11&#8221;) in July&nbsp;2018,
and ASU No.&nbsp;2018-20 &#8220;Leases (Topic 842) - Narrow Scope Improvements for Lessors&#8221; (&#8220;ASU 2018-20&#8221;)
in December&nbsp;2018. ASU 2018-10 and ASU 2018-20 provide certain amendments that affect narrow aspects of the guidance issued
in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method
of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect
adjustment to the opening balance of retained earnings in the period of adoption. See ASU 2019-10 below, which defers the effective
date for ASC 842. The Company is currently evaluating these ASUs and their impact on its consolidated financial statements and
disclosures.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
June&nbsp;2016, the FASB issued ASU No.&nbsp;2016-13, &#8220;Financial Instruments - Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments&#8221; (&#8220;ASU 2016-13&#8221;). The accounting standard changes the methodology for
measuring credit losses on financial instruments and the timing when such losses are recorded. See ASU 2019-10 below, which defers
the effective date for ASC 326. The Company is currently evaluating ASU 2016-13 and its impact on its consolidated financial statements
and disclosures.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
August&nbsp;2018, the FASB issued ASU No.&nbsp;2018-13, &#8220;Fair Value Measurement (Topic 820): Disclosure Framework&#8212;Changes
to the Disclosure Requirements for Fair Value Measurement&#8221; (&#8220;ASU 2018-13&#8221;). The amendments in ASU 2018-13 modify
the disclosure requirements on fair value measurements based on the concepts in the FASB Concepts Statement, including the consideration
of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant
unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty
should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption.
All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are
effective for fiscal years beginning after December&nbsp;15, 2020. Early adoption is permitted, including adoption in an interim
period. The Company is currently evaluating ASU 2018-13 and its impact on its consolidated financial statements and disclosures.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
November&nbsp;2019, the FASB issued ASU 2019-11, &#8220;Codification Improvements to Topic 326, Financial Instruments &#8211;
Credit Losses&#8221; (&#8220;ASU 2019-11&#8221;). ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13, &#8220;Financial
Instruments &#8211; Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.&#8221; The amendments update
guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net
investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded
from the scope that have the contractual right to receive cash. The amendments in this ASU are effective for annual reporting
periods beginning after December&nbsp;15, 2022, including interim periods within those fiscal years. All entities may adopt the
amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which
the guidance is effective (that is, a modified-retrospective approach). The Company is currently evaluating ASU 2019-11 and its
impact on its consolidated financial statements and disclosures.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
December&nbsp;2019, the FASB issued ASU 2019-12, &#8220;Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes&#8221;
(&#8220;ASU 2019-12&#8221;). The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions
to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas
of Topic 740 by clarifying and amending existing guidance. This update for fiscal years beginning after December&nbsp;15, 2021,
and interim periods within fiscal years beginning after December&nbsp;15, 2022. Early adoption of the amendments is permitted,
including adoption in any interim period for periods for which financial statements have not yet been made available for issuance.
An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of
the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments
in the same period. The Company is currently evaluating ASU 2019-12 and its impact on its consolidated financial statements and
disclosures.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Recently
Adopted Accounting Standards</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
January&nbsp;2017, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;)
2017-01, &#8220;Business Combinations (Topic 805): Clarifying the Definition of a Business&#8221; (&#8220;ASU 2017-01&#8221;).
These amendments clarify the definition of a business. The amendments affect all companies and other reporting organizations that
must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including
acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate
whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This update is effective
for annual periods beginning after December&nbsp;15, 2018, and interim periods within annual periods beginning after December&nbsp;15,
2019. The Company adopted ASU 2017-01 effective January&nbsp;1, 2019 and its adoption did not have a material impact on its consolidated
financial statements and disclosures.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
July&nbsp;2017, the FASB issued ASU No.&nbsp;2017-11, &#8220;Earnings Per Share (Topic 260) and Derivatives and Hedging (Topic
815) - Accounting for Certain Financial Instruments with Down Round Features&#8221; (&#8220;ASU 2017-11&#8221;). Equity-linked
instruments, such as warrants and convertible instruments may contain down round features that result in the strike price being
reduced on the basis of the pricing of future equity offerings. Under ASU 2017-11, a down round feature will no longer require
a freestanding equity-linked instrument (or embedded conversion option) to be classified as a liability that is remeasured at
fair value through the income statement (i.e. marked-to-market). However, other features of the equity-linked instrument (or embedded
conversion option) must still be evaluated to determine whether liability or equity classification is appropriate. Equity classified
instruments are not marked-to-market. For earnings per share (&quot;EPS&quot;) reporting, the ASU requires companies to recognize
the effect of the down round feature only when it is triggered by treating it as a dividend and as a reduction of income available
to common shareholders in basic EPS. The amendments in this ASU are effective for fiscal years beginning after December&nbsp;15,
2019, and interim periods within fiscal years beginning after December&nbsp;15, 2020. Early adoption is permitted, including adoption
in any interim period. The Company adopted ASU 2017-11 effective January&nbsp;1, 2019 and relied upon the guidance in connection
with its evaluation of the classification of the embedded conversion options in its convertible notes, such that it determined
that the embedded conversion options were not required to be bifurcated.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"></FONT></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"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
4 &#8211; ASSET PURCHASE AGREEMENT</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
June&nbsp;1, 2019, the Company entered into an agreement (&#8220;Software Purchase Agreement&#8221;) with Elman Systems Limited
and FM Labs LLC d/b/a Fidelity Media FMX SSP (&#8220;Seller&#8221;) to purchase certain software, as well as the related source
code, object code, documentation, software trade secrets for aggregate consideration of $100,000, of which, $70,000 was payable
upon execution of the agreement and $30,000 was payable within three (3)&nbsp;months from the execution of the agreement. On August&nbsp;20,
2019, Kubient transferred and assigned all of its rights and obligations in, to and under the Software Purchase Agreement to Fidelity.
As of December&nbsp;31, 2019, the Company had paid $100,000 to the Seller, the software had been transferred to the Company and
had been placed into service.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
asset acquired was recognized based on the cost to acquire such asset. In connection with the Software Purchase Agreement, the
Company agreed to enter into independent contractor agreements with specified individuals who previously worked with the Seller.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
5 &#8211; ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Accrued
expenses and other current liabilities consisted of the following:</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; color: Black; background-color: White">&nbsp;</FONT></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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 66%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Accrued payroll</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">142,843</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Accrued payroll taxes</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">163,746</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">90,547</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black; text-align: left">Accrued supplier expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">39,026</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">75,233</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Accrued legal and professional fees</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">172,801</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">21,338</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black; text-align: left">Accrued rent</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">18,280</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Accrued commissions</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">9,889</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black; text-align: left">Accrued interest</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">122,117</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">21,210</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Credit card payable</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">30,113</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black; text-align: left">Accrued programming expenses</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">36,993</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">Other</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">20,994</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">13,827</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Total accrued expenses and other current liabilities</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">585,790</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">393,167</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</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; color: Black; background-color: White">&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; color: Black; background-color: White">Subsequent
to December&nbsp;31, 2019, the Company paid its outstanding payroll taxes in the approximate amount of $166,000, which included
penalties and interest of approximately $11,000.</FONT></P>

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

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

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>NOTE
6 &#8211; INCOME TAXES</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company is subject to income taxes in the United States Federal, State of New York, City of New York, and State of California
jurisdictions.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
provision for income taxes consists of the following provisions/(benefits):</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; color: Black; background-color: White">&nbsp;</FONT></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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">For the Years Ended December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Deferred tax benefit:</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; width: 66%; font: 10pt Times New Roman, Times, Serif; color: Black">Federal</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(718,716</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(553,356</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">State and local</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(444,920</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(385,189</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(1,163,636</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(938,545</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Change in valuation allowance</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1,163,636</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">938,545</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Provision for income taxes</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</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; color: Black; background-color: White">&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; color: Black; background-color: White">The
provision for income taxes differs from the statutory federal income tax rates as follows:</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; color: Black; background-color: White">&nbsp;</FONT></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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">For the Years Ended December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 66%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Tax expense at the federal statutory rate</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">21.0</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">21.0</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">State taxes, net of federal benefit</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">13.0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">13.0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black; text-align: left">Permanent differences</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(5.8</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(10.0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">Prior period adjustment</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">0.0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1.1</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Change in valuation allowance</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(28.2</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)%</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(25.1</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Effective income tax rate</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">0.0</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">0.0</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black; background-color: White">&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; color: Black; background-color: White">The
components of deferred tax assets as of December&nbsp;31, 2019 and 2018 relate to temporary differences and carryforwards as follows:</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; color: Black; background-color: White">&nbsp;</FONT></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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">As of December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 66%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Net operating loss carryforwards</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1,884,942</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">812,900</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Stock-based compensation expense</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">287,800</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">235,729</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black; text-align: left">Other reserve</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">68,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Accrued compensation</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">28,477</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Deferred tax assets</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">2,240,742</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1,077,106</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Valuation allowance</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(2,240,742</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(1,077,106</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Deferred tax assets, net</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">At
December&nbsp;31, 2019, the Company had approximately $5,544,000 of net operating loss (&#8220;NOL&#8221;) carryforwards that
may be available to offset future taxable income. As of that date, approximately $533,000 of federal net operating losses will
expire in 2037 and approximately $5,011,000 have no expiration. The utilization of NOL carryforwards to offset future taxable
income may be subject to limitations under Section&nbsp;382 of the Internal Revenue Code and similar state statutes as a result
of ownership changes that could occur in the future. If necessary, the deferred tax assets will be reduced by any carryforward
that expires prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance.</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; color: Black; background-color: White"><BR STYLE="clear: both"></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company has assessed the likelihood that deferred tax assets will be realized in accordance with the provisions of ASC 740 <I>Income
Taxes</I> (&quot;ASC 740&quot;). ASC 740 requires that such a review considers all available positive and negative evidence, including
the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. ASC 740 requires
that a valuation allowance be established when it is &#8220;more likely than not&#8221; that all, or a portion of, deferred tax
assets will not be realized. After the performance of such reviews as of December&nbsp;31, 2019 and 2018, management believes
that uncertainty exists with respect to future realization of its deferred tax assets and has, therefore, established a full valuation
allowance as of those dates. Thus, the Company increased the valuation allowance by $1,163,636 and $938,545 during the years ended
December&nbsp;31, 2019 and 2018, respectively.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Management
has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company&#8217;s consolidated
financial statements as of December&nbsp;31, 2019 and 2018. The Company does not expect any significant changes in its unrecognized
tax benefits within twelve months of the reporting date.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">No
tax audits were commenced or were in process during the years ended December&nbsp;31, 2019 and 2018. No tax related interest or
penalties were incurred during the years ended December&nbsp;31, 2019 and 2018. The Company's Federal, New York State and City,
and State of California income tax returns filed since inception remain subject to examination.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
7 &#8211; NOTES PAYABLE</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">As
of December&nbsp;31, 2019 and May&nbsp;6, 2020, the date the financial statements were issued, notes payable with an aggregate
principal amount of $133,967 and $2,223,967, respectively, were past due and are classified as current liabilities on the consolidated
balance sheet as of December&nbsp;31, 2019. Such notes continue to accrue interest which has been accrued as of December&nbsp;31,
2019. See Note 10 - Commitments and Contingencies &#8211; Litigation&nbsp;and Note 12 &#8211; Subsequent Events &#8211; Convertible
Notes Payable for additional details. The Company is in negotiations to either extend the maturity dates of such notes or to settle
the amounts due.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Convertible
Notes Payable</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
following is a summary of the balances associated with Senior Offering convertible notes payable:</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; color: Black; background-color: White">&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="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">For the Year Ended December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Issuance</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Amortization</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Balance</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: left"><U>Convertible Notes Payable - Senior
    Offering:</U></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 61%; font: 10pt Times New Roman, Times, Serif; color: Black">Principal</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">2,750,000</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">2,750,000</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black">Less:</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Original issue discount</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(250,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">144,581</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(105,419</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Debt issuance costs</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(393,832</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">227,762</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(166,070</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Debt discount</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(416,667</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">240,968</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(175,699</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">Total</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1,689,501</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">613,311</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">2,302,812</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
various dates between April&nbsp;26, 2019 and June&nbsp;28, 2019, the Company sold units (the &#8220;Senior Offering&#8221;)
consisting of (a)&nbsp;senior secured convertible notes in the aggregate amount of $2,750,000 (the &#8220;Senior
Notes&#8221;) and (b)&nbsp;five-year warrants. The Senior Notes mature on April&nbsp;26, 2020 and bear interest at 5% per
annum and have an original issue discount of 10%, or $250,000 in the aggregate, such that the gross proceeds received by the
Company was $2,500,000. The Company&#8217;s Chief Executive Officer purchased a Senior Note in the amount of $165,000 for
gross proceeds of $150,000. The Senior Notes are not convertible unless in the event of the closing of a public offering
resulting in gross proceeds of at least $5 million and common stock being traded on a national securities exchange
(&#8220;Qualified IPO&#8221;), in which event the Senior Notes would automatically convert into common stock at the lesser of
(i)&nbsp;70% of the offering price per share sold in the Qualified IPO, or (ii)&nbsp;the price per share obtained by dividing
$18 million by the Company&#8217;s fully diluted capitalization immediately prior to the Qualified IPO (&#8220;Conversion
Price&#8221;). The Company determined the embedded conversion option (&#8220;ECO&#8221;) was not required to be bifurcated
and accounted for as a derivative liability under ASC 815. The Company determined that the Senior Notes contained a
contingent beneficial conversion feature, which will be measured (since the Conversion Price is unknown) and recognized when
the contingency is resolved (at the time of a Qualified IPO).</FONT></P>

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

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

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<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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
holders received warrants to purchase an aggregate of 5,000,000 shares of common stock at a per share exercise price of $0.55
that become exercisable on the one-year anniversary of the date of issuance (the &#8220;Senior Investor Warrants&#8221;). If a
Qualified IPO occurs on or before the one year anniversary of the issuance of the Senior Notes, then the holders will instead
receive warrants to purchase a number of shares of the Company&#8217;s common stock equal to the quotient obtained by dividing
$2,750,000 by the Conversion Price at an exercise price per share equal to 120% of the Conversion Price (the &#8220;Senior Qualified
IPO Investor Warrants&#8221;). The Company estimated the relative fair value of the Senior Investor Warrants as $416,667 using
the Black-Scholes option pricing model, which was setup as a debt discount with a corresponding credit to additional paid-in capital
and then amortized over the term of the Senior Notes using the interest method.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">There
were cash debt issuance costs of $372,599. In addition, the Company&#8217;s placement agent is entitled to receive warrants to
purchase 1,000,000 shares of common stock of the Company at a per share exercise price of $0.55 that become exercisable on the
one-year anniversary of the date of issuance (the &#8220;Senior Placement Agent Warrants&#8221;). If a Qualified IPO occurs on
or before April&nbsp;26, 2020, the placement agent will instead receive warrants to purchase 10% of the sum of (i)&nbsp;shares
into which the Senior Notes sold in the Senior Offering are convertible at an exercise price equal to the price per share sold
in the Qualified IPO, and (ii)&nbsp;shares for which the investor warrants are exercisable, at an exercise price equal to the
price per share sold in the Qualified IPO that become exercisable on the one-year anniversary of the date of issuance (the &#8220;Senior
Qualified IPO Placement Agent Warrants&#8221;). The Company estimated the fair value of the Senior Placement Agent Warrants as
$100,000 using the Black-Scholes option pricing model which was credited to additional paid-in capital, which, together with the
cash issuance costs, were allocated between the debt and equity instruments. Issuance costs of $393,832 that were allocated to
the Senior Notes were reported as an adjustment to the carrying amount of the Senior Notes and then amortized over the term of
the Senior Notes using the interest method, while issuance costs of $78,767 that were allocated to the Senior Investor Warrants
were recorded as a reduction of additional paid-in capital.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Senior Notes shall also constitute and serve as a security agreement in which the Company grants to the holders of the Senior
Notes a ratable security interest in all of the Company&#8217;s assets. The Company shall default on the Senior Notes if it defaults
on any other debt obligations exceeding $50,000, whether such indebtedness existed at the time of issuance or shall hereafter
be created. Upon the occurrence of any Event of Default (other than an Event of Default related to a bankruptcy) and at any time
thereafter during the continuance of such Event of Default, the Noteholder Agent may, with the written consent of a majority of
noteholders, declare all outstanding indebtedness represented by the Senior Notes to be immediately due and payable. Upon the
occurrence of any Event of Default related to a bankruptcy, immediately and without notice, all outstanding indebtedness represented
by the Senior Notes shall automatically become immediately due and payable.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2019, the Company recognized total amortization of debt discount and debt issuance costs of $613,311
associated with the Senior Offering.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">See
Note 12 &#8211; Subsequent Events &#8211; Convertible Notes Payable for details associated with the amendment of certain Senior
Notes.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><I>Subordinated
Offering</I></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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
following is a summary of the balances associated with Subordinated Offering convertible notes payable:</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; color: Black; background-color: White">&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="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">For the Year Ended December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Issuance</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Amortization</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Balance</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: left"><U>Convertible Notes Payable - Subordinated
    Offering:</U></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 61%; font: 10pt Times New Roman, Times, Serif; color: Black">Principal</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1,215,500</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1,215,500</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black">Less:</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Original issue discount</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(110,500</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">14,611</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(95,889</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Debt issuance costs</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(241,772</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">31,969</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(209,803</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Debt discount</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(184,167</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">24,352</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(159,815</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">Total</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">679,061</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">70,932</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">749,993</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
various dates between October&nbsp;11, 2019 and November&nbsp;6, 2019, the Company sold units (the &#8220;Subordinated Offering&#8221;)
consisting of (a)&nbsp;one-year subordinated convertible notes in the aggregate amount of $1,215,500 (the &#8220;Junior Notes&#8221;)
and (b)&nbsp;five-year warrants to purchase securities sold in its public offering. The Junior Notes bear interest at 5% per annum
and have an original issue discount of 10%, or $110,500 in the aggregate, such that the gross proceeds received by the Company
was $1,105,000. The Company&#8217;s Chief Executive Officer, Chief Digital Officer and Board member each purchased Junior Notes
in the amount of $308,000, $330,000 and $27,500, respectively, for aggregate gross proceeds of $605,000. The Junior Notes are
subordinated to the Senior Notes. The Junior Notes automatically convert into common stock upon closing of Qualified IPO at the
Conversion Price. The Company determined the ECO was not required to be bifurcated and accounted for as a derivative liability
under ASC 815. The Company determined that the Junior Notes contained a contingent beneficial conversion feature, which will be
measured (since the Conversion Price is unknown) and recognized when the contingency is resolved (at the time of a Qualified IPO).</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
holders received warrants to purchase an aggregate of 2,210,000 shares of common stock at a per share exercise price of $0.55
that become exercisable on the one-year anniversary of the date of issuance (the &#8220;Junior Investor Warrants&#8221;). If a
Qualified IPO occurs on or before the one year anniversary of the issuance of the Junior Notes, then the holders will instead
receive warrants to purchase a number of shares of the Company&#8217;s common stock equal to the quotient obtained by dividing
$1,215,500 by the Conversion Price at an exercise price per share equal to 120% of the Conversion Price (the &#8220;Junior Qualified
IPO Investor Warrants&#8221;). The Company estimated the relative fair value of the warrants as $184,167 using the Black-Scholes
option pricing model, which was setup as a debt discount with a corresponding credit to additional paid-in capital and then amortized
over the term of the Junior Notes using the interest method.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">There
were cash debt issuance costs of $238,985. In addition, the Company&#8217;s placement agent is entitled to receive warrants to
purchase 442,000 shares of common stock of the Company at a per share exercise price of $0.55 that become exercisable on the one-year
anniversary of the date of issuance (the &#8220;Junior Placement Agent Warrants&#8221;). If a Qualified IPO occurs on or before
October&nbsp;11, 2020, the placement agent will instead receive warrants to purchase 10% of the sum of (i)&nbsp;shares into which
the Senior Notes sold in the Senior Offering are convertible at an exercise price equal to the price per share sold in the Qualified
IPO, and (ii)&nbsp;shares for which the investor warrants are exercisable, at an exercise price equal to the price per share sold
in the Qualified IPO that become exercisable on the one-year anniversary of the date of issuance (the &#8220;Junior Qualified
IPO Placement Agent Warrants&#8221;). The Company estimated the fair value of the Junior Placement Agent Warrants as $44,199 using
the Black-Scholes option pricing model which was credited to additional paid-in capital, which, together with the cash issuance
costs, were allocated between the debt and equity instruments. Issuance costs of $241,772 that were allocated to the Junior Notes
were reported as an adjustment to the carrying amount of the Junior Notes and then amortized over the term of the Junior Notes
using the interest method, while issuance costs of $48,355 that were allocated to the Investor Warrants were recorded as a reduction
of additional paid-in capital.</FONT></P>

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

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Junior Notes shall also constitute and serve as a security agreement in which the Company grants to the holders of the Junior
Notes a ratable security interest in all of the Company&#8217;s assets. The Company shall default on the Junior Notes if it defaults
on any other debt obligations exceeding $50,000, whether such indebtedness existed at the time of issuance or shall hereafter
be created. Upon the occurrence of any Event of Default (other than an Event of Default related to a bankruptcy) and at any time
thereafter during the continuance of such Event of Default, the Noteholder Agent may, with the written consent of a majority of
noteholders, declare all outstanding indebtedness represented by the Junior Notes to be immediately due and payable. Upon the
occurrence of any Event of Default related to a bankruptcy, immediately and without notice, all outstanding indebtedness represented
by the Junior Notes shall automatically become immediately due and payable.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2019, the Company recognized total amortization of debt discount and debt issuance costs of $70,932
associated with the Subordinated Offering.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">See
Note 12 &#8211; Subsequent Events &#8211; Convertible Notes Payable for details associated with the amendment of certain Junior
Notes.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><I>Other
Convertible Notes</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, the Company issued convertible notes payable with an aggregate principal amount of $190,000
to certain lenders. The convertible notes bear interest at rates ranging between 10.0% and 23.4% per annum, payable at maturity,
with maturity dates ranging between August&nbsp;2018 through June&nbsp;2020. The lenders are entitled to convert all of the respective
outstanding and unpaid principal and accrued interest into shares of the Company&#8217;s common stock at conversion prices ranging
between $0.29 and $0.55 per share, depending on the note. With respect to notes with an aggregate principal amount of $170,000,
if the holder has not exercised their conversion rights in full on or before dates ranging between February&nbsp;2018 and May&nbsp;2018,
depending on the note, the Company shall be entitled to, in its sole discretion, convert all of the outstanding principal and
accrued interest into shares of the Company&#8217;s common stock at a conversion price of $0.55 per share. The Company determined
the ECO was not required to be bifurcated and accounted for as a derivative liability under ASC 815. The Company determined a
note payable with a principal amount of $20,000 contained a beneficial conversion feature because the effective conversion price
of $0.29 per share was less than the estimated fair value of the Company&#8217;s common stock as of the commitment date of $0.55
per share. The Company measured the beneficial conversion feature of $17,931, which was recorded as a debt discount and was recognized
over the term of the note.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, convertible notes payable with an aggregate principal amount of $125,000 and accrued interest
of $10,481 were converted at the option of the holder into an aggregate of 246,329 shares of common stock.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company recognized amortization of debt discount of $16,703 and $1,228 during the years ended December&nbsp;31, 2019 and 2018,
respectively, as interest expense.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the years ended December&nbsp;31, 2019 and 2018, the Company recorded interest expense of $12,530 and $16,041, respectively, excluding
the amortization of debt discount disclosed above. As of December&nbsp;31, 2019 and 2018, the Company had $18,091 and $5,561 of
accrued interest, respectively, related to these convertible notes payable which are included in accrued expenses and other current
liabilities on the consolidated balance sheets.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, the Company issued notes payable with an aggregate principal amount of $278,700 to certain
lenders. The notes bear interest at rates ranging between 6.0% and 21.5% per annum. One of the notes with a principal amount of
$100,000 requires weekly payments of principal and interest of $2,977 per week. This note is secured by present and future accounts,
receivables, chattel paper, deposit accounts, personal property, assets and fixtures, general intangibles, instruments, equipment
and inventory, and was personally guaranteed by a majority shareholder of the Company. The other notes specify payments either
on a monthly basis or at maturity. The notes have maturity dates ranging between May&nbsp;2018 and April&nbsp;2019.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the years ended December&nbsp;31, 2019 and 2018, the Company made aggregate principal repayments of $90,427 and $74,306, respectively.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Due
to Related Party</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, the Company received a non-interest-bearing advance in the amount of $45,000 from its founder
and Board member. The Company repaid this amount during the year ended December&nbsp;31, 2019.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2019, the Company received non-interest-bearing advances in the aggregate amount of $29,905 from
a company controlled by an executive officer. The Company repaid $905 during the year ended December&nbsp;31, 2019.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
8 &#8211; STOCKHOLDERS&#8217; DEFICIENCY</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
authorized capital of Kubient consists of 95,000,000 shares of common stock, par value $0.00001 per share, and 5,000,000 shares
of preferred stock, par value $0.00001 per share. The holders of the Company&#8217;s common stock are entitled to one vote per
share.</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; color: Black; background-color: White">&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; color: Black; background-color: White"><U>2017
Equity Incentive Plan</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company&#8217;s 2017 Equity Incentive Plan (the &#8220;Plan&#8221;), as amended on October&nbsp;2, 2019, permits the granting
of stock options, restricted stock, restricted units and other stock-based awards as determined by the administrator of the Plan,
in order to enhance Kubient&#8217;s ability to attract, retain and motivate persons who make (or are expected to make) important
contributions to Kubient by providing such persons with equity ownership opportunities and thereby better aligning the interests
of such persons with those of Kubient&#8217;s stockholders. There are 3,000,000 shares reserved under the Plan, however, after
January&nbsp;1, 2018, awards may be made under the Plan covering up to 10% of the issued and outstanding shares of common stock
measured at the time of grant of the award. If any award expires or lapses or is terminated, surrendered or canceled without having
been full exercised or is forfeited in whole or in part, not being issued or being so reacquired by the Company, the unused common
stock award shall again be available for the grant of awards under the Plan. As of December&nbsp;31, 2019, there were 2,154,300
shares available for grant under the Plan.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Stock-Based
Compensation</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">For
the years ended December&nbsp;31, 2019 and 2018, the Company recognized aggregate stock-based compensation expense of $27,275
and $1,856,570 (which amount includes $1,091,750 related to a contribution of capital in the form of a related party share transfer
which is further described below), respectively, related to stock options, warrants and common stock. As of December&nbsp;31,
2019, there was $26,757 of unrecognized stock-based compensation expense, which will be recognized over approximately 2.2 years.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, the Company issued an aggregate of 1,367,941 shares of common stock at $0.55 per share
for aggregate consideration of $752,368.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, the Company issued an aggregate of 130,000 shares of immediately vested common stock to
non-employee service providers. The shares had an issuance date fair value of an aggregate of $71,500, or $0.55 per share, which
was recognized immediately.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, the Company incurred expenses in connection with various services provided (business development,
investor relations and legal services provided by third parties and services provided by the Company&#8217;s Chief Technology
Officer). Due to cash restraints, the Company&#8217;s founder agreed to pay these providers with an aggregate of 1,985,000 shares
of the Company&#8217;s common stock with a fair value of $1,091,750 that was personally held by him. The Company&#8217;s founder
agreed not to seek reimbursement from the Company for such shares, such that the transaction was a contribution of capital. As
a result, the net effect of the transaction was reflected as stock-based compensation expense on the Company&#8217;s statements
of operations during the year ended December&nbsp;31, 2018 with a corresponding credit to additional paid-in capital.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2019, the Company issued 20,000 shares of immediately vested common stock with fair value of
$6,000 to an executive officer of the Company in connection with an employment agreement.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"></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; color: Black; background-color: White">See
Note 7 &#8211; Notes Payable for additional details associated with the issuance of common stock upon conversion of notes payable.</FONT></P>

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

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<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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

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<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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

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<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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><U>Stock
Options</U></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2019, the Company granted to three executives ten-year options to purchase an aggregate of 356,700
shares of common stock at an exercise price of $3.75 per share under the 2017 Plan. The options vest over four years, with 25%
of the shares vesting on the one-year anniversary of the grant date and the remaining vesting monthly thereafter. The options
had an aggregate grant date fair value of $6,467, or $0.02 per share, which will be recognized over the vesting period.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
applying the Black-Scholes option pricing model to stock options granted, the Company used the following approximate assumptions:</FONT></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">For the Years Ended</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center; border-bottom: Black 1pt solid">2019</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center; border-bottom: Black 1pt solid">2018</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Expected term (years)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 18%; color: Black; text-align: center">6.08</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 18%; color: Black; text-align: center">n/a</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Expected volatility</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">55.8%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">n/a</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Risk free interest rate</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">1.48%-1.81%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">n/a</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Expected dividends</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">0.00%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">n/a</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White">A
summary of the Company&#8217;s stock option activity during the years ended December&nbsp;31, 2019 and 2018 is as follows:</FONT></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Weighted</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Weighted</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Average</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Average</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Number of</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Exercise</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Remaining</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Intrinsic</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Options</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Price</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Term (Years)</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Value</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&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; color: Black">Outstanding at January&nbsp;1, 2018</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1,014,000</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">0.33</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">Granted</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black">Forfeited</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(490,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;&nbsp;&nbsp;0.33</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">Exercised</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black">Outstanding at December&nbsp;31, 2018</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">524,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">0.33</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">Granted</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">356,700</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">3.75</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black">Forfeited</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">(35,000</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">)</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">0.33</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">Exercised</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">Outstanding at December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">845,700</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1.77</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">5.2</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">Exercisable at December&nbsp;31, 2019</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">275,022</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">0.33</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">1.7</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</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; color: Black; background-color: White">&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; color: Black; background-color: White">The
following table presents information related to stock options as of December&nbsp;31, 2019:</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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Options Outstanding</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Options Exercisable</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&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">Weighted</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&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">Outstanding</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">Average</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">Exercisable</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Exercise</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">Number of</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">Remaining Life</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">Number of</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Price</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Options</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">In Years</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Options</TD><TD STYLE="text-align: center; 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: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 23%; font: 10pt Times New Roman, Times, Serif; text-align: right">0.33</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; font: 10pt Times New Roman, Times, Serif; text-align: right">489,000</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; font: 10pt Times New Roman, Times, Serif; text-align: right">1.7</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 22%; font: 10pt Times New Roman, Times, Serif; text-align: right">275,022</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">3.75</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">356,700</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</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; text-align: right">-</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">&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: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">845,700</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</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; text-align: right">1.7</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">275,022</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>


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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"></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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><U>Stock
Warrants</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">See
Note 7 &#8211; Notes Payable &#8211; Convertible Notes Payable for details regarding the issuance of warrants during the year
ended December&nbsp;31, 2019.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, the Company issued five-year immediately vested warrants to purchase 1,595,000 shares of
the Company&#8217;s common stock at an exercise price of $0.55 per share to employees and non-employees. The warrants were valued
at the issuance date using a Black-Scholes option pricing model with the following assumptions; risk-free interest rates between
2.56% and 2.96%, expected dividend yield of 0%, contractual term of 5 years and an expected volatility ranging between 100% and
102%. The aggregate issuance date fair value of $661,020 was recognized immediately.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
applying the Black-Scholes option pricing model to stock warrants issued, the Company used the following approximate assumptions:</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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 60%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">For the Years Ended</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">December&nbsp;31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2018</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Expected term (years)</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 18%; color: Black; text-align: center">5.00</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 18%; color: Black; text-align: center">5.00</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Expected volatility</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">55.8%-56.1%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">100.0%-102.0%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Risk free interest rate</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">1.59%-2.32%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2.56%-2.96%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Expected dividends</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">0.00%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: center">0.00%</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; color: Black; background-color: White">&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; color: Black; background-color: White">A
summary of the warrant activity during the years ended December&nbsp;31, 2019 and 2018 is presented below:</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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&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">Weighted</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&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">Weighted</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">Average</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&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">Average</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">Remaining</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&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">Number of</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">Exercise</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">Life</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">Intrinsic</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Warrants</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Price</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">In Years</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Value</TD><TD STYLE="text-align: center; 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">Outstanding at January&nbsp;1, 2018</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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="width: 48%; font: 10pt Times New Roman, Times, Serif">Issued</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">1,595,000</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">0.55</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font-size: 10pt; text-align: right">&nbsp;</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: 10pt Times New Roman, Times, Serif">Exercised</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Expired</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><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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: 10pt Times New Roman, Times, Serif">Outstanding, December&nbsp;31, 2018</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,595,000</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">0.55</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif">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">8,652,000</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">&nbsp;&nbsp;&nbsp;0.55</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif">Exercised</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&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: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Expired</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><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="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: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Outstanding, December&nbsp;31, 2019</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">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,247,000</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">0.55</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">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">4.3</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">Exercisable, December&nbsp;31, 2019</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">1,595,000</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">0.55</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">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">3.3</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">-</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
9 - RELATED PARTY TRANSACTIONS</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">As
of December&nbsp;31, 2019, the Company had outstanding notes payable to related parties of an aggregate of $830,500 and had an
outstanding advance to a related party of $29,000. See Note 7 &#8211; Notes Payable for details. See Note 8 &#8211; Stockholders&#8217;
Deficiency for details of additional related party transactions.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Related
Party Advances</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2019, the Company advanced an aggregate of $75,000 to OneQube,&nbsp;Inc.
(&#8220;OneQube&#8221;) in connection with a non-binding letter of intent between the parties that was eventually mutually
terminated by the parties. $75,000 was repaid by OneQube as of December&nbsp;31, 2019. The Company&#8217;s current Chief
Executive Officer beneficially owns 27.6% of the capital stock of OneQube and serves as Chairman of the Board of
OneQube.&nbsp;</FONT></P>

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

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

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, Kubient and CenterPoint Media, LLC (&#8220;CenterPoint&#8221;), the Company&#8217;s predecessor,
made various payments to one another for operating expenses that were paid for on the other party&#8217;s behalf. During the year
ended December&nbsp;31, 2018, Kubient made aggregate payments of approximately $109,000 for the benefit of CenterPoint (of which,
$71,000 was paid directly to CenterPoint and $38,000 was for CenterPoint expenses paid by Kubient) and CenterPoint made aggregate
payments of approximately $56,000 on behalf of Kubient.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the year ended December&nbsp;31, 2018, the Company wrote-off receivables from CenterPoint in the amount of approximately $61,000,
which it deemed to be uncollectible.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
March&nbsp;6, 2018 and effective April&nbsp;14, 2018, the Company extended their lease agreement with CenterPoint whereby the
Company became responsible for the entire monthly rent payment, plus common maintenance charges, which totaled $9,139 per month
for a period of 10 months and ended on February&nbsp;14, 2019.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
March&nbsp;2019, Kubient entered into a sublease agreement with OneQube that provides for rent payments by Kubient to the sublessor
equal to $600 per desk per month and ends in June&nbsp;2021.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">During
the years ended December&nbsp;31, 2019 and 2018, rent expense was $91,169 and $106,779, respectively, which included the rent
paid to related parties discussed above.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
10 &#8211; 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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">From
time to time, the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it
is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
August&nbsp;31, 2018, the Company received a summons from the Los Angeles County Superior Court of California in connection with
a civil action filed by a vendor against the Company in the amount of $33,461 for breach of contract. On November&nbsp;14, 2018,
counsel representing the vendor filed a request for default judgement against the Company in the amount of $35,936 which included
legal costs of $785 and interest of $1,690. On November&nbsp;21, 2018, judgement was entered by the court against the Company.
As of December&nbsp;31 2019 and 2018, the Company had accrued for all amounts in its financial statements.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
March&nbsp;11, 2019, the United States District Court for the Southern District of New York ordered a judgement against the Company
in connection with the default of terms of a settlement agreement between the Company and a vendor dated November&nbsp;27, 2018.
The court ordered that an amount in the aggregate of $91,692 (including $667 of interest and $870 of legal costs) be paid by the
Company, which amount was accrued as of December&nbsp;31, 2018. During the year ended December&nbsp;31, 2019, the matter was settled
and the amount was paid in full by the Company.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
November&nbsp;12, 2019, the Company received a summons from the Palm Beach County Circuit Court of Florida in connection with
a civil action filed by the plaintiff against the Company in the aggregate amount of $207,502 ($132,502 for breach of
contract and $75,000 for default under a promissory note). Settlement discussions amongst the parties are ongoing and the
trial is currently scheduled for August&nbsp;2020. The Company intends to vigorously defend itself with respect to this
claim. As of December&nbsp;31, 2019, the Company had accrued approximately $177,000 in its consolidated financial
statements.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
November&nbsp;27, 2019, the Company received a summons from the Los Angeles County Superior Court of California in connection
with a civil action filed by a vendor against the Company in the amount of $20,764. On April&nbsp;21, 2020, the Company made a
settlement offer to pay $20,000 within 90 days of execution of a settlement agreement. As of May&nbsp;6, 2020, the date the financial
statements were issued, the parties had not executed the settlement agreement. As of December&nbsp;31, 2019, the Company had accrued
approximately $20,000 in its consolidated financial statements.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
March&nbsp;2019 the Company entered into a binding letter of intent to acquire substantially all of the assets of Aureus Holdings,
LLC d/b/a Lo70s (&#8220;Lo70s&#8221;). In connection with the letter of intent, the Company paid a good faith deposit to Lo70s
of $200,000. Subsequently, during the diligence phase of the letter of intent, the Company received information such that it believes
that Lo70s made material misrepresentations regarding its business and diligence inquiries made by the Company to Lo70s. As a
result, the Company terminated the letter of intent under the clause that there was a material adverse change in the business.
During the year ended December&nbsp;31, 2019, the Company recorded an allowance of $200,000 related to the deposit. The Company
received a legal dispute letter dated February&nbsp;20, 2020 from legal counsel representing Lo70s that indicated that Lo70s is
prepared to file its claim against the Company in an amount that exceeds $5 million. On February&nbsp;28, 2020, the Company subsequently
responded with its intention to vigorously defend itself with respect to such demands made by Lo70s that the Company believes
are without merit. As of December&nbsp;31, 2019, the Company had accrued for all probable and estimable amounts in the consolidated
financial statements.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Non-Binding
Letter of Intent</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
August&nbsp;23, 2019, the Company entered in a non-binding letter of intent with Advisio Solutions, LLC (&#8220;Advisio&#8221;).
The Company&#8217;s potential acquisition is subject to its negotiation and entry into definitive, binding agreements with Advisio,
which will not occur prior to the closing of the public offering. The closing of the proposed transaction will be subject to customary
conditions including the Company&#8217;s satisfactory completion of due diligence and the receipt of any waivers, regulatory approvals
and third-party consents. The non-binding letter of intent expired on December&nbsp;31, 2019.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Settlement
and Release Agreement</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
August&nbsp;23, 2019 and effective December&nbsp;31, 2018, the Company entered into a settlement and release agreement with one
of its suppliers. In connection with the agreement, the supplier agreed to release the Company from liabilities in the amount
of $66,804 owed by the Company to the supplier. As a result, the Company recognized a gain on forgiveness of accounts payable
 &#8211; supplier in the amount of $66,804 during the year ended December&nbsp;31, 2018.</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; color: Black; background-color: White">&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; color: Black; background-color: White"><U>Settlement
Agreement</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
September&nbsp;4, 2019, the Company entered into a settlement agreement whereby the parties agreed to settle an outstanding note
payable balance of approximately $45,000 for $16,000, which was to be paid by September&nbsp;3, 2019 by the Company. As of December&nbsp;31,
2019 and the date of filing, the Company had not made the $16,000 payment. As of December&nbsp;31, 2019, the outstanding note
payable balance was $38,967 on the consolidated balance sheet.</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; color: Black; background-color: White">&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; color: Black; background-color: White"><U>Employment
Agreements</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
May&nbsp;15, 2019, the Company entered into an employment agreement with its newly hired Chief Executive Officer that provides
for a base salary of $220,000 per year, comprised of cash of $120,000 and equity awards of $100,000 in the form of non-qualified
stock options. The executive is eligible to receive an annual performance bonus up to 30% of the current base salary, subject
to the achievement of specified performance goals established by the Board. The employment agreement can be terminated by either
party at any time. Upon termination of the executive other than for cause or resignation by the executive for good reason, as
defined, the executive is entitled to receive (i)&nbsp;a cash payment equal to three (3)&nbsp;months of the executive&#8217;s
then base salary, (ii)&nbsp;payment of medical insurance for at least six (6)&nbsp;months and (iii)&nbsp;the acceleration of vesting
with respect to that number of shares subject to executive&#8217;s then outstanding equity awards that would have become vested
during the three (3)&nbsp;month period following the termination date.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
June&nbsp;17, 2019, the Company entered into an employment agreement with its newly hired Chief Digital Officer whereby the parties
agreed that the Company shall employ the executive for a period of one (1)&nbsp;year, with renewal for an additional twelve (12)
months if certain specified Company financial metrics are reached. The agreement provides for a base salary of $180,000 per year.
The executive is eligible to receive cash commissions up to $320,000, computed as 15% of net revenue, and, in the event the cash
commission maximum has been reached, the executive is eligible for commissions payable quarterly in common stock with a value
up to $250,000. If the executive earns aggregate commissions of $580,000, commissions shall be paid at a rate of 7% of net revenue.
In addition, if the business relationships managed by the executive exceed $5,000,000 in gross revenue before the effective date
of the Company&#8217;s contemplated initial public offering, the executive will be issued 20,000 shares of common stock. In connection
with the employment agreement, the executive issued 20,000 immediately-vested shares of the Company&#8217;s common stock (see
Note 8 for details). Upon termination of the executive other than for cause or resignation by the executive for good reason, as
defined, the executive is entitled to receive (i)&nbsp;cash payments for twelve (12) months of the executive&#8217;s then base
salary, (ii)&nbsp;payment of medical insurance for at least six (6)&nbsp;months and (iii)&nbsp;the acceleration of vesting with
respect to that number of shares subject to executive&#8217;s then outstanding equity awards that would have become vested during
the three (3)&nbsp;month period following the termination date.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
December&nbsp;23 2019, the Company entered into an employment agreement with its newly hired Chief Financial Officer that provides
for a base salary of $150,000 per year, increasing to a base salary of $275,000 per year on the earlier of (i)&nbsp;90 days following
the date of the employment agreement or (ii)&nbsp;the date of an initial public offering. The executive is eligible to receive
an annual performance bonus up to 30% of the current base salary, subject to the achievement of specified performance goals established
by the Board, commencing fiscal year 2020. The employment agreement can be terminated by either party at any time. Upon termination
of the executive other than for cause or resignation by the executive for good reason, as defined, the executive is entitled to
receive (i)&nbsp;a cash payment equal to six (6)&nbsp;months of the executive&#8217;s then base salary, (ii)&nbsp;payment of medical
insurance for at least six (6)&nbsp;months and (iii)&nbsp;the acceleration of vesting with respect to that number of shares subject
to executive&#8217;s then outstanding equity awards that would have become vested during the three (3)&nbsp;month period following
the termination date. In connection with the employment agreement, the executive was (i)&nbsp;granted options to purchase 150,000
shares of common stock at an exercise price of $3.75 per shares (see Note 8 for details) and (ii)&nbsp;effective 90 days following
the commencement of the executive&#8217;s employment with the Company, the Company will issue 20,000 shares of immediately-vested
common stock to the executive.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
11 &#8211; CONCENTRATIONS</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
following table sets forth information as to each customer that accounted for 10% or more of the Company&#8217;s Gross Billings
for the following periods:</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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 36%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">For the Years Ended</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center; color: Black">Customer</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 54%; color: Black; text-align: left">Customer A</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 20%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">74.50</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 20%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">58.89</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Customer B</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">10.06</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">10.02</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; text-align: left; color: Black">Total</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">84.57</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">68.91</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD></TR>
</TABLE>


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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White">The
following table sets forth information as to each customer that accounted for 10% or more of the Company&#8217;s gross accounts
receivable as of:</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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 36%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">As of</TD><TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; text-align: center; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">Customer</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2019</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">2018</TD><TD STYLE="padding-bottom: 1pt; text-align: center; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 54%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Customer D</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 20%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">13.73</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 20%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right"></TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">*</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Customer E</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">12.23</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">*</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Customer A</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">*</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">57.25</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">Customer C</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right"></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">*</FONT></TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">11.06</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.125in; font: 10pt Times New Roman, Times, Serif; color: Black">Total</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">25.96</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">68.32</TD><TD STYLE="padding-bottom: 2.5pt; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">A
reduction in sales from or loss of these customers would have a material adverse effect on the Company&#8217;s results of operations
and financial condition.</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; color: Black; background-color: White">&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; color: Black; background-color: White"><U>Supplier
Concentrations</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
following table sets forth information as to each supplier that accounted for 10% or more of the Company&#8217;s Supplier Costs
for the following periods:</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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 36%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">For the Years Ended</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: center">Supplier</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: right">2019</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; color: Black; text-align: right">2018</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 54%; color: Black; text-align: left">Supplier A</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 20%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">78.85</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">%</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: left">&nbsp;</TD><TD STYLE="width: 20%; font: 10pt Times New Roman, Times, Serif; color: Black; text-align: right">56.05</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; color: Black; 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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>NOTE
12 &#8211; SUBSEQUENT EVENTS</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
Company has evaluated events that have occurred after the balance sheet and through May&nbsp;6, 2020, the date the financial statements
were issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would
have required adjustment or disclosure in the financial statements, except as disclosed below.</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; color: Black; background-color: White">&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; color: Black; background-color: White"><U>Customer
Contract</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Effective
February&nbsp;5, 2020, the Company entered into a Master Services Agreement (the &#8220;Agreement&#8221;) with The Associated
Press (the &#8220;Customer&#8221;) whereby the Company agreed to provide advertising and related business revenue consultation
services to the Customer. In consideration for the services provided, commencing on March&nbsp;1, 2020, the Company is entitled
to certain revenue share amounts in connection with the Customer&#8217;s consumer offerings outlined in the Agreement, which amounts
were included in Exhibit&nbsp;B to the Agreement which was entered into as of March&nbsp;27, 2020 and are summarized as follows:</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&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">Monthly</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; font-size: 10pt">&nbsp;</TD><TD STYLE="text-align: center; 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">Revenue</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Below Threshold</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Above Threshold</TD><TD STYLE="text-align: center; padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><B>Type</B></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><B>Threshold</B></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><B>Customer</B></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><B>Kubient</B></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><B>Customer</B></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: center"><B>Kubient</B></TD><TD STYLE="font: 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="width: 33%; font: 10pt Times New Roman, Times, Serif">Programmatic/display </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">$</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">300,000</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">90</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">10</TD><TD STYLE="width: 3%; font: 10pt Times New Roman, Times, Serif; text-align: left">%[A]</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Video </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">30,000</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">100</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">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">50</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">50</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">Direct deals </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">100</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Native </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">100,000</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">100</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">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">50</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">50</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">Data/newsletter </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Podcasts </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">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">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">50</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">50</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">Other </TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">-</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">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">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">50</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">50</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">%</TD></TR>
</TABLE>

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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; color: Black; background-color: White">[A]
    - Expires on September&nbsp;1, 2020.</FONT></P>

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<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; color: Black; background-color: White"><B>KUBIENT,&nbsp;INC.</B></FONT></P>

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<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; color: Black; background-color: White"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

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<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; color: Black; background-color: White"><B>For
the Years Ended December&nbsp;31, 2019 and 2018</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; color: Black; background-color: White">&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; color: Black; background-color: White"><U>Notes
Payable &#8211; Related Parties</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Subsequent
to December&nbsp;31, 2019, the Company received aggregate proceeds of $585,000 in connection with three-year notes payable issued
to three of its executive officers. The notes bear interest ranging from 0.91% and 1.60% per annum, payable annually. The outstanding
principal and accrued and unpaid interest shall become immediately due and payable upon an initial public offering, sale of the
Company or qualified financing with equity proceeds of at least $5,000,000.</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; color: Black; background-color: White"><U>Release
of Liability</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
March&nbsp;10, 2020, the Company received a letter from one of its vendors releasing it from aggregate liabilities of $236,248,
which were accrued as of December&nbsp;31, 2019. The Company recognized the gain on release of liability effective March&nbsp;10,
2020.</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; color: Black; background-color: White"><U>Paycheck
Protection Program Loan</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">On
April&nbsp;6, 2020, the Company received loan proceeds in the amount of approximately $327,000 under the Paycheck Protection Program
(&#8220;PPP&#8221;). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (&#8220;CARES Act&#8221;),
provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying
business. The loans and accrued interest are forgivable after eight weeks as long as the borrower uses the loan proceeds for eligible
purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will
be reduced if the borrower terminates employees or reduces salaries during the eight-week period.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
unforgiven portion of the PPP loan is payable over two years at an interest rate of 1%, with a deferral of payments for the first
six months. The Company intends to use the proceeds for purposes consistent with the PPP. While the Company currently believes
that its use of the loan proceeds will meet the conditions for forgiveness of the loan, there can be no assurance that the Company
will not take actions that could cause the Company to be ineligible for forgiveness of the loan, in whole or in part.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><U>Convertible
Notes Payable</U></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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Subsequent
to December&nbsp;31, 2019, the Company and certain noteholders entered to a consent and first amendment to Senior Notes and Junior
Notes in the aggregate principal amount of $660,000 and $665,500, respectively (the &#8220;Amended Senior Notes&#8221; and &#8220;Amended
Junior Notes&#8221;, respectively). The Amended Senior Notes were amended as follows: (i)&nbsp;the holders authorized the Company
to incur certain indebtedness, including certain government loans as well as non-government loans with a principal amount not
to exceed $1,000,000 in the aggregate (the &#8220;Permitted Indebtedness&#8221;), (ii)&nbsp;the Amended Senior Notes are subordinated
to the Permitted Indebtedness and (iii)&nbsp;the maturity date of the Amended Senior Notes is August&nbsp;27, 2020. The Amended
Junior Notes were amended as follows: (i)&nbsp;the holders authorized the Company to incur the Permitted Indebtedness and (ii)&nbsp;the
Amended Junior Notes are subordinated to the Permitted Indebtedness.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">As
of May&nbsp;6, 2020, the date the financial statements were issued, Senior Notes with aggregate outstanding principal amount of
$2,090,000 were past due. Such failure to repay the Senior Notes by the maturity date constituted an event of default and, accordingly,
at any time thereafter during the continuance of such event of default, the noteholder agent may, with the written consent of
a majority of noteholders, by written notice to the Company, declare all outstanding indebtedness represented by the Senior Notes
to be immediately due and payable. The Company is in negotiations with the noteholders to extend the maturity dates of such Senior
Notes.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B><A NAME="s_018"></A>GLOSSARY</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Ad
Network</B>&#8221; means an intermediary network or company that acts as a broker between advertisers who want to purchase ad
placements and content publishers who want to host the advertiser&#8217;s ads. Examples of advertisers are consumer good companies,
multimedia companies and automobile manufacturers. Publishers in the context are website operators or app developers.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><BR>
 &#8220;<B>Ad Tech</B>&#8221; means the software and tools that help agencies and brands target, deliver, and analyze their digital
advertising efforts.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Bot</B>&#8221;
or &#8220;internet bot&#8221; means an autonomous program (or robot) running on a network (usually, the internet) that can interact
with computer systems or users. Typically, Bots perform tasks that are both simple and structurally repetitive, at a much higher
rate than would be possible for a human alone. According to Imperva, more than half of all web traffic is fraudulent, as it is
made up of Bots rather than actual human beings.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Brand</B>&#8221;
means a particular name used to identify a type of product or products manufactured by a particular company.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Data
Management Platform</B>&#8221; or &#8220;DMP&#8221; means a technology platform used for collecting and managing data, mainly
for digital marketing purposes. It allows Ad Networks to generate audience segments, which are then used to target specific users
in online advertising campaigns.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Demand
Side Platform</B>&#8221; or &#8220;DSP&#8221; means a system that allows buyers of digital advertising space (ie, advertisers)
to manage multiple ad exchange and data exchange accounts through one interface.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Double
monetization</B>&#8221; means our ability to serve both a video advertisement as well as a display advertisement where there would
traditionally be one or the other.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Full
stack</B>&#8221; means computer engineering that encompasses databases, servers, systems engineering, and clients, across mobile
applications, web based applications and native applications.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>GDPR</B>&#8221;
means the General Data Protection Regulation, which was agreed upon by the European Parliament and Council in April&nbsp;2016,
regulates how companies (including American companies) must protect European Union citizens&#8217; personal data.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Latency</B>&#8221;
means the lag time between a customer click on an internet link and the conversion of that customer to a sale. The term can also
refer to the lag time between ad inventory&#8217;s purchase and its display on publisher&#8217;s media.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Omni-channel
marketing</B>&#8221; means marketing that is intended to reach target consumers across all advertising channels -- mobile, video,
desktop, and more -- within the context of how the specific customer has interacted with a brand (for example, those first seeing
an ad about a brand they have never experienced will receive a different message from those who have engaged with that brand a
number of times).</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Programmatic
advertising</B>&#8221; means the purchase of advertising space meant to target audiences using Ad Tech, rather than the traditional
method of purchasing time slots in mass media, such as television programming.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Pre-bid</B>&#8221;
means the bid placed by an advertiser for placement of its ad, verified prior to such ad being run or displayed.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Post-bid</B>&#8221;
means the verification of the running or display of an ad, after such running or display has occurred.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Publisher</B>&#8221;
means a source of ad inventory, such as website owners, website operators or app developers. Publishers are generally either managed
or owned and operated. An owned and operated publisher receives 100% of the profit for impressions sold. This is opposed to a
managed publisher: a publisher that does not own its inventory but has a financial relationship with those who do.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Specialist
coding language</B>&#8221; means certain coding languages that deliver performance above and beyond traditional coding languages.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Supply
Side Platform</B>&#8221; or &#8220;SSP&#8221; means a platform that enables Publishers to access advertiser demand from a variety
of networks, exchanges, and platforms via one interface.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>300-millisecond
window</B>&#8221; means the window of time adopted by the digital advertising industry in which a website or app has to load the
content on their website and auction off the advertising space on their web property.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Verification
companies</B>&#8221; or &#8220;ad verification companies&#8221; means companies that offer a technological service that ensures
that ads appear on intended sites and reach the targeted audience.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&#8220;<B>Volume</B>&#8221;
means the concept buying large scale amounts of media in hopes of reaching a specific, smaller audience that lives within that
larger pool.</FONT></P>

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

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

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<P STYLE="font: 10pt 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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt 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; color: Black; background-color: White"><B>Units</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Maxim
Group LLC&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Joseph Gunnar&nbsp;&amp;
Co. LLC</B></FONT></P>

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

<P STYLE="font: 10pt 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; color: Black; background-color: White"><B>The
Benchmark Company, LLC</B></FONT></P>

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<P STYLE="font: 10pt 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; color: Black; background-color: White">,
2020</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Through
and including &#8199;&#8199;&#8199;&#8199;&#8199;&#8199;&#8199;&#8199;&#8199;&#8199; &#8199;&#8199;, 2020 (the 25<SUP>th</SUP>&nbsp;day
after the date of this offering), all dealers effecting transactions in these securities, whether or not participating in this
offering, may be required to deliver a prospectus. This is in addition to a dealer&#8217;s obligation to deliver a prospectus
when acting as an underwriter and with respect to an unsold allotment or subscription.</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>PART&nbsp;II</B>&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; color: Black; background-color: White"><B>INFORMATION
NOT REQUIRED IN PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Item&nbsp;13.
Other Expenses of Issuance and Distribution</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable in connection
with the sale and distribution of the securities being registered. All amounts are estimated except the SEC registration fee,
the FINRA filing fee and The Nasdaq Capital Market listing fee. Except as otherwise noted, all the expenses below will be paid
by us.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="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: 87%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">SEC
    Registration Fees</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; color: Black">&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; color: Black">$</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; color: Black">2,851.55</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; color: Black">&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; color: Black">FINRA
    Fees</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</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; color: Black">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"></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; color: Black"><B>*</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; color: Black">The
    Nasdaq Capital Market Listing Fee</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</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; color: Black">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"></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; color: Black"><B>*</B></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; color: Black">Printing
    and Engraving Expenses</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</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; color: Black">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"></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; color: Black"><B>*</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; color: Black">Legal
    Fees and Expenses</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</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; color: Black">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"></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; color: Black"><B>*</B></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; color: Black">Accounting
    Fees and Expenses</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</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; color: Black">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"></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; color: Black"><B>*</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; color: Black">Transfer
    Agent Fees</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</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; color: Black">&nbsp;</FONT></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"></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; color: Black"><B>*</B></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-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Miscellaneous</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; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><B>*</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; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Total</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; color: Black">&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; color: Black">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right"></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; color: Black"><B>*</B></FONT></TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Estimated expenses not presently known.</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"></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>Item&nbsp;14.
Indemnification of Directors and Officers</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Section&nbsp;102(b)(7)&nbsp;of
the DGCL allows a corporation to provide in its certificate of incorporation that a director of the corporation will not be personally
liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except where the
director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a
law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an
improper personal benefit. Our certificate of incorporation provides for this limitation of liability.</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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Section&nbsp;145
of the DGCL, or Section&nbsp;145, provides that a Delaware corporation may indemnify any person who was, is or is threatened to
be made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was
an officer, director, employee or agent of such corporation or is or was serving at the request of such corporation as a director,
officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys&#8217;
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding, provided such person acted in good faith and in a manner he reasonably believed to be in or not opposed
to the corporation&#8217;s best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe
that his or her conduct was illegal. A Delaware corporation may indemnify any persons who are, were or are a party to any threatened,
pending or completed action or suit by or in the right of the corporation by reason of the fact that such person is or was a director,
officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys&#8217;
fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit, provided
such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation&#8217;s best
interests, provided that no indemnification is permitted without judicial approval if the officer, director, employee or agent
is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise in the defense
of any action referred to above, the corporation must indemnify him against the expenses which such officer or director has actually
and reasonably incurred.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Section&nbsp;145
further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer,
employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or
agent of another corporation or enterprise, against any liability asserted against him and incurred by him in any such capacity,
or arising out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify him under
Section&nbsp;145.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Our
bylaws provide that we must indemnify our directors and officers to the fullest extent permitted by the DGCL and must also pay
expenses incurred in defending any such proceeding in advance of its final disposition upon delivery of an undertaking, by or
on behalf of an indemnified person, to repay all amounts so advanced if it should be determined ultimately that such person is
not entitled to be indemnified.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
indemnification rights set forth above shall not be exclusive of any other right which an indemnified person may have or hereafter
acquire under any statute, provision of our certificate of incorporation, our bylaws, agreement, vote of stockholders or disinterested
directors or otherwise.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">We
intend to maintain standard policies of insurance that provide coverage (1)&nbsp;to our directors and officers against loss rising
from claims made by reason of breach of duty or other wrongful act, and (2)&nbsp;to us with respect to indemnification payments
that we may make to such directors and officers.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">The
proposed form of Underwriting Agreement to be filed as Exhibit&nbsp;1.1 to this registration statement will provide for indemnification
of our directors and officers by the placement agent party thereto against certain liabilities. See &ldquo;<I>Item 17. Undertakings</I>&rdquo;
for a description of the SEC&rsquo;s position regarding such indemnification provisions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Item&nbsp;15.
Recent Sales of Unregistered Securities</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
September&nbsp;2017, we issued warrants to certain stockholders, consultants and attorneys to purchase up to 1,270,000&nbsp;shares
of Common Stock at a price per share of $0.55. The term of the warrant extends until 5&nbsp;years from the grant date and the
warrant is exercisable at any time during that five-year period. The foregoing shares were issued in reliance upon an exemption
from registration pursuant to Rule&nbsp;701 promulgated under the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;).</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
three separate closings dated April&nbsp;26, May&nbsp;23, and June&nbsp;28, 2019, the Company sold 25 units of its securities
for gross proceeds of $2,500,000, with each unit priced at $100,000 (each, a &#8220; Senior Unit&#8221; and, collectively, the
 &#8220; Senior Units&#8221;). Each Senior Unit sold in the offering consisted of (i)&nbsp;a 5% Senior Secured Convertible Promissory
Note in the principal amount of $110,000, reflecting an Original Issue Discount of 10% of the Company that is convertible into
shares of the Company&#8217;s common stock and (ii)&nbsp;a five-year warrant to purchase a number of shares of the Company&#8217;s
common stock equal to the quotient obtained by dividing $110,000 by the Conversion Price (as defined in the warrants) at an exercise
price equal to 120% of the Conversion Price. Under certain circumstances, such as a qualified initial public offering, the conversion
of the foregoing 5% Senior Secured Convertible Promissory Note might be issued in a combination of warrants and shares of the
Company&#8217;s common stock.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

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



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
connection with the Unit offering described above, we will issue/have issued a five year warrant that is immediately exercisable
upon the date of issuance to the placement agent in the offering to purchase 10% of the aggregate number of issuable shares sold
in the offering, at the same price per share as in the Unit offering.</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; color: Black; background-color: White">&nbsp;</FONT></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
two separate closings dated October&nbsp;11, and November&nbsp;6, 2019, the Company sold 11.25 units of its securities for gross
proceeds of $1,105,000, with each unit priced at $100,000 (each, a &#8220;Subordinated Unit&#8221; and, collectively, the &#8220;Subordinated
Units&#8221;). Each Subordinated Unit sold in the offering consisted of (i)&nbsp;a 5% Subordinated Unsecured Convertible Promissory
Note in the principal amount of $110,000, reflecting an Original Issue Discount of 10% of the Company that is convertible into
shares of the Company&#8217;s common stock, and (ii)&nbsp;a five-year warrant to purchase a number of shares of the Company&#8217;s
common stock equal to the quotient obtained by dividing $110,000 by the Conversion Price (as defined in the warrants) at an exercise
price equal to 120% of the Conversion Price. Under certain circumstances, such as a qualified initial public offering, the conversion
of the foregoing 5% Subordinated Unsecured Convertible Promissory Note might be issued in a combination of warrants and shares
of the Company&#8217;s common stock.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">In
connection with the Subordinated Unit offering described above, we will issue/have issued a five year warrant that is immediately
exercisable upon the date of issuance to the placement agent in the offering to purchase 10% of the aggregate number of issuable
shares sold in the offering, at the same price per share as in the Subordinated Unit offering.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
sale and the issuance of the foregoing securities were offered and sold in reliance upon exemptions from registration pursuant
to Section&nbsp;4(a)(2)&nbsp;of the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;) and Rule&nbsp;506 of
Regulation D promulgated under the Securities Act (&#8220;Regulation D&#8221;).&nbsp;We made this determination based on the representations
of each investor which included, in pertinent part, that each such investor was either (a)&nbsp;an &#8220;accredited investor&#8221;
within the meaning of Rule&nbsp;501 of Regulation D or (b)&nbsp;a &#8220;qualified institutional buyer&#8221; within the meaning
of Rule&nbsp;144A under the Securities Act. In addition, there was no general solicitation or advertising for securities issued
in reliance upon these exemptions.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Pursuant
to the terms of his employment agreement, the Company issued Mr.&nbsp;Andrews 20,000 shares of common stock on July&nbsp;17, 2019.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">Pursuant
to the terms of his employment agreement, the Company issued Mr.&nbsp;Weiss 20,000 shares of common stock on March 22, 2020.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Pursuant
to the terms of its consulting agreement, the Company issued Gateway Group,&nbsp;Inc. 10,000 shares of common stock on June&nbsp;5,
2020.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
foregoing shares were issued in reliance upon an exemption from registration pursuant to Rule&nbsp;701 promulgated under the Securities
Act.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>Item&nbsp;16.
Exhibits and Financial Statement Schedules</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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0px"></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">(a)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Exhibits.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="text-decoration: none; font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none; border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt"><B>Exhibit&nbsp;No.</B></FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Description
    of Exhibit</B></FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none; width: 10%"><FONT STYLE="font-size: 10pt">1.1</FONT></TD>
    <TD STYLE="text-decoration: none; width: 1%">&nbsp;</TD>
    <TD STYLE="text-decoration: none; width: 1%">&nbsp;</TD>
    <TD STYLE="text-decoration: none; width: 88%"><FONT STYLE="font-size: 10pt">Form&nbsp;of Underwriting Agreement**</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Amended and Restated Certificate of Incorporation of Kubient,&nbsp;Inc.**</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Amended and Restated Bylaws of Kubient,&nbsp;Inc.**</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">4.1</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Form&nbsp;of Common Stock Certificate**</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">4.2</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Form&nbsp;of Representatives&rsquo; Warrant to be issued upon
    completion of this offering**</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">5.1</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Form&nbsp;of Opinion of Waller Lansden Dortch&nbsp;&amp; Davis,
    LLP**</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Amended and Restated Kubient,&nbsp;Inc. Incentive Stock Plan
    dated October&nbsp;2, 2019*</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">License Agreement with OneQube,&nbsp;Inc. dated June&nbsp;1,
    2018*</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-3.htm"><FONT STYLE="font-size: 10pt">10.3</FONT></A></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-3.htm"><FONT STYLE="font-size: 10pt">Sublease Termination Agreement
with OneQube,&nbsp;Inc. dated June 18, 2020</FONT></A></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Employment Agreement with Christopher Andrews dated June&nbsp;17,
    2019*</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Employment Agreement with Peter Bordes dated May&nbsp;15,
    2019*</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-6.htm"><FONT STYLE="font-size: 10pt">10.6</FONT></A></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-6.htm"><FONT STYLE="font-size: 10pt">Employment Agreement with Christopher Francia dated May&nbsp;26,
    2017</FONT></A></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">10.7</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Employment Agreement with Pavel Medvedev dated April&nbsp;12,
    2018*</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">10.8</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Employment Agreement with Paul Roberts dated May&nbsp;26,
    2017*</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-9.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">10.9</FONT></A></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-9.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Employment Agreement with Joshua Weiss dated December&nbsp;23,
    2019</FONT></A></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">10.10</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Amendment to Employment Agreement with Paul Roberts dated
    October&nbsp;2, 2019*</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">10.11</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Amendment to Employment Agreement with Pavel Medvedev dated
    November&nbsp;21, 2019* </FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-12.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">10.12</FONT></A></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-12.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">License Agreement with Sphere Digital, LLC dated June&nbsp;1, 2018</FONT></A></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-13.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">10.13</FONT></A></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-13.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Master Services Agreement with Sphere Digital, LLC dated June&nbsp;1, 2018</FONT></A></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-14.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">10.14</FONT></A></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex10-14.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Master Services Agreement with The Associated Press dated February&nbsp;5, 2020</FONT></A></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">21.1</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Subsidiary of the Registrant*</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex23-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">23.1</FONT></A></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><A HREF="tm2023792d1_ex23-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Consent of Marcum LLP</FONT></A></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">23.3</FONT></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><FONT STYLE="font-size: 10pt">Consent of Waller Lansden Dortch&nbsp;&amp; Davis, LLP (included
    in Exhibit&nbsp;5.1)**</FONT></TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD></TR>
<TR STYLE="text-decoration: none; vertical-align: bottom">
    <TD STYLE="text-decoration: none"><A HREF="#poa"><FONT STYLE="font-size: 10pt">24.1</FONT></A></TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none">&nbsp;</TD>
    <TD STYLE="text-decoration: none"><A HREF="#poa"><FONT STYLE="font-size: 10pt">Power of Attorney (see page&nbsp;II-5 to this registration
    statement)</FONT></A></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; color: Black; background-color: White"></FONT>&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: 0.35in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Previously
filed.</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; color: Black; background-color: White">&nbsp;</FONT></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: 0.35in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">**</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">To
be filed by amendment.</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; color: Black; background-color: White">&nbsp;</FONT></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: 0.35in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">+</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Indicates
a management contract or compensatory plan or arrangement.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">(b)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Financial
    statement schedules.</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; color: Black; background-color: White">&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; color: Black; background-color: White">No
financial statement schedules are provided because the information called for is not required or is shown in the financial statements
or related notes.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White"><B>Item&nbsp;17.
Undertakings</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
undersigned Registrant hereby undertakes to provide to the underwriters at the closing specified in the Underwriting Agreement,
certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each
purchaser.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant
of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities
Act and will be governed by the final adjudication of such issue.</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">The
undersigned Registrant hereby undertakes that:</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.25in"><FONT STYLE="background-color: white">(1)&nbsp;&nbsp;For
purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part
of this registration statement in reliance upon Rule&nbsp;430A and contained in a form of prospectus filed by the Registrant pursuant
to Rule&nbsp;424(b)(1)&nbsp;or (4)&nbsp;or 497(h)&nbsp;under the Securities Act shall be deemed to be part of this registration
statement as of the time it was declared effective.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">(2)&nbsp;For
the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.</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; color: Black; background-color: White">&nbsp;</FONT></P>

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

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black; background-color: White">&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; color: Black; background-color: White"><B>SIGNATURES</B></FONT></P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="background-color: white">Pursuant
to the requirements of the Securities Act of 1933, we have duly caused this registration statement on Form&nbsp;S-1 to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on the 2nd day of July,
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; color: Black; background-color: White">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black"><B>KUBIENT
    ,&nbsp;INC.</B></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; width: 3%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 47%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>/s/
    Peter A. Bordes,&nbsp;Jr.&nbsp;</I><FONT STYLE="color: Black">&nbsp;</FONT></FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Peter
    A. Bordes,&nbsp;Jr.</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Black">Chief
    Executive Officer</FONT></TD></TR>
</TABLE>
<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; color: Black; background-color: White">&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; color: Black; background-color: White"><B><A NAME="poa"></A>POWER
OF ATTORNEY</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; color: Black; background-color: White">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">KNOW
ALL PERSONS BY THESE PRESENTS, that each person whose individual signature appears below hereby authorizes and appoints Peter A.
Bordes,&nbsp;Jr. and Paul Roberts, and each of them, with full power of substitution and resubstitution and full power to act without
the other, as his true and lawful attorney-in-fact and agent to act in his name, place and stead and to execute in the name and
on behalf of each person, individually and in each capacity stated below, and to file any and all amendments to this registration
statement on&nbsp;Form&nbsp;S-1,&nbsp;and to file the same, with all exhibits thereto, and other documents in connection therewith,
with the SEC, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each
and every act and thing, ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his substitute
or substitutes may lawfully do or cause to be done by virtue thereof.</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-align: justify"><FONT STYLE="background-color: white">Pursuant
to the requirements of the Securities Act, this registration statement has been signed by the following persons in the capacities
and on the dates indicated.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black; background-color: White"></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">
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center; width: 40%"><FONT STYLE="font-size: 10pt"><B>Signature&nbsp;</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center; width: 35%"><FONT STYLE="font-size: 10pt"><B>Title&nbsp;</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; border-bottom: black 1pt solid; text-align: center; width: 23%"><FONT STYLE="font-size: 10pt"><B>Date&nbsp;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>/s/ Peter A. Bordes,&nbsp;Jr.</I></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Chief Executive Officer, Director (<I>principal executive officer</I>)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">July&nbsp;2,&nbsp;2020</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Peter A. Bordes,&nbsp;Jr.</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>/s/ Joshua Weiss</I></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Chief Financial Officer (<I>principal financial and accounting officer</I>)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">July&nbsp;2, 2020</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Joshua Weiss</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>/s/ Paul Roberts</I></FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Chief Strategy Officer, President and Chairman</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
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    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Paul Roberts&nbsp;</FONT></TD>
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    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
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    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">July&nbsp;2, 2020</FONT></TD></TR>
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    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Grainne Coen&nbsp;</FONT></TD>
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    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>/s/ Elisabeth DeMarse</I></FONT></TD>
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    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Elisabeth DeMarse&nbsp;</FONT></TD>
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    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>/s/ Jeannie Mun</I></FONT></TD>
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    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt"><FONT STYLE="font-size: 10pt">Director</FONT></TD>
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    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">July&nbsp;2, 2020</FONT></TD></TR>
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    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Jeannie Mun</FONT></TD>
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    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><I>/s/ Christopher H. Smith</I></FONT></TD>
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    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">July&nbsp;2, 2020</FONT></TD></TR>
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    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Christopher H. Smith&nbsp;</FONT></TD>
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{"company-data": {"conformed-name": "Kubient, Inc.", "cik": "0001729750", "assigned-sic": "7373", "irs-number": "821808844", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-239682", "film-number": "201011014"}, "business-address": {"street1": "330 SEVENTH AVENUE", "street2": "10TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10011", "phone": "8666682567"}, "mail-address": {"street1": "330 SEVENTH AVENUE", "street2": "10TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10011"}}
As filed with the Securities and Exchange
Commission on July 2, 2020
Registration Statement No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
KUBIENT, INC.
(Exact name of registrant as specified in its certificate of incorporation)
Delaware
7373
82-1808844
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
228 Park Avenue South
Suite 72602
New
York, New York 10003-1502
(866) 668-2567
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)
Peter Anthony Bordes, Jr.
Chief Executive Officer
Kubient, Inc.
228 Park Avenue South
Suite 72602
New
York, New York 10003-1502
(866) 668-2567
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Copies to:
Marc J. Adesso, Esq.
Waller Lansden Dortch & Davis,
        LLP
511 Union Street, Suite 2700
Nashville, Tennessee 37219
Telephone: (615) 850-8063
Facsimile: (615) 244-6804
Steven D. Uslaner, Esq.
Mark F. Coldwell, Esq.
Littman Krooks LLP
655 Third Avenue, 20
th
Floor
New York, New York 10017
Telephone: (212) 490-2020
Facsimile: (212) 490-2990
Approximate
date of commencement of proposed sale to the public
: As soon as practicable after this registration statement becomes
effective.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415
under the Securities Act of 1933 check the following box:
x
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities
Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration
statement for the same offering.
¨
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
¨
Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth
company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting
company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨
Accelerated filer
¨
Non-accelerated filer
x
Smaller reporting company
x
Emerging growth company
x
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities
Act.
¨
CALCULATION OF REGISTRATION FEE
Title of Securities Being Registered
Proposed Maximum Aggregate Offering
Price(1)(2)
Amount of Registration Fee
Units
(3)
$
9,500,000
$
1,233.10
Common Stock par value $0.00001, included in the units
(4)
-
-
Warrants to Purchase Common Stock, included in the units
(4)
-
-
Shares of Common Stock issuable upon exercise of the Warrants included in the units
(2)(5)
$
11,875,000
$
1,541.38
Underwriters' Warrants to Purchase Common Stock
(6)
N/A
N/A
Common Stock, underlying Underwriters' Warrants
(2)(5)
$
593,750
$
77.07
Total
$
21,968,750
$
2,851.55
(1)
Estimated solely for purposes of computing the amount of the registration fee pursuant to Rule 457(o) under the Securities Act. Includes the offering price of shares of common stock that the representative of the underwriters has the option to purchase to cover over-allotments, if any.
(2)
Pursuant to Rule 416 under the Securities Act, the shares of common stock registered hereby also include an indeterminate number of additional shares of common stock as may, from time to time, become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions.
(3)
Each unit consists of one share of common stock, $0.00001 par value per share, and one warrant to purchase one share of common stock, $0.00001 par value per share.
(4)
No separate fee is required pursuant to Rule 457(i) under the Securities Act.
(5)
Estimated solely for the purposes of calculating the registration fee pursuant to Rule 457(g) under the Securities Act. The warrants are exercisable at a per share exercise price equal to 125% of the public offering price. The proposed maximum aggregate offering price of the underwriters' warrants is $       , which is equal to 125% of $           (which is equal to 5% of $           ).
(6)
In accordance with Rule 457(g) under the Securities Act, because the shares of the Registrant's common stock underlying the Warrants and Representative's warrants are registered hereby, no separate registration fee is required with respect to the warrants registered hereby.
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 the registration statement shall become effective on such date as the Securities and Exchange
Commission, acting pursuant to said Section 8(a), may determine.
The information in this preliminary prospectus
is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities
and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting
an offer to buy these securities in any state where the offer or sale is not permitted.
PRELIMINARY
    PROSPECTUS
SUBJECT
    TO COMPLETION
DATED
    JULY  2, 2020
_______ Units Each Consisting of:
One Share of Common Stock and
One Warrant to Purchase One Share of
Common Stock
This is a firm commitment initial public
offering of Kubient, Inc. (the "Company," "Kubient," "we," "our" or "us").
Prior to this offering, there has been no public market for our securities. We are offering _______ units, with each
unit consisting of one share of our common stock, $0.00001 par value per share and one warrant to purchase one share of our common
stock. We anticipate a public offering price between $___ and $___ per unit. The shares of common stock and the warrants comprising
the units are immediately separable and will be issued separately in this offering. The warrants included in the units are exercisable
immediately and have an exercise price of $___ per share (110% of the public offering price based on an assumed
initial offering price of $__ per unit, the mid-point of the anticipated price range). The warrants will be listed for
trading as described below and will expire five years from the date of issuance.
The units have no stand-alone rights and
will not be certificated or issued as stand-alone securities. Purchasers will receive only shares of common stock and warrants.
The shares of common stock and warrants may be transferred separately, immediately upon issuance. The offering also includes the
shares of common stock issuable from time to time upon exercise of the warrants.
We have applied to have our common stock
and warrants listed on The Nasdaq Capital Market under the symbols "KBNT" and "KBNTW" respectively. No
assurance can be given that our application will be approved.
Certain of our officers and directors or
entities affiliated with such persons have indicated an interest in participating in this offering on the same terms as those offered
to the public. In addition, certain of our officers and directors or entities affiliated with such persons have agreed to amend
certain outstanding notes prior to the effectiveness of this registration statement to provide for conversion of principal and
interest thereunder into the units being issued in this offering at the public offering price per unit.
Unless otherwise noted and other than
in our financial statements and the notes thereto, the share and per share information in this prospectus reflects a proposed
reverse stock split of the outstanding common stock and treasury stock of the Company at an assumed 1 for ___ ratio to occur prior
to the closing of the offering.
Investing
in our securities involves a high degree of risk. See "
Risk Factors
" beginning on page 12
of this prospectus for a discussion of information that should be considered in connection with an investment in our securities.
We are an "emerging growth company"
under the federal securities laws and may elect to comply with certain reduced public company reporting requirements for future
filings.
Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.
Per Unit
Total
Initial public offering price
$
Underwriting discounts and commissions
(1)
$
Proceeds, before expenses, to us
$
(1)
See "
Underwriting
"
beginning on page 74 for additional information regarding underwriting compensation.
We
have granted a 45-day option to the representative of the underwriters to purchase up to ____ additional shares of
our common stock and/or up to _____ additional warrants, solely to cover over-allotments, if any.
The
securities issuable upon exercise of this overallotment option are identical to those offered by this prospectus and have
been registered under the registration statement of which this prospectus forms a part.
The underwriters expect to deliver our
shares and warrants against payment in New York, New York, on or about           ,
2020
Co-Book-Running Manager
Co-Book-Running Manager
Maxim Group LLC
Joseph Gunnar & Co. LLC
The
    Benchmark Company, LLC
This prospectus is dated             
, 2020
"
With real-time reporting for
publishers and premium partnerships, Kubient helps brands maximize their advertising budgets with their intuitive interface.
If your company is even thinking about using video advertising,
Kubient is a must-discover startup
."
-- Inc. Magazine, February 2018
TABLE OF CONTENTS
Page
Prospectus Summary
1
Risk Factors
12
Special Note Regarding Forward-Looking
Statements
32
Use of Proceeds
34
Dividend Policy
35
Capitalization
35
Dilution
36
Price of Our Common Stock
37
Management's Discussion and Analysis of
    Financial Condition and Results of Operations
37
Business
43
Management
51
Executive and Director Compensation
5
9
Certain Relationships and Related Party Transactions
64
Principal Stockholders
66
Description of Securities
67
Shares Eligible for Future Sale
72
Underwriting
74
Legal Matters
82
Experts
82
Where You Can Find Additional Information
82
Index to Financial Statements of Kubient, Inc.
F-1
Glossary
A-1
Through
and including
,
2020 (the 25th day after the date of this prospectus), all dealers effecting transactions in these securities, whether or not participating
in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus
when acting as an underwriter and with respect to an unsold allotment or subscription.
Neither we nor
the underwriters have authorized anyone to provide any information or to make any representations other than those contained in
this prospectus or in any free writing prospectuses we have prepared. Neither we nor the underwriters take 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 shares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information
contained in this prospectus is current only as of its date, regardless of the time of delivery of this prospectus or of any sale
of our common stock.
For investors
outside the United States: Neither we nor the underwriters have done anything that would permit this offering or possession or
distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States.
Persons outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions
relating to, the offering of the shares of our common stock and the distribution of this prospectus outside the United States.
Use of Industry and Market Data
This prospectus includes market and industry
data that we have obtained from third-party sources, including industry publications, as well as industry data prepared by our
management on the basis of its knowledge of and experience in the industries in which we operate (including our management's
estimates and assumptions relating to such industries based on that knowledge). Management has developed its knowledge of such
industries through its experience and participation in these industries. While our management believes the third-party sources
referred to in this prospectus are reliable, neither we nor our management have independently verified any of the data from such
sources referred to in this prospectus or ascertained the underlying economic assumptions relied upon by such sources. Furthermore,
internally prepared and third-party market prospective information, in particular, are estimates only and there will usually be
differences between the prospective and actual results, because events and circumstances frequently do not occur as expected, and
those differences may be material. Also, references in this prospectus to any publications, reports, surveys or articles prepared
by third parties should not be construed as depicting the complete findings of the entire publication, report, survey or article.
The information in any such publication, report, survey or article is not incorporated by reference in this prospectus.
Trademarks, Trade Names and Service
Marks
"Kubient" and other trademarks
or service marks of Kubient, Inc. appearing in this registration statement are the property of Kubient, Inc. The other
trademarks, trade names and service marks appearing in this prospectus are the property of their respective owners. Solely for
convenience, the trademarks and trade names in this prospectus are referred to without the
®
and ™ symbols,
but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent
under applicable law, their rights thereto.
PROSPECTUS SUMMARY
This summary highlights selected information
contained elsewhere in this prospectus. This summary does not contain all of the information that you should consider before deciding
to invest in our securities. You should read this entire prospectus carefully, including the "Risk Factors," "Management's
Discussion and Analysis of Financial Condition and Results of Operations," and our financial statements and the related notes
thereto that are included elsewhere in this prospectus, before making an investment decision.
Unless the context requires otherwise,
references to the "Company," "Kubient," "we," "us" and "our" refer
to Kubient, Inc., a Delaware corporation and its wholly-owned subsidiary, Fidelity Media, LLC. For explanations of certain
terms used in this prospectus, please read "Glossary" beginning on page A-1.
Company Overview
Kubient, a Delaware corporation, was incorporated
in May 2017 to solve some of the most significant problems facing the global digital advertising industry.
Our experienced team of marketing and
technology veterans has developed the Audience Cloud, a modular, highly scalable, transparent, cloud-based software platform
for real-time trading of digital, programmatic advertising. Our platform's open marketplace gives both advertisers (ad
space buyers) and publishers (ad space sellers) the ability to use machine learning in the most critical parts of any
programmatic advertising inventory auction, while simultaneously and significantly reducing those advertisers and
publishers' exposure to fraud, even in a pre-bid environment.
By becoming a one stop shop for advertisers
and publishers, providing them with the technology to deliver meaningful messages to their target audience, all in one place, on
a single platform that is computationally efficient, transparent, and as safely fraud-free as possible, we believe that our platform
(and the application of its machine learning algorithms) leads to increased publisher revenue, lower advertiser cost, reduced latency
and increased economic transparency during the advertising auction process.
Furthermore, we believe that our technology
allows advertisers to reach entire audiences rather than buying single impressions from disparate sources. We call this approach
Audience-Based Marketing. Combining this approach with our proprietary solutions for fraud prevention and the reduction of latency
in auctions, we are confident that we are poised to alter the status quo as the next generation of the industry's advertising
inventory auction infrastructure.
What We Do: Audience-Based Marketing
on Our Full Stack Platform
Our Audience Cloud's platform enables
advertisers and publishers to transact directly between each other on an open, end to end real-time bidding platform for programmatic
digital advertising. The advertising inventory on our platform is available in any channel: desktop, mobile, digital out-of-home,
and connected devices; and in any format: video, display, audio, and native. Indeed, we believe our single, fully integrated audience
platform provides a comprehensive, fraud-minimized, transparent, independent advertising marketplace that facilitates intelligent
decision-making, and automated transaction execution for the programmatic advertising industry. We optimize the liquidity and effectiveness
of the advertising supply chain, increasing revenue for publishers and improving return on investment for advertisers.
Our platform offers a machine learning-powered
fraud prevention solution, extremely low latency times and an audience management platform which provides omni-channel access into
all advertising channels, inventory and ad formats. Thanks to our management and development teams' deep experience with
artificial intelligence applications, our platform is constantly self-optimizing, using our software's ability to analyze
and learn from vast volumes of data. We are confident that the additional data we obtain from the volume of transactions on our
platform helps to make our machine-learning algorithms more intelligent over time.
Advertising is sometimes defined as the
transfer of a message from one party to another for the purpose of education, motivation or suggestion. Advertisers who pay to
send a message, should be confident that it arrives to the individual it was intended for and delivers its expected outcome. Our
solution consistently ensures this is the case, by verifying each and every message and intended audience. As a result, we believe
that we process, analyze and connect billions of audience participants and devices faster and more efficiently than the industry
standard.
1
Digital Advertising Fraud Solution:
Machine Learning Combined with Artificial Intelligence
Thanks to advances in technology, the
advertising inventory that is bought and sold in these real time auctions during the bid stream is customized to each
individual viewer. This viewer customization is often called programmatic advertising, a new form of advertising where
advertisers are able to specifically target their preferred audiences and demographics (rather than placing ads in generic
public forums such as billboards or during live events, in hopes that the coveted audience or demographic sees the ad).
According to eMarketer, programmatic digital advertising is one of the fastest growing sectors in the advertising industry,
which is expected to reach $517 billion by 2023; rising from $283 billion in 2018. Digital programmatic advertising's
reach includes channels such as online, mobile browsing, in-app, text messages, "out of home" video advertising
(in locations such as gas stations and airports) and digital or internet television services. The explosive growth of
programmatic digital advertising has created unique challenges for advertisers and publishers that want to connect and engage
their audiences. One of the primary challenges facing the digital advertising industry is that, like the meteoric growth of
digital advertising itself, fraud is also growing rapidly. According to Forrester Research, digital advertising cost
advertisers $42 billion dollars in 2019, which is a 21% increase from 2018. D
espite
attempts by advertisers and publishers to prevent fraud and conduct quality assurance checks
, both Forrester Research
and Juniper Research estimates that the losses experienced by advertisers will more than double to $100 billion in 2023, with
advertisers losing an estimated 25% of every dollar spent due to fraud.
Digital advertising fraud occurs when an
ad is displayed to a fake website or Bot in an effort to falsely inflate web traffic numbers, rather than being displayed to a
legitimate web site to be viewed by a human being. An advertiser that pays for an ad that is displayed to a Bot has wasted the
budget spent for the placement of that ad, as it is human beings that might spend money on the product or service being advertised,
as opposed to a Bot. Thus, brands and advertisers that cannot prevent their ads being shown to Bots become victims to the billions
of dollars lost to ad fraud annually, as calculated by Juniper Research and Forrester Consulting.
We believe that digital advertising fraud
is further exacerbated by the fact that our industry is increasingly fragmented. The most popular solutions that have emerged in
the marketplace for selling digital advertising are not connected to the solutions used by industry participants for purchases
of digital advertising. In other words, advertisers use DSPs to purchase digital advertising, whereas publishers use completely
different platforms called SSPs to sell advertising space to those advertisers. Therefore, advertisers may not know who is selling
them advertising inventory, and publishers may not know who is purchasing such inventory. With the two sides of any auction not
connected, and likely not communicating with each other across different platforms, it is difficult to assign responsibility to
tracking down fraud after an ad sale has already occurred. We have created a marketplace where advertisers and publishers can interact
directly. This layer of direct transparency allows advertisers to more efficiently identify ad fraud, and to ensure that they are
only buying advertising space that delivers the expected value of a particular campaign. Furthermore, fraud prevention is also
fragmented as a result of advertisers and publishers using different platforms to conduct digital advertising auctions. Indeed,
many DSPs and SSPs do not even have built-in fraud prevention solutions, instead relying on third parties to identify ad fraud
after an ad is displayed. Our internally-developed fraud prevention solution is native to our platform and detects fraud before
the digital advertising auction is concluded.
As a result of the fragmented, complex
and inefficient infrastructure currently in use for programmatic advertising, fraud is rampant in the digital advertising marketplace.
Bad actors' use of fake websites and Bots to sell advertising space costs advertisers billions of dollars a year. A large
part of the reason that widespread fraud runs rampant in the digital advertising industry is that current machine learning and
fraud prevention solutions in our industry can only identify such fraud after an ad purchase has already occurred. We believe it
is much harder to stop fraud when trying to catch perpetrators after the fraud has already occurred because the fraudsters have
the ability to completely change the fingerprint of the Bot, which allows it to reenter the ecosystem and commit fraud again.
2
We believe it is more effective to stop
fraud before it occurs than trying to catch perpetrators after the fraud has already occurred. Thus, we have developed what we
believe to be the first machine learning technology that can detect fraud within the 300-millisecond window known as the "bid
stream" prior to ad purchases. Our platform's fraud detection solution, called Kubient Artificial Intelligence ("KAI"),
is our patent-pending proprietary technology that uses artificial intelligence to analyze live advertising bid stream data to detect
potential ad fraud, a major issue within the digital advertising ecosystem. KAI's proprietary technology allows all advertisers
to make better-informed, real-time decisions within this brief window of time by identifying potentially fraudulent activity in
real-time. KAI is trained using different statistical and machine learning algorithms and is capable of detecting various types
of fraud, including user fraud, device fraud, content fraud and heuristic fraud. KAI analyzes 100% of real-time programmatic data
and industry-specific information to determine patterns and data points consistent with fraudulent activity, helping advertisers
maximize return on ad spend and protecting publishers. KAI can be fully integrated into Kubient's Audience Cloud marketplace,
or alternatively, can be deployed as a standalone application or enterprise solution on third party real time bidding platforms.
See "
Customers and Revenues
" below for a description of the successful beta testing of KAI that occurred during
the quarter ended March 31, 2020.
Latency Solution: Machine Learning
We believe that our platform allows us
to process digital advertising auctions faster than the competition. Faster auctions ensure that ad campaigns create more impressions
that are seen by consumers, as consumers are less likely to become frustrated by slowly loading websites or apps (which normally
results in consumers leaving such websites or apps before the ad is displayed).
To substantially reduce and minimize latency
issues across our fully integrated open marketplace, we use a highly-specialized programming language originally designed to be
used in extremely fast (but highly dependable) digital telephone communications switches, as well as quant-based speed trading
of securities on Wall Street. In addition, our platform's proprietary machine-learning algorithms, sophisticated data processing,
high volume storage, detailed analytics capabilities, and a distributed infrastructure that supercharges our bidding process and
helps our customers place, and win, more bids for advertising space. We believe we are transforming the digital advertising industry
by analyzing billions of data points in record real time speed to enable our solution to make complex decisions in milliseconds,
and to execute over 1 million queries per second, billions of transactions per week and trillions of bid requests per month.
Additional Platform Functionalities
Not only do we believe our platform
works faster, more efficiently and more safely in terms of fraud than our competition, we also believe that it provides added
functionality over our competitors, such as real time reporting of ad sales, and an open audience marketplace which enables
publishers, including websites, mobile applications, video and other digital media properties, to connect their advertising
inventory more efficiently and effectively to buyers across the entire advertising ecosystem, including brands, DSPs, ad
networks and advertising agencies.
3
In addition, our platform's functionality
allows us to quickly adapt to emerging media channels that might have been previously overlooked by the digital marketing ecosystem
.
For example, outdoor advertising, often referred to as out of
home media, such as
billboards, bus-stop shelters, public elevators, airport monitors and gas station pump placards, has not traditionally been connected
to digital advertising sources. However, these traditional forms of out of home media are increasingly being converted to digital
signage. Unlike their traditional out of home counterparts, these updated digital signs, often referred to as digital out of home
("DOOH") media, can display programmatic advertising, such that all of the advantages of our Audience Cloud can be
applied to this rapidly proliferating media channel. By
allowing brands,
DSPs, ad
networks, advertising agencies and brands to bid on DOOH publishers' inventory in real-time, just as if DOOH screens were
video screens on a desktop computer or mobile device, our Audience Cloud will allow advertisers to scale campaigns across new and
thriving media channels, thereby maximizing inventory fill rates and increasing the audiences that advertisers may target by digital
means.
Intellectual Property
We have filed two provisional patents,
one relating to our inventory and decision management system we created that allows DOOH media buying agencies to purchase ads
on our programmatic and real-time-bidding marketplace, and one relating to our KAI real time, digital advertising fraud prevention
solution.
Customers and Revenue
We provide our customers with a platform
to connect advertisers and publishers. Generally, our revenue generation process begins with publishers. When a publisher aims
to fill the available advertising space on its website or app, we typically enter into a twelve month master service agreement
allowing the publisher to sell advertising inventory through our platform. Once the publisher executes our master service agreement
and is accepted onto our platform, the publisher is allowed to electronically communicate with our platform through its ad server,
in order to provide us information about the publisher's advertising inventory, user base, minimum sale prices and other
data signals, as applicable. We also enter into master service agreements to allow third-party exchanges that aggregate publishers'
available advertising inventory to sell such inventory on our platform. As we believe fee transparency is a key element to the
success of our platform, we never buy advertising inventory in order to resell it to our customers for a profit. Instead, we earn
a mark-up, which is the spread between what we collect from advertisers and what we remit to publishers. We only pay for inventory
when an advertiser is connected to a publisher and an impression is successfully delivered. We sometimes refer to the amount we
pay publishers for inventory upon the delivery of an impression as "cost pay." As described further below, cost pay
is generally lower than what advertisers ultimately spend to have their ad impression delivered on a publisher's website
or app.
We also enter into twelve month master
service agreements with advertisers that wish to purchase advertising inventory, either on our platform or through their DSP. Our
proprietary algorithms use the industry information available (from advertisers, publishers, third parties and our own internal
database) to automatically target and bid on publishers' inventory to meet an advertiser's campaign objective. We generate
revenue from advertisers by charging them fees on a sliding scale based on a percentage of their spend on advertising purchased
through our platform, the total of which we sometimes refer to as "gross spend."
By having both publishers and advertisers
enter into twelve month master service agreements in order to use our platform, we believe we maintain high customer retention,
and very little, if any, customer loss (or "churn").
Thanks to the speed of our platform, the
matching of publisher and advertiser occurs in fractions of a second, within the short time frame of the bidstream. We recognize
revenue upon the completion of each matching transaction, at the moment when an impression has been delivered to the consumer viewing
a website or application. We generally bill and collect the full purchase price of impressions from advertisers, unless the advertiser
pays through its DSP, in which case the DSP is the entity that pays our fees. In either case, our gross revenue from each impression
is equal to gross spend minus cost pay.
We believe that growth of the programmatic
advertising market is important for our ability to continually grow our business. Adoption of programmatic advertising by advertisers
allows us to acquire new customers and grow revenue from existing customers. We also believe that current industry trends will
lead more advertisers to seek out a better fraud prevention solution to protect their advertising budgets, such as the one offered
on our platform.
Similarly, we believe that the adoption
of programmatic advertising by unique advertising inventory owners, such as digital out of home content providers for which we
have developed a unique solution, will allow us to expand the volume and type of advertising inventory that we present to advertisers
using our platform.
4
During the quarter ended March 31, 2020, we allowed two large
enterprise clients to beta test KAI in a live isolated environment. Kubient was able to successfully ingest hundreds of millions
of rows of data in real-time and provide our clients the ability to prevent the purchase of non-human or fraudulent advertising
traffic. The results from the two beta clients indicated that KAI was identifying and preventing approximately 300% more digital
ad fraud then the client's current partners. The large volume of data ingested helped to improve our proprietary algorithms including
the supervised and unsupervised version. This was invaluable as it provided us an opportunity to stress test our ability to handle
large scale, concurrent input of data into our system which is then analyzed using our patent-pending proprietary machine learning
technology. While KAI was monetized in the first quarter of 2020, we are currently determining the best pricing model based on
SMB and enterprise client usage and expect KAI to be widely adopted as a standalone enterprise product in the third fiscal quarter
of 2020.
Our net revenue was $177,635 for the year ended December 31,
2019 from 49 customers, and our net revenue was $1,381,913 for the quarter ended March 31, 2020 from 35 customers. The increase
was primarily due to approximately $1,300,000 of revenue generated in connection with beta testing of KAI, our fraud detection
service, which commenced during this quarter. Our net loss was $4,132,873 for the year ended December 31, 2019. Our net loss
was $58,098 for the quarter ended March 31, 2020. Based on the growth strategy set forth below, we contemplate that our revenues
will continue to increase for 2020 and beyond and will also continue to become less concentrated among a small number of customers.
Growth Strategy
Organic Growth
The key elements of our long-term growth
strategy are as follows:
●
Enhancing our existing auction technology to improve adoption among publishers and advertisers, which we expect will increase our revenue.
●
Further developing our fraud prevention system, which is powered by our proprietary KAI machine learning technology, which we are expecting to be widely incorporated into our service offerings in the third fiscal quarter of 2020.
●
Growing our customer base by increasing our salesforce to engage brands, agencies, website owners, app owners and other connected device owners, to facilitate marketplace participation. This will allow us to reach more audiences and garner larger budgets, growing our revenue and building long lasting customer relationships.
●
Launching and scaling our reach with advertisers by introducing real-time auctions into a previously static corners of the marketplace, such as digital out of home channels, allowing for video advertising at gas stations, hotels and airports.
●
●
Further developing our Audience Cloud platform
        to improve omni-channel relevance, and personalization at scale.
Further diversifying both our products
        and revenue streams to include stand-alone applications that address advertisers' business needs, such as KAI for real time
        fraud prevention, first party data hosting, and audience targeting solutions.
●
Increasing our global footprint across the globe, especially in Latin America, Asia-Pacific, Europe, the Middle East and Africa.
M &A Growth
In addition to the long-term, organic growth
discussed above, we intend to opportunistically acquire companies that expand our core technologies and introduce the Company to
potential new client bases that are potentially accretive to the Company's future earnings.
Risks That We Face
Our
business is subject to numerous risks and uncertainties, including those in the section captioned "
Risk Factors
"
beginning on page 12
and elsewhere in this prospectus. These risks include, but are not limited to, the following:
·
Our limited operating history makes it difficult to evaluate our business and prospects and may increase the risks associated with your investment;
·
We have incurred losses since our inception and we may continue to incur losses. If we fail to generate significant revenue through our platform, we may never achieve or sustain profitability;
·
We have concluded that there is substantial doubt about our ability to continue as a going concern within one year from the issuance date of this prospectus;
·
Failure to maintain and grow the customer base on our platform may negatively impact our revenue and business;
·
The loss of advertisers or publishers as customers could significantly harm our business, operating results and financial condition;
5
·
If we fail to innovate and make the right investment decisions in offerings and platform, we may not attract and retain advertisers and publishers and our revenue and results of operations may decline;
·
The market for programmatic advertising campaigns is relatively new and evolving. If this market develops slower or differently than we expect, our business, growth prospects and financial condition would be adversely affected;
·
Failure to manage our growth effectively could cause our business to suffer and have an adverse effect on our financial condition and operating results;
·
The market in which we participate is intensely competitive, and we may not be able to compete successfully with our current or future competitors;
·
We operate in a intensively competitive industry, and we may not be able to compete successfully;
·
We are subject to payment-related risks and, if our customers do not pay or dispute their invoices, our business, financial condition and operating results may be adversely affected;
·
Public health epidemics or outbreaks, such as COVID-19, could
materially and adversely impact our business; and
·
A decrease in the use of display advertising would harm our business, growth prospects, financial condition and results of operations.
Recent Developments
Reverse Stock Split
Prior to the closing of the offering, we plan to file a certificate
of amendment to our amended and restated certificate of incorporation with the Secretary of State of the State of Delaware to effectuate
a one-for-   (1:   ) reverse stock split of our common stock without any change to its par value. Such amendment will become effective
upon such filing. No fractional shares will be issued in connection with the reverse stock split as all fractional shares will
be adjusted to give effect to the reverse stock split.
Customer Contract with The Associated
Press
Effective February 5, 2020, the Company
entered into a Master Services Agreement (the "AP Agreement") with The Associated Press whereby the Company agreed
to provide advertising and related business revenue consultation services to The Associated Press. In consideration for the services
provided, commencing on March 1, 2020 and effective for a period of one year (subject to certain carve-outs), the Company
is entitled to certain revenue share amounts in connection with The Associated Press's consumer offerings outlined in the
AP Agreement, which was entered into as of March 27, 2020 and are summarized as follows:
During the three months ended March 31,
2020, the Company recognized revenue of $85,000 in connection with the AP Agreement. Although no assurances can be given, the Company
believes that by combining The Associated Press' digital audience with new purchasing partners on the Company's platform,
revenue derived from the AP Agreement could reach as an estimated amount as high as $500,000 per fiscal quarter in 2021 (assuming
renewal of the AP Agreement).
Paycheck Protection Program Loan
On
April 6, 2020, the Company received loan proceeds in the amount of approximately $327,000 (the "PPP Loan") under
the Paycheck Protection Program ("PPP") under the Coronavirus Aid, Relief and Economic Security Act
and applicable
regulations (the "CARES Act").
Under the terms of the CARES Act, as amended
by the Paycheck Protection Program Flexibility Act of 2020, the Company is eligible to apply for and receive forgiveness for all
or a portion of its PPP Loan. Such forgiveness will be determined, subject to limitations, based on the use of the loan proceeds
for certain permissible purposes as set forth in the PPP, including, but not limited to, payroll costs (as defined under the PPP)
and mortgage interest, rent or utility costs (collectively, "Qualifying Expenses") incurred during the 24 weeks subsequent
to funding, and on the maintenance of employee and compensation levels, as defined, following the funding of the PPP Loan. The
Company intends to use the proceeds of its PPP Loan for Qualifying Expenses. However, no assurance is provided that the Company
will be able to obtain forgiveness of the PPP Loan in whole or in part. Any amounts that are not forgiven incur interest at 1.0%
per annum and monthly repayments of principal and interest are deferred until the Small Business Administration makes a determination
on forgiveness. While the Company's PPP Loan currently has a two-year maturity, the amended law will permit the Company to
request a five-year maturity.
6
EIDL Loan
On
June 20, 2020, the Company executed the loan documents required for securing a loan, which include the SBA Secured Disaster
Loan Note, the Loan Authorization and Agreement and the Security Agreement (the "EIDL Loan") from the
United
States Small Business Administration (the "SBA") under its Economic Injury Disaster Loan assistance program
in light of the impact of the COVID-19 pandemic on the Company's business. The principal amount of the EIDL Loan
is $78,900, with proceeds to be used for working capital purposes. Interest on the EIDL Loan accrues at the rate of 3.75% per annum.
Monthly installment payments in the amount of $385 per month, including principal and interest, will begin twelve months from the
date of the EIDL Loan and the balance of principal and interest will be payable thirty years from the date of the promissory note.
The EIDL Loan is collateralized by the assets of the Company. The Company received the proceeds from the EIDL Loan on June 23,
2020. Such EIDL Loan amount will reduce the Company's PPP loan forgiveness amount described above.
Notes Payable – Related Parties
During 2020, the Company received proceeds
of $585,000 in connection with three-year notes issued to five executive officers of the Company, including entities associated
with such persons ("Related Party Notes"). All of these notes bear interest ranging from 0.91% and 1.60% per annum,
payable annually. The outstanding principal and accrued and unpaid interest shall become immediately due and payable upon an initial
public offering, sale of the Company or qualified financing with equity proceeds of at least $5,000,000. There can be no assurance
that the Company will complete an initial public offering, sale of the Company or qualified financing with equity proceeds of at
least $5,000,000. Furthermore, the holders of the Related Party Notes have agreed to amend such notes prior to the effectiveness
of this registration statement to provide for conversion of principal and interest thereunder into the units being issued in this
offering at the public offering price per unit.
Bridge Financing - Senior Notes
In three separate
closings dated April 26, May 23, and June 28, 2019, the Company sold 25 units of its securities for gross proceeds
of $2,500,000, with each unit priced at $100,000 (each, a "Unit" and, collectively, the "Units"). Each
Unit sold in the offering consisted of (i) a 5% Senior Secured Convertible Promissory Note in the principal amount of $110,000,
reflecting an Original Issue Discount of 10% of the Company that is convertible into shares of the Company's common stock
(the "Senior Notes"), and (ii) a five-year warrant to purchase a number of shares of the Company's common
stock equal to the quotient obtained by dividing $110,000 by the Conversion Price (as defined in the Senior Notes) at an exercise
price equal to 120% of the Conversion Price. Under certain circumstances, such as a Qualified IPO (as defined in the Senior Notes
and which the Offering would qualify), the conversion of the foregoing Senior Notes will be for the same securities issued in the
Qualified IPO which could be a combination of warrants and shares of the Company's common stock. After the expiration of
a period of no less than 180 days following the effective date of this offering, holders of Units shall have one demand registration
right, if Rule 144 under the Securities Act is not then available, and unlimited piggyback registration rights with respect
to the shares of common stock underlying the securities that make up the Units.
There were cash debt issuance costs of $372,599. In addition,
Joseph Gunnar & Co., LLC, who acted as the Company's placement agent for this transaction, is entitled to receive
warrants to purchase shares of common stock in connection with this private offering. See "
Underwriting – Placement
Agent Warrants
."
Bridge Financing
- Junior Notes
In two separate
closings dated October 11 and November 6, 2019, the Company sold 11.05 units of its securities for gross proceeds of
$1,105,000, with each unit priced at $100,000 (each, a "Subordinated Unit" and, collectively, the "Subordinated
Units"). Each Subordinated Unit sold in the offering consisted of (i) a 5% Subordinated Convertible Promissory Note
in the principal amount of $110,000, reflecting an Original Issue Discount of 10% of the Company that is convertible into shares
of the Company's common stock (the "Junior Notes") and (ii) a five-year warrant to purchase a number of
shares of the Company's common stock equal to the quotient obtained by dividing $110,000 by the Conversion Price (as defined
in the Junior Notes) at an exercise price equal to 120% of the Conversion Price. Under certain circumstances, such as a Qualified
IPO (as defined in the Junior Notes and which the Offering would qualify), the conversion of the foregoing Junior Notes will be
for the same securities issued in the Qualified IPO which could be a combination of warrants and shares of the Company's
common stock. After the expiration of a period of no less than 180 days following the effective date of this offering, holders
of Subordinated Units shall have one demand registration right, if Rule 144 under the Securities Act is not then available,
and unlimited piggyback registration rights with respect to the shares of common stock underlying the securities that make up the
Subordinated Units.
There were cash debt issuance costs of $238,985. In addition,
Joseph Gunnar & Co., LLC, who acted as the Company's placement agent for this transaction, is entitled to receive
warrants to purchase shares of common stock in connection with this private offering. See "
Underwriting – Placement
Agent Warrants
."
7
Amendments
of Senior and Junior Notes
Between
May 22, 2020 and June 11, 2020, the Company and all of the holders of Senior Notes and Junior Notes entered to
a consent and first amendment to the Senior Notes and Junior Notes (the "Amended Senior Notes" and "Amended Junior
Notes", respectively). The Amended Senior Notes were amended as follows: (i) the holders authorized the Company to incur
certain indebtedness, including certain government loans as well as non-government loans with a principal amount not to exceed
$1,000,000 in the aggregate (the "Permitted Indebtedness"), (ii) the Amended Senior Notes are subordinated to
the Permitted Indebtedness, (iii) effective May 1, 2020, the interest rate increased from 5% to 10% per annum, (iv) the
original issuance discount was increased from 10% to 20%, (v) the maturity date of the Amended Senior Notes was extended to
October 26, 2020 and (vi) in connection with the exercise price of the investor warrants, the date under which the Qualified
IPO must occur on or before was extended to October 26, 2020. The Amended Junior Notes were amended as follows: (i) the
holders authorized the Company to incur the Permitted Indebtedness and (ii) the Amended Junior Notes are subordinated to the
Permitted Indebtedness, (iii) effective May 1, 2020, the interest rate increased from 5% to 10% per annum, (iv) the
original issuance discount was increased from 10% to 20%, (v) the maturity date of the Amended Junior Notes was extended to
April 11, 2021 and (vi) in connection with the exercise price of the investor warrants, the date under which the Qualified
IPO must occur on or before was extended to October 26, 2020.
As a result, there were outstanding Amended
Senior Notes and Amended Junior Notes in the aggregate principal amount of $3,000,000 and $1,326,000, respectively.
Corporate Information
Our mailing address is 228 Park Avenue
South, Suite 72602, New York, New York 10003-1502. Our telephone number is (800) 409-9456. The address of our website is www.Kubient.com.
The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website
into this prospectus.
Implications of Being an Emerging Growth
Company
We are an "emerging growth company"
as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). For as long as we are an emerging growth
company, unlike public companies that are not emerging growth companies under the JOBS Act, we will not be required to:
•
provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002 (the "Sarbanes Oxley Act");
•
provide more than two years of audited financial statements and related management's discussion and analysis of financial condition and results of operations;
•
comply with any new requirements adopted by the Public Company Accounting Oversight Board (the "PCAOB") requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer;
•
provide certain disclosure regarding executive compensation required of larger public companies or hold stockholder advisory votes on the executive compensation required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"); or
•
obtain stockholder approval of any golden parachute payments not previously approved.
We will cease to be an emerging growth
company upon the earliest of the:
•
last day of the fiscal year in which we have $1.07 billion or more in total annual gross revenues;
•
date on which we become a "large accelerated filer" (the fiscal year-end on which the total market value of our common equity securities held by non-affiliates is $700 million or more as of June 30);
•
date on which we issue more than $1.0 billion of non-convertible debt over a three-year period; or
•
last day of the fiscal year following the fifth anniversary of our initial public offering.
8
We have elected to take advantage of certain
of the reduced disclosure obligations in this prospectus, and may elect to take advantage of other reduced reporting requirements
in future filings. As a result, the information that we provide to our stockholders may be different than you might receive from
other public reporting companies in which you hold equity interests.
In addition, Section 107 of the JOBS
Act also provides that an "emerging growth company" can take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words,
an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise
apply to private companies.
9
THE OFFERING
Securities offered by us:
units, each consisting of one share of common stock and one warrant to purchase one share of common stock. The warrants included within the units are exercisable immediately, have an exercise price of $                per share (      % of the public offering price of one unit) and expire five years from the date of issuance.  The shares of our common stock and the warrants comprising the Units are immediately separable upon issuance and will be issued separately in this offering.
Assumed Public Offering Price:
$         per unit, which is the mid-point of the estimated offering price range described on the cover of this prospectus
1
Common stock outstanding before the offering:
shares
Common stock to be outstanding after this offering
shares,
which includes the           units sold in the offering at $      per
unit (the mid-point of the offering price per unit as shown on the cover page) and approximately            shares
of common stock issuable upon conversion of the Senior Notes, Junior Notes and the Related Party Notes based on the above assumed
offering price per unit.  Excludes the securities described on page 11 below.
Overallotment option:
We have granted the representative of the underwriters a 45 day option to purchase up to            additional shares of our common stock at a public offering price of $          per share and/or warrants to purchase shares of our common stock at a public offering price of $ per warrant, solely to cover over-allotments, if any.
Use of proceeds
We estimate that we will receive net proceeds of approximately $          million, assuming an initial public offering price of $ per share, the midpoint of the price range set forth on the cover page of this prospectus, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us.
Although we have not yet determined with certainty the manner in which we will allocate the net proceeds of this offering, we expect to use the net proceeds from this offering for product development, working capital, capital expenditures, repayment of debt, offering expenses, and other general corporate purposes, including investments in sales and marketing in the United States and internationally. We may also use a portion of the proceeds from this offering for acquisitions or strategic investments in complementary businesses, brands or technologies. We have not allocated specific amounts of net proceeds for any of these purposes. See "
Use of Proceeds
" for additional information.
Risk factors
See "
Risk
Factors
" beginning on page 12 and the other information included in this prospectus for a discussion of factors you
should carefully consider before deciding to invest in our common stock.
Proposed Trading Symbol:
We have applied to The Nasdaq Capital Market to list our common stock under the symbol "KBNT" and our warrants under the symbol ""KBNTW." No assurance can be given that our applications will be approved.
1
The assumed public offering price of $            per unit, the mid-point
of the range described on the cover of this prospectus. The actual number of units we will offer will be determined based on the
actual public offering price.
10
Lock-up:
We and our directors, officers
and certain of our principal stockholders have agreed with the underwriters not to offer for sale, issue, sell, contract to sell,
pledge or otherwise dispose of any of our common stock or securities convertible into common stock for a period of 365 days after
the date of this prospectus, in the case of our directors and officers, and 180 days after the date of this prospectus, in
the case of certain of our principal stockholders. See "
Underwriting
" on page 74.
The total number of shares of our common stock that will be
outstanding after this offering is based on shares of common stock outstanding as of ________________, 2020, which reflects an
assumed reverse stock split of 1: . Unless otherwise indicated, the shares of common stock outstanding after this offering excludes
the following:
•
shares of common stock issuable upon exercise of outstanding warrants with a weighted average exercise price of $     ;
•
shares of common stock reserved for issuance pursuant to the
2017 Equity Incentive plan (the "2017 Plan");
•
shares of common stock issuable upon exercise of outstanding options with a weighted average exercise price of $        under our equity compensation plans;
•
shares of common stock issuable upon exercise of warrants being issued to holders of the Senior Notes and Junior upon the closing of this offering;
•
shares of common stock issuable upon exercise of warrants to be issued to the underwriters in connection with this offering;
•
shares of common stock issuable upon exercise of warrants sold in this offering; and
•
any securities issuable upon exercise of the representative's over-allotment option
11
RISK FACTORS
An investment in our common stock involves
a high degree of risk. You should carefully consider the following risks and all of the other information contained in this prospectus
before deciding whether to invest in our common stock. If any of the following risks are realized, our business, financial condition
and results of operations could be materially and adversely affected. In that event, the trading price of our common stock could
decline, and you could lose all or part of your investment in our common stock. Some statements in this prospectus, including such
statements in the following risk factors, constitute forward-looking statements. See the section entitled "Cautionary Note
Regarding Forward-Looking Statements."
Risks Related to Our Company
Our limited operating history makes
it difficult to evaluate our business and prospects and may increase the risks associated with your investment.
We commenced operations in 2017 and consequently
have only a limited operating history upon which our business and future prospects may be evaluated. Despite the experience and
track record of our management team in the digital advertising industry, historical results are not indicative of, and may be substantially
different than, the results we achieve in the future. We cannot assure you that we will be able to operate our business successfully
or implement our operating policies and strategies as described above. We have encountered and will continue to encounter risks
and challenges frequently experienced by growing companies in rapidly developing industries, including risks related to our ability
to:
12
·
build a reputation for providing a superior platform and customer service, and for creating trust and long-term relationships with customers;
·
distinguish ourselves from competitors;
·
develop and offer a competitive platform that meets our customers' needs as they change;
·
improve our current operational infrastructure and non-platform technology to support significant growth and to respond to the evolution of our market and competitors' developments;
·
maintain and expand our relationships with suppliers of quality advertising inventory and data;
·
respond to evolving industry standards and government regulation that impact our business;
·
prevent or mitigate failures or breaches of security;
·
expand our business internationally; and
·
hire and retain qualified and motivated employees.
We cannot assure you that we will be successful
in addressing these and other challenges we may face in the future. If we are unable to do so, our business may suffer, our revenue
and operating results may decline and we may not be able to achieve further growth or sustain profitability.
We have incurred losses since our
inception and we may continue to incur losses. If we fail to generate significant revenue through our platform, we may never achieve
or sustain profitability.
We have incurred losses since our inception
in May 2017 that have resulted principally from costs incurred in connection with our software engineering, research and development
efforts, bad debt expenses, professional fees, rent expense, marketing activities and other general and administrative expenses
associated with our operations, and we may continue to incur losses as we continue to invest capital in the marketing and development
of our platform, as well as the growth of our business generally. We cannot provide any assurance that we will ever achieve profitability
and, even if we achieve profitability, that we will be able to sustain or increase profitability on a quarterly or annual basis.
Further, because of our relatively limited history as a business, we have limited insight into the trends that may emerge and affect
our business. We may make errors in predicting and reacting to relevant business trends, which could harm our business and financial
condition. Any failure to achieve and maintain profitability would continue to have an adverse effect on our stockholders'
deficit and working capital and could result in a decline in our stock price or cause us to cease operations.
13
There is substantial doubt about
our ability to continue as a going concern.
The report of our independent registered
public accounting firm on our consolidated financial statements for the years ended December 31, 2019 and 2018 included an
explanatory paragraph expressing management's assessment and conclusion that there is substantial doubt about our ability
to continue as a going concern within one year after the financial statement issuance date, citing our recurring losses and cash
used from operations among other factors. Our ability to continue as a going concern will be determined by our ability to generate
sufficient cash flow to sustain our operations and/or raise additional capital in the form of debt or equity financing. We believe
that the inclusion of a going concern explanatory paragraph in the report of our registered public accounting firm will make it
more difficult for us to secure additional financing or enter into strategic relationships with distributors on terms acceptable
to us, if at all, and likely will materially and adversely affect the terms of any financing that we might obtain. Our consolidated
financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts
or amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.
Our failure to maintain and grow
the customer base on our platform may negatively impact our revenue and business.
To sustain or increase our revenue,
we must regularly add both new advertiser and publisher customers, while simultaneously maintain existing customers to
maintain or increase the amount of advertising inventory purchased through our platform and adopt new features and
functionalities that we add to our platform. If competitors introduce lower cost or differentiated offerings that compete
with or are perceived to compete with ours, our ability to sell access to our platform to new or existing customers could be
impaired. While we generally have master services agreements in place for our customers, such agreements allow our customers
to change the amount of spending on our platform or terminate our services with limited notice. Our customers typically have
relationships with different providers and there is limited cost to moving budgets to our competitors. As a result, we may
have limited visibility as to our future advertising revenue streams. We cannot assure you that our customers will continue
to use our platform or that we will be able to replace, in a timely or effective manner, departing customers with new
customers that generate comparable revenue. If a major customer representing a significant portion of our business decides to
materially reduce its use of our platform or to cease using our platform altogether, it is possible that our revenue could be
significantly reduced.
The loss of advertisers and publishers
as customers could significantly harm our business, operating results and financial condition.
Our customer base consists primarily of
advertisers and publishers. We do not have exclusive relationships with advertising agencies, companies that are advertisers, or
publishers, such that we largely depend on agencies to work with us as they embark on advertising campaigns for advertisers. The
loss of agencies as customers and referral sources could significantly harm our business, operating results and financial condition.
If we fail to maintain satisfactory relationships with an advertising agency, we risk losing business from the advertisers represented
by that agency.
Furthermore, advertisers and publishers
may change advertising agencies. If an advertiser switches from an agency that utilizes our platform to one that does not, we will
lose revenue from that advertiser. In addition, some advertising agencies have their own relationships with publishers that are
different that our relationships, such that they might directly connect advertisers with such publishers. Our business may suffer
to the extent that advertising agencies and inventory suppliers purchase and sell advertising inventory directly from one another
or through intermediaries other than us.
In most cases, we enter into separate contracts
and billing relationships with the individual agencies and account for them as separate customers. However, some holding companies
for these agencies may choose to exert control over the individual agencies in the future. If so, any loss of relationships with
such holding companies and, consequently, of their agencies, local branches or divisions, as customers could significantly harm
our business, operating results and financial condition.
If we fail to innovate and make the
right investment decisions in our offerings and platform, we may not attract and retain advertisers and publishers and our revenue
and results of operations may decline.
Our industry is subject to rapid and frequent
changes in technology, evolving customer needs and the frequent introduction by our competitors of new and enhanced offerings.
We must constantly make investment decisions regarding our offerings and technology to meet customer demand and evolving industry
standards. We may make wrong decisions regarding these investments. If new or existing competitors have more attractive offerings
or functionalities, we may lose customers or customers may decrease their use of our platform. New customer demands, superior competitive
offerings or new industry standards could require us to make unanticipated and costly changes to our platform or business model.
If we fail to adapt to our rapidly changing industry or to evolving customer needs, demand for our platform could decrease and
our business, financial condition and operating results may be adversely affected.
14
The market for programmatic advertising
campaigns is relatively new and evolving. If this market develops slower or differently than we expect, our business, growth prospects
and financial condition would be adversely affected.
The substantial majority of our revenue
has been derived from customers that programmatically purchase and sell advertising inventory through our platform. We expect
that spending on programmatic ad buying and selling will continue to be our primary source of revenue for the foreseeable future,
and that our revenue growth will largely depend on increasing spend through our platform. The market for programmatic ad buying
is an emerging market, and our current and potential customers may not shift quickly enough to programmatic ad buying from other
buying methods, reducing our growth potential. Because our industry is relatively new, we will encounter risks and difficulties
frequently encountered by early-stage companies in similarly rapidly evolving industries, including the need to:
·
Maintain our reputation and build trust with advertisers and digital media property owners;
·
Offer competitive pricing to publishers, advertisers, and digital media agencies;
·
Maintain quality and expand quantity of our advertising inventory;
·
Continue to develop, launch and upgrade the technologies that enable us to provide our solutions;
·
Respond to evolving government regulations relating to the internet, telecommunications, mobile, privacy, marketing and advertising aspects of our business;
·
Identify, attract, retain and motivate qualified personnel; and
·
Cost-effectively manage our operations, including our international operations.
If the market for programmatic ad buying
deteriorates or develops more slowly than we expect, it could reduce demand for our platform, and our business, growth prospects
and financial condition would be adversely affected.
In addition, revenue may not necessarily
grow at the same rate as spend on our platform. Growth in spend may outpace growth in our revenue as the market for programmatic
advertising matures due to a number of factors including quantity discounts and product, media, customer and channel mix shifts.
A significant change in revenue as a percentage of spend could reflect an adverse change in our business and growth prospectus.
In addition, any such fluctuations, even if they reflect our strategic decisions, could cause our performance to fall below the
expectations of securities analysts and investors, and adversely affect the price of our common stock.
Failure to manage our growth effectively
could cause our business to suffer and have an adverse effect on our financial condition and operating results.
We have experienced significant growth
in a short period of time. To manage our growth effectively, we must continually evaluate and evolve our organization. We must
also manage our employees, operations, finances, technology and development and capital investments efficiently. Our efficiency,
productivity and the quality of our platform and customer service may be adversely impacted if we do not train our new personnel,
particularly our sales and support personnel, quickly and effectively, or if we fail to appropriately coordinate across our organization.
Additionally, our rapid growth may place a strain on our resources, infrastructure and ability to maintain the quality of our platform.
In future periods, our revenue or profitability could decline or grow more slowly than we expect. Failure to manage our growth
effectively could cause our business to suffer and have an adverse effect on our financial condition and operating results.
We operate in a intensively competitive
industry, and we may not be able to compete successfully.
The digital video advertising market is
intensely competitive, with many companies providing competing solutions. We will compete with Google (YouTube and DoubleClick),
The Trade Desk and Facebook as well as many ad exchanges, demand-side platforms for advertisers and ad networks. We also face competition
from direct response (search-based) advertisers who seek to target brands. Many of our competitors are significantly larger than
we are and have more capital to invest in their businesses. Our competitors may establish or strengthen cooperative relationships
with publishers and advertisers, or other parties, which limit our ability to promote our solutions and generate revenue. For example,
advertiser customers that adopt demand-side advertiser platforms disrupt our direct customer relationship with those customers.
Competitors could also seek to gain market share by reducing the prices they charge to publishers or advertisers, introducing products
and solutions that are similar to ours or introducing new technology tools for advertisers and digital media properties. Moreover,
increased competition for video advertising inventory from digital media properties could result in an increase in the portion
of advertiser revenue that we must pay to digital media property owners to acquire that advertising inventory.
15
Some large advertising agencies that represent
advertising customers have their own relationships with digital media properties and can directly connect advertisers with digital
media properties. Our business will suffer to the extent that our advertisers and digital media properties purchase and sell advertising
inventory directly from one another or through other companies that act as intermediaries between advertisers and digital media
properties. Other companies that offer analytics, mediation, ad exchange or other third party solutions have or may become
intermediaries between advertisers and digital media properties and thereby compete with us. Any of these developments would make
it more difficult for us to sell our solutions and could result in increased pricing pressure, reduced profit margins, increased
sales and marketing expenses or the loss of market share.
If we do not successfully address these
risks, our revenue could decline, our costs could increase, and our ability to pursue our growth strategy and attain profitability
could be compromised.
Further, we derive our revenue from the
digital advertising industry, which is rapidly evolving, highly competitive, complex and fragmented. We face significant competition
in this market which we expect will intensify in the future. We currently compete for advertising spend with large, well-established
companies as well as smaller, privately-held companies. Some of our larger competitors with more resources may be better positioned
to execute on advertising campaigns conducted over multiple channels such as social media, mobile and video.
We may also face competition from companies
that we do not yet know about or do not yet exist. If existing or new companies develop, market or resell competitive high-value
marketing products or services, acquire one of our existing competitors or form a strategic alliance with one of our competitors,
our ability to compete effectively could be significantly compromised and our results of operations could be harmed.
Our current and potential competitors
may have significantly more financial, technical, marketing and other resources than we have, allowing them to devote greater
resources to the development, promotion, sale and support of their products and services. They may also have more extensive
advertiser bases and broader publisher relationships than we have, and may have longer operating histories and greater name
recognition. As a result, these competitors may be better able to respond quickly to new technologies, develop deeper
advertiser relationships or offer services at lower prices. Any of these developments would make it more difficult for us to
sell our platform and could result in increased pricing pressure, increased sales and marketing expense or the loss of market
share.
We are subject to payment-related risks
and, if our customers do not pay or dispute their invoices, our business, financial condition and operating results may be adversely
affected.
Certain of our
contracts with publishers provide that if the advertiser does not pay the publisher, the publisher is not liable to us, and we
must seek payment solely from the advertiser, a type of arrangement called sequential liability. Increasingly, we have sought to
enter into agreements without sequential liability, as contracting with these kinds of publishers, which in some cases have or
may develop higher-risk credit profiles, may subject us to greater credit risk than if we were to contract directly with
advertisers. This credit risk may vary depending on the nature of a publisher's aggregated advertiser base. We may also be
involved in disputes with agencies and their advertisers over the operation of our platform, the terms of our agreements or our
billings for purchases made by them through our platform. If we are unable to collect or make adjustments to bills to customers,
we could incur write-offs for bad debt, which could have a material adverse effect on our results of operations for the
periods in which the write-offs occur. In the future, bad debt may exceed reserves for such contingencies and our bad
debt exposure may increase over time. Any increase in write-offs for bad debt could have a materially negative effect
on our business, financial condition and operating results. Even if we are not paid by our customers on time or at all, we are
still obligated to pay for the advertising we have purchased for the advertising campaign, and as a consequence, our results of
operations and financial condition would be adversely impacted.
We may not be able to integrate,
maintain and enhance our advertising solutions to keep pace with technological and market developments.
The market for digital video advertising
solutions is characterized by rapid technological change, evolving industry standards and frequent introductions of new products
and services. To keep pace with technological developments, satisfy increasing publisher and advertiser requirements, maintain
the attractiveness and competitiveness of our advertising solutions and ensure compatibility with evolving industry standards and
protocols, we will need to anticipate and respond to varying product lifecycles, regularly enhance our current advertising solutions
and develop and introduce new solutions and functionality on a timely basis. This requires significant investment of financial
and other resources. For example, we will need to invest significant resources into expanding and developing our platform in order
to maintain a comprehensive solution. Ad exchanges and other technological developments may displace us or introduce an additional
intermediate layer between us and our customers and digital media properties that could impair our relationships with those customers.
16
If we fail to detect advertising
fraud, we could harm our reputation and hurt our ability to execute our business plan.
As our business expands to providing services
to publishers, advertisers and agencies, we must deliver effective digital advertising campaigns. Despite what we believe to be
unique fraud protection techniques that we expect to offer our advertising and agency customers, some of those campaigns may experience
fraudulent and other invalid impressions, clicks or conversions that advertisers may perceive as undesirable, such as non-human
traffic generated by computers designed to simulate human users and artificially inflate user traffic on websites. These activities
could overstate the performance of any given digital advertising campaign and could harm our reputation. It may be difficult for
us to detect fraudulent or malicious activity because we do not own content and rely in part on our digital media properties
to
control such activity. Industry self-regulatory bodies, the U.S. Federal Trade Commission (the "FTC") and certain influential
members of Congress have increased their scrutiny and awareness of, and have taken recent actions to address, advertising fraud
and other malicious activity. If we fail to detect or prevent fraudulent or other malicious activity, the affected advertisers
may experience or perceive a reduced return on their investment and our reputation may be harmed. High levels of fraudulent or
malicious activity could lead to dissatisfaction with our solutions, refusals to pay, refund or future credit demands or withdrawal
of future business.
We depend on the proliferation of
digital video advertisements and anything that prevents this proliferation, including the possibility to opt out of services and
functionality, will negatively impact our business model.
The success of our business model
depends on our ability to deliver digital video advertisements to consumers on a wide variety of internet-connected devices.
We believe that digital video advertising is most successful when targeted primarily through analysis of data. This data
might include a device's location or data collected when device users view an ad or video or when they click on or
otherwise engage with an ad, or it could include demographic or other data about users' interests or activities
that is licensed or acquired from third parties. Users may elect not to allow data sharing for targeted advertising for many
reasons, such as privacy concerns, or to avoid usage charges based on the amount or type of data consumed on the device.
Users may opt out of interest-based advertising. In addition, internet-connected devices and operating systems controlled by
third parties increasingly contain features that allow device users to disable functionality that allows for the delivery of
ads on their devices. Device and browser manufacturers may include or expand these features as part of their standard device
specifications. For example, when Apple announced that UDID, a standard device identifier used in some applications, was
being superseded and would no longer be supported application developers were required to update their apps to utilize
alternative device identifiers such as universally unique identifier, or, more recently, identifier-for-Advertising, which
simplify the process for Apple users to opt out of behavioral targeting. In addition, many advertising companies may
participate in self-regulatory programs, such as the Network Advertising Initiative or Digital Advertising Alliance, through
which they agree to offer users the ability to opt out of behavioral advertising. If users elect to utilize the opt-out
mechanisms in greater numbers, our ability to deliver effective video advertising would suffer, which could hurt our ability
to generate revenue and profitability.
Seasonal fluctuations in digital
advertising activity could adversely affect our cash flows.
Our cash flows from operations vary from
quarter to quarter due to the seasonal nature of advertiser spending. For example, many advertisers devote a disproportionate amount
of their advertising budgets to the fourth quarter of the calendar year to coincide with increased holiday purchasing. If and to
the extent that seasonal fluctuations become more pronounced, or are not offset by other factors, our operating cash flows could
fluctuate materially from period to period as a result.
Public health epidemics
or outbreaks, such as COVID-19, could materially and adversely impact our business.
In
December 2019, a novel strain of coronavirus (COVID-19) emerged in Wuhan, Hubei Province, China. While initially the outbreak
was largely concentrated in China and caused significant disruptions to its economy, it has now spread to several other countries
and infections have been reported globally.
Because
COVID-19 infections have been reported throughout the United States, certain federal, state and local governmental authorities
have issued stay-at-home orders, proclamations and/or directives aimed at minimizing the spread of COVID-19. Additional, more restrictive
proclamations and/or directives may be issued in the future. As a result, COVID-19 has had an impact on most brands and significantly
all advertising channels. When a large portion of the global population entered quarantine due to COVID-19, normal purchasing behavior
patterns were interrupted, with a result that advertising volumes decreased. With advertisers spending less money on advertising,
companies reliant on such advertising spend will likely be negatively impacted from a financial and budgeting perspective. The
Company's collection of receivables will also be slowed as a result of the effect of COVID-19 on consumer purchasing behavior,
and advertisers' reaction to such downward trends.
Such a slowdown in collections will have a short-term, impact on
our business, financial condition and results of operations, and likely beyond.
The ultimate impact
of the COVID-19 pandemic on the Company's operations is unknown and will depend on future developments, which are highly
uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information which may emerge
concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the
Company, may direct, which may result in an extended period of continued business disruption, reduced customer traffic and reduced
operations. Any resulting financial impact cannot be reasonably estimated at this time but is anticipated to have a material adverse
impact on our business, financial condition and results of operations.
The operational measures
taken to date will impact the Company's business for its fiscal second quarter and potentially into the future. Management
expects that all of its business segments will be impacted to some degree, but the significance of the impact of the COVID-19 outbreak
on the Company's business and the duration for which it may have an impact cannot be determined at this time.
17
Economic downturns and market conditions
beyond our control could adversely affect our business, financial condition and operating results.
Our business depends on the overall demand
for advertising and on the economic health of advertisers and publishers that benefit from our platform. Economic downturns or
unstable market conditions such as those potentially created by the outbreak of COVID-19 as a pandemic, may cause advertisers to
decrease their advertising budgets, which could reduce spend though our platform and adversely affect our business, financial condition
and operating results. As we explore new countries to expand our business, economic downturns or unstable market conditions in
any of those countries could result in our investments not yielding the returns we anticipate.
We
may experience fluctuations in our operating results, which could make our future operating results difficult to predict or cause
our operating results to fall below analysts' and investors' expectations
.
Our quarterly and annual operating results
have fluctuated in the past and we expect our future operating results to fluctuate due to a variety of factors, many of which
are beyond our control. Fluctuations in our operating results could cause our performance to fall below the expectations of analysts
and investors, and adversely affect the price of our common stock. Because our business is changing and evolving rapidly, our historical
operating results may not be necessarily indicative of our future operating results. Factors that may cause our operating results
to fluctuate include the following:
·
changes in demand for our platform, including related to the seasonal nature of spending on digital advertising campaigns;
·
changes in our pricing policies, the pricing policies of our competitors and the pricing or availability of inventory, data or of other third-party services;
·
changes in our customer base and platform offerings;
·
the addition or loss of customers;
·
changes in advertising budget allocations, agency affiliations or marketing strategies;
·
changes to our product, media, customer or channel mix;
·
changes and uncertainty in the regulatory environment for us, advertisers or publishers;
·
changes in the economic prospects
of advertisers or the economy generally, which could alter advertisers' spending priorities, or could increase the time or costs
required to complete advertising inventory sales;
·
the possible effects of the widespread domestic and global impact of the COVID-19 pandemic, including on general economic conditions, public health, and consumer demand and financial markets;
·
changes in the availability of advertising inventory through real-time advertising exchanges or in the cost of reaching end consumers through digital advertising;
·
disruptions or outages on our platform;
·
the introduction of new technologies or offerings by our competitors;
·
changes in our capital expenditures as we acquire the hardware, equipment and other assets required to support our business;
·
timing differences between our payments for advertising inventory and our collection of related advertising revenue;
·
the length and unpredictability of our sales cycle; and
·
costs related to acquisitions of businesses or technologies, or employee recruiting.
Based upon the factors above and others
beyond our control, we have a limited ability to forecast our future revenue, costs and expenses, and as a result, our operating
results may, from time to time, fall below our estimates or the expectations of analysts and investors.
18
As our costs increase, we may not
be able to generate sufficient revenue to sustain profitability.
We have expended significant resources
to grow our business in recent years by increasing the offerings of our platform, growing our number of employees and expanding
internationally. We anticipate continued growth that could require substantial financial and other resources to, among other things:
·
develop our platform, including by investing in our engineering team, creating, acquiring or licensing new products or features, and improving the availability and security of our platform;
·
expand internationally by growing our sales force and customer services team in an effort to increase our customer base and spend through our platform, and by adding inventory and data from countries our customers are seeking;
·
improve our technology infrastructure, including investing in internal technology development and acquiring outside technologies;
·
cover general and administrative expenses, including legal, accounting and other expenses necessary to support a larger organization;
·
cover sales and marketing expenses, including a significant expansion of our direct sales organization;
·
cover expenses relating to data collection and consumer privacy compliance, including additional infrastructure, automation and personnel; and
·
explore further strategic acquisitions.
Investing in the foregoing, however, may
not yield anticipated returns. Consequently, as our costs increase, we may not be able to generate sufficient revenue to sustain
profitability.
We will need to obtain a significant amount of additional financing
to continue the development of our software platform and implement our business plan.
Since our inception, we have not generated
sufficient revenues from our operations to fund the development and expansion of our software platform by our engineering team
and to promote and roll out our products. We have funded a portion of our operations through the sale of our equity securities.
The implementation of our business plan will require the receipt of sufficient equity and/or debt financing necessary to fund our
expansion plan and otherwise fund our operations. Based on our working capital deficiency, outstanding debt, and forecast for continued
operating losses, prior to the receipt of the proceeds of this offering, we are funding our operations on a month-to-month basis.
We will, therefore, require additional cash resources due to fully implement our business plan. If these resources are insufficient
to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain one or more credit facilities.
The sale of additional equity securities could result in additional dilution to our stockholders and the terms of these securities
may include liquidation or other preferences that adversely affect your rights as a common stockholder. The incurrence of indebtedness
would result in increased debt service obligations and could result in operating and financing covenants that would restrict our
operations. It is uncertain whether financing will be available in amounts or on terms acceptable to us, if at all. Our inability
in the future to obtain additional equity capital or a corporate credit facility on attractive terms, or at all, could adversely
impact our ability to execute our business strategy, which could adversely affect our growth prospects and future stockholder returns.
Servicing our debt will require a
significant amount of cash, and we may not have sufficient cash flow from our business to pay our debt.
Our ability to make scheduled payments
of the principal of, to pay interest on or to refinance our indebtedness depends on our future performance, which is subject to
economic, financial, competitive and other factors beyond our control. In the two years preceding the filing, we have experienced
two material instances of default on indebtedness:
·
On October 3, 2018, the Company entered into a promissory note in favor of Bright Mountain
Media, Inc. in the principal amount of $75,000, plus interest at the rate of 6% per annum, with a maturity date of January 31,
2019 (the "Bright Mountain Note"). The Bright Mountain Note is currently in default and interest has been accruing
thereon at a penalty rate of 18% per annum since the scheduled maturity date. On November 8, 2019, Bright Mountain Media, Inc.
filed suit against the Company (Bright Mountain Media, Inc. v. Kubient, Inc., Palm Beach County Circuit Court, Case No. 502019-CA-014401XXXXMB)
in an effort to collect the amounts due under the Bright Mountain Note. On May 13, 2020, the parties reached a settlement
agreement that requires the Company to make aggregate payments to the plaintiff of a total of $135,000 (which includes the amounts
due under the Bright Mountain Note), which is due in seven (7) installments between May 20, 2020 and October 20,
2020. If the Company pays a total of $125,000 by September 15, 2020, the total amount due is automatically reduced to $125,000.
In the event the Company fails to make timely payments and the default is not cured by the conclusion of the specified grace period,
the plaintiff shall be entitled to the entry of a final judgment against the Company in the amount of $240,000, less any and all
payments made. As of the date hereof, the Company had paid $5,000 to the plaintiff in connection with the settlement agreement.
19
·
On July 25, 2018, the Company entered into a secured business loan agreement to pay WebBank
the principal amount of $100,000, plus interest, over the course of 39 weekly payments of principal and interest in the amount
of $2,977 (the "WebBank Loan"). The WebBank Loan is secured by present and future accounts, receivables, chattel paper,
deposit accounts, personal property, assets and fixtures, general intangibles, instruments, equipment and inventory, and was personally
guaranteed by Paul Roberts, our Chief Strategy Officer, President and Chairman. On September 4, 2019, the Company entered
into a settlement agreement whereby the parties agreed to settle the WebBank Loan balance of approximately $45,000 for $16,000,
which was to be paid by September 3, 2019 by the Company. As of the date of filing, the Company had not made the $16,000 payment
to the lender. The Company is currently is in settlement negotiations with regard to the WebBank Loan, and believes that it can
settle all amounts due under the WebBank Loan for approximately $16,000, which amount would be paid from a portion of the proceeds
of this offering.
Our business may not generate cash flow
from operations in the future sufficient to service our debt and make necessary capital expenditures, especially if the offering
contemplated by this prospectus is unsuccessful. If we are unable to generate such cash flow, we may be required to adopt one or
more alternatives, such as selling assets, restructuring debt or obtaining additional equity capital on terms that may be onerous
or highly dilutive. Our ability to refinance our indebtedness will depend on the capital markets and our financial condition at
such time. We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could
result in a default on our debt obligations.
If we default on our credit obligations, our operations
may be interrupted and our business and financial results could be adversely affected.
Publishers extend us credit terms for the
purchase of advertising inventory, often for thirty to sixty days. We currently have outstanding payables to existing publishers.
If we are unable to pay our publishers in a timely fashion, they may elect to no longer sell us inventory to provide for sale to
advertisers.  Also, it may be necessary for us to incur additional indebtedness to maintain operations of the Company. If
we default on our credit obligations, our lenders may, among other things:
·
require repayment of any outstanding obligations or amounts drawn on our credit facilities;
·
terminate our credit facilities;
·
stop delivery of ordered equipment;
·
discontinue our ability to acquire inventory that is sold to advertisers;
·
require us to accrue interest at higher rates; or
·
require us to pay significant damages.
If some or all of these events were to
occur, our operations may be interrupted and our ability to fund our operations or obligations, as well as our business, financial
results, and financial condition, could be adversely affected.
We are dependent on a small number
of key customers. Changes in our relationships with these parties or changes in the economic environments in which they operate
could have a material adverse effect on our business, financial condition, results of operations and cash flows.
Our
revenues are concentrated with a small number of key customers. Relationships with these customers are fundamental to our success,
especially given the number of other choices in the digital advertising industry. For example, as of December 31, 2019, we
had
two customers that accounted for 14% and 12% of our gross accounts receivable, respectively, and for the year ended
December 31, 2019 , we had two customers that accounted for 75% and 10% of our gross billings, respectively. As of March 31,
2020, we had two customers that accounted for 48% and 29% of our gross accounts receivable, respectively, and for the quarter ended
March 31, 2020, we had two customers that accounted for 54% and 37% of our gross billings, respectively. No assurances can
be given that our relationship with these customers will continue to be good, such that these customers will use our platform to
buy and sell advertising inventory or utilize our services in the future. A termination of our contracts with these customers or
finding suitable customers with similar volume, would disrupt our operations, which could have a material adverse effect on our
business, cash flow, financial condition and results of operations.
We may experience a loss of recurring revenue if customers
do not adopt our KAI fraud prevention technology.
A materially significant portion of our revenue for the quarter
ended March 31, 2020 was generated from our beta test of KAI with two large enterprise clients in an isolated environment. As we
believe the beta test was a success, we stopped running the test in preparation for KAI to be widely adopted as a standalone enterprise
product, and therefore will not generate future revenue from the beta test. If our customers, including the two large enterprise
clients that participated in the beta test of KAI, do not adopt KAI as their preferred fraud prevention technology solution, or
if we do not properly determine the best pricing model for KAI as a standalone enterprise product, we may experience a significant
loss of recurring revenue in future fiscal quarters. Furthermore, our competitors could introduce new products that are more competitive
than KAI in terms of percentage of fraud prevention, which could result in a loss of customers who do not convert or adopt KAI.
An inability to retain customers or convert them to KAI could harm our business, operating results and financial condition in the
future.
20
Our software could be susceptible
to errors, defects, or unintended performance problems that could result in loss of reputation, lost inventory or liability; we
have encountered difficulties in achieving our desired fill rates.
We develop and offer a complex software
platform that is used or embedded by our customers and digital media properties in devices, video technologies, software and operating
systems. Complex software often contains defects, particularly when first introduced or when new versions are released. For example,
we have encountered difficulties in selecting the right advertisement to serve when we win an impression and other factors which
have caused a negative impact on our fill rate with website publishers. In addition, we have encountered problems when scaling
our system to production volumes. While we expect this and other challenges to arise, we cannot guarantee they will be successfully
resolved in a timely manner which can impact our revenue and income. Determining whether our software has defects may occur after
versions are released into the market. Defects, errors or unintended performance problems with our software could unintentionally
jeopardize the performance of advertising campaigns and digital media properties' products. This could result in injury
to our reputation, loss of revenue, diversion of development and technical resources, increased insurance costs and increased warranty
costs. If our software contains any undetected defects, errors or unintended performance problems, our advertising customers may
refuse to use it, digital media properties may refuse to embed it into their products and we may be unable to collect data or acquire
advertising inventory from digital media properties. These defects, errors and unintended performance problems could also result
in product liability claims. Although we attempt to reduce the risk of losses resulting from these claims through warranty disclaimers
and limitation of liability clauses in our agreements, these contractual provisions may not be enforceable in every instance. If
a court refused to enforce the liability-limiting provisions of our contracts for any reason, or if liabilities arose that were
not contractually limited or adequately covered by insurance, our business could be materially harmed.
We allow our customers to utilize
application programming interfaces, or APIs, with our platform, which could result in outages or security breaches and negatively
impact our business, financial condition and operating results.
The use of application
programming interfaces, or APIs, by our customers has significantly increased in recent years. Our APIs allow customers to build
their own media buying and data management interface by using our APIs to develop custom integration of their business with our
platform. The increased use of APIs increases security and operational risks to our systems, including the risk for intrusion attacks,
data theft, or denial of service attacks. Furthermore, while APIs allow customers greater ease and power in accessing our platform,
they also increase the risk of overusing our systems, potentially causing outages. We have experienced system slowdowns due to
customer overuse of our systems through our APIs. While we have taken measures intended to decrease security and outage risks associated
with the use of APIs, we cannot guarantee that such measures will be successful. Our failure to prevent outages or security breaches
resulting from API use could result in government enforcement actions against us, claims for damages by consumers and other affected
individuals, costs associated with investigation and remediation damage to our reputation and loss of goodwill, any of which could
have a material adverse impact on our business, financial condition and operating results.
Our business practices with respect
to data could give rise to liabilities, restrictions on our business or reputational harm as a result of evolving governmental
regulation, legal requirements or industry standards relating to consumer privacy and data protection.
In the course of providing our solutions,
we collect, transmit and store information which is related to and seeks to correlate internet-connected devices, user activity
and the ads we place. Federal, state and international laws and regulations govern the collection, use, processing, retention,
sharing and security of data that we collect across our advertising solutions. We strive to comply with all applicable laws, regulations,
policies and legal obligations relating to privacy and data collection, processing use and disclosure. However, the applicability
of specific laws may be unclear in some cases and domestic and foreign government regulation and enforcement of data practices
and data tracking technologies is expansive, not clearly defined and rapidly evolving. In addition, it is possible that these requirements
may be interpreted and applied in a manner that is new or inconsistent from one jurisdiction to another and may conflict with other
rules or our practices. Any actual or perceived failure by us to comply with U.S. federal, state or international laws, including
laws and regulations regulating privacy, data, security or consumer protection, or disclosure or unauthorized access by third parties
to this information, could result in proceedings or actions against us by governmental entities, competitors, private parties or
others. Any proceedings or actions against us alleging violations of consumer or data protection laws or asserting privacy-related
theories could hurt our reputation, force us to spend significant amounts in defense of these proceedings, distract our management,
increase our costs of doing business, adversely affect the demand for our solutions and ultimately result in the imposition of
monetary liability. We may also be contractually liable to indemnify and hold harmless our customers from the costs or consequences
of litigation resulting from using our solutions or from the disclosure of confidential information, which could damage our reputation
among our current and potential customers, require significant expenditures of capital and other resources and cause us to lose
business and revenue.
The regulatory framework for privacy issues
is evolving worldwide, and various government and consumer agencies and public advocacy groups have called for new regulation and
changes in industry practices, including some directed at the digital advertising industry in particular. It is possible that new
laws and regulations will be adopted in the United States and internationally, or existing laws and regulations may be interpreted
in new ways, that would affect our business, particularly with regard to collection or use of data to target ads and communication
with consumers and the international transfer of data from Europe to the U.S. The U.S. government, including the Federal Trade
Commission and the Department of Commerce, has announced that it is reviewing the need for greater regulation of the collection
of consumer information, including regulation aimed at restricting some targeted advertising practices. In Europe, in October 2015
the Court of Justice of the European Union invalidated the "US-EU Safe Harbor framework," which created a safe harbor
under the European Data Protection Directive for certain European data transfers to the U.S. We had not self-certified under this
regime, and therefore were not directly affected by this decision. In July 2016, the European Commission approved the Privacy
Shield, which is a set of principles and related rules that are intended to replace the US-EU Safe harbor framework. The Company
is in the process of determining whether to join the Privacy Shield program. Stricter regulation of European data transfers to
U.S. in future may impact our ability to serve European customers effectively, or require us to open and operate data centers in
the European Union which would result in a higher cost of doing business in these jurisdictions.
21
In particular, Europe's new
General Data Protection Regulation ("GDPR") extends the jurisdictional scope of European data protection law. As a
result, we will be subject to the GDPR when we provide our targeting services in Europe. The GDPR imposes stricter data protection
requirements that may necessitate changes to our services and business practices. Potential penalties for non-compliance with the
GDPR include administrative fines of up to 4% of annual worldwide turnover. Complying with any new regulatory requirements could
force us to incur substantial costs or require us to change our business practices in a manner that could reduce our revenue or
compromise our ability to effectively pursue our growth strategy.
The FTC has also adopted revisions to
the Children's Online Privacy Protection Act ("COPPA") that expands liability for the collection of
information by operators of websites and other electronic solutions that are directed to children. Questions exist as to how
regulators and courts may interpret the scope and circumstances for potential liability under COPPA, and the FTC continues to
provide guidance and clarification as to its 2013 revisions of COPPA. FTC guidance or enforcement precedent may make it
difficult or impractical for us to provide advertising on certain websites, services or applications. In addition, the FTC
recently fined an ad network for certain methods of collecting and using data from mobile applications, including certain
applications directed at children, and failing to disclose the data collection to mobile application developers in their
network.
While we have not collected data that is
traditionally considered personal data, such as names, email addresses, physical addresses, phone numbers or social security numbers,
we typically collect and store IP addresses, geo-location information, and device or other persistent identifiers that are or may
be considered personal data in some jurisdictions or otherwise may be the subject of legislation or regulation. For example,
some jurisdictions in the EU regard IP addresses as personal data, and certain regulators, such as the California Attorney General's
Office, have advocated for including IP addresses, GPS-level geolocation data, and unique device identifiers as personal data under
California law. Furthermore, Europe's GDPR makes clear that online identifiers (such as IP addresses and other device
identifiers) will be treated as "personal data" going forward and therefore subject to stricter data protection rules.
Evolving definitions of personal data within
the EU, the United States and elsewhere, especially relating to the classification of IP addresses, machine or device identifiers,
geo-location data and other such information, may cause us to change our business practices, diminish the quality of our data and
the value of our solution, and hamper our ability to expand our offerings into the EU or other jurisdictions outside of the United States.
Our failure to comply with evolving interpretations of applicable laws and regulations, or to adequately protect personal data,
could result in enforcement action against us or reputational harm, which could have a material adverse impact on our business,
financial condition and results of operations.
In addition to compliance with government
regulations, we voluntarily participate in trade associations and industry self-regulatory groups that promulgate best practices
or codes of conduct addressing the provision of internet advertising. We could be adversely affected by changes to these guidelines
and codes in ways that are inconsistent with our practices or in conflict with the laws and regulations of U.S. or international
regulatory authorities. For instance, new guidelines, codes, or interpretations, by self-regulatory organizations or government
agencies, may require additional disclosures, or additional consumer consents, such as "opt-in" permissions to share,
link or use data, such as health data from third parties, in certain ways. If we fail to abide by, or are perceived as not operating
in accordance with, industry best practices or any industry guidelines or codes with regard to privacy, our reputation may suffer
and we could lose relationships with advertisers and digital media properties.
Any inability to successfully deliver
digital advertising due to technological challenges or an inability to persuasively demonstrate success will prevent us from growing
or retaining our current advertiser base.
It is critical that we successfully deliver
digital advertising. Factors that may adversely affect our ability to deliver successful digital advertising include:
·
inability to accurately process data and extract meaningful insights and trends, such as the failure of the Audience Cloud to accurately process data to place ads effectively at digital media properties;
·
faulty or out-of-date algorithms that fail to properly process data or result in inability to capture brand-receptive audiences at scale;
22
·
technical or infrastructure problems causing digital video not to function, display properly or be placed next to inappropriate context;
·
inability to control video completion rates, maintain user attention or prevent end users from skipping advertisements;
·
inability to detect and prevent advertising fraud and other malicious activity;
·
inability to fulfill audience guarantee or viewability requirements of our advertiser customers;
·
inability to integrate with third parties that measure our campaigns against audience guarantee or viewability requirements;
·
unavailability of standard digital video audience ratings and brand receptivity measurements for brand advertisers to effectively measure the success of their campaigns; and
·
access to quality inventory at sufficient volumes to meet the needs of our advertisers' campaigns.
Our revenue depends on the
technological ability of our solutions to deliver ads and measure them. Sustained or repeated system failures that interrupt
our ability to provide solutions to customers, including security breaches and other technological failures affecting
our ability to deliver ads quickly and accurately and to collect and process data in connection with these ads, could
significantly reduce the attractiveness of our solutions to advertisers, negatively impact operations and reduce our revenue.
Our systems are vulnerable to damage from a variety of sources, including telecommunications failures, power outages, acts of
terrorism and natural disasters. In addition, any steps we take to increase the reliability and redundancy of our systems may
be expensive and may not be successful in preventing system failures. Also, advertisers may perceive any technical disruption
or failure in ad performance on digital media properties' platforms to be attributable to us, and our reputation could
similarly suffer, or advertisers may seek to avoid payment or demand future credits for disruptions or failures, any of which
could harm our business and results of operations. If we are unable to deliver successful advertising campaigns, our ability
to attract potential advertisers and retain and expand business with existing advertisers could be harmed and our business,
financial condition and operating results could be adversely affected.
Our sales efforts with advertisers
and publishers require significant time and expense.
Attracting new advertisers and publishers
requires substantial time and expense, and we may not be successful in establishing new relationships or in maintaining or advancing
our current relationships. For example, it may be difficult to identify, engage and market to potential advertisers who do not
currently spend on digital video advertising or are unfamiliar with our current solutions.
The novelty of our solutions, including
our programmatic solutions, and our business model often requires us to spend substantial time and effort educating our own sales
force and potential advertisers, advertising agencies, supply side platforms and digital media properties about our offerings,
including providing demonstrations and comparisons against other available solutions. This process is costly and time-consuming.
If we are not successful in targeting, supporting and streamlining our sales processes, our ability to grow our business may be
adversely affected.
Our inability to use software licensed
from third parties, or our use of open source software under license terms that interfere with our proprietary rights, could disrupt
our business.
Our technologies incorporate software licensed
from third parties, including some software, known as open source software, which we use without charge. Although we monitor our
use of open source software, the terms of many open source licenses to which we are subject have not been interpreted by U.S. or
foreign courts, and there is a risk that these licenses could be construed in a manner that imposes unanticipated conditions or
restrictions on our ability to provide our solutions to our customers. In the future, we could be required to seek licenses from
third parties in order to continue offering our solutions, which licenses may not be available on terms that are acceptable to
us, or at all. Alternatively, we may need to re-engineer our solutions or discontinue use of portions of the functionality provided
by our solutions. In addition, the terms of open source software licenses may require us to provide software that we develop using
this software to others on unfavorable license terms. Further, if a digital media property owner who embeds our software in their
devices, video technologies, software and operating systems incorporates open source software into its software and our software
is integrated with such open source software in the final product, we could, under some circumstances, be required to disclose
the source code to our software. While we carefully monitor the use of all open source software and try to ensure that no open
source software is used in such a way as to require us to disclose the source code to our software, such use could inadvertently
occur. Our inability to use third party software or the requirement to disclose the source code to our software could result in
disruptions to our business, or delays in the development of future offerings or enhancements of existing offerings, which could
impair our business.
23
Our failure to protect our intellectual
property rights could diminish the value of our solutions, weaken our competitive position and reduce our revenue.
We regard the protection of our intellectual
property, which includes pending patent applications, trade secrets, copyrights, trademarks and domain names, as critical to our
success. We strive to protect our intellectual property rights by relying on federal, state and common law rights, as well as contractual
restrictions. We enter into confidentiality and invention assignment agreements with our employees and contractors, and confidentiality
agreements with parties with whom we conduct business in order to limit access to, and disclosure and use of, our proprietary information.
However, these contractual arrangements and the other steps we have taken to protect our intellectual property may not prevent
the misappropriation of our proprietary information or deter independent development of similar technologies by others.
We could incur substantial costs
and disruption to our business as a result of any claim of infringement of another party's intellectual property rights,
which could harm our business and operating results.
In recent years, there has been
significant litigation in the United States over patents and other intellectual property rights. Although we have not faced
such issues, in the future we or customers who use our products may unintentionally infringe the trademarks, copyrights,
patents and other intellectual property rights of third parties, including allegations made by our competitors or by
non-practicing entities. We cannot predict whether assertions of third party intellectual property rights or claims arising
from these assertions will substantially harm our business and operating results. If we are forced to defend any infringement
claims, whether they are with or without merit or are ultimately determined in our favor, we may face costly litigation and
diversion of technical and management personnel. Some of our competitors have substantially greater resources than we do and
are able to sustain the cost of complex intellectual property litigation to a greater extent and for longer periods of time
than we could. Furthermore, an adverse outcome of a dispute may require us: to pay damages, potentially including treble
damages and attorneys' fees, if we are found to have willfully infringed a party's patent or other
intellectual property rights; to cease making, licensing or using products that are alleged to incorporate or make use of the
intellectual property of others; to expend additional development resources to redesign our products; and to enter into
potentially unfavorable royalty or license agreements in order to obtain the rights to use necessary technologies. Royalty or
licensing agreements, if required, may be unavailable on terms acceptable to us, or at all. In any event, we may need to
license intellectual property which would require us to pay royalties or make one-time payments. Even if these matters do not
result in litigation or are resolved in our favor or without significant cash settlements, the time and resources necessary
to resolve them could harm our business, operating results, financial condition and reputation.
In addition, if our advertising customers
do not own the copyright for advertising content included in their advertisements or if digital media property owners do not own
the copyright for content to the digital media next to which the advertisements appear, advertisers and digital media properties
could receive complaints from copyright owners, which could harm our reputation and our business.
We could become involved in litigation
matters that may be expensive and time consuming, and, if resolved adversely, could harm our business, financial condition, or
results of operations.
We are involved in several litigation matters
that may be expensive and time consuming, and, if resolved adversely, could harm our business, financial condition, or results
of operations. See "
Legal Proceedings
." Any litigation to which we are a party may result in an onerous or unfavorable
judgment that may not be reversed upon appeal, or we may decide to settle lawsuits on similarly unfavorable terms. Any negative
outcome could result in payments of substantial monetary damages or fines, or changes to our products or business practices, and
accordingly our business, financial condition, or results of operations could be materially and adversely affected. Although the
results of lawsuits and claims cannot be predicted with certainty, we do not believe that the final outcome of those matters that
we currently face will have a material adverse effect on our business, financial condition, or results of operations. However,
defending these claims is costly and can impose a significant burden on management and employees, and we may receive unfavorable
preliminary or interim rulings in the course of litigation, which could adversely affect the value of our common stock. There can
be no assurances that a favorable final outcome will be obtained in all cases.
We may acquire other businesses,
products or technologies in the future which could require significant management attention, disrupt our business, dilute shareholder
value and adversely affect our results of operations.
As part of our business growth strategy
and in order to remain competitive, we may acquire, or make investments in, complementary technologies, products or firms. However,
we may not be able to find suitable acquisition targets in the future, and we may not be able to complete such acquisitions on
favorable terms, if at all. If we do complete acquisitions, we may not ultimately strengthen our competitive position or achieve
our goals, and any acquisitions we complete could be viewed negatively by our customers, investors and securities analysts. In
addition, if we are unsuccessful at integrating such acquisitions or the technologies associated with such acquisitions, our revenue
and results of operations could be adversely affected. In addition, while we will make significant efforts to address any information
technology security and privacy compliance issues with respect to any acquisitions, we may still inherit such risks when we integrate
the acquired products and systems. Any integration process may require significant time and resources, and we may not be able to
manage the process successfully. We may not successfully evaluate or utilize the acquired technology or personnel, or accurately
forecast the financial impact of an acquired business, including accounting charges. We may have to pay cash, incur debt or issue
equity securities to pay for any such acquisitions, each of which could adversely affect our financial condition or the value of
our common stock. The sale of equity or issuance of debt to finance any such acquisitions could result in dilution to our stockholders.
The incurrence of indebtedness would result in increased fixed obligations and could also include covenants or other restrictions
that would impede our ability to manage our operations.
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Security breaches, computer malware,
computer hacking attacks and other security incidents could harm our business, reputation, brand and operating results.
Security incidents have become more prevalent
across industries and may occur on our systems. These security incidents may be caused by or result in but are not limited to security
breaches, computer malware or malicious software, ransomware, computer hacking, denial of service attacks, security system control
failures in our own systems or from vendors we use, email phishing, software vulnerabilities, social engineering, sabotage and
drive-by downloads. In particular, because we utilize a multi-tenant platform, any security breach would affect a significant amount
of our customers. Such security incidents, whether intentional or otherwise, may result from actions of hackers, criminals, nation
states, vendors, employees, contractors, customers or other threat actors. Although we have taken a number of measures to prevent
phishing attacks, we cannot be certain that our efforts will be effective.
We may in the future experience
disruptions, outages and other performance problems on our internal systems due to service attacks, unauthorized access or
other security related incidents. Any security breach or loss of system control caused by hacking, which involves efforts to
gain unauthorized access to information or systems, or to cause intentional malfunctions or loss, modification or corruption
of data, software, hardware or other computer equipment and the inadvertent transmission of computer malware could harm our
business, operating results and financial condition, and expose us to claims arising from loss or unauthorized disclosure of
confidential or personal information and the related breach of privacy or data security laws. If an actual or perceived
security incident occurs, the market perception of the effectiveness of our security controls could be harmed, our brand and
reputation could be damaged, we could lose customers, and we could suffer financial exposure due to such events or in
connection with remediation efforts, investigation costs, regulatory fines, private lawsuits and changed security control,
system architecture and system protection measures.
We may in the future experience disruptions,
outages and other performance problems on the systems that we host for our customers due to service attacks, unauthorized access
or other security related incidents. Any security breach or loss of system control caused by hacking, which involves efforts to
gain unauthorized access to information or systems, or to cause intentional malfunctions or loss, modification or corruption of
data, software, hardware or other computer equipment and the inadvertent transmission of computer malware could disrupt the services
that we provide to our customers, harm our customers' business, operating results and financial condition, and expose us
to claims from our customers for the damages that result, which could include, without limitation, claims arising from loss or
unauthorized access, acquisition or disclosure of personal information and the related breach of privacy or data security laws.
If an actual or perceived security incident occurs, the market perception of the effectiveness of our security controls could be
harmed, our brand and reputation could be damaged, we could lose customers, and we could suffer financial exposure due to such
events or in connection with remediation efforts, investigation costs, regulatory fines, private lawsuits and changed security
control, system architecture and system protection measures.
The loss of key personnel or the
inability of replacements to quickly and successfully perform in their new roles could adversely affect our business.
We depend on the leadership and experience
of our relatively small number of key executive management personnel, particularly our Chief Executive Officer, Peter Bordes, Chief
Financial Officer, Joshua Weiss, and our Chief Strategy Officer, President and Chairman, Paul Roberts. The loss of the services
of these key executives or any of our executive management members could have a material adverse effect on our business and prospects,
as we may not be able to find suitable individuals to replace such personnel on a timely basis or without incurring increased costs,
or at all. Furthermore, if we lose or terminate the services of one or more of our key employees or if one or more of our current
or former executives or key employees joins a competitor or otherwise competes with us, it could impair our business and our ability
to successfully implement our business plan. Additionally, if we are unable to hire qualified replacements for our executive and
other key positions in a timely fashion, our ability to execute our business plan would be harmed. Even if we can quickly hire
qualified replacements, we would expect to experience operational disruptions and inefficiencies during any transition. We believe
that our future success will depend on our continued ability to attract and retain highly skilled and qualified personnel. There
is a high level of competition for experienced, successful personnel in our industry. Our inability to meet our executive staffing
requirements in the future could impair our growth and harm our business. We do not maintain "key person" insurance
on any of our officers or employees.
25
We rely on highly skilled personnel
and, if we are unable to attract, retain or motivate substantial numbers of qualified personnel or expand and train our sales force,
we may not be able to grow effectively.
Our success largely depends on the talents
and efforts of key technical, sales and marketing employees and our future success depends on our continuing ability to identify,
hire, develop, motivate and retain highly skilled personnel for all areas of our organization. Competition in our industry is intense
and often leads to increased compensation and other personnel costs. In addition, competition for employees with experience in
our industry can be intense where our research and development operations are concentrated and where other technology companies
compete for management and engineering talent. Our continued ability to compete and grow effectively depends on our ability to
attract substantial numbers of qualified new employees and to retain and motivate our existing employees.
If we do not effectively grow and
train our sales and support teams, we may be unable to add new customers or increase sales to our existing customers and our business
will be adversely affected.
We are substantially dependent on our sales
and support teams to obtain new customers and to increase spend by our existing customers. We believe that there is significant
competition for sales personnel with the skills and technical knowledge that we require. Our ability to achieve revenue growth
will depend, in large part, on our success in recruiting, training, integrating and retaining sufficient numbers of sales personnel
to support our growth. Due to the complexity of our platform, new hires require significant training and it may take significant
time before they achieve full productivity. Our recent and planned hires may not become productive as quickly as we expect, and
we may be unable to hire or retain sufficient numbers of qualified individuals in the markets where we do business or plan to do
business. If we are unable to hire and train sufficient numbers of effective sales personnel, or the sales personnel are not successful
in obtaining new customers or increasing our existing customers' spend with us, our business will be adversely affected.
Our management team has limited experience
managing a public company.
The members of our management team
have limited or no experience managing a publicly-traded company, interacting with public company investors, and complying
with the increasingly complex laws, rules and regulations that govern public companies. There are significant
obligations we will now be subject to relating to reporting, procedures and internal controls, and our management team may
not successfully or efficiently manage our transition to being a public company. These new obligations and scrutiny will
require significant attention from our management and could divert their attention away from the day-to-day management of our
business, which could adversely affect our business, financial condition and operating results.
We have agreed to indemnify our officers
and directors against lawsuits to the fullest extent of the law.
We are a Delaware corporation. Delaware
law permits the indemnification of officers and directors against expenses incurred in successfully defending against a claim.
Delaware law also authorizes Delaware corporations to indemnify their officers and directors against expenses and liabilities incurred
because of their being or having been an officer or director. Our organizational documents provide for this indemnification to
the fullest extent permitted by Delaware law.
Prior to, and in no event not later than,
the closing of the offering, we will obtain director and officer liability insurance in the amount of $2 million to cover liabilities
our directors and officers may incur in connection with their services to us. There is no guarantee that such insurance coverage
will protect us from any damages or loss claims filed against it.
Our ability to use certain net
operating loss carryforwards and certain other tax attributes may be limited.
Under Sections
382 and 383 of the Internal Revenue Code of 1986, as amended (the "Code"), if a corporation undergoes an "ownership
change," the corporation's ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes
to offset its post-change income and taxes may be limited. In general, an "ownership change" occurs if there is a cumulative
change in ownership of the relevant corporation by "5% shareholders" (as defined under U.S. income tax laws) that exceeds
50 percentage points over a rolling three-year period. Similar rules apply under state tax laws.
Additionally, under the 2017 Tax Cuts and
Jobs Act, tax losses generated in taxable years beginning after December 31, 2017 may be utilized to offset not more than
80% of taxable income annually. This change may require us to pay U.S. federal income taxes in future years despite generating
a loss for federal income tax purposes. There is also a risk that due to future changes in U.S. federal income tax laws, such as
suspensions on the use of net operating loss, or other unforeseen reasons, any net operating losses could be unavailable to offset
future income tax liabilities. For these reasons, we may not be able to realize a tax benefit from the use of our net operating
loss whether or not we attain profitability.
26
Risks Related to Our Common Stock and
This Offering
Investors in this offering will experience
immediate and substantial dilution in net tangible book value.
The public offering price per unit will
be substantially higher than the net tangible book value per share of our outstanding shares of common stock. As a result, investors
in this offering will incur immediate dilution of $          per share, based on the
assumed public offering price of $           per unit, the mid-point of the estimated
offering price range described on the cover of this prospectus. Investors in this offering will pay a price per unit that substantially
exceeds the book value of our assets after subtracting our liabilities. To the extent that the warrants sold in this offering are
exercised, you will experience further dilution. See "
Dilution
" for a more complete description of how the value
of your investment will be diluted upon the completion of this offering.
There can be no assurances that our
shares and/or warrants will be listed on The Nasdaq Capital Market and, if they are, our shares will be subject to potential delisting
if we do not meet or continue to maintain the listing requirements of The Nasdaq Capital Market.
We have applied to list the shares of our
common stock and warrants on The Nasdaq Capital Market, or Nasdaq, under the symbols "KBNT" and "KBNTW",
respectively. An approval of our listing application by Nasdaq will be subject to, among other things, our fulfilling all of the
listing requirements of Nasdaq. In addition, Nasdaq has rules for continued listing, including, without limitation, minimum
market capitalization and other requirements. Failure to maintain our listing, or de-listing from Nasdaq, would make it more difficult
for shareholders to sell our common stock and more difficult to obtain accurate price quotations on our common stock. This could
have an adverse effect on the price of our common stock. Our ability to issue additional securities for financing or other purposes,
or otherwise to arrange for any financing we may need in the future, may also be materially and adversely affected if our common
stock is not traded on a national securities exchange.
There has been no prior public trading
market for our common stock and an active trading market may not develop or be sustained following this offering.
Prior to this offering there has been
no prior public trading market for our common stock or warrants. We cannot assure you that an active trading market for our
common stock and/or warrants will develop or, if developed, that any market will be sustained. Accordingly, we cannot assure
you of the liquidity of any trading market, your ability to sell your shares of our common stock or warrants when desired or
the prices that you may obtain for your shares of our common stock or warrants. Even if an active market for our common stock
and warrants does develop, the market price of such securities may be highly volatile. In addition to the uncertainties
relating to future operating performance and the profitability of operations, factors such as variations in interim financial
results or various, as yet unpredictable, factors, many of which are beyond our control, may have a negative effect on the
market price of our securities.
The trading price of our common stock
and/or warrants could be volatile, and you could lose all or part of your investment.
Prior to this offering, there has been
no public market for shares of our common stock or warrants. The initial public offering price of our Units was determined through
negotiation among us and the underwriters. This price does not necessarily reflect the price at which investors in the market will
be willing to buy and sell shares of our stock and warrants following this offering. The trading price of our common stock following
this offering may fluctuate substantially. Following the completion of this offering, the market price of our common stock may
be higher or lower than the price you pay in the offering, depending on many factors, some of which are beyond our control and
may not be related to our operating performance. These fluctuations could cause you to lose all or part of your investment in our
common stock. Factors that could cause fluctuations in the trading price of our common stock include the following:
·
announcements of new products or technologies, commercial relationships, acquisitions or other events by us or our competitors;
·
changes in how customers perceive the benefits of our platform;
·
shifts in the mix of billings and revenue attributable to perpetual licenses or term licenses from quarter to quarter;
·
departures of key personnel;
27
·
price and volume fluctuations in the overall stock market from time to time;
·
fluctuations in the trading volume of our shares or the size of our public float;
·
sales of large blocks of our common stock;
·
actual or anticipated changes or fluctuations in our operating results;
·
changes in actual or future expectations of our operating results by investors or securities analysts;
·
litigation involving us, our industry or both;
·
regulatory developments in the United States, foreign countries or both;
·
general economic conditions and trends, including the possible effects of the widespread domestic and global impact of the COVID-19 pandemic; and
·
major catastrophic events in our domestic and foreign markets.
In addition, if the market for technology
stocks or the stock market in general experiences a loss of investor confidence, the trading price of our common stock or warrants
could decline for reasons unrelated to our business, operating results or financial condition. The trading price of our common
stock might also decline in reaction to events that affect other companies in our industry even if these events do not directly
affect us. In the past, following periods of volatility in the trading price of a company's securities, securities class
action litigation has often been brought against that company.
In the event that our common stock
and warrants are listed on The Nasdaq Capital Market, our stock price could fall and we could be delisted in which case broker-dealers
may be discouraged from effecting transactions in shares of our common stock because they may be considered penny stocks and thus
be subject to the penny stock rules.
The SEC has adopted a number of
rules to regulate "penny stocks" that restricts transactions involving stock which is deemed to be penny
stock. Such rules include Rules 3a51-1, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, 15g-7, and 15g-9 under the
Securities and Exchange Act of 1934, as amended. These rules may have the effect of reducing the liquidity of penny
stocks. "Penny stocks" generally are equity securities with a price of less than $5.00 per share (other than
securities registered on certain national securities exchanges or quoted on Nasdaq if current price and volume information
with respect to transactions in such securities is provided by the exchange or system). Our securities may in the future
constitute, "penny stock" within the meaning of the rules. The additional sales practice and disclosure
requirements imposed upon U.S. broker-dealers may discourage such broker-dealers from effecting transactions in shares of our
common stock, which could severely limit the market liquidity of such shares and impede their sale in the secondary
market.
A U.S. broker-dealer selling penny stock
to anyone other than an established customer or "accredited investor" (generally, an individual with net worth in excess
of $1,000,000 or an annual income exceeding $200,000, or $300,000 together with his or her spouse) must make a special suitability
determination for the purchaser and must receive the purchaser's written consent to the transaction prior to sale, unless
the broker-dealer or the transaction is otherwise exempt. In addition, the "penny stock" regulations require the U.S.
broker-dealer to deliver, prior to any transaction involving a "penny stock", a disclosure schedule prepared in accordance
with SEC standards relating to the "penny stock" market, unless the broker-dealer or the transaction is otherwise exempt.
A U.S. broker-dealer is also required to disclose commissions payable to the U.S. broker-dealer and the registered representative
and current quotations for the securities. Finally, a U.S. broker-dealer is required to submit monthly statements disclosing recent
price information with respect to the "penny stock" held in a customer's account and information with respect
to the limited market in "penny stocks".
Stockholders should be aware that, according
to the SEC, the market for "penny stocks" has suffered in recent years from patterns of fraud and abuse. Such patterns
include (i) control of the market for the security by one or a few broker-dealers that are often related to the promoter or
issuer, (ii) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases,
(iii) "boiler room" practices involving high-pressure sales tactics and unrealistic price projections by inexperienced
sales persons, (iv) excessive and undisclosed bid-ask differentials and markups by selling broker-dealers, and (v) the
wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level,
resulting in investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market.
Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the
market, management will strive within the confines of practical limitations to prevent the described patterns from being established
with respect to our securities.
28
Speculative nature of warrants.
The warrants offered in this offering do
not confer any rights of common stock ownership on their holders, such as voting rights or the right to receive dividends, but
rather merely represent the right to acquire shares of our common stock at a fixed price for a limited period of time. Specifically,
commencing on the date of issuance, holders of the warrants may exercise their right to acquire the common stock and pay an exercise
price of              per share, prior to five years from the
date of issuance, after which date any unexercised warrants will expire and have no further value. Moreover, following this offering,
the market value of the warrants is uncertain and there can be no assurance that the market value of the warrants will equal or
exceed their public offering price. There can be no assurance that the market price of the common stock will ever equal or exceed
the exercise price of the warrants, and consequently, whether it will ever be profitable for holders of the warrants to exercise
the warrants.
There may be future issuances or
resales of our common stock in connection with financings, acquisitions, investments, our stock incentive plans or otherwise, which
may materially and adversely dilute the ownership interest of stockholders.
We are not restricted from issuing additional
shares of our common stock in the future, including securities convertible into, or exchangeable or exercisable for, shares of
our common stock. Our issuance of such additional shares of common stock in the future will dilute the ownership interests of our
then existing stockholders. We may also raise capital through equity financings in the future. As part of our business strategy,
we may acquire or make investments in complementary companies, products or technologies and issue equity securities to pay for
any such acquisition or investment. Any such issuances of additional capital stock may cause stockholders to experience significant
dilution of their ownership interests and the per share value of our common stock to decline.
We may issue preferred stock, the
terms of which could adversely affect the voting power or value of our common stock.
Our certificate of incorporation authorizes
us to issue, without the approval of our stockholders, one or more classes or series of preferred stock having such designations,
preferences, limitations and relative rights, including preferences over our common stock respecting dividends and distributions,
as our board of directors may determine. The terms of one or more classes or series of preferred stock could adversely impact the
voting power or value of our common stock. For example, we might grant holders of preferred stock the right to elect some number
of our directors in all events or on the happening of specified events or the right to veto specified transactions. Similarly,
the repurchase or redemption rights or liquidation preferences we might assign to holders of preferred stock could affect the residual
value of our common stock.
If securities analysts were to downgrade
our stock, publish negative research or reports or fail to publish reports about our business, our competitive position could suffer,
and our stock price and trading volume could decline.
The trading market for our common
stock will, to some extent, depend on the research and reports that securities analysts may publish about us, our business,
our market or our competitors. We do not have any control over these analysts. We do not currently have and may never obtain
research coverage by securities analysts. If no or few securities analysts commence coverage of us, the trading price of our
stock would likely decrease. Even if we do obtain analyst coverage, if one or more of the analysts who cover us should
downgrade our stock or publish negative research or reports, cease coverage of our company or fail to regularly publish
reports about our business, our competitive position could suffer, and our stock price and trading volume could decline.
The requirements of being a public
company, including compliance with the reporting requirements of the Exchange Act, and the requirements of the Sarbanes-Oxley Act,
may strain our resources, increase our costs and divert management's attention, and we may be unable to comply with these
requirements in a timely or cost-effective manner.
As a public company, we will need to comply
with new laws, regulations and requirements, certain corporate governance provisions of the Sarbanes-Oxley Act, the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), related regulations of the SEC and the requirements of Nasdaq,
with which we are not required to comply as a private company. Complying with these statutes, regulations and requirements will
occupy a significant amount of time of our board of directors and management and will significantly increase our costs and expenses.
We will need to:
·
institute a more comprehensive compliance function;
·
comply with rules promulgated by Nasdaq;
·
continue to prepare and distribute periodic public reports in compliance with our obligations under the federal securities laws;
·
establish new internal policies, such as those relating to insider trading; and
·
involve and retain to a greater degree outside counsel and accountants in the above activities.
In addition, we expect that being a public
company subject to these rules and regulations may make it more difficult and more expensive for us to obtain director and
officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher
costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified individuals
to serve on our board of directors or as executive officers. We are currently evaluating these rules, and we cannot predict or
estimate the amount of additional costs we may incur or the timing of such costs.
29
Our internal control over financial
reporting may not be effective and our independent registered public accounting firm may not be able to certify as to their effectiveness
in the future, which could have a significant and adverse effect on our business, financial condition, results of operations and
reputation.
After the completion of this offering,
we will be subject to a requirement, pursuant to Section 404 of the Sarbanes-Oxley Act, to conduct an annual review and evaluation
of our internal control over financial reporting and furnish a report by management on, among other things, our assessment of the
effectiveness of our internal control over financial reporting each fiscal year beginning with the year following our first annual
report required to be filed with the SEC. However, because we are an emerging growth company, our independent registered public
accounting firm is not required to formally attest to the effectiveness of our internal control over financial reporting pursuant
to Section 404 until the earlier of the fifth year following our first annual report required to be filed with the SEC or
the date we are no longer an emerging growth company. Ensuring that we have adequate internal control over financial reporting
in place so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that must
be evaluated frequently. Establishing and maintaining these internal controls will be costly and may divert management's
attention.
When evaluating our internal control over
financial reporting, we may identify material weaknesses that we may not be able to remediate in time to meet the applicable deadline
imposed upon us for compliance with the requirements of Section 404 of the Sarbanes-Oxley Act. In addition, if we fail to
achieve and maintain the adequacy of our internal control over financial reporting, as such standards are modified, supplemented
or amended from time to time, we may not be able to ensure that we can conclude, on an ongoing basis, that we have effective internal
control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act. We cannot be certain as to the
timing of completion of our evaluation, testing and any remediation actions or the impact of the same on our operations. If we
do not adequately implement or comply with the requirements of Section 404 of the Sarbanes-Oxley Act, we may be subject to
sanctions or investigation by regulatory authorities, such as the SEC, or suffer other adverse regulatory consequences, including
penalties for violation of Nasdaq rules. As a result, there could be a negative reaction in the financial markets due to a loss
of confidence in the reliability of our financial statements. A loss of confidence in the reliability of our financial statements
also could occur if we or our independent registered public accounting firm were to report one or more material weaknesses in our
internal control over financial reporting. In addition, we may be required to incur costs in improving our internal control system,
including the costs of the hiring of additional personnel. Any such action could negatively affect our business, financial condition,
results of operations and cash flows and could also lead to a decline in the price of our common stock.
Our officers, directors and principal
stockholders currently own a substantial number of shares of our common stock and have, and following the offering will continue
to have, the power to significantly influence the vote on all matters submitted to a vote of our stockholders.
As of July 1, 2020, our Chief Strategy
Officer, President and Chairman, Mr. Paul Roberts, beneficially owned 19,200,030 shares of our common stock, representing
58.78% of our issued and outstanding shares of our common stock. In the event of the sale of the maximum amount of our common stock
in this offering, Mr. Roberts will hold approximately            %
of our issued and outstanding common stock. Thus, while the Company does not believe that it will be a "controlled company"
under Nasdaq Rule 5615(c) after the offering, based on his significant ownership of our common stock, Mr. Roberts
will continue to maintain the ability to significantly influence the election of our directors and the outcome of corporate actions
requiring stockholder approval, such as: (i) a merger or a sale of our company, (ii) a sale of all or substantially all
of our assets, and (iii) amendments to our articles of incorporation and bylaws. This concentration of voting power and control
could have a significant effect in delaying, deferring or preventing an action that might otherwise be beneficial to our other
stockholders and be disadvantageous to our stockholders with interests different from those individuals. Mr. Roberts also
has significant control over our business, policies and affairs as an officer and director of our company. Therefore, you should
not invest in reliance on your ability to have any control over our company.
Management will have broad discretion
over the use of our proceeds from this offering.
The principal purposes of this offering
include increasing our capitalization and financial flexibility, creating a public market for our stock, thereby enabling access
to the public equity markets by our employees and stockholders, obtaining additional capital and increasing our visibility in the
marketplace. Although we have not yet determined with certainty the manner in which we will allocate the net proceeds of this offering,
we expect to use the net proceeds from this offering for product development, working capital, capital expenditures and other general
corporate purposes, including investments in sales and marketing in the United States and internationally. We may also use a portion
of the proceeds from this offering for acquisitions or strategic investments in complementary businesses, brands or technologies.
See "
Use of Proceeds
." We have not allocated specific amounts of net proceeds for any of these purposes and
we cannot specify with certainty the particular uses of the net proceeds to us from this offering. Accordingly, we will have broad
discretion in using these proceeds and might not be able to obtain a significant return, if any, on investment of these net proceeds.
Investors in this offering will need to rely upon the judgment of our management with respect to the use of our proceeds. If we
do not use the net proceeds that we receive in this offering effectively, our business, operating results and financial condition
could be harmed.
30
We do not anticipate that we will
pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation
in the price of our common stock.
We have never declared or paid any dividends
on our common stock. We intend to retain any earnings to finance the operation and expansion of our business, and we do not anticipate
paying any cash dividends in the foreseeable future. In addition, in the future we may enter into agreements that prohibit or restrict
our ability to declare or pay dividends on our common stock. As a result, you may only receive a return on your investment in our
common stock if the market price of our common stock increases.
Our charter documents and Delaware
law could discourage takeover attempts and other corporate governance changes.
Our certificate of incorporation and bylaws
contain provisions that could delay or prevent a change in control of our company. These provisions could also make it difficult
for stockholders to elect directors that are not nominated by the current members of our board of directors or take other corporate
actions, including effecting changes in our management. These provisions include the following provisions:
·
permit the board of directors to establish the number of directors and fill any vacancies and newly created directorships;
·
require super-majority voting to amend certain provisions in our certificate of incorporation and bylaws;
·
eliminate the ability of our stockholders to call special meetings of stockholders;
·
provide that the board of directors is expressly authorized to make, alter or repeal our bylaws;
·
prohibit cumulative voting in the election of directors;
·
restrict the forum for certain litigation against us to Delaware;
·
permit our board of directors to alter our bylaws without obtaining stockholder approval; and
·
establish advance notice requirements for nominations for election to our board of directors or for proposing matters that can be acted upon by stockholders at annual stockholder meetings.
In addition, as a Delaware corporation,
we are subject to Section 203 of the Delaware General Corporation Law (the "DGCL"). These provisions may prohibit
large stockholders, in particular those owning 15% or more of our outstanding voting stock, from merging or combining with us for
a period of time.
Our amended and restated certificate
of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation that may
be initiated by our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes
with us.
Pursuant to our amended and restated certificate
of incorporation, to the fullest extent permitted by law, unless we consent in writing to the selection of an alternative forum,
the Court of Chancery of the State of Delaware is the sole and exclusive forum for state law claims for (i) any derivative
action or proceeding brought on our behalf, (ii) any action asserting a claim of or based on a breach of a fiduciary duty
owed by any of our current or former directors, officers, or other employees to us or our stockholders, (iii) any action asserting
a claim against us arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation, or our
bylaws, or (iv) any action asserting a claim governed by the internal affairs doctrine. For the avoidance of doubt, this forum
selection clause will not apply to suits brought to enforce any liability or duty created by the Securities Act, the Exchange Act
or any other claim for which the federal courts have exclusive jurisdiction.
We recognize that the forum selection clause
may impose additional litigation costs on stockholders who assert the provision is not enforceable and may impose more general
additional litigation costs in pursuing any such claims. Additionally, the forum selection clause in our bylaws may limit our stockholders'
ability to obtain a favorable judicial forum for disputes with us. The Court of Chancery of the State of Delaware may also reach
different judgments or results than would other courts, including courts where a stockholder considering an action may be located
or would otherwise choose to bring the action, and such judgments may be more or less favorable to us than our stockholders.
31
For as long as we are an emerging
growth company, we will not be required to comply with certain requirements that apply to other public companies.
We are an emerging growth company, as defined
in the JOBS Act. For as long as we are an emerging growth company, unlike other public companies, we will not be required to, among
other things: (i) provide an auditor's attestation report on management's assessment of the effectiveness of our
system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act, (ii) comply
with any new requirements adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotation or a
supplement to the auditor's report in which the auditor would be required to provide additional information about the audit
and the financial statements of the issuer, (iii) provide certain disclosures regarding executive compensation required of
larger public companies, or (iv) hold nonbinding advisory votes on executive compensation and any golden parachute payments
not previously approved. In addition, the JOBS Act provides that an emerging growth company can take advantage of the extended
transition period provided in Section 7(a)(2)(B) of the Securities Act for adopting new or revised financial accounting
standards. We intend to take advantage of the longer phase-in periods for the adoption of new or revised financial accounting standards
permitted under the JOBS Act until we are no longer an emerging growth company. If we were to subsequently elect instead to comply
with these public company effective dates, such election would be irrevocable pursuant to the JOBS Act.
We will remain an emerging growth company
for up to five full fiscal years, although we will lose that status sooner if we have more than $1.07 billion of revenues in a
fiscal year, have more than $700 million in market value of our common stock held by non-affiliates (and have been a public company
for at least 12 months and have filed one annual report on Form 10-K), or issue more than $1.0 billion of non-convertible
debt over a three-year period.
To the extent that we rely on any of the
exemptions available to emerging growth companies, you will receive less information about our executive compensation and internal
control over financial reporting than issuers that are not emerging growth companies. We cannot predict if investors will find
our common stock less attractive because we will rely on these exemptions. If some investors find our common stock to be less attractive
as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.
Sales of a substantial number of
shares of our common stock following this offering may adversely affect the market price of our common stock and the issuance of
additional shares will dilute all other stockholders.
Sales of a substantial number of
shares of our common stock in the public market or otherwise following this offering, or the perception that such sales could
occur, could adversely affect the market price of our common stock. After completion of this offering at an assumed offering
price of $           per unit, the mid-point of the estimated offering
price range described on the cover of this prospectus, our existing stockholders will own approximately
         % of our common stock assuming there is no exercise of the
underwriters' over-allotment option.
After completion of this offering at an
assumed offering price of $            per unit, the mid-point of the estimated
offering price range described on the cover of this prospectus, there will be            
shares of our common stock outstanding. In addition, our certificate of incorporation, as amended, permits the issuance of up to
approximately             additional shares of common stock after the completion
of this offering. Thus, we have the ability to issue substantial amounts of common stock in the future, which would dilute the
percentage ownership held by the investors who purchase shares of our common stock in this offering.
We and our officers, directors and certain
stockholders have agreed, subject to customary exceptions, not to, without the prior written consent of Maxim Group LLC and Joseph
Gunnar & Co. LLC, the representative of the underwriters, during the period ending 365 days from the date of this offering
in the case of us and our certain directors and officers, 90-180 days from the date of this offering in the case of our stockholders
who beneficially own more than 5% of our common stock, directly or indirectly, offer to sell, sell, pledge or otherwise transfer
or dispose of any of shares of our common stock, enter into any swap or other derivatives transaction that transfers to another
any of the economic benefits or risks of ownership of shares of our common stock, make any demand for or exercise any right or
cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any shares of
common stock or securities convertible into or exercisable or exchangeable for common stock or any other securities of the Company
or publicly disclose the intention to do any of the foregoing.
After the lock-up agreements with certain
of our principal stockholders pertaining to this offering expire, up to          of the
shares that had been locked up will be eligible for future sale in the public market. After the lock-up agreements with our directors
and officers pertaining to this offering expire, up to          of the shares (net of any
shares also restricted by lock-up agreements with our principal stockholders) that had been locked up will be eligible for future
sale in the public market. After the lock-up agreements with certain directors, officers and principal stockholders pertaining
to this offering expire, unless waived earlier by the managing underwriter, up to         
of the shares (net of any shares also restricted by lock-up agreements with our principal stockholders) that had been locked up
will be eligible for future sale in the public market. Sales of a significant number of these shares of common stock in the public
market could reduce the market price of the common stock.
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus contains forward-looking
statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking
statements generally relate to future events or our future financial or operating performance. All statements of historical fact
included in this prospectus regarding our strategy, future operations, financial position, estimated revenues and losses, projected
costs, prospects, plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking
statements because they contain words such as "may," "should," "expects," "plans,"
 "anticipates," "could," "intends," "target," "projects," "contemplates,"
 "believes," "estimates," "predicts," "potential" or "continue" or the
negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. When
considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under
the heading "
Risk Factors
" included in this prospectus. These forward-looking statements are based on management's
current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements
contained in this prospectus include, but are not limited to, statements about:
32
•
our future financial performance, including our expectations regarding our revenue, annual recurring revenue, gross profit or gross margin, operating expenses, ability to generate cash flow, revenue mix and ability to maintain future profitability;
•
our beliefs regarding the possible
effects of the widespread domestic and global impact of the COVID-19 pandemic, including on general economic conditions, public
health, and consumer demand and financial markets, as well as our results of operations, liquidity, capital resources, and general
performance in the future;
•
our expectations regarding the use of funds from our PPP loan and the potential for forgiveness of the PPP loan under the terms of the PPP;
•
anticipated trends and growth rates in our business and in the markets in which we operate;
•
our ability to maintain and expand our customer base;
•
our ability to sell our platform and expand internationally;
•
our ability to anticipate market needs and successfully develop new and enhanced solutions to meet those needs;
•
our ability to hire and retain necessary qualified employees to grow our business and expand our operations;
•
the evolution of technology affecting our platform;
•
our ability to adequately protect our intellectual property;
•
our ability to service our debt obligations; and
•
our anticipated uses of our net proceeds from this offering.
We caution you that the foregoing list
may not contain all of the forward-looking statements made in this prospectus.
You should not rely upon forward-looking
statements as predictions of future events. We have based the forward-looking statements contained in this prospectus primarily
on our current expectations and projections about future events and trends that we believe may affect our business, financial condition,
results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks,
uncertainties and other factors described in the section titled "
Risk Factors
" and elsewhere in this prospectus.
Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time
and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements
contained in this prospectus. We cannot assure you that the results, events and circumstances reflected in the forward-looking
statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described
in the forward-looking statements.
The forward-looking statements made in
this prospectus relate only to events as of the date on which the statements are made. We undertake no obligation to update any
forward-looking statements made in this prospectus to reflect events or circumstances after the date of this prospectus or to reflect
new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions
or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements.
33
USE OF PROCEEDS
We estimate that the net proceeds from
our issuance and sale of shares of our common stock and warrants in this offering will be approximately $         
million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, or $  
million if the underwriters exercise their over-allotment option in full.
Our management will have sole control over
our accounts. As a result, investors in this offering are subject to the risk that creditors could attach to these funds.
We currently expect to use the net proceeds
of this offering for product development, working capital, capital expenditures, repayment of debt totaling approximately $114,000,
offering expenses, and other general corporate purposes, including investments in sales and marketing in the United States and
internationally.
We may also use a portion of the proceeds
from this offering for acquisitions or strategic investments in complementary businesses, brands or technologies. We have not allocated
specific amounts of net proceeds for any of these purposes.
Each $1.00 increase or decrease in the
assumed public offering price of $              per share would
increase or decrease the net proceeds to us from this offering by approximately $              
, assuming that the amount of shares of common stock offered by us, as set forth on the cover page of this prospectus, remains
the same, and after deducting underwriting discounts and commissions payable by us. We may also increase or decrease the number
of shares of common stock we are offering. An increase or decrease of shares of common stock offered by us in this offering would
increase or decrease the net proceeds to us by approximately $             
, assuming that the assumed price per unit to the public remains the same, and after deducting underwriting discounts and commissions
payable by us. We do not expect that a change by these amounts in the offering price to the public or the common stock offered
by us would have a material effect on our uses of the proceeds from this offering, although it may accelerate the time at which
we will need to seek additional capital.
Assuming the maximum amount of         
shares of common stock are sold by us, we expect that the net proceeds, together with our existing cash and cash equivalents will
enable us to fund our operating expenses and capital expenditure requirements for at least twenty-four months. In addition, we
have granted the representative of the underwriters a 45-day option to purchase up to            
additional shares of common stock solely to cover over-allotments of shares in this offering. We will use the proceeds from the
sale of these additional shares for working capital and general corporate purposes.
The expected use of net proceeds represents
our intentions based upon our current plans and business conditions, which could change in the future as our plans and business
conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to working capital,
may vary significantly depending on numerous factors. As a result, our management will retain broad discretion over the allocation
of such net proceeds.
In addition, we plan to invest these proceeds
in short term investments until needed for the uses described above.
34
DIVIDEND POLICY
We have not historically declared dividends
on our common stock, and we do not currently intend to pay dividends on our common stock. The declaration, amount and payment
of any future dividends on shares of our common stock, if any, will be at the sole discretion of our board of directors, out of
funds legally available for dividends. We anticipate that we will retain our earnings, if any, for the growth and development
of our business.
CAPITALIZATION
The following table sets forth our cash
and cash equivalents and our capitalization as of March 31, 2020 as follows:
•
on an actual basis, reflecting our capitalization on a standalone basis;
•
on a pro forma basis after giving effect to the sale and issuance of units, each consisting of one share of common stock and one warrant to purchase one share of common stock, pursuant to this public offering at a public offering price of $       per unit, which is the mid-point of the estimated offering price range described on the cover of this prospectus, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us; and
•
on a pro forma as adjusted basis after giving effect to the
following upon the closing of this public offering: (i) the conversion of principal and accrued interest on the Senior Notes, Junior
Notes and Related Party Notes into the units in this offering calculated through                     , 2020; and (ii) the repayment of certain notes
payable.
Our capitalization following the closing
of this offering will depend on the actual initial public offering price and other terms of this offering determined at pricing.
You should read this table together with our financial statements and the related notes appearing at the end of this prospectus
and the sections of this prospectus titled "
Management's Discussion and Analysis of Financial Condition and Results
of Operations
" and "
Description of Securities
" sections of this prospectus.
As of March 31, 2020
Actual
Pro Forma
Pro Forma
As Adjusted
Cash
$
21,017
Total indebtedness
4,217,618
Stockholders' (Deficiency) Equity:
Preferred stock, $0.00001 par value; 5,000,000 shares authorized;
No shares issued and outstanding on an actual, pro forma and
pro forma as adjusted basis as of March 31, 2020
-
Common stock, $0.00001 par value; 95,000,000 shares authorized;
32,413,686,                   and                   shares issued and outstanding on an actual,
pro forma and pro forma as adjusted basis as of March 31, 2020, respectively
324
Additional paid-in capital
3,367,830
Accumulated deficit
(8,461,515
)
Total Stockholders' (Deficiency) Equity
$
(5,093,361
)
$
-
$
-
Total Capitalization
$
(5,093,361
)
$
-
$
-
35
DILUTION
If you invest in our common stock, your
interest will be diluted to the extent of the difference between the public offering price per unit paid by purchasers of units
in this offering and the pro forma as adjusted net tangible book value per share of our common stock immediately after the completion
of this offering.
Our
historical net tangible book value (deficit) as of March 31, 2020 was $(6,626,087) or $(
0.20) per share of common stock.
Our historical net tangible book value (deficit) per share represents our total tangible assets less our total liabilities, divided
by the shares of common stock outstanding as of March 31, 2020.
Our pro forma net tangible book value (deficit)
as of March 31, 2020 was $       or $       per share of common stock. Our pro forma net tangible book value (deficit) represents pro
forma total tangible assets less pro forma total liabilities and pro forma net tangible book value (deficit) per share represents
pro forma net tangible book value divided by the total number of shares outstanding as of March 31, 2020, each after giving
effect to the sale and issuance of units, each consisting of one share of common stock and one warrant to purchase one share of
common stock, pursuant to this public offering at a public offering price of $       per unit,
which is the mid-point of the estimated offering price range described on the cover of this prospectus, after deducting the estimated
underwriting discounts and commissions and estimated offering expenses payable by us.
Our pro forma as adjusted net tangible book value (deficit)
represents our pro forma net tangible book value (deficit), plus the effect of the following upon the closing of this public offering:
(i) principal and accrued interest on the Senior Notes, Junior Notes and Related Party Notes into the units in this offering; and
(ii) the repayment of certain notes payable. Our pro forma as adjusted net tangible book value as of March 31, 2020 would
have been $        , or $        per share of common stock.
This amount represents an immediate increase in historical net tangible book value of $      per share
to existing stockholders and an immediate dilution of $            per share
to new investors purchasing units in this offering.
The following table illustrates this dilution on a per share
basis to new investors:
Assumed public offering price per share
$
Historical net tangible book value per share as of March 31, 2020
$
(0.20
)
Increase in pro forma net tangible book value (deficit) per share attributed to new investors purchasing shares from us in this offering
$
Pro forma net tangible book value (deficit) per share as of March 31, 2020 after giving effect to this offering
$
Increase in pro forma as adjusted net tangible book value (deficit) per share
$
Pro forma as adjusted net tangible book value (deficit) per share as of March 31, 2020
$
Dilution per share to new investors in this offering
$
The dilution information discussed above
is illustrative only and will change based on the actual public offering price and other terms of this offering to be determined
at pricing. A $1.00 increase (decrease) in the assumed public offering price of $      per share would
increase (decrease) the pro forma net tangible book value per share by approximately $      , assuming
the number of shares of common stock offered by us, as set forth on the cover page of this prospectus, remains the same, after
deducting the estimated underwriting discounts and commissions. Assuming a public offering price of $     per
share, warrants to purchase an additional shares of our common stock could be exercised which would result in the increase to the
pro forma as adjusted net tangible book value by approximately $      per share, assuming the offering
amount on the cover page of this prospectus.
The following table summarizes as of March 31,
2020, on the pro forma as adjusted basis described above, the number of shares of our common stock, the total consideration and
the average price per share (i) paid to us by our existing stockholders, and (ii) to be paid by investors purchasing
shares of our common stock in this offering at an assumed public offering price of $ per share, before deducting underwriting discounts
and commissions and estimated offering expenses payable by us:
Shares
Purchased
Total
Consideration
Weighted-
Average
Price
Number
Percent
Amount
Percent
Per Share
Existing stockholders
%
$
%
$
New investors
Total
100.0
%
$
100.0
%
$
36
The number of shares that will be outstanding
after this offering is based on 32,413,686 shares of common stock outstanding as of March 31, 2020, but excludes:
•
all warrants outstanding or issuable in connection with this offering;
•
2,119,300 shares of our common stock reserved for future issuance under our equity compensation plans;
•
880,700 shares of our common stock issuable upon the exercise of options outstanding as of March 31, 2020 with a weighted average exercise price of $1.85 per share;
•
10,247,000 shares of our common stock issuable upon the exercise of warrants outstanding as of March 31, 2020 with a weighted average exercise price of $0.55 per share; and
•
193,670 shares of our common stock issuable upon the conversion of convertible notes outstanding as of March 31, 2020 with a weighted average conversion price of $0.45 per share, which such share and conversion price amounts e
xclude the effect of shares issuable upon conversion of the Senior and Junior Notes, which are not currently convertible and whose conversion price is not currently known.
To the extent that warrants are exercised,
new options or other securities are issued under our equity incentive plan, or we issue additional shares of common stock or preferred
stock in the future, there will be further dilution to investors participating in this offering. In addition, we may choose to
raise additional capital because of market conditions or strategic considerations, even if we believe that we have sufficient funds
for our current or future operating plans. If we raise additional capital through the sale of equity or convertible debt securities,
the issuance of these securities could result in further dilution to our stockholders.
PRICE OF OUR COMMON STOCK
Prior to this offering, shares of our common
stock have not been traded on an established public trading market and quotations for shares of our common stock were not reported
on any market. As a result, there has been no regular market for shares of our common stock. Although shares of our common stock
may have been sporadically traded in private transactions, the prices at which such transactions occurred may not necessarily reflect
the price that would be paid for our common stock in an active market. As of July 1, 2020, there were approximately 46 holders
of record of our common stock.
We anticipate that this offering and the
successful listing of our common stock on The Nasdaq Capital Market will result in a more active trading market for our common
stock. However, we cannot assure you that a liquid trading market for our common stock will develop or be sustained after this
offering. You may not be able to sell your shares quickly or at the market price if trading in our common stock is not active.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following discussion and analysis
of our financial condition and results of operations for the years ended December 31, 2019 and December 31, 2018, as
well as for the quarters ended March 31, 2020 and 2019, and should be read in conjunction with the information included under
 "Business," and our consolidated financial statements and the accompanying notes included elsewhere in this prospectus.
The discussion and analysis below are based on comparisons between our historical financial data for different periods and include
certain forward-looking statements about our business, operations and financial performance. These forward-looking statements are
subject to risks, uncertainties, assumptions and other factors described in "Risk Factors." Our actual results may
differ materially from those expressed in, or implied by, those forward-looking statements. See "Special Note Regarding Forward-Looking
Statements."
Overview
Kubient, a Delaware corporation, was incorporated
in May 2017 to solve some of the most significant problems facing the global digital advertising industry.
Our experienced team of marketing and technology
veterans has developed the Audience Cloud, a modular, highly scalable, transparent, cloud-based software platform for real-time
trading of digital, programmatic advertising. Our platform's open marketplace gives both advertisers (ad space buyers) and
publishers (ad space sellers) the ability to use machine learning in the most critical parts of any programmatic advertising inventory
auction, while simultaneously and significantly reducing those advertisers and publishers' exposure to fraud, even in a pre-bid
environment.
37
By becoming a one stop shop for advertisers
and publishers, providing them with the technology to deliver meaningful messages to their target audience, all in one place, on
a single platform that is computationally efficient, transparent, and as safely fraud-free as possible, we believe that our platform
(and the application of its machine learning algorithms) leads to increased publisher revenue, lower advertiser cost, reduced latency
and increased economic transparency during the advertising auction process.
Components of Our Results of Operations
Net Revenues
Kubient provides a service to its customers
by providing its platform to connect advertisers and publishers as well as to analyze customers' data for potential ad fraud.
For these services, we earn net revenue, which is the spread between what we collect from advertisers, who want to run an ad campaign,
and what we pay to publishers, who want to sell their ad space. In addition, during the quarter ended March 31, 2020, we allowed
two clients to beta test KAI, our fraud prevention technology powered by machine learning. This testing was invaluable as it provided
us an opportunity to stress test our ability to handle large scale, concurrent input of data into our system which is then analyzed
using our patent-pending proprietary machine learning technology. We were able to successfully ingest hundreds of millions of rows
of data in real-time and provide our clients the ability to prevent the purchase of non-human or fraudulent advertising traffic.
We were able to gather a tremendous amount of data from these two beta test clients which will lead to additional improvements
to our technology. While KAI was monetized in the first quarter during beta testing, it is expected to deploy as a commercially
available stand-alone enterprise product in the third quarter of 2020.
Technology
Technology expenses consists costs associated
with the development and operation of our technology platform, including compensation expenses related to our technology personnel
(including salaries, commissions, bonuses, stock-based compensation and taxes), fees for independent contractors, computer hosting
and technology-related subscription costs, and amortization expense of our intangible assets.
General and Administrative
General and administrative expenses consists
primarily of compensation expenses related to our executive, finance and administrative personnel (including salaries, commissions,
bonuses, stock-based compensation and taxes), professional fees, selling and marketing fees, rent expense, general and administrative
related subscription costs fees for independent contractors and bad debt expense.
38
Results of Operations
Three Months Ended March 31,
2020 Compared With Three Months Ended March 31, 2019
The following table presents the results
of operations for the three months ended March 31, 2020 and 2019:
For the Three Months Ended
March 31,
2020
2019
Net Revenues
$
1,381,913
$
56,806
Operating Expenses:
Technology
480,401
372,951
General and administrative
663,926
132,607
Total Operating Expenses
1,144,327
505,558
Income (Loss) From Operations
237,586
(448,752
)
Other (Expense) Income:
Interest expense
(432,812
)
(16,436
)
Interest expense - related parties
(100,914
)
-
Gain on forgiveness of accounts payable - supplier
236,248
-
Other income
1,794
244
Total Other Expense
(295,684
)
(16,192
)
Net Loss
$
(58,098
)
$
(464,944
)
Net Revenues
For the three months ended March 31,
2020, net revenues increased by $1,325,107, or 2,333%, to $1,381,913 from $56,806 for the three months ended March 31, 2019.
The increase was primarily due to approximately $1,300,000 of revenue generated in connection with beta testing of KAI, our fraud
detection service, which commenced during the 2020 period.
Technology
For the three months ended March 31,
2020, technology expenses increased by $107,450, or 29%, to $480,401 from $372,951 for the three months ended March 31, 2019.
The increase is primarily due to an increase of approximately $51,000 in amortization expense of our intangible assets, increased
computer hosting and subscription costs of approximately $51,000, and an increase of approximately $23,000 of compensation expenses
resulting from an increase in headcount (6 employees at March 31, 2020 versus 5 employees at March 31, 2019), all partially
offset by a decrease of approximately $23,000 of independent contractor and consulting fees in 2020.
General and Administrative
For the three months ended March 31,
2020, general and administrative expenses increased by $531,319, or 401%, to $663,926 from $132,607 for the three months ended
March 31, 2019. The increase is primarily due to increased legal, consulting and audit fees of approximately $248,000 associated
with work performed in connection with our public filings, an increase of approximately $144,000 of compensation expenses resulting
from an increase in headcount (6 employees at March 31, 2020 versus 2 employees at March 31, 2019), an increase of approximately
$46,000 of board of directors compensation expenses due to their appointment to our Board in late 2019 and an increase of approximately
$42,000 of rent expenses.
Other Expense
For the three months ended March 31,
2020, other expense increased by $279,472, or 1,726%, to $295,684 from $16,192 for the three months ended March 31, 2019.
The increase is primarily due to an increase of interest expense of approximately $517,000 (including an increase in non-cash amortization
of debt discount and debt issuance costs of approximately $456,000) associated with notes payable issued subsequent to March 31,
2019, partially offset a gain on forgiveness of accounts payable of approximately $236,000 in 2020.
39
Year Ended December 31, 2019
Compared With Year Ended December 31, 2018
The following table presents the results
of operations for the years ended December 31, 2019 and 2018:
For the Years Ended
December 31,
2019
2018
Net Revenues
$
177,635
$
106,422
Operating Expenses:
Technology
1,486,056
2,058,660
General and administrative
2,007,362
1,820,942
Total Operating Expenses
3,493,418
3,879,602
Loss From Operations
(3,315,783
)
(3,773,180
)
Other Income (Expense):
Gain on forgiveness of accounts payable - supplier
-
66,804
Interest expense
(819,482
)
(51,129
)
Other income
2,392
28,408
Total Other (Expense) Income
(817,090
)
44,083
Net Loss
$
(4,132,873
)
$
(3,729,097
)
Net Revenues
For the year ended December 31, 2019,
net revenues increased by $71,213, or 67%, to $177,635 from $106,422 for the year ended December 31, 2018. We experienced
the loss of a significant customer in 2018 (which was a result of consolidation within the industry wherein our customer was acquired
by a larger entity), which was partially offset by net revenue of approximately $91,000 and $104,000 generated from a single customer
in 2018 and 2019, respectively.
Technology
For the year ended December 31, 2019,
technology expenses decreased by $572,604, or 28%, to $1,486,056 from $2,058,660 for the year ended December 31, 2018. The
decrease is primarily due to decreases of approximately $769,000 in non-cash stock-based compensation expense, decreased programming,
computer hosting and subscription costs of approximately $29,000, offset by an increase of approximately $208,000 of increased
compensation expenses due to an increase in headcount in 2019.
General and Administrative
For the year ended December 31, 2019,
general and administrative expenses increased by $186,420, or 9%, to $2,007,362 from $1,820,942 for the year ended December 31,
2018. The increase is primarily due to increased legal, consulting and audit fees of approximately $727,000, increased compensation
expenses of $219,000 resulting from an increase in headcount in 2019, an allowance of approximately $200,000 in connection with
a deposit, offset by a decrease of approximately $1,030,000 of non-cash stock based compensation expenses in 2019.
Other (Expense) Income
For the year ended December 31, 2019,
other (expense) income increased by $861,173, or 1,954%, to expense of $(817,090) from income of $44,083 for the year ended December 31,
2018. The increase is primarily due to an increase of interest expense of approximately $768,000 (including an increase in non-cash
amortization of debt discount and debt issuance costs of approximately $701,000) associated with notes payable issued in 2019,
a gain on forgiveness of accounts payable of approximately $67,000 in 2018 and a decrease in other income of approximately $26,000
in 2019.
40
Liquidity and Capital Resources
Liquidity
We measure our liquidity in a number of ways, including the
following:
March 31, 2020
December 31, 2019
Cash
$
21,017
$
33,785
Working Capital (Deficit)
$
(6,467,107
)
$
(5,413,735
)
Subsequent to March 31, 2020, the
Company received approximately $327,000 in the form of a loan in connection with the PPP, approximately $79,000 in connection with
the EIDL loan, and approximately $60,000 in the form of a three-year note payable from a related party. See Recent Developments
for details.
As of March 31, 2020 and as of the
date of filing, notes payable with an aggregate principal amount of $133,967 were past due. The Company is in negotiations to either
extend the maturity dates of such notes or to settle the amounts due.
Availability of Additional Funds
Based upon our cash and working capital
deficiency, we require additional equity and/or debt financing to continue our operations. These conditions indicate that there
is substantial doubt about our ability to continue as a going concern within one from the date of this prospectus.
We are currently funding our operations
on a month-to-month basis prior to the receipt of the proceeds of this offering. Although we believe that we have access to capital
resources, there are currently no commitments in place for new financing at this time and there is no assurance that we will be
able to obtain funds on commercially acceptable terms, if at all. If we are unable to obtain adequate funds on reasonable terms,
we may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on
unattractive terms. Our operating needs include the planned costs to operate our business, including amounts required to fund working
capital and capital expenditures. Our future capital requirements and the adequacy of our available funds will depend on many factors,
including our ability to successfully commercialize our products and services, competing technological and market developments,
and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement
our product and service offerings. Subsequent to March 31, 2020, we received approximately $327,000 in the form of a loan
in connection with the PPP and approximately $60,000 in the form of a three-year note payable from a related party.
Our consolidated financial statements included
elsewhere in this registration statement have been prepared in conformity with accounting principles generally accepted in the
United States of America, or U.S. GAAP, which contemplate our continuation as a going concern and the realization of assets and
satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial
statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any
adjustment that might result from the outcome of this uncertainty.
Three Months Ended March 31,
2020 Compared With Three Months Ended March 31, 2019
Our sources and uses of cash were as follows:
Cash Flows From Operating Activities
We experienced negative cash flows from
operating activities for the three months ended March 31, 2020 and positive cash flows from operating activities for the three
months ended March 31, 2019 in the amounts of $(166,662) and $20,183, respectively. The net cash used in operating activities
for the three months ended March 31, 2020 was primarily a result of cash used to fund a net loss of $58,098, adjusted for
net non-cash expenses of $302,981, and $411,545 of net cash used in changes in the levels of operating assets and liabilities.
The net cash provided by operating activities for the three months ended March 31, 2019 was primarily a result of cash used
to fund a net loss $464,944, adjusted for net non-cash expenses of $12,700, and $472,427 of net cash provided by changes in the
levels of operating assets and liabilities.
Cash Flows From Investing Activities
Net cash used in investing activities for
the three months ended March 31, 2020 was $356,106, which was attributable to purchases of intangible assets, and property
and equipment. We did not have any cash flows from investing activities during the three months ended March 31, 2019.
41
Cash Flows From Financing Activities
We experienced positive cash flows from
financing activities for the three months ended March 31, 2020 and negative cash flows from financing activities for the three
months ended March 31, 2019 in the amounts of $510,000 and $(27,369), respectively. During the three months ended March 31,
2020, $525,000 of proceeds were received from debt financings, partially offset by $15,000 used for payment of deferred offering
costs. During the three months ended March 31, 2019, $27,369 was used for repayments of notes payable.
Year Ended December 31, 2019
Compared With Year Ended December 31, 2018
Our sources and uses of cash were as follows:
Cash Flows From Operating Activities
We experienced negative cash flows from
operating activities for the years ended December 31, 2019 and 2018 in the amounts of $(2,692,400) and $(1,193,347), respectively.
The net cash used in operating activities for the year ended December 31, 2019 was primarily a result of cash used to fund
a net loss of $4,132,873, adjusted for net non-cash expenses of $945,636, and $494,837 of net cash provided by changes in the levels
of operating assets and liabilities. The net cash used in operating activities for the year ended December 31, 2018 was primarily
a result of cash used to fund a net loss $3,729,097, adjusted for net non-cash expenses of $1,879,387, and $656,363 of net cash
provided by changes in the levels of operating assets and liabilities.
Cash Flows From Investing Activities
Net cash used in investing activities for
the year ended December 31, 2019 was $105,013, which was attributable to aggregate purchases of intangible assets, property
and equipment of $105,013 as well as an advance to a related party in the amount of $75,000 and the subsequent repayment of the
same advance. We did not have any cash flows from investing activities during the year ended December 31, 2018.
Cash Flows From Financing Activities
We experienced positive cash flows from
financing activities for the years ended December 31, 2019 and 2018 in the amounts of $2,823,680 and $1,191,762, respectively.
During the year ended December 31, 2019, $2,880,047 of net proceeds were from debt financings and other borrowings (net of
repayments) and $56,367 was used for payment of deferred offering costs. During the year ended December 31, 2018, $439,394
of net proceeds were from debt financings and other borrowings (net of repayments) and $752,368 of proceeds were from equity financings.
Off-Balance Sheet Arrangements
We did not have, during the periods presented,
and we do not currently have, any relationships with any organizations or financial partnerships, such as structured finance or
special purpose entities, that would have been established for the purpose of facilitating off-balance sheet arrangements or other
contractually narrow or limited purposes.
Critical Accounting Policies and Significant
Accounting Estimates
Our management's discussion and analysis
of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance
with accounting principles generally accepted in the United States, or GAAP. The preparation of these financial statements requires
us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities as of the date of the financial statements as well as the reported expenses during the reporting periods.
The accounting estimates that require our most significant, difficult, and subjective judgments have an impact on revenue recognition,
the determination of share-based compensation, and financial instruments. We evaluate our estimates and judgments on an ongoing
basis. Actual results may differ materially from these estimates under different assumptions or conditions.
Our significant accounting policies are
more fully described in our financial statements (Note 3 in our financial statements for the years ended December 31, 2019
and 2018 and Note 3 in our financial statements for the three months ended March 31, 2020 and 2019) included elsewhere in
this registration statement.
Recently Issued Accounting Standards
Our analysis of recently issued accounting
standards are more fully described in our financial statements (Note 3 in our audited consolidated financial statements for the
years ended December 31, 2019 and 2018 and Note 3 in our condensed consolidated financial statements for the three months
ended March 31, 2020 and 2019) included elsewhere in this registration statement.
42
BUSINESS
Kubient, a Delaware corporation, was incorporated
in May 2017 to solve some of the most significant problems facing the global digital advertising industry.
Our experienced team of marketing and technology
veterans has developed the Audience Cloud, a modular, highly scalable, transparent, cloud-based software platform for real-time
trading of digital, programmatic advertising. Our platform's open marketplace gives both advertisers (ad space buyers) and
publishers (ad space sellers) the ability to use machine learning in the most critical parts of any programmatic advertising inventory
auction, while simultaneously and significantly reducing those advertisers and publishers' exposure to fraud, even in a pre-bid
environment.
By becoming a one stop shop for advertisers
and publishers, providing them with the technology to deliver meaningful messages to their target audience, all in one place, on
a single platform that is computationally efficient, transparent, and as safely fraud-free as possible, we believe that our platform
(and the application of its machine learning algorithms) leads to increased publisher revenue, lower advertiser cost, reduced latency
and increased economic transparency during the advertising auction process.
Furthermore, we believe that our technology
allows advertisers to reach entire audiences rather than buying single impressions from disparate sources. We call this approach
Audience-Based Marketing. Combining this approach with our proprietary solutions for fraud prevention and the reduction of latency
in auctions, we are confident that we are poised to alter the status quo as the next generation of the industry's advertising
inventory auction infrastructure.
What We Do: Audience-Based Marketing
on Our Full Stack Platform
Our Audience Cloud's platform enables
advertisers and publishers to transact directly between each other on an open, end to end real-time bidding platform for programmatic
digital advertising. The advertising inventory on our platform is available in any channel: desktop, mobile, digital out-of-home,
and connected devices; and in any format: video, display, audio, and native. Indeed, we believe our single, fully integrated audience
platform provides a comprehensive, fraud-minimized, transparent, independent advertising marketplace that facilitates intelligent
decision-making, and automated transaction execution for the programmatic advertising industry. We optimize the liquidity and effectiveness
of the advertising supply chain, increasing revenue for publishers and improving return on investment for advertisers.
Our platform offers a machine learning-powered
fraud prevention solution, extremely low latency times and an audience management platform which provides omni-channel access into
all advertising channels, inventory and ad formats. Thanks to our management and development teams' deep experience with
artificial intelligence applications, our platform is constantly self-optimizing, using our software's ability to analyze
and learn from vast volumes of data. We are confident that the additional data we obtain from the volume of transactions on our
platform helps to make our machine-learning algorithms more intelligent over time.
Advertising is sometimes defined as the
transfer of a message from one party to another for the purpose of education, motivation or suggestion. Advertisers who pay to
send a message, should be confident that it arrives to the individual it was intended for and delivers its expected outcome. Our
solution consistently ensures this is the case, by verifying each and every message and intended audience. As a result, we believe
that we process, analyze and connect billions of audience participants and devices faster and more efficiently than the industry
standard.
43
Digital Advertising Fraud Solution:
Machine Learning Combined with Artificial Intelligence
Thanks to advances in technology, the advertising
inventory that is bought and sold in these real time auctions during the bid stream is customized to each individual viewer. This
viewer customization is often called programmatic advertising, a new form of advertising where advertisers are able to specifically
target their preferred audiences and demographics (rather than placing ads in generic public forums such as billboards or during
live events, in hopes that the coveted audience or demographic sees the ad). According to eMarketer, programmatic digital advertising
is one of the fastest growing sectors in the advertising industry, which is expected to reach $517 billion by 2023; rising from
$283 billion in 2018. Digital programmatic advertising's reach includes channels such as online, mobile browsing, in-app,
text messages, "out of home" video advertising (in locations such as gas stations and airports) and digital or internet
television services. The explosive growth of programmatic digital advertising has created unique challenges for advertisers and
publishers that want to connect and engage their audiences. One of the primary challenges facing the digital advertising industry
is that, like the meteoric growth of digital advertising itself, fraud is also growing rapidly. According to Forrester Research,
digital advertising cost advertisers $42 billion dollars in 2019, which is a 21% increase from 2018. D
espite
attempts by advertisers and publishers to prevent fraud and conduct quality assurance checks
, both Forrester Research and
Juniper Research estimates that the losses experienced by advertisers will more than double to $100 billion in 2023, with advertisers
losing an estimated 25% of every dollar spent due to fraud.
Digital advertising fraud occurs when an
ad is displayed to a fake website or Bot in an effort to falsely inflate web traffic numbers, rather than being displayed to a
legitimate web site to be viewed by a human being. An advertiser that pays for an ad that is displayed to a Bot has wasted the
budget spent for the placement of that ad, as it is human beings that might spend money on the product or service being advertised,
as opposed to a Bot. Thus, brands and advertisers that cannot prevent their ads being shown to Bots become victims to the billions
of dollars lost to ad fraud annually, as calculated by Juniper Research and Forrester Consulting.
We believe that digital advertising fraud
is further exacerbated by the fact that our industry is increasingly fragmented. The most popular solutions that have emerged in
the marketplace for selling digital advertising are not connected to the solutions used by industry participants for purchases
of digital advertising. In other words, advertisers use DSPs to purchase digital advertising, whereas publishers use completely
different platforms called SSPs to sell advertising space to those advertisers. Therefore, advertisers may not know who is selling
them advertising inventory, and publishers may not know who is purchasing such inventory. With the two sides of any auction not
connected, and likely not communicating with each other across different platforms, it is difficult to assign responsibility to
tracking down fraud after an ad sale has already occurred. We have created a marketplace where advertisers and publishers can interact
directly. This layer of direct transparency allows advertisers to more efficiently identify ad fraud, and to ensure that they are
only buying advertising space that delivers the expected value of a particular campaign. Furthermore, fraud prevention is also
fragmented as a result of advertisers and publishers using different platforms to conduct digital advertising auctions. Indeed,
many DSPs and SSPs do not even have built-in fraud prevention solutions, instead relying on third parties to identify ad fraud
after an ad is displayed. Our internally-developed fraud prevention solution is native to our platform and detects fraud before
the digital advertising auction is concluded.
44
As a result of the fragmented,
complex and inefficient infrastructure currently in use for programmatic advertising, fraud is rampant in the digital
advertising marketplace. Bad actors' use of fake websites and Bots to sell advertising space costs advertisers billions
of dollars a year. A large part of the reason that widespread fraud runs rampant in the digital advertising industry is that
current machine learning and fraud prevention solutions in our industry can only identify such fraud after an ad purchase has
already occurred. We believe it is much harder to stop fraud when trying to catch perpetrators after the fraud has already
occurred because the fraudsters have the ability to completely change the fingerprint of the Bot, which allows it to reenter
the ecosystem and commit fraud again.
We believe it is more effective to stop
fraud before it occurs than trying to catch perpetrators after the fraud has already occurred. Thus, we have developed what we
believe to be the first machine learning technology that can detect fraud within the 300-millisecond window known as the "bid
stream" prior to ad purchases. Our platform's fraud detection solution, called Kubient Artificial Intelligence ("KAI")
is our patent-pending proprietary technology that uses artificial intelligence to analyze live advertising bid stream data to detect
potential ad fraud, a major issue within the digital advertising ecosystem. KAI's proprietary technology allows all advertisers
to make better-informed, real-time decisions within this brief window of time by identifying potentially fraudulent activity in
real-time. KAI is trained using different statistical and machine learning algorithms and is capable of detecting various types
of fraud, including user fraud, device fraud, content fraud and heuristic fraud. KAI analyzes 100% of real-time programmatic data
and industry-specific information to determine patterns and data points consistent with fraudulent activity, helping advertisers
maximize return on ad spend and protecting publishers. KAI can be fully integrated into Kubient's Audience Cloud marketplace,
or alternatively, can be deployed as a standalone application or enterprise solution on third party real time bidding platforms.
See "
Customers and Revenues
" below for a description of the successful beta testing of KAI that occurred during
the quarter ended March 31, 2020.
Latency Solution: Machine Learning
We believe that our platform allows us
to process digital advertising auctions faster than the competition. Faster auctions ensure that ad campaigns create more impressions
that are seen by consumers, as consumers are less likely to become frustrated by slowly loading websites or apps (which normally
results in consumers leaving such websites or apps before the ad is displayed).
To substantially reduce and minimize latency
issues across our fully integrated open marketplace, we use a highly-specialized programming language originally designed to be
used in extremely fast (but highly dependable) digital telephone communications switches, as well as quant-based speed trading
of securities on Wall Street. In addition, our platform's proprietary machine-learning algorithms, sophisticated data processing,
high volume storage, detailed analytics capabilities, and a distributed infrastructure that supercharges our bidding process and
helps our customers place, and win, more bids for advertising space. We believe we are transforming the digital advertising industry
by analyzing billions of data points in record real time speed to enable our solution to make complex decisions in milliseconds,
and to execute over 1 million queries per second, billions of transactions per week and trillions of bid requests per month.
Additional Platform Functionalities
Not only do we believe our platform works
faster, more efficiently and more safely in terms of fraud than our competition, we also believe that it provides added functionality
over our competitors, such as real time reporting of ad sales, and an open audience marketplace which enables publishers, including
websites, mobile applications, video and other digital media properties, to connect their advertising inventory more efficiently
and effectively to buyers across the entire advertising ecosystem, including brands, DSPs, ad networks and advertising agencies.
In addition, our platform's functionality
allows us to quickly adapt to emerging media channels that might have been previously overlooked by the digital marketing ecosystem
.
For example, outdoor advertising, often referred to as out of
home media, such as
billboards, bus-stop shelters, public elevators, airport monitors and gas station pump placards, has not traditionally been connected
to digital advertising sources. However, these traditional forms of out of home media are increasingly being converted to digital
signage. Unlike their traditional out of home counterparts, these updated digital signs, often referred to as digital out of home
("DOOH") media, can display programmatic advertising, such that all of the advantages of our Audience Cloud can be
applied to this rapidly proliferating media channel. By
allowing brands,
DSPs, ad
networks, advertising agencies and brands to bid on DOOH publishers' inventory in real-time, just as if DOOH screens were
video screens on a desktop computer or mobile device, our Audience Cloud will allow advertisers to scale campaigns across new and
thriving media channels, thereby maximizing inventory fill rates and increasing the audiences that advertisers may target by digital
means.
Intellectual Property
We have filed two provisional patents,
one relating to our inventory and decision management system we created that allows DOOH media buying agencies to purchase ads
on our programmatic and real-time-bidding marketplace, and one relating to our KAI real time, digital advertising fraud prevention
solution.
45
Customers and Revenue
We provide our customers with a
platform to connect advertisers and publishers. Generally, our revenue generation process begins with publishers. When a
publisher aims to fill the available advertising space on its website or app, we typically enter into a twelve month master
service agreement allowing the publisher to sell advertising inventory through our platform. Once the publisher executes our
master service agreement and is accepted onto our platform, the publisher is allowed to electronically communicate with our
platform through its ad server, in order to provide us information about the publisher's advertising inventory, user
base, minimum sale prices and other data signals, as applicable. We also enter into master service agreements to allow
third-party exchanges that aggregate publishers' available advertising inventory to sell such inventory on our
platform. As we believe fee transparency is a key element to the success of our platform, we never buy advertising inventory
in order to resell it to our customers for a profit. Instead, we earn a mark-up, which is the spread between what we collect
from advertisers and what we remit to publishers. We only pay for inventory when an advertiser is connected to a publisher
and an impression is successfully delivered. We sometimes refer to the amount we pay publishers for inventory upon the
delivery of an impression as "cost pay." As described further below, cost pay is generally lower than what
advertisers ultimately spend to have their ad impression delivered on a publisher's website or app.
We also enter into twelve month master
service agreements with advertisers that wish to purchase advertising inventory, either on our platform or through their DSP. Our
proprietary algorithms use the industry information available (from advertisers, publishers, third parties and our own internal
database) to automatically target and bid on publishers' inventory to meet an advertiser's campaign objective. We generate
revenue from advertisers by charging them fees on a sliding scale based on a percentage of their spend on advertising purchased
through our platform, the total of which we sometimes refer to as "gross spend."
By having both publishers and advertisers
enter into twelve month master service agreements in order to use our platform, we believe we maintain high customer retention,
and very little, if any, customer loss (or "churn").
Thanks to the speed of our platform, the
matching of publisher and advertiser occurs in fractions of a second, within the short time frame of the bidstream. We recognize
revenue upon the completion of each matching transaction, at the moment when an impression has been delivered to the consumer viewing
a website or application. We generally bill and collect the full purchase price of impressions from advertisers, unless the advertiser
pays through its DSP, in which case the DSP is the entity that pays our fees. In either case, our gross revenue from each impression
is equal to gross spend minus cost pay.
We believe that growth of the programmatic
advertising market is important for our ability to continually grow our business. Adoption of programmatic advertising by advertisers
allows us to acquire new customers and grow revenue from existing customers. We also believe that current industry trends will
lead more advertisers to seek out a better fraud prevention solution to protect their advertising budgets, such as the one offered
on our platform.
Similarly, we believe that the adoption
of programmatic advertising by unique advertising inventory owners, such as digital out of home content providers for which we
have developed a unique solution, will allow us to expand the volume and type of advertising inventory that we present to advertisers
using our platform.
During the quarter ended March 31, 2020,
we allowed two large enterprise clients to beta test KAI in a live isolated environment. Kubient was able to successfully ingest
hundreds of millions of rows of data in real-time and provide our clients the ability to prevent the purchase of non-human or fraudulent
advertising traffic. The results from the two beta clients indicated that KAI was identifying and preventing approximately 300%
more digital ad fraud then the client's current partners. The large volume of data ingested helped to improve our proprietary algorithms
including the supervised and unsupervised version. This was invaluable as it provided us an opportunity to stress test our ability
to handle large scale, concurrent input of data into our system which is then analyzed using our patent-pending proprietary machine
learning technology. While KAI was monetized in the first quarter of 2020, we are currently determining the best pricing model
based on SMB and enterprise client usage and expect KAI to be widely adopted as a standalone enterprise product in the third fiscal
quarter of 2020.
Our net revenue was $177,635 for the year ended December 31,
2019 from 49 customers, and our net revenue was $1,381,913 for the quarter ended March 31, 2020 from 35 customers. The increase
was primarily due to approximately $1,300,000 of revenue generated in connection with beta testing of KAI, our fraud detection
service, which commenced during the 2020 period. Our net loss was $4,132,873 for the year ended December 31, 2019. Our net
loss was $58,098 for the quarter ended March 31, 2020. Based on the growth strategy set forth below, we contemplate that our
revenues will continue to increase for 2020 and beyond and will also continue to become less concentrated among a small number
of customers.
Key Customer Contracts
The Associated Press
Effective February 5, 2020, the Company
entered into a Master Services Agreement (the "AP Agreement") with The Associated Press whereby the Company agreed
to provide advertising and related business revenue consultation services to The Associated Press. In consideration for the services
provided, commencing on March 1, 2020 and effective for a period of one year (subject to certain carve-outs), the Company
is entitled to certain revenue share amounts in connection with The Associated Press's consumer offerings outlined in the
AP Agreement, which was entered into as of March 27, 2020 and are summarized as follows:
46
During the three months ended March 31, 2020, the Company
recognized revenue of $85,000 in connection with the AP Agreement. Although no assurances can be given, the Company believes that
by combining The Associated Press' digital audience with new purchasing partners on the Company's platform, revenue
derived from the AP Agreement could reach as an estimated amount as high as $500,000 per fiscal quarter in 2021.
Sphere Digital
Effective June 1, 2018, the Company entered into a License
Agreement (the "Sphere Agreement") with Sphere Digital, LLC, whereby the Company agreed to license use of its proprietary,
programmatic advertising platform to Sphere Digital, LLC for a monthly fee of $20,000, plus $400 per hour for any customizations
on the platform carried out by the Company pursuant to a Master Services Agreement executed by the Company and Sphere Digital,
LLC also on June 1, 2018. The Sphere Agreement's term is for six months, which term automatically renews for an additional
six months. The Sphere Agreement was terminated by the Company on November 1, 2019.
Growth Strategy
Organic Growth
The key elements of our long-term growth
strategy are as follows:
●
Enhancing our existing auction technology to improve adoption among publishers and advertisers, which we expect will increase our revenue.
●
Further developing our fraud prevention system, which is powered by our proprietary KAI machine learning technology, which we are expecting to be widely incorporated into our service offerings in the third fiscal quarter of 2020.
●
Growing our customer base by increasing our salesforce to engage brands, agencies, website owners, app owners and other connected device owners, to facilitate marketplace participation. This will allow us to reach more audiences and garner larger budgets, growing our revenue and building long lasting customer relationships.
●
Launching and scaling our reach with advertisers by introducing real-time auctions into a previously static corners of the marketplace, such as digital out of home channels, allowing for video advertising at gas stations, hotels and airports.
●
Further developing our Audience
Cloud platform to improve omni-channel relevance, and personalization at scale.
●
Further diversifying both our products
        and revenue streams to include stand-alone applications that address advertisers' business needs, such as KAI for real time
        fraud prevention, first party data hosting, and audience targeting solutions.
●
Increasing our global footprint across the globe, especially in Latin America, Asia-Pacific, Europe, the Middle East and Africa.
M &A Growth
In addition to the long-term, organic growth
discussed above, we intend to opportunistically acquire companies that expand our core technologies and introduce the Company to
potential new client bases that are potentially accretive to the Company's future earnings.
Industry Overview
Most consumers are unaware that when they
browse a webpage, watch a video on the internet, use a mobile app or watch an internet-connected TV, there is often a behind-the-scenes
auction for the purchase and sale of digital advertising space as the consumer's desired content loads. In such auctions,
advertisers (i.e., ad space buyers, such as sporting goods or consumer products manufacturers) purchase advertising space from
publishers (i.e., ad space sellers, such as mobile app developers or website operators). Advertisers bid on each impression and
if the bid is won, the ad is displayed on the publisher's website or app being viewed by the consumer.
As the technology behind these auctions
began to develop, traditional methods of digital advertising were used, where manual negotiations conducted by human brokers played
a vital role in deciding the prices of digital advertising inventory to be bought and sold. Similarly, human brokers sought to
place ad inventory in the digital equivalents of traditional public forums such as billboard-like banner ads or during digitally-broadcast
sporting events, in hopes that the largest audience possible might see an ad.
However, in recent years, the technology
behind these auctions has changed dramatically. Now, "real time bidding" has become an automated process that enables
the buying and selling of individual impressions for each digital ad in milliseconds. In the blink of an eye, real time digital
auctions determine what ad will display, where the ad will be displayed and what price the advertiser has to pay to the publisher
for displaying the ad. The real time auction process is currently in the process of completely replacing the role of a human broker,
by automating the buying and selling of ad space in a 300 millisecond window called the "bid stream."
47
Another significant challenge facing participants
in the digital marketing industry is the problem of latency, or loading wait times. Existing participants in the digital advertising
marketplace have invested billions of dollars in large and cumbersome system infrastructures that are costly and slow by today's
standards. Their outdated infrastructure has caused hundreds of companies to provide a patchwork of solutions to address the slow
and costly nature of the current digital advertising infrastructure that we believe are ineffective when compared with our solution.
As a result of this patchwork of solutions, we believe the digital advertising marketplace has become complex and inefficient,
with relatively long delays before an ad is displayed becoming commonplace. These delays often result in a user leaving a website
or smartphone app before the advertiser's content loads. If the user does not view the ad which the advertiser paid to place
on the publisher's website or app, then the advertiser has wasted the budget spent for the placement of that ad.
The problem of ineffective digital advertising
has created large-scale lost revenue in our industry. For example, Proctor and Gamble, Inc. announced that it reduced its
digital advertising spend by approximately $200 million in 2017 due to issues caused by ineffective ads and digital safety. Furthermore,
Proctor and Gamble, Inc.'s Chief Brand Officer, Marc
Pritchard
has stated that he believes the digital media industry needs to move beyond "endless retrofitting and clean-up" to
instead create a "new media supply chain" focused on quality, civility, transparency, privacy and control.
Industry Alliances
Given the developmental stage of digital
advertising, industry practices are rapidly evolving. We are participating members of the Trustworthy Accountability Group ("T.A.G.").
T.A.G is a Who's Who of trusted partners for any company involved in digital advertising, and creating a protected system
of supply chain participants and other advertising technology companies that demonstrate their commitment to higher standards of
transparency and disclosure to their partners.
We are active members of the AdClub of
NY and also participate in a wide range of Interactive Advertising Bureau ("IAB") committees, councils and working
groups, as well as other industry groups such as the Forbes Agency Council that are focused on establishing best practices for
the digital advertising industry.
Competition
We derive our revenue from the digital
advertising market, which is rapidly evolving, highly competitive, complex and fragmented. We currently compete for advertising
spend with large, well-established companies as well as smaller, privately-held companies. Some of our larger competitors with
more resources may be better positioned to execute on advertising campaigns conducted over multiple channels such as social media,
mobile and video, yet we provide unique channels not found in the digital advertising market typically, such as the true programmatic
DOOH auctions we perform. We believe that this, coupled with our other capabilities, will allow us to keep step with the larger
competitors in the short term and surpass them in the long term.
While the majority of the market is dominated
by two companies, Facebook and Google, we do not consider them to be our competitors. Our growth is focused in the rest of the
available market and there are many companies who compete with us for that share. The Trade Desk is one of our fastest growing
competitors for brand and advertiser budgets with a solid foundation and strong cash flow and client base. Their product known
as a Demand Side Platform competes with our own Demand Side Platform however we believe our platform has key advantages, such as
built in proprietary fraud prevention, direct publisher connections, a Supply Side Platform and a centralized auction hub. These
advantages, in our opinion, provide us with more leverage when approaching advertisers and requesting budget. There are other platforms
and exchanges that can be considered a competitor to one or more of our products as well.
A substantial majority of our competitors
are significantly larger than we are and have more capital to invest in their businesses however they operate on technology we
consider to be outdated and inferior to our newer more agile technology. Competitors could also seek to gain market share by reducing
the prices they charge to advertisers, introducing products and solutions that are similar to ours or introducing new technology
tools for advertisers and digital media properties, yet the failure of these competitors to offer transparency on pricing as we
do is likely to reduce or negate such impact. Moreover, increased competition for video advertising inventory from digital media
properties could result in an increase in the portion of advertiser revenue that we must pay to digital media property owners to
acquire that advertising inventory which is beneficial to us as our technology offers a more efficient auction thus allowing us
to reduce cost for advertisers and increase revenue for publishers.
Some large advertising agencies that represent
advertising customers have their own relationships with digital media properties and can directly connect advertisers with digital
media properties. Our business will suffer to the extent that our advertisers and digital media properties purchase and sell advertising
inventory directly from one another or through other companies that act as intermediaries between advertisers and digital media
properties. Other companies that offer analytics, mediation, ad exchange or other third party solutions have or may become
intermediaries between advertisers and digital media properties and thereby compete with us. Any of these developments would make
it more difficult for us to sell our solutions and could result in increased pricing pressure, reduced profit margins, increased
sales and marketing expenses or the loss of market share.
48
Other companies that offer analytics, mediation,
ad exchange or other third party solutions have or may become intermediaries between advertisers and digital media properties and
thereby compete with us. Despite this, we believe that they do not offer a full software suite like us, as such, the long term
effect of any interruption caused by such companies will be limited.
Our fraud prevention solution competes
with the small landscape of other fraud prevention companies such as WhiteOps, Double Verify and Integral Ad Science. However,
we believe that our product is the only product in this space that has patent pending technology allowing it to perform instream
prevention as opposed to the landscapes standard.
Sales and Marketing
Given our self-serve business model, we
focus on supporting, advising and training our customers to use our platform independently as soon as they are ready to transact.
There is an element of education about our platform that requires us to invest in sales and marketing programs and personnel to
grow our business. We focus our efforts to build this awareness through trade shows and sponsored events.
As of July 1, 2020, our sales and
marketing team consisted of 5 employees. The team employs a consultative approach to both new and existing customers. Once a new
customer has access to our platform, they work closely with our customer service teams as they onboard the new customer and provide
continuous support throughout the early campaigns. Typically, once a customer has gained some initial experience, it will move
to a fully self-serve model and request support as needed.
Seasonality
Our cash flows from operations vary from
quarter to quarter due to the seasonal nature of advertiser spending. For example, many advertisers devote a disproportionate amount
of their advertising budgets to the fourth quarter of the calendar year to coincide with increased holiday purchasing. Indeed,
in digital advertising, seasonal downswings typically occur at the start in January (the beginning of the calendar year) and
October (the beginning of the fiscal year for many companies). Upswings occur in December (the end of the calendar year)
and September (the end of the fiscal year for many companies). This is due to the timing of when budgets are negotiated and
distributed. Other swings occur around holidays, and other large consumer focused events such as Black Friday and Cyber Monday.
Platform Development
Part of our dedication to innovation
means that we are constantly improving our platform, with new features and products being routinely released. We empower our development
teams by encouraging them to release updated features and increase functionality fast and often. As a company, we are always exploring
new and better ways to continuously improve the performance of our technology. Our development teams are intentionally lean and
nimble in nature, providing for transparency and accountability.
An example of our recent platform efforts
is the development of our DOOH advertising solution, which is focused on marketing to consumers when they are "out of home"
and "on the go" in public places, in transit, and/or in specific commercial locations such as airports, beauty salons,
and gas stations. According to MarketsandMarkets.com, the global DOOH market was $15.7 billion in 2018, and is expected to reach
USD $26.2 billion by 2023, at a CAGR of 10.7%.
While this traditional advertising vertical
has been transforming into being digitized. It has significantly lagged the other digital channels by not being connected to the
open real-time bidding ecosystem of buyers, making it difficult to buy and sell at scale, causing media inventory to not be monetized
effectively, and significant budgets not being spent.
We believe that we have solved one of the
biggest challenges in the DOOH channel with our proprietary patent pending technology that introduces real time bidding to the
DOOH industry. Enabling the DOOH industry to connect to the real-time digital advertising ecosystem will open a whole new channel
to digital advertisers, allowing them the ability to place advertising on DOOH screens along with all the other channels already
available for digital ads on websites and mobile devices.
Privacy and Data Protection Regulation
Privacy and data protection legislation
and regulation play a significant role in our business. We and our customers use non-identifiable data about Internet users collected
through our platform to manage and execute digital advertising campaigns in a variety of ways, including delivering advertisements
to Internet users based on their particular geographic locations, the type of device they are using, or their interests as inferred
from their web browsing or app usage activities. We do not use this data to identify specific individuals, and we do not seek to
associate this data with information that can be used to identify specific individuals. We take steps not to collect or store personally
identifiable information, or personal data. The definitions of personally identifiable information and personal data, however,
vary by jurisdiction and are evolving. As a result, our platform and business practices must be assessed regularly in each jurisdiction
where we do business to avoid violating applicable legislation and regulation.
49
In the United States, both state and federal
legislation govern activities such as the collection and use of data by companies like us. Digital advertising in the United States
has primarily been subject to regulation by the Federal Trade Commission, or the FTC, which has primarily relied upon Section 5
of the Federal Trade Commission Act, which prohibits companies from engaging in "unfair" or "deceptive"
trade practices, including alleged violations of representations concerning privacy protections and acts that allegedly violate
individuals' privacy interests. Because our platform reaches users throughout the world, including Europe, Australia and Asia,
some of our activities may also be subject to foreign legislation. As we continue to expand internationally, we will be subject
to additional legislation and regulation, and these laws may affect how we conduct business.
Additionally, U.S. and foreign governments have enacted or
are considering enacting legislation that could significantly restrict our ability to collect, augment, analyze, use and share
data collected through cookies and similar technologies, such as by regulating the level of consumer notice and consent required
before a company can employ cookies or other electronic tools to track people online. In the United States, the FTC has commenced
the examination of privacy issues that arise when marketers track consumers across multiple devices, otherwise known as cross-device
tracking. In the European Union, or EU, Directive 2009/136/EC, commonly referred to as the Cookie Directive, directs EU member
states to ensure that accessing information on an Internet user's computer, such as through a cookie, is allowed only if the Internet
user has given his or her consent. In response, some member states have adopted and implemented, and may continue to adopt and
implement legislation that impacts the use of cookies for online advertising. The EU also recently enacted the General Data Protection
Regulation, which took effect in May 2018 and similarly restricts the collection and use of IP addresses, cookie identifiers,
and device identifiers for advertising purposes.
In prior years, some government regulators
and privacy advocates advocated vigorously for a Do Not Track standard that would allow Internet users to express a preference,
independent of cookie settings in their browsers, not to have their online browsing activities tracked. In 2010, the FTC issued
a staff report emphasizing the need for simplified notice, choice and transparency to the consumer regarding the collection, use
and sharing of data, and suggested implementing a Do Not Track browser setting that would allow consumers to choose whether or
not to allow tracking of their online browsing activities. All major Internet browsers have implemented some version of a Do Not
Track setting. However, there is no commonly accepted definition of "tracking," no consensus regarding what message is
conveyed by a Do Not Track setting and no industry standards regarding how to respond to a Do Not Track preference. The World Wide
Web Consortium chartered a "Tracking Protection Working Group" in 2011 to convene a multi-stakeholder group of academics,
thought leaders, companies, industry groups and consumer advocacy organizations, to create a voluntary Do Not Track standard for
the World Wide Web. The group has yet to agree upon a standard that has the backing of industry. On the state level, California
amended its main privacy law, the California Online Privacy Protection Act, or CalOPPA, to require companies to declare in their
privacy policies how they respond to Do Not Track signals or similar mechanisms, and Delaware enacted a similar requirement in
the Delaware Online Privacy and Protection Act, or DOPPA. Neither CalOPPA nor DOPPA, however, requires any particular response
to those signals.
Corporate Information
Our mailing address is 228 Park Avenue
South, Suite 72602, New York, New York 10003-1502. Our telephone number is (866) 668-2567. The address of our website is www.Kubient.com.
The inclusion of our website address in this prospectus does not include or incorporate by reference the information on our website
into this prospectus.
Facilities
We do not maintain physical offices currently,
in large part as a result of the necessities of social distancing dictated by COVID-19, but plan to eventually enter into a lease
for physical office space after the offering, at such time when our workforce needs demand such a physical workspace. On June 24,
2020, we entered into an agreement with Earth Class Mail, Inc. for the use of our mailing at address located at 228 Park
Avenue South, Suite 72602, New York, New York 10003-1502 for $139 per month. Previously, our offices were located at 330 Seventh
Avenue, 10th Floor, New York, NY 10001 and consisted of approximately 1800 square feet of leased office space. The lease for 330
Seventh Avenue, 10th Floor, New York, NY 10001 was supposed to expire on June 1, 2021. The rent under such lease was $9,000
per month based on the use of 15 desks in the office space per month. On June 18, 2020, we entered into that certain Sublease
Termination Agreement and terminated the lease for 330 Seventh Avenue, 10th Floor, New York, NY 10001. We believe that our facilities
are adequate for our current needs and that suitable additional or substitute space would be available if needed.
Our Employees and Culture
We were selected by Inc. Magazine as one
of the top workplaces in the country in 2018.
As of July 1, 2020, we had 11 full
time employees, and 13 consultants. None of our employees are represented by a union or parties to a collective bargaining agreement.
We believe our employee relations to be good.
50
Legal Proceedings
We are currently a party to two material
legal proceedings.
On May 8, 2018, the Company
entered into a Master Services Agreement with AdKernel, LLC whereby AdKernel, LLC would provide the Company with certain
exchange integration services in order to assist the Company in the purchase and placement of ads. On November 25, 2019,
AdKernel LLC filed suit against the Company (AdKernel, LLC v. Kubient, Inc., Superior Court of California, County of Los
Angeles, Case No. 19-STLC-10891) in an effort to collect outstanding payables due under such Master Services Agreement
in the amount of $20,764. On April 21, 2020, the Company made a settlement offer to pay $20,000 within 90 days of
execution of a settlement agreement, however, that settlement offer was rejected by Adkernel LLC. As of the date of filing,
the parties had not executed a settlement agreement. On May 28, 2020, the Company filed a motion to dismiss AdKernel
LLC's lawsuit.
On
October 6, 2017, the Company entered into a Master Service Agreement for Buyers and Sellers, and an "Engage Buyer Addendum",
with Engage BDR, LLC whereby the Company could gain access to the Engage BDR, LLC proprietary trading technology platform in order
to both offer and purchase inventory for the placement of ads. On August 31, 2018, Engage BDR, LLC filed suit against the
Company (Engage BDR, LLC v. Kubient, Inc., Los Angeles County Superior Court Case No. SC129764) setting forth claims
of breach of contract, unjust enrichment, quantum meruit, accounts stated, and breach of implied covenant of good faith and fair
dealing. On November 14, 2018, Engage BDR, LLC obtained a summary default judgment against the Company for $35,936. A Writ
of Execution was issued against the Company in the amount of $40,997 on April 16, 2020. On
June 12, 2020, the
Company filed a motion to vacate default and default judgement in Engage BDR, LLC's lawsuit and a January 12, 2021 hearing
date has been set.
In addition, two material legal proceedings
have been threatened against the Company.
In March 2019, the Company entered
into a binding LOI to acquire substantially all of the assets of Aureus Holdings, LLC d/b/a Lo70s ("Lo70s"). In connection
with this LOI, the Company made a good faith deposit of $200,000. Subsequently, during the diligence phase of the LOI it became
apparent that Lo70s projections were grossly inaccurate and misstated. Diligence inquiries made to them on this subject continuously
went ignored. As a result, the Company terminated the LOI under the clause that there was a material adverse change in the business.
In connection with this termination, the Company received a legal dispute letter from Lo70s in February 2020. The Company
responded with its intentions to vigorously defend itself with respect to these demands and as of July 1, 2020, has not received
further correspondence from Lo70s.
On July 25, 2018, the Company entered
into a secured business loan agreement to pay WebBank the principal amount of $100,000, plus interest, over the course of 39 weekly
payments of principal and interest in the amount of $2,977 (the "WebBank Loan"). The WebBank Loan is secured by present
and future accounts, receivables, chattel paper, deposit accounts, personal property, assets and fixtures, general intangibles,
instruments, equipment and inventory, and was personally guaranteed by Paul Roberts, our Chief Strategy Officer, President and
Chairman. As of September 10, 2019, approximately $45,000 was due under the WebBank Loan and is currently in default. The
Company is currently in settlement negotiations with regard to the WebBank Loan, and believes that it can settle all amounts due
under the WebBank Loan for approximately $16,000, which amount would be paid from a portion of the proceeds of this offering.
Apart from the foregoing legal proceedings
and threatened legal proceedings, from time to time, we may be subject to various other legal proceedings and claims that are routine
and incidental to our business. Although some of the legal proceedings set forth herein may result in adverse decisions or settlements,
Management believes that the final disposition of such matters will not have a material adverse effect on our business, financial
position, results of operations or cash flows.
MANAGEMENT
Directors and Executive Officers
The following table sets forth information about our directors
and executive officers.
Name
Age
Position(s)
Executive Officers
Peter Anthony Bordes, Jr.
52
Chief Executive Officer and Director
Joshua Weiss
36
Chief Financial Officer
Paul Roberts
42
Chief Strategy Officer, President and Chairman
Christopher Andrews
46
Chief Digital Officer
Pavel Medvedev
44
Chief Technology Officer
Christopher Francia
34
Chief Product Officer
Non-Employee Directors
Grainne Coen (1)(2)(3)
47
Director
Elisabeth DeMarse (2)(4)
66
Director
Jeanie Mun (1)(2)(3)(4)
43
Director
Christopher H. "Toby" Smith (1)(3)(4)
80
Director
51
(1) Member of the Audit Committee
(2) Member of the Business Development and Marketing
Committee
(3) Member of the Compensation Committee
(4) Member of the Nominating and Corporate Governance
Committee
Executive Officers
Peter
Anthony Bordes, Jr.
has served as our Chief Executive Officer since May 15, 2019. Prior to joining the
Company, from January 2011 to June 2019, Mr. Bordes acted as the Founder and Chief Executive Officer of OneQube, Inc.,
a digital Audience Management Platform, which enables its customers to develop, manage and market to custom digital audiences.
Mr. Bordes continues to serve as Chairman of the Board of OneQube, Inc. From June 2004 to August 2011, Mr. Bordes
was a Co-Founder and Chief Executive Officer of MediaTrust, a real-time performance marketing advertising exchange for direct response
marketing. From November 2018 to June 2019, Mr. Bordes acted as the Chairman and Co-Founder of MainBloq, a cloud-based
modular Full Stack Execution Management platform for trading digital currencies and investing in digital assets. From January 2017
to June 2019, Mr. Bordes worked as the Co-Founder and Director of TruVest a sustainable affordable housing, real estate
investment, development and technology company. Mr. Bordes' current board service includes seats on the board of directors
of Beasley Broadcast Group (NASDAQ: BBGI), Brooklyn School of Music, New England College, Fraud.net, Hoo.be, Ocearch and RevTrax.
Mr. Bordes holds a Bachelor of Arts from New England College.
Joshua
Weiss
has served as our Chief Financial Officer since December 23, 2019.  From October 2016
to June 2019, Mr. Weiss was employed as a Vice President, Finance at Cambridge Information Group, a family office specializing
in education and education technology. From October 2011 to October 2016, Mr. Weiss held various positions at an
international accounting firm, including Senior Audit Manager, specializing in the firm's SEC and Transaction Advisory groups.
From August 2005 to October 2011, Mr. Weiss held various positions at a different international accounting firm,
including Audit Manager, specializing in Real Estate and Hospitality. Mr. Weiss holds a Bachelor of Science degree in Accounting
from Yeshiva University and is a licensed Certified Public Accountant in the State of New York.
Paul
Roberts
has served as Chief Strategy Officer, President and Chairman since May 15, 2019, prior to which he
acted as our Chief Executive Officer and Chairman since May 2017, overseeing the development and commercialization of our
Company. Prior to holding that position, Mr. Roberts was the Chief Executive Officer of CenterPoint Media from August 2012
to February 2018, an online marketing company that helped brands engage with their customers over live-style blogs. Mr. Roberts
has over 15 years of experience in digital media, holding positions at Locial Media, TanzAct Media, Yahoo!, Hotjobs and Attain
Media. Mr. Roberts is experienced in building and growing companies in the technology industry, with particular expertise
in sales, marketing strategy, brand development and customer engagement. Mr. Roberts attended Long Island University.
Christopher
Andrews
has served as our Chief Digital Officer since June 17, 2019. From March 2017 to June 2019,
he was employed as the Chief Technology Officer of Ogilvy CommonHealth Worldwide, a healthcare-focused marketing, branding and
advertising agency that is a subsidiary of WPP plc (NYSE:WPP), arguably the world's largest advertising company. From November 2006
to February 2017, he was the Chief Information Officer of Ogilvy CommonHealth Worldwide. Mr. Andrews holds a Bachelor
of Science and Masters of Business Administration from the New Jersey Institute of Technology.
52
Pavel
Medvedev
has served as our Chief Technology Officer since April 2018, and has lived and worked at the intersection
of media, advertising and technology for over two decades. From December 2017 to April 2018, he was employed as a Senior
Vice President-Programmatic at DoubleVerify, a digital marketing agency. From January 2017 to September 2017, he was
a Programmatic Consultant at LiveIntent, Inc., a digital marketing and advertising agency. From March 2013 to August 2017,
he was a Director of Client Solutions for IPONWEB, a British digital advertising software firm. Prior to his career digital advertising,
he held positions in e-commerce and software development, including five years as the Chief Technology Officer for Diligent Board
Member Services, Inc., a board of director software management developer, where he managed technology teams for Fortune 500
companies. Mr. Medvedev holds a Master of Science from Moscow Institute of Electronics and Mathematics.
Christopher
Francia
has served as our Chief Product Officer since May 26, 2017, and has been involved in the digital media
space for close to a decade. From September 2015 to June 2017, Mr. Francia was a Media Director at CenterPoint
Media. From July 2013 to September 2015, he was Director of Development at Secco Squared, a marketing and advertising
firm. From September 2012 to June 2013, he was a Production Coordinator at HooplaHa.com, a marketing and advertising
firm. Mr. Francia is also a full stack developer specializing in PHP and Go. His extensive knowledge of programming and architecture
theory make him a strong asset in the digital product space. Mr. Francia holds a Bachelor of Arts in New (Digital) Media
Arts from Brigham Young University.
Non-Employee Directors
Grainne
Coen
has been a member of our board of directors since October 2, 2019. In February 2019, Ms. Coen
founded Elevation Investment Partners, LLC, a diversified investment group that operates in multiple industries both as strategic
consultants and early stage investors. Since January 2015, Ms. Coen has also served as Co-Founder of AREA4, an experiential
marketing agency. From January 2001 to December 2015, she was a Principal at Columbia Partners, a hedge fund engaged
in the research and investment of public companies. Ms. Coen holds a Bachelor of Science from London Guildhall University.
Elisabeth
DeMarse
has been a member of our board of directors since January 7, 2020. From September 2014 to the
present, Ms. DeMarse has served on the board of directors of AppNexus Inc., a digital advertising software company, as the
board's compensation committee chair. From March 2012 to February 2016, she was the Chairman, Chief Executive Officer
and President of TheStreet, Inc., a digital financial media company. From September 2010 to March 2012, Ms. DeMarse
was the Chief Executive Officer of Newser, LLC, a digital news curation company. From January 2005 to March 2012, she
was the Entrepreneur in Residence at Austin Ventures LP. From October 2006 to August 2010, she was Chief Executive Officer,
President and a member of the board of directors of CreditCards.com, a credit card application aggregation website. Ms. DeMarse
holds a Bachelor of Arts from Wellesley College, and a Master of Business Administration from Harvard University.
Jeannie
Mun
has been a member of our board of directors since January 7, 2020. From January 2016 to the present,
Ms. Mun has been employed as a consultant for JMM Capital, LLC, a CFO advisory firm. From March 2015 to September 2015,
she was the Chief Financial Officer of Oyster Books, a predecessor to the Google Books service. From February 2009 to February 2015,
Ms. Mun was the Chief Financial Officer of MediaMath, Inc., a programmatic marketing technology provider. From May 2007
to January 2009, she was employed as a Vice President of Finance and Strategy at SintecMedia Ltd. d/b/a Operative, a media
technology company. Ms. Mun holds a Bachelor of Arts from the University of California Los Angeles, and a Master of Business
Administration from Harvard University.
Christopher
H. "Toby" Smith
has been a member of our board of directors since October 2, 2019, and was elected
as our board's lead independent director on January 7, 2020. From May 1990 to the present, Mr. Smith has served
as the Founder and Managing Principal of Alexander, Smith & Company, Inc., a performance improvement, compliance
consulting and financial advisory services firm that has successfully completed engagements with Barnes Engineering Co., Sylvania
Lighting International, Oneida Ltd., The Wildlife Conservation Society, Atkins Nutritionals, Inc. (NASDAQ:SMPL), Heartland
Publications, SunCrest Healthcare, Medical Staffing Network Holdings, Inc., MCA Logistics, LLC, Thompson Media Group, LLC,
TICO Manufacturing, Inc., and First Coast Security Services. From May 1998 to June 2003, he served as a member of
the board of directors of London Fog Industries, Inc., a designer, marketer and distributor of quality men's and women's
outerwear that is currently owned by Iconix Brand Group, Inc. (NASDAQ:ICON). From 1993 to August 1996, Mr. Smith
was employed as International Counsel to the Managing Board of Escada AG, a luxury women's designer clothing company headquartered
in Munich, Germany that was previously traded on the Frankfurt Stock Exchange. From 1989 to 1993, he was the Chairman and Chief
Executive Officer of Puma USA, which is now owned by Puma SE (FRA:PUM). Mr. Smith holds a Bachelor of Arts from Williams College
and a Juris Doctor from Yale University. In addition, Mr. Smith is a member of the bar in the states of New York and Connecticut,
as well as the District of Columbia.
Family Relationships
There are no family relationships among
any of our executive officers or directors.
Corporate Governance Overview
We are committed to having sound corporate
governance principles, which are essential to running our business efficiently and maintaining our integrity in the marketplace.
We understand that corporate governance practices change and evolve over time, and we seek to adopt and use practices that we believe
will be of value to our stockholders and will positively aid in the governance of the Company. To that end, we regularly review
our corporate governance policies and practices and compare them to the practices of other peer institutions and public companies.
We will continue to monitor emerging developments in corporate governance and enhance our policies and procedures when required
or when our Board determines that it would benefit our Company and our stockholders.
In this section, we describe the roles
and responsibilities of our board of directors and its committees and describe our corporate governance policies, procedures and
related-documents. The charters of the audit, nominating and corporate governance, and compensation committees of our board of
directors, our Corporate Governance Guidelines and Code of Business Conduct and Ethics can be accessed electronically under the
 "Governance" link on the Investor Relations page of our website at https://www.Kubient.com. We will also provide
a copy of the audit and compensation committee charters, our Corporate Governance Guidelines and our Code of Business Conduct and
Ethics without charge upon written request sent to our Investor Relations department at Attn: Investor Relations, Kubient, Inc.,
c/o Joshua Weiss, 228 Park Avenue South, Suite 72602, New York, New York 10003-1502. (The inclusion of our website address
in this section does not include or incorporate by reference the information on our website into this prospectus.)
53
Board Composition and Leadership Structure
Paul Roberts serves as our Chief Strategy
Officer, President and Chairman. Although the roles of Chief Strategy Officer, President and Chairman of our board of directors
are currently performed by the same person, we do not have a policy regarding the separation of these roles, as our board of directors
believes that it is in the best interests of the Company and our stockholders to make that determination from time to time based
upon the position and direction of the Company and the membership of our board of directors.
Our board of directors has determined that
our leadership structure is appropriate for the Company and our stockholders as it helps to ensure that the board of directors
and management act with a common purpose and provides a single, clear chain of command to execute our strategic initiatives and
business plans. In addition, our board of directors believes that a combined role of Chief Strategy Officer, President and Chairman
is better positioned to act as a bridge between management and our board of directors, facilitating the regular flow of information.
Our board of directors also believes that it is advantageous to have a Chairman with an extensive history with and knowledge of
our technology and industry (as is the case with our Chief Strategy Officer and President, Paul Roberts).
Director Independence
Applicable Nasdaq rules require a
majority of a listed company's board of directors to be comprised of independent directors within one (1) year of listing.
In addition, Nasdaq rules require that, subject to specified exceptions, each member of a listed company's audit, compensation
and nominating and corporate governance committees be independent, and that audit committee members also satisfy independence criteria
set forth in Rule 10A-3 under the Exchange Act. The Nasdaq independence definition includes a series of objective tests, such
as that the director is not, and has not been for at least three (3) years, one of our employees, that neither the director
nor any of his family members has engaged in various types of business dealings with us and that the director is not associated
with the holders of more than five percent (5%) of our common stock. In addition, under applicable Nasdaq rules, a director will
only qualify as an "independent director" if, in the opinion of the listed company's board of directors, that
person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities
of a director.
Our board of directors has undertaken a
review of the independence of each director. Based on information provided by each director concerning his background, employment
and affiliations, our board of directors has determined that three of our five directors, do not have relationships that would
interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors
is "independent" as that term is defined under the listing standards of Nasdaq. In making such determination, our board
of directors considered the relationships that each such non-employee director has with us and all other facts and circumstances
that our board of directors deemed relevant in determining his independence, including the beneficial ownership of our capital
stock by each non-employee director.
Board's Role in Risk Oversight and Management
Our board of directors, as a whole and
through its committees, is responsible for the oversight of risk management, while our management is responsible for the day-to-day
management of risks faced by us. The board of directors receives regular reports from members of senior management on areas of
material risk to the Company, including operational, financial, legal, regulatory, strategic and reputational risks as more fully
discussed in the section titled "
Risk Factors
" appearing elsewhere in this prospectus. In its risk oversight
role, our board of directors has the responsibility to satisfy itself that the risk management processes designed and implemented
by management are adequate and functioning as designed.
Committees of Our Board of Directors
Our board of directors has established
an audit committee, a compensation committee, and a nominating and corporate governance committee. The composition and responsibilities
of each committee of our board of directors are described below. Members serve on these committees until their resignation or until
otherwise determined by our board of directors. Our board of directors may establish other committees as it deems necessary or
appropriate from time to time.
Although each committee is directly responsible
for evaluating certain enumerated risks and overseeing the management of such risks, the entire board of directors is generally
responsible for and is regularly informed through committee reports about such risks and any corresponding remediation efforts
designed to mitigate such risks. In addition, appropriate committees of the board of directors receive reports from senior management
within the organization in order to enable the board of directors to understand risk identification, risk management and risk mitigation
strategies. When a committee receives such a report, the chairman of the relevant committee reports on the discussion to the full
board of directors during the committee reports portion of the next board of directors meeting. This enables the board of directors
and its committees to coordinate the risk oversight role.
54
Audit Committee
The members of our audit committee are
Grainne Coen, Jeannie Mun, and Christopher H. "Toby" Smith. Ms. Coen chairs the audit committee. The audit committee's
main function is to oversee our accounting and financial reporting processes, internal systems of control, independent registered
public accounting firm relationships and the audits of our financial statements. The committee's responsibilities include,
among other things:
•
appointing, approving the compensation of and assessing the independence of our registered public accounting firm;
•
overseeing the work of our independent registered public accounting firm, including through the receipt and consideration of reports from such firm;
•
reviewing and discussing with management and the independent registered public accounting firm our annual and quarterly financial statements and related disclosures;
•
monitoring our internal control over financial reporting, disclosure controls and procedures and code of business conduct and ethics;
•
overseeing our internal audit function;
•
overseeing our risk assessment and risk management policies;
•
establishing policies regarding hiring employees from the independent registered public accounting firm and procedures for the receipt and retention of accounting related complaints and concerns;
•
meeting independently with our internal auditing staff, independent registered public accounting firm and management;
•
reviewing and approving or ratifying any related person transactions; and
•
preparing the audit committee report required by SEC rules.
All audit and non-audit services, other
than
de minimis
non-audit services, to be provided to us by our independent registered public accounting firm
must be approved in advance by our audit committee.
Business Development and Marketing Committee
The members of our business development
and marketing committee are Grainne Coen, Elisabeth DeMarse, and Jeanie Mun. Ms. DeMarse chairs the business development and
marketing committee. This committee's responsibilities include, among other things:
•
identifying and
creating plans to fulfill relevant short and long-term goals from the Kubient strategic plan;
•
maintaining the
integrity and increasing the awareness of the Kubient brand;
•
recommending an
annual marketing budget;
•
developing and
implementing a comprehensive marketing and communications strategy;
•
working with the
executive team on short and long-term marketing needs;
•
setting priorities
for marketing efforts;
•
assisting with
the continued development of the website and ensuring relevant and current content;
•
determining and
engaging audience through various media channels; and
•
identifying collaborative
opportunities with businesses and organizations on new and existing events.
55
Compensation Committee
The members of our compensation
committee are Grainne Coen, Jeannie Mun, and Christopher H. "Toby" Smith. Ms. Mun chairs the compensation
committee. The primary purpose of our compensation committee is to discharge the responsibilities of our board of directors
in overseeing our compensation policies, plans and programs and to review and determine the compensation to be paid to our
executive officers, directors and other senior management, as appropriate. Specific responsibilities of our compensation
committee include, among other things:
•
reviewing and recommending corporate goals and objectives relevant to the compensation of our chief executive officer and other executive officers;
•
making recommendations to our board of directors with respect to, the compensation level of our executive officers;
•
reviewing and recommending to our board of directors employment agreements and significant arrangements or transactions with executive officers;
•
reviewing and recommending to our board of directors with respect to director compensation; and
•
overseeing and administering our equity-based incentive plan or plans.
Each member of our compensation committee
is a non-employee director, as defined in Rule 16b-3 promulgated under the Exchange Act and an outside director, as defined
pursuant to Section 162(m) of the Internal Revenue Code of 1986, as amended, or the "Code."
With respect to director compensation,
our compensation committee is responsible for reviewing the compensation paid to members of the Board and recommending modifications
to Board compensation that the compensation committee determines are appropriate and advisable to the Board for its approval from
time to time. In this regard, the compensation committee may request that management report to the compensation committee periodically
on the status of the Board's compensation in relation to other similarly situated companies.
In determining compensation for our executive
officers, the compensation committee typically considers, but is not required to accept, the recommendations of our Chief Executive
Officer regarding the performance and proposed base salary and bonus and equity awards for the other executive officers, as well
as himself. The compensation committee may also request the assistance of our Chief Financial Officer in evaluating the financial,
accounting and tax implications of various compensation awards paid to the executive officers. However, our Chief Financial Officer
does not determine the amounts or types of compensation paid to the executive officers. Our Chief Executive Officer and certain
of our other executive officers may attend compensation committee meetings, as requested by the compensation committee. None of
our executive officers, including our Chief Executive Officer, will attend any portion of the compensation committee meetings during
which the executive officer's compensation is established and approved.
Nominating and Corporate Governance Committee
The members of our nominating and corporate
governance committee are Elisabeth DeMarse, Jeannie Mun, and Christopher H. "Toby" Smith. Mr. Smith chairs the
nominating and corporate governance committee. This committee's responsibilities include, among other things:
•
identifying and evaluating candidates, including the nomination of incumbent directors for reelection and nominees recommended by stockholders, to serve on our board of directors;
•
considering and making recommendations to our board of directors regarding the composition and chairmanship of the committees of our board of directors;
•
developing and recommending to our board of director's corporate governance principles, codes of conduct and compliance mechanisms; and
•
overseeing periodic evaluations of the board of directors' performance, including committees of the board of directors.
When evaluating director candidates, the
nominating and corporate governance committee may consider several factors, including relevant experience, independence, commitment,
compatibility with the Chief Executive Officer and the board of directors' culture, prominence and understanding of the Company's
business, as well as any other factors the corporate governance and nominating committee deems relevant at the time. The corporate
governance and nominating committee makes a recommendation to the full board of directors as to any person it believes should be
nominated by our board of directors, and our board of directors determines the nominees after considering the recommendation and
report of the corporate governance and nominating committee.
56
Any director or executive officer of
the Company may recommend a candidate to the nominating and corporate governance committee for its consideration. The
nominating and corporate governance committee will also consider nominees to our board of directors recommended by
stockholders if stockholders comply with the advance notice requirements in our bylaws. Our bylaws provide that a stockholder
who wishes to nominate a person for election as a director at a meeting of stockholders must deliver timely written notice to
our Corporate Secretary at the following address:
Peter Anthony Bordes, Jr.
Chief Executive Officer
Kubient, Inc.
228 Park Avenue South
Suite 72602
New
York, New York 10003-1502
(800-409-9456)
This notice must contain, as to each nominee,
all of the information relating to such person as would be required to be disclosed in a proxy statement meeting the requirements
of Regulation 14A under the Exchange Act and certain other information, including: the name and address of the stockholder delivering
the notice as it appears on our books; the class and number of shares owned beneficially and of record by such stockholder; information
about derivative instruments beneficially owned by such stockholder and any opportunity to profit or share in any profit derived
from any increase or decrease in the value of the shares of our stock; any proxy, contract, arrangement, understanding or relationship
pursuant to which such stockholder has a right to vote any shares of our stock; any short interest in any of our securities held
by such stockholder; any rights to dividends on shares of our stock owned beneficially or of record by such stockholder that are
separated or separable from the underlying shares of stock; any proportionate interest in shares of our stock or derivative instruments
held by a general or limited partnership in which such stockholder is, or owns a beneficial interest in, the general partner; any
performance-related fees to which such stockholder is entitled based on the value of our securities; any arrangement or understanding
between such stockholder and the proposed nominee; and whether such stockholder intends to deliver a solicitation notice, as more
fully described in our bylaws. The foregoing summary does not include all requirements a stockholder must satisfy in order to nominate
a candidate to our board of directors. Stockholders who wish to recommend a nominee to our board of directors should carefully
read our bylaws, which are available at https://Kubient.com. (The inclusion of our website address in this prospectus does not
include or incorporate by reference the information on our website into this prospectus.)
Compensation Committee Interlocks and Insider Participation
Not applicable to smaller reporting companies.
Compensation Committee Report
Not applicable to smaller reporting companies.
Board Diversity
Our nominating and corporate governance
committee is responsible for reviewing with board of directors, on an annual basis, the appropriate characteristics, skills and
experience required for the board of directors as a whole and its individual members. In evaluating the suitability of individual
candidates (both new candidates and current members), the nominating and corporate governance committee, in recommending candidates
for election, and the board of directors, in approving (and, in the case of vacancies, appointing) such candidates, will take into
account many factors, including the following:
•
personal and professional integrity, ethics and values;
•
experience in corporate management, such as serving as an officer or former officer of a publicly-held company;
•
development or commercialization experience in large consumer products companies;
•
experience as a board member or executive officer of another publicly-held company;
•
strong finance experience;
•
diversity of expertise and experience in substantive matters pertaining to our business relative to other board members;
57
•
diversity of background and perspective, including with respect to age, gender, race, place of residence and specialized experience;
•
conflicts of interest; and
•
practical and mature business judgment.
Currently, our board of directors evaluates
each individual in the context of the board of directors as a whole, with the objective of assembling a group that can best maximize
the success of the business and represent stockholder interests through the exercise of sound judgment using its diversity of experience
in these various areas.
Director Nomination Process
Our board of directors believes that its
directors should have the highest professional and personal ethics and values, consistent with the Company's longstanding
values and standards. They should have broad experience at the policy-making level in business, government or civic organizations.
They should be committed to enhancing stockholder value and should have sufficient time to carry out their duties and to provide
insight and practical wisdom based on their own unique experience. Each director must represent the interests of all stockholders.
When considering potential director candidates, our board of directors also considers the candidate's independence, character,
judgment, diversity, age, skills, including financial literacy, and experience in the context of our needs and those of our board
of directors. Our board of directors believe that diversity is an important attribute of the members who comprise our board of
directors and that the members should represent an array of backgrounds and experiences and should be capable of articulating a
variety of viewpoints. Our board of directors priority in selecting board members is the identification of persons who will further
the interests of our stockholders through his or her record of professional and personal experiences and expertise relevant to
our business.
Stockholder Nominations to the Board
of Directors
Our bylaws provides that our board of directors
will accept for consideration submissions from stockholders of recommendations for the nomination of directors. Acceptance of a
recommendation for consideration does not imply that the board of directors will nominate the recommended candidate. Director nominations
by a stockholder or group of stockholders for consideration by our stockholders at our annual meeting of stockholders, or at a
special meeting of our stockholders that includes on its agenda the election of one or more directors, may only be made pursuant
to our bylaws or as otherwise provided by law. Nominations pursuant to our bylaws are made by delivering to our Corporate Secretary,
within the time frame described in our bylaws, all of the materials and information that our bylaws require for director nominations
by stockholders.
No person shall be eligible to serve as
a director of the Company unless nominated in accordance with the procedures set forth in our bylaws and any nominee proposed by
a stockholder not nominated in accordance with our bylaws shall not be considered or acted upon for execution at such meeting.
Stockholders' notice for any proposals requested to be included in our prospectus pursuant to Rule 14a-8 under the Exchange
Act (including director nominations), must be made in accordance with that rule.
Role of Board in Risk Oversight Process
Our board of directors has responsibility
for the oversight of the Company's risk management processes and, either as a whole or through its committees, regularly
discusses with management our major risk exposures, their potential impact on our business and the steps we take to manage them.
The risk oversight process includes receiving regular reports from board committees and members of senior management to enable
our board to understand the company's risk identification, risk management and risk mitigation strategies with respect to
areas of potential material risk, including operations, finance, legal, regulatory, strategic and reputational risk.
The audit committee reviews information
regarding liquidity and operations, and oversees our management of financial risks. Periodically, the audit committee reviews our
policies with respect to risk assessment, risk management, loss prevention and regulatory compliance. Oversight by the audit committee
includes direct communication with our external auditors, and discussions with management regarding significant risk exposures
and the actions management has taken to limit, monitor or control such exposures. The compensation committee is responsible for
assessing whether any of our compensation policies or programs has the potential to encourage excessive risk-taking. The nominating
and corporate governance committee manages risks associated with the independence of the board, corporate disclosure practices,
and potential conflicts of interest. While each committee is responsible for evaluating certain risks and overseeing the management
of such risks, the entire board is regularly informed through committee reports about such risks. Matters of significant strategic
risk are considered by our board of directors as a whole.
58
Code of Business Conduct and Ethics
We have adopted a written code of
business conduct and ethics that applies to our directors, officers and employees, including our principal executive officer,
principal financial officer, principal accounting officer or controller, or persons performing similar functions. A current
copy of the code is posted on the Corporate Governance section of our website, www.Kubient.com. In addition, we post on our
website all disclosures that are required by law or the listing standards of The Nasdaq Capital Market concerning any
amendments to, or waivers from, any provision of the code. The reference to our website address does not constitute
incorporation by reference of the information contained at or available through our website, and you should not consider it
to be a part of this prospectus.
EXECUTIVE AND DIRECTOR COMPENSATION
Summary Compensation Table
The following table provides information
regarding the compensation awarded to or earned during 2019 and 2018, as applicable, by the named executive officers of Kubient
during the historical periods presented:
Option
    and
Stock
    Awards
Warrant
Name
    and Principal Position
Fiscal
    Year
Salary
Bonus
(1)
Awards
    (1)
Total
Peter
    Anthony Bordes, Jr.
2019
$
75,000
$
-
$
-
$
479
(3)
$
75,479
Chief Executive
    Officer (2)
Paul Roberts
2019
$
155,760
$
-
$
-
$
-
$
155,760
Chief Strategy
    Officer
2018
$
110,250
$
-
$
-
$
-
$
110,250
Pavel Medvedev
2019
$
230,460
$
-
$
-
$
-
$
230,460
Chief Technology
    Officer (4)
2018
$
141,667
$
-
$
412,500
(5)
$
103,633
(6)
$
657,800
(1)
The amounts reported in these columns represent the grant date fair value of the stock, option and warrant awards granted during the years ended December 31, 2019 and 2018, calculated in accordance with FASB ASC Topic 718.
(2)
Peter Anthony Bordes, Jr. began his employment with the Company on May 15, 2019.
(3)
On October 2, 2019, Peter Anthony Bordes, Jr. was issued a four-year option to purchase 26,700 shares of common stock at an exercise price of $3.75 per share that vests over four years.
(4)
Pavel Medvedev began his employment with the Company on April 16, 2018.
(5)
During 2018, Pavel Medvedev was transferred 750,000 shares of the Company's common stock from Paul Roberts for services Mr. Medvedev provided to the Company.
(6)
On April 16, 2018, Pavel Medvedev was issued a five-year warrant to purchase 250,000 shares of common stock at an exercise price of $0.55 per share that vested immediately.
Employment Agreements
We do not presently offer a 401(k) plan
or other health or welfare benefits to our executive officers. We have entered into agreements with Peter A. Bordes, Joshua Weiss,
Paul Roberts, Pavel Medvedev, Christopher Francia and Christopher Andrews.
The terms of Mr. Bordes' employment
agreement, which was entered into on May 15, 2019, provide for an annual base salary of $220,000, plus an annual bonus of
up to 30% of his base salary based upon the achievement of certain performance goals to be established by the Board of Directors
or a committee of the Board of Directors. Upon a termination for any reason, Mr. Bordes is entitled to any unpaid but accrued
portion of his base salary earned through the date of his termination, payment for any accrued but unused vacation pay, any expenses
owed to him pursuant to his employment agreement, and any amounts owed under the Company's benefit plans. In the event Mr. Bordes
is terminated without cause or that Mr. Bordes resigns for Good Reason (as defined in his employment agreement), Mr. Bordes
shall be entitled to three month's salary, six months continued healthcare coverage plus one additional month of salary for
each full year of his service to the Company, and immediate vesting of any equity awards that would have become vested and exercisable
during the three months after his termination. Mr. Bordes was also granted options to purchase 26,700 shares of the Company's
common stock at $3.75 per share for a three year period, pursuant to the terms, conditions and vesting schedule set forth in the
corresponding Non-Qualified Option Agreement.
59
The terms of Mr. Weiss'
employment agreement, which was entered into on December 23, 2019, provide for an annual base salary of $150,000, until
March 22, 2020, when Mr. Weiss' base salary was increased to $275,000. Upon execution of his employment
agreement, Mr. Weiss was granted options to purchase 150,000 shares of the Company's common stock at $3.75 per
share for a five-year period, pursuant to the terms, conditions and vesting schedule set forth in the corresponding
Non-Qualified Option Agreement. Pursuant to the terms of his employment agreement, Mr. Weiss was awarded 20,000 shares
of the Company's common stock on March 22, 2020. Mr. Weiss is also entitled to an annual bonus of up to 30%
of his base salary based upon the achievement of certain performance goals to be established by the Board of Directors or a
committee of the Board of Directors. Upon a termination for any reason, Mr. Weiss is entitled to any unpaid but accrued
portion of his base salary earned through the date of his termination, payment for any accrued but unused vacation pay, any
expenses owed to him pursuant to his employment agreement, and any amounts owed under the Company's benefit plans. In
the event Mr. Weiss is terminated without cause or that Mr. Weiss resigns for Good Reason (as defined in his
employment agreement), Mr. Weiss shall be entitled to six month's salary paid in one lump sum, six months
continued healthcare coverage plus one additional month of salary for each full year of his service to the Company, and
immediate vesting of any equity awards that would have become vested and exercisable during the three months after his
termination.
The terms of Mr. Roberts' employment
agreement, which was entered into on May 26, 2017 and amended October 2, 2019 solely to reflect his change in position
at the Company to Chief Strategy Officer and President, provide for an annual base salary of $120,000, plus an annual bonus of
up to 30% of his base salary based upon the achievement of certain performance goals to be established by the Board of Directors
or a committee of the Board of Directors. Upon a termination for any reason, Mr. Roberts is entitled to any unpaid but accrued
portion of his base salary earned through the date of his termination, payment for any accrued but unused vacation time, any expenses
owed to him pursuant to his employment agreement, and any amounts owed under the Company's benefit plans. In the event Mr. Roberts
is terminated without cause or that Mr. Roberts resigns for Good Reason (as defined in his employment agreement), Mr. Roberts
shall be entitled to six month's salary plus one additional month of salary for each full year of his service to the Company,
continued healthcare coverage for the earlier of (i) six months plus one additional month of additional coverage for each
full year of his service to the Company or (ii) until such time as Mr. Roberts becomes eligible for health coverage under
another employer's plan, and immediate vesting of any equity awards that would have become vested and exercisable during
the six months after his termination, plus one additional month of salary for each full year of his service to the Company. Mr. Roberts
was also granted options to purchase 300,000 shares of the Company's common stock at $0.55 per share for a five year period,
pursuant to the terms, conditions and vesting schedule set forth in the corresponding Non-Qualified Option Agreement.
The terms of Mr. Medvedev's
employment agreement, which was entered into on April 16, 2018, provide for an annual base salary of $200,000, plus quarterly
bonuses of eight percent of all net revenue generated by introductions made by Mr. Medvedev to us. Mr. Medvedev was granted
250,000 warrants to purchase our common stock, as well as 750,000 warrants to purchase common stock which might be issued upon
the achievement of certain performance goals set forth in the agreement. Upon termination for any reason, Mr. Medvedev is
entitled to the continuation of his Net Revenue Bonus (as defined in his employment agreement) for the earlier of: eighteen months
from the date such bonus commences, or three months from the termination of his employment with the Company. Mr. Medvedev
was also granted options to purchase 200,000 shares of the Company's common stock at $0.55 per share that vest over a three
year period, pursuant to the terms, conditions and vesting schedule set forth in the corresponding Non-Qualified Option Agreement
and conditions of his employment agreement. However, Mr. Medvedev's employment agreement was subsequently amended on
November 21, 2019 to reflect that Mr. Medvedev has received a total of 750,000 shares of common stock from Mr. Paul
Roberts, the Company's Chief Strategy Officer, President and Chairman, and 250,000 five-year warrants at an exercise price
of $0.55 per share in lieu of the warrants and options originally set forth in his employment agreement, and that no further equity
awards will be made to Mr. Medvedev pursuant to the terms of his employment agreement with the Company.
The terms of Mr. Francia's employment
agreement, which was entered into on May 26, 2017, provide for an annual base salary of $94,000. Mr. Francia was also
granted four-year options to purchase 29,000 shares of the Company's common stock at $0.33 per share that vest over four
years, pursuant to the terms, conditions and vesting schedule set forth in the corresponding Non-Qualified Option Agreement. Upon
a termination for any reason, Mr. Francia is entitled to any unpaid but accrued portion of his base salary earned through
the date of his termination, payment for any accrued but unused vacation time, any expenses owed to him pursuant to his employment
agreement, and any amounts owed under the Company's benefit plans.
The terms of Mr. Andrews' employment
agreement, which was entered into on June 17, 2019, provide for an annual base salary of $180,000, plus commissions of: (i) for
the first $320,000 in commission, 15% of the net revenue of Mr. Andrews' division (ii) for commissions between
$320,000 to $570,000, up to 15% of the net revenue of Mr. Andrews' division, which amount can include up to $250,000
in common stock, and (iii) for any commissions above $570,000, 7% the net revenue of Mr. Andrews' division. Mr. Andrews
was also granted options to purchase 180,000 shares of the Company's common stock at $3.75 per share for a ten year period,
pursuant to the terms, conditions and vesting schedule set forth in the corresponding Non-Qualified Option Agreement. Additionally,
pursuant to the terms of his employment agreement, Mr. Andrews was issued 20,000 shares of our common stock on July 17,
2019. Upon a termination for any reason, Mr. Andrews is entitled to any unpaid but accrued portion of his base salary earned
through the date of his termination, payment for any accrued but unused vacation time, any expenses owed to him pursuant to his
employment agreement, and any amounts owed under the Company's benefit plans. In the event Mr. Andrews is terminated
without cause or that Mr. Andrews resigns for Good Reason (as defined in his employment agreement), Mr. Andrews shall
be entitled to twelve month's salary, continued healthcare coverage for the earlier of (i) six months plus one additional
month of additional coverage for each full year of his service to the Company, or (ii) until such time as Mr. Andrews
becomes eligible for health coverage under another employer's plan, and immediate vesting of any equity awards that would
have become vested and exercisable during the three months after his termination.
60
Stock Option and Other Compensation Plans
Our 2017 Equity Incentive Plan was originally
adopted by our board of directors and approved by our stockholders on September 12, 2017, and was subsequently amended and
restated on June 5, 2019 (the "2017 Plan"). The purposes of the 2017 Plan are to attract and retain the best available
personnel for positions of substantial responsibility, to provide additional incentive to our service providers and to promote
the success of the Company's business. We have reserved 3,000,000 shares of our common stock to issue awards under our 2017
Plan which shall be increased to equal 10% of our issued and outstanding common stock at the time of each award.
Shares Available for Awards
As of March 31, 2020, there were options
to purchase 880,700 shares of our common stock with a weighted average exercise price of $1.85 per share that were outstanding
under the 2017 Plan and 2,119,300 shares of common stock remained available for future issuance under the 2017 Plan.
Eligibility
The persons eligible to receive awards
under our 2017 Plan are our employees, directors and consultants. However, only employees are eligible to receive awards of incentive
stock options ("ISOs") within the meaning of Section 422 of the Code.
Administration
Our 2017 Plan provides that it shall be
administered by our board of directors or, if so delegated, a committee appointed by our board of directors. The party administering
our 2017 Plan, whether it is our board of directors or a committee appointed by our board of directors, is referred to under the
2017 Plan as the "administrator". Subject to the terms of our 2017 Plan, the administrator is authorized to (i) determine
the fair market value of our common stock, (ii) select eligible persons to receive awards, (iii) determine the number
of shares of our common stock to which awards will relate, (iv) approve forms of award agreement for use under the 2017 Plan,
(v) determine the terms and conditions of awards, including exercise price, time or timing of award exercisability, or any
vesting acceleration or waiver of forfeiture restrictions, (vi) determine whether to institute and determine the conditions
of an award exchange program, (vii) construe the terms of the 2017 Plan and awards granted thereunder, (viii) prescribe,
amend and rescind rules and regulations relating to the 2017 Plan (including any foreign sub-plans), (ix) modify or amend
any award, including discretion to extend the post-termination exercisability period or maximum term of an option, (x) determine
how participants may satisfy tax withholding obligations and the acceptable form of consideration for exercising an option, (xi) authorize
any person to execute any award agreement previously granted by the administrator, (xii) allow a participant to defer the
receipt of the payment of cash or receipt of common shares that otherwise would be due to such participant, and (xiii) make
all other determinations deemed necessary or advisable for administering the 2017 Plan.
Stock Options
Incentive and nonstatutory stock options
are granted pursuant to stock option agreements adopted by the administrator. The term of an option will be no more than ten years,
and no more than five years with respect to any ISO granted to a participant who, at the time of grant, owns stock representing
more than 10% of the total combined voting power of all classes of stock of the Company, or any parent or subsidiary (a "10%
Stockholder"). Generally, the exercise price for an incentive stock option or a nonstatutory stock option cannot be less
than 100% of the fair market value of the common stock subject to the option on the date of grant. However, any ISO granted to
a 10% Stockholder may not have an exercise price per share less than 110% of the fair market value per share on the date of grant.
Notwithstanding the above, options may be granted with a per share exercise price of less than 100% of fair market value per share
on the date of grant pursuant to certain transactions and in a manner consistent with Section 424(a) of the Code. A stock
option agreement may provide for early exercise prior to vesting and the administrator may at any time offer to buy out any option
previously granted.
For purposes of the 2017 Plan, "fair
market value" means (i) if our common stock is listed on an established stock exchange, the closing sales price on such
exchange on the date of determination, or if no closing bid was reported for such date, the next earliest date or (ii) if
our common stock is not listed on an established stock exchange, the value determined in good faith by the administrator. At the
time of grant, the administrator shall determine the acceptable form of consideration for exercising an option, which may consist
of cash, check, promissory note (to the extent permitted by law), other shares of our common stock, consideration received by the
Company through a cashless exercise program, by net exercise or by any other consideration or method of payment. Options will be
exercisable as provided under the terms of the 2017 Plan and at such times set forth in the applicable award agreement. An option
will be deemed exercised when the Company receives (i) written or electronic notice of exercise, (ii) full payment for
the exercised shares (including any applicable tax withholding), and (iii) such representations and documents deemed necessary
or advisable by the administrator.
61
If an optionee ceases to be a service
provider, other than upon termination due to death or disability, the optionee may exercise his or her option within 30 days
of termination, or such longer period of time specified in the award agreement (but in no case after the expiration date of
the option), to the extent such option is vested on the date of termination. If an optionee ceases to be a service provider
due to death or disability, the optionee or his or her beneficiary, may exercise any vested options up to six months
following termination (but in no case after the expiration date of the option). Any shares covered by any unvested portion of
the option which is forfeited will revert to the 2017 Plan and again be available for grant. The option agreement may provide
for early exercise prior to vesting or a right of repurchase.
Limitations
The aggregate fair market value, determined
at the time of grant, of shares of our common stock with respect to ISOs that are exercisable for the first time by an optionee
during any calendar year under all of our stock plans may not exceed $100,000. The options or portions of options that exceed this
limit are treated as nonstatutory stock options.
Restricted Stock
Our 2017 Plan also permits the issuance
of restricted stock. Restricted stock represents the purchase of our common stock that is subject to restrictions with respect
to sale and transferability of such shares until the stock vests pursuant to the terms of the award agreement.
Restricted Stock Units
Our 2017 Plan also permits the issuance
of restricted stock units, or RSUs, to our service providers. RSUs granted under our 2017 Plan represent the right to receive shares
of our common stock or a cash payment at a specified future date or event and may be subject to vesting requirements.
Other Stock-Based Awards
Our 2017 Plan permits the issuance of other
awards may be paid in shares of common stock, cash or other property as standalone payment and or payment in lieu of compensation.
Adjustments
In the event of an equity restructuring
as defined in the 2017 Plan, such as a stock split, stock dividend, merger or other recapitalization, the 2017 Plan provides for
the proportional adjustment of the number of shares reserved under the 2017 Plan and the number of shares and exercise or purchase
price, if applicable, of all outstanding stock awards.
Merger or Change in Control
Unless otherwise provided in the award
agreement, in the event of certain corporate transactions, any or all outstanding stock awards under the 2017 Plan may be treated
as the administrator determines absent participant consent: that the awards will (i) be assumed or substituted for by any
successor corporation, (ii) terminate upon or immediately prior to any such transaction, (iii) vest and become exercisable
or payable in whole or in part upon the effectiveness of such transaction, (iv) be terminated in exchange or in replacement
for cash or property that would have been realized upon the exercise or realization of such award, or (v) be handled in any
combination of the above. If the successor corporation elects not to assume or substitute for such awards, the vesting of such
stock awards will accelerate and all restrictions shall lapse. In the event of our dissolution or liquidation, all outstanding
options and stock appreciation rights under the 2017 Plan will terminate immediately prior to such event.
Amendment and Termination
Our board of directors has the authority
to amend, alter, suspend or terminate the 2017 Plan with stockholders approval as required by law. However, no amendment or termination
of the plan may adversely affect any rights under awards already granted to a participant without the affected participant's
consent.
Founder Employee Incentive Program
On July 2, 2020, the Company's board of directors adopted
the Founder Employee Incentive Program (the "Founder Program") under the 2017 Plan. The purposes of the Founder Program
are to offer near-term and long-term incentives to founder employees of the Company that are intended to keep such employees in
the employ of the Company, and that are based on individual performance, the achievement of financial goals of the Company and
the total return to the Company's stockholders.
62
Outstanding Equity Awards at December 31, 2019
The following table provides information
with respect to holdings of options, warrants and stock awards held by our named executive officers, at December 31, 2019:
Option Awards
Name
Number of
securities
underlying
unexercised
option
exercisable
(#)
Number of
securities
underlying
unexercised
option
unexercisable
(#)
Option
exercise price
($)
Option
expiration
date
Paul Roberts
168,750
131,250
0.33
9/15/2021
Peter Anthony Bordes, Jr.
26,700
-
3.75
10/2/2029
Warrant Awards
Name
Number of
securities
underlying
unexercised
warrant
exercisable
(#)
Number of
securities
underlying
unexercised
warrant
unexercisable
(#)
Warrant
exercise price
($)
Warrant
expiration
date
Pavel Medvedev
250,000
-
0.55
4/16/2023
Long-Term Incentive Plans
We currently have no long-term incentive
plans.
Salary Reduction Program
On April 30, 2020, in response to
the impact of the COVID-19 pandemic on the Company's operations, the Company's board of directors approved an employee
salary reduction program, whereby we can issue shares of our common stock in lieu of salaries to employees. The value of such an
equity award shall be equivalent to 150% of the cash compensation that otherwise would have been payable, based on the market value
of the Company's common stock on the date of issuance.
Non-Employee Director Compensation
As of July 1, 2020, we have not offered
or paid non-employee directors any compensation for their services. However, we reimburse our officers and directors for reasonable
expenses incurred during the course of their performance.
Employee Director Compensation
Directors who are also our employees receive
no additional compensation for their service as a director.
63
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS
Policies and Procedures for Related Person Transactions
Our board of directors has adopted written
policies and procedures for the review of any transaction, arrangement or relationship in which we are a participant, the amount
involved exceeds $120,000 and one of our executive officers, directors, director nominees or 5% stockholders, or their immediate
family members, each of whom we refer to as a "related person," has a direct or indirect material interest.
If a related person proposes to enter into
such a transaction, arrangement or relationship, which we refer to as a "related person transaction," the related person
must report the proposed related person transaction to our Chief Financial Officer. The policy calls for the proposed related person
transaction to be reviewed and, if deemed appropriate, approved by our audit committee. Whenever practicable, the reporting, review
and approval will occur prior to entry into the transaction. If advance review and approval is not practicable, the committee will
review, and, in its discretion, may ratify the related person transaction. The policy also permits the chairman of the committee
to review and, if deemed appropriate, approve proposed related person transactions that arise between committee meetings, subject
to ratification by the committee at its next meeting. Any related person transactions that are ongoing in nature will be reviewed
annually.
A related person transaction reviewed under
the policy will be considered approved or ratified if it is authorized by the committee after full disclosure of the related person's
interest in the transaction. As appropriate for the circumstances, the committee will review and consider:
•
the related person's interest in the related person transaction;
•
the approximate dollar value of the amount involved in the related person transaction;
•
the approximate dollar value of the amount of the related person's interest in the transaction without regard to the amount of any profit or loss;
•
whether the transaction was undertaken in the ordinary course of our business;
•
whether the terms of the transaction are no less favorable to us than terms that could have been reached with an unrelated third party; and
•
the purpose of, and the potential benefits to us of, the transaction.
The audit committee may approve or ratify
the transaction only if the committee determines that, under all of the circumstances, the transaction is in our best interests.
The committee may impose any conditions on the related person transaction that it deems appropriate.
In addition to the transactions that are
excluded by the instructions to the SEC's related person transaction disclosure rule, our board of directors has determined
that the following transactions do not create a material direct or indirect interest on behalf of related persons and, therefore,
are not related person transactions for purposes of this policy:
•
interests arising solely from the related person's position as an executive officer of another entity (whether or not the person is also a director of such entity) that is a participant in the transaction, where (i) the related person and all other related persons own in the aggregate less than a 10% equity interest in such entity, (ii) the related person and his or her immediate family members are not involved in the negotiation of the terms of the transaction and do not receive any special benefits as a result of the transaction, and (iii) the amount involved in the transaction is less than the greater of   $200,000 or 5% of the annual gross revenues of the company receiving payment under the transaction; and
•
a transaction that is specifically contemplated by provisions of our certificate of incorporation, as amended and restated, or bylaws.
The policy provides that transactions involving
compensation of executive officers shall be reviewed and approved by the compensation committee in the manner specified in its
charter.
We have a written policy regarding the
review and approval of related person transactions. With respect to such transactions, it is our policy for our board of directors
to consider the nature of and business reason for such transactions, how the terms of such transactions compared to those which
might be obtained from unaffiliated third parties and whether such transactions were otherwise fair to and in the best interests
of, or not contrary to, our best interests. In addition, all related person transactions required prior approval, or later ratification,
by our board of directors.
64
Related Party Transactions
On May 26, 2017, we issued shares
of our common stock to the stockholders of CenterPoint Media LLC, including Mr. Roberts, for consideration consisting of cash
at $0.0000005 per share (post-split) and the stockholder's agreement to the transfer of our business plan and all intellectual
property associated with the development of our ad server and real time bidding technology (the "AdServer Technology")
developed at CenterPoint Media LLC. On June 6 2017, CenterPoint and Kubient entered into a Technology Transfer Agreement where
all of the AdServer Technology and contracts with customers related thereto were transferred to us for $100. CenterPoint entered
into an agreement to sell all of its assets and liabilities to a third party unrelated to Kubient, except for a certain bank's
line of credit amounting to $350,000 and all obligations relating to the CenterPoint master lease of our former premises at 111
West 28th Street.
On May 1, 2017 and effective June 1,
2017, Kubient entered into a sublease agreement with CenterPoint whereby Kubient agreed to sublease office space from CenterPoint
for $5,500 per month plus common charges for a period of one year. On March 6, 2018 and effective April 14, 2018, the
Company extended their lease agreement with CenterPoint whereby the Company and CenterPoint committed themselves jointly and severally
to all obligations of the lease for $9,139 per month including common maintenance charges for a period of ten months and ending
on February 14, 2019.
During the year ended December 31,
2018, our founder agreed to transfer an aggregate of 1,985,000 shares of common stock out of his personal holdings to certain parties
(one party was the Company's Chief Technology Officer) in connection with services provided for the Company's benefit.
The fair value of $1,091,750 of shares of common stock is reflected as stock-based compensation on the Company's statements
of operations during the year ended December 31, 2018 with a corresponding credit to additional paid-in capital.
During the year ended December 31,
2018, Kubient and CenterPoint made various payments to one another for operating expenses that were paid for on the other party's
behalf. During the year ended December 31, 2018, Kubient made aggregate of payments of approximately $109,000 for the benefit
of CenterPoint (of which, $71,000 was paid directly to CenterPoint and $38,000 was for CenterPoint expenses paid by Kubient) and
CenterPoint made aggregate of payments of approximately $56,000 on behalf of Kubient.
During the year ended December 31,
2018, we wrote-off receivables from CenterPoint in the amount of approximately $61,000, which we deemed to be uncollectible.
During
the year ended December 31, 2018, the Company received a non-interest-bearing advance in the amount of $45,000 from its
founder
and Board member. The Company repaid this amount during the year ended December 31, 2019.
In March 2019, we entered into a sublease
(license) agreement with OneQube, Inc. that provides for rent payments by Kubient equal to $600 per desk per month and ends
in June 2021. On June 18, 2020, the sublease (license) agreement was terminated. Our Chief Executive Officer, Peter Bordes,
is a stockholder of OneQube, Inc. He stepped down as Chief Executive Officer of OneQube, Inc. in June 2019 and continues
to serve as Chairman of the Board of OneQube, Inc.
During the years ended December 31,
2019 and 2018, rent expense was $91,169 and $106,779, respectively, which included the rent paid to related parties discussed above.
During the three months ended March 31, 2020 and 2019, rent expense associated with the OneQube, Inc. sublease was $35,821
and $3,600, respectively. As of March 31, 2020 and December 31, 2019, the Company had a liability to OneQube, Inc.
of $23,881 and $0, respectively.
During the year ended December 31,
2019, the Company advanced an aggregate of $75,000 to OneQube, Inc. in connection with a non-binding letter of intent between
the parties that was eventually mutually terminated by the parties. $75,000 was repaid by OneQube, Inc. during the year ended
December 31, 2019.
During
the year ended December 31, 2019, the Company's Chief Executive Officer purchased a Senior Note in the amount of $165,000
for gross proceeds of $150,000. During the year ended December 31, 2019, t
he Company's Chief Executive Officer,
Chief Digital Officer and Board member each purchased Junior Notes in the amount of $308,000, $330,000 and $27,500, respectively,
for aggregate gross proceeds of $605,000.
As of March 31, 2020, the Company
had outstanding notes payable – related parties, convertible notes payable – related parties and an advance due to
a related party of $525,000, $830,500 and $29,000, respectively. As of December 31, 2019, the Company had outstanding convertible
notes payable - related parties and an advance due to a related party of $830,500 and $29,000, respectively.
65
During the year ended December 31,
2019, the Company received non-interest-bearing advances in the aggregate amount of $29,905 from a company controlled by an executive
officer. The Company repaid $905 during the year ended December 31, 2019.
During the three months ended March 31, 2020, the Company
received aggregate proceeds of $525,000 in connection with three-year notes payable issued to three of its executive officers.
The notes bear interest ranging from 1.50% and 1.60% per annum, payable annually. The outstanding principal and accrued and unpaid
interest shall become immediately due and payable upon an initial public offering, sale of the Company or qualified financing with
equity proceeds of at least $5,000,000. There can be no assurance that the Company will complete an initial public offering, sale
of the Company or qualified financing with equity proceeds of at least $5,000,000. Furthermore, the holders of the Related Party
Notes have agreed to amend such notes prior to the effectiveness of this registration statement to provide for conversion of principal
and interest thereunder into the units being issued in this offering at the public offering price per unit.
PRINCIPAL
STOCKHOLDERS
Security Ownership of Management and Certain Beneficial Owners
The following table sets forth the beneficial
ownership of our common stock as of July 1, 2020 by:
•
each stockholder known by us to beneficially own more
than 5% of our outstanding common stock;
•
each of our directors;
•
each of our named executive officers; and
•
all of our directors and executive officers as a group.
We have determined beneficial ownership
in accordance with the rules of the SEC. These rules generally provide that a person is the beneficial owner of securities
if such person has or shares the power to vote or direct the voting of securities, or to dispose or direct the disposition of securities.
A security holder is also deemed to be, as of any date, the beneficial owner of all securities that such security holder has the
right to acquire within 60 days after such date through (i) the exercise of any option or warrant, (ii) the conversion
of a security, (iii) the power to revoke a trust, discretionary account or similar arrangement or (iv) the automatic
termination of a trust, discretionary account or similar arrangement. Except as disclosed in the footnotes to this table and subject
to applicable community property laws, we believe that each person identified in the table has sole voting and investment power
over all of the shares shown opposite such person's name.
The percentage of beneficial ownership is based on 32,423,686
shares of our common stock outstanding as of July 1, 2020.
Number of
Name of Beneficial Owner
Shares
Percentage
Executive Officers and Directors
Peter Anthony Bordes, Jr.
(1)
-
*
Paul Roberts
(2)
19,200,030
58.78
%
Christopher Andrews
(3)
20,000
*
Pavel Medvedev
(4)
1,000,000
3.06
%
Christopher Francia
(5)
721,140
2.22
%
Josh Weiss
(6)
20,000
*
Grainne Coen
-
*
Jeannie Mun
-
*
Elisabeth Demarse
-
*
Christopher H. "Toby" Smith
(7)
-
*
All directors and executive officers as a group
20,961,170
63.65
%
Greater than 5% Shareholders
Benjamin Neuman
(8)
2,152,181
6.61
%
* Less than 1%
(1)
Does not include 26,700 shares of common stock underlying unvested stock options. Also does not include $473,000 of promissory notes that are not currently convertible but are contingently convertible at the time of a Qualified IPO.
(2)
Includes 218,750 shares of common stock underlying stock options that are exercisable or will become exercisable within 60 days. Does not include 81,250 shares of common stock underlying unvested stock options. Also includes 6,000,000 shares of common stock held by the Paul Roberts 2019 Annuity Trust, of which Mr. Roberts is a partial beneficiary.
(3)
Does not include 180,000 shares of common stock underlying unvested stock options. Also does not include $330,000 of a promissory note that is not currently convertible but is contingently convertible at the time of a Qualified IPO.
(4)
Includes 250,000 shares of common stock underlying warrants that are exercisable or will become exercisable within 60 days.
(5)
Includes 21,140 shares of common stock underlying stock options that are exercisable or will become exercisable within 60 days. Does not include 7,860 shares of common stock underlying unvested stock options.
(6)
Does not include 150,000 shares of common stock underlying unvested stock options.
(7)
Does not include $27,500 of a promissory note that is not currently convertible but is contingently convertible at the time of a Qualified IPO.
(8)
Includes 120,397 shares of common stock underlying a convertible promissory note.
66
DESCRIPTION OF SECURITIES
General
The following description of our capital
stock and provisions of our certificate of incorporation and bylaws, each as amended and restated, are summaries and are qualified
by reference to our certificate of incorporation and bylaws, each as amended and restated, themselves. By becoming a stockholder
in our Company, you will be deemed to have notice of and consented to these provisions of our certificate of incorporation and
bylaws, each as amended and restated.
On September 12, 2017, we executed
a 20:1 forward stock split. All shares and per share information in this prospectus reflects this stock split. We have two authorized
classes of stock: (i) preferred stock, par value $0.00001 per share, with 5,000,000 shares authorized, and (ii) common
stock, par value $0.00001 per share, with 95,000,000 shares authorized.
Prior to the closing of the offering, we
plan to file a certificate of amendment to our amended and restated certificate of incorporation with the Secretary of State of
the State of Delaware to effectuate a one-for-   (1:  ) reverse stock split of our common stock without any change to its par value.
Such amendment will become effective on upon such filing. No fractional shares will be issued in connection with the reverse stock
split as all fractional shares will be rounded down to the next whole share. All share and per share amounts of our common stock
listed in this prospectus have been adjusted to give effect to the reverse stock split.
Units
Each unit consists of one share of common
stock, $0.00001 par value per share, and one warrant to purchase one share of our common stock, each as described further below.
The common stock and warrants will be immediately separable and will be issued separately.
Authorized Capital Stock
We are currently authorized to issue up
to 100,000,000 shares of capital stock consisting of: 95,000,000 shares of common stock, par value $0.00001 per share and 5,000,000
shares of preferred stock, par value of $0.00001 per share. As of March 31, 2020, 32,413,686 shares of common stock were issued
and outstanding and there were no shares of preferred stock outstanding.
Common Stock
Holders of our common stock are entitled
to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An
election of directors by our stockholders shall be determined by a plurality of the votes cast by the stockholders entitled to
vote on the election. Holders of common stock are entitled to receive proportionately any dividends as may be declared by our board
of directors, subject to any preferential dividend rights of outstanding preferred stock. Our Board of Directors is not obligated
to declare a dividend. It is not anticipated that dividends will be paid in the foreseeable future.
In the event of our liquidation or dissolution,
the holders of common stock are entitled to receive proportionately all assets available for distribution to stockholders after
the payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. Holders of common
stock have no preemptive, subscription, redemption or conversion rights. The rights, preferences and privileges of holders of common
stock are subject to and may be adversely affected by the rights of the holders of shares of any series of preferred stock that
we may designate and issue in the future.
Holders of our common stock do not have
preemptive rights to subscribe to additional shares if issued. There is no conversion, redemption, sinking fund or similar provisions
regarding the common stock. All outstanding shares of common stock are fully paid and non-assessable.
67
Preferred Stock
Under the terms of our certificate of incorporation,
as amended and restated, our board of directors is authorized to issue shares of preferred stock in one or more classes or series
without stockholder approval. Our board of directors has the discretion to determine the rights, preferences, privileges and restrictions,
including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series
of preferred stock.
The purpose of authorizing our board of
directors to issue preferred stock and to determine such preferred stock's rights and preferences is to eliminate delays
associated with a stockholder vote on specific issuances. The 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.
Presently, our board of directors has not authorized the creation or issuance of any shares or series of preferred stock, and there
will be no shares of preferred stock issued or outstanding upon the closing of this offering.
Authorized but Unissued Shares of Common Stock and Preferred
Stock
The authorized but unissued shares of our
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 Capital Market. These additional shares may be used for a variety of corporate finance transactions,
acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock
could make more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or
otherwise.
Warrants Offered Hereby
The following summary of certain terms
and provisions of the warrants offered hereby is not complete and is subject to, and qualified in its entirety by, the provisions
of the form of the warrant, which is filed as an exhibit to the registration statement of which this prospectus is a part of. Prospective
investors should carefully review the terms and provisions set forth in the form of warrant.
Exercisability
The warrants are exercisable immediately
upon issuance and at any time up to the date that is five years from the date of issuance. The warrants will be exercisable,
at the option of each holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied by payment in
full for the number of shares of our common stock purchased upon such exercise (except in the case of a cashless exercise as discussed
below). Unless otherwise specified in the warrant, the holder will not have the right to exercise any portion of the warrant if
the holder (together with its affiliates) would beneficially own in excess of 4.99% of the number of shares of our common stock
outstanding immediately after giving effect to the exercise (or, upon election by a Holder prior to the issuance of any Warrants,
9.99%), as such percentage ownership is determined in accordance with the terms of the warrants.
Cashless Exercise
In the event that a registration statement
covering shares of common stock underlying the warrants, is not available for the issuance of such shares of common stock underlying
the warrants, the holder may, in its sole discretion, exercise the warrant in whole or in part and, in lieu of making the cash
payment otherwise contemplated to be made to us upon such exercise in payment of the aggregate exercise price, elect instead to
receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the warrant.
In no event shall we be required to make any cash payments or net cash settlement to the registered holder in lieu of issuance
of common stock underlying the warrants.
Certain Adjustments
The exercise price and the number of shares
of common stock purchasable upon the exercise of the warrants are subject to adjustment upon the occurrence of specific events,
including stock dividends, stock splits, combinations and reclassifications of our common stock.
Transferability
Subject to applicable laws, the warrants
may be transferred at the option of the holders upon surrender of the warrants to our Transfer Agent together with the appropriate
instruments of transfer.
Warrant Agent and Exchange Listing
The warrants will be issued in registered
form under a warrant agency agreement between VStock Transfer, LLC, as warrant agent, and us.
68
Fundamental Transactions
If, at any time while the warrants are
outstanding, (1) we consolidate or merge with or into another corporation and we are not the surviving corporation, (2) we
sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of our assets, (3) any purchase
offer, tender offer or exchange offer (whether by us or another individual or entity) is completed pursuant to which holders of
our shares of common stock are permitted to sell, tender or exchange their shares of common stock for other securities, cash or
property and has been accepted by the holders of 50% or more of our outstanding shares of common stock, (4) we effect any
reclassification or recapitalization of our shares of common stock or any compulsory share exchange pursuant to which our shares
of common stock are converted into or exchanged for other securities, cash or property, or (5) we consummate a stock or share
purchase agreement or other business combination with another person or entity whereby such other person or entity acquires more
than 50% of our outstanding shares of common stock, each a "Fundamental Transaction," then upon any subsequent exercise
of the warrants, the holder thereof will have the right to receive the same amount and kind of securities, cash or property as
it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to
such Fundamental Transaction, the holder of the number of warrant shares then issuable upon exercise of the warrant, and any additional
consideration payable as part of the Fundamental Transaction.
Rights as a Stockholder
Except as otherwise provided in the warrants
or by virtue of such holder's ownership of shares of our common stock, the holder of a warrant does not have the rights or
privileges of a holder of our common stock, including any voting rights, until the holder exercises the warrant.
Beneficial Ownership Limitation
Holder's exercise shall be limited
4.99% of the Company's outstanding common stock (or, upon election by a Holder prior to the issuance of any Warrants, 9.99%)
of the number of shares of the common stock outstanding immediately after giving effect to the issuance of shares of common stock
issuable upon exercise. The Holder, upon notice to the Company, may increase or decrease the beneficial ownership limitation provided
that the beneficial ownership limitation in no event exceeds 9.99% of the number of shares of the common stock outstanding immediately
after giving effect to the issuance of shares of common stock upon exercise of the warrant held by the Holder. Any increase in
the beneficial ownership limitation will not be effective until the 61st day after such notice is delivered to the Company.
Governing Law
The warrants and the warrant agency agreement
are governed by Delaware law.
Warrants
As of March 31, 2020, there were 10,247,000
shares of our common stock issuable upon exercise of outstanding stock warrants with a weighted average exercise price of $0.55
per share.
Options
As of March 31, 2020, there were 880,700
shares of our common stock issuable upon exercise of outstanding stock options pursuant to our equity plans with a weighted average
exercise price of $1.85 per share.
Registration Rights
Senior Notes
In three separate
closings dated April 26, May 23, and June 28, 2019, the Company sold 25 Units of its securities for gross proceeds
of $2,500,000, with each Unit priced at $100,000. After the expiration of a period of no less than 180 days following the effective
date of this offering, holders of Units shall have one demand registration right, if Rule 144 under the Securities Act is
not then available, and unlimited piggyback registration rights with respect to the shares of common stock underlying the securities
that make up the Units.
In connection with the Unit offering described
above, we are required to issue a five year warrant to Joseph Gunnar & Co., LLC, the placement agent in such offering,
to purchase shares of our common stock. See "
Underwriting – Placement Agent Warrants
." The warrant issued
to the placement agent will provide for unlimited piggyback registration rights and customary anti-dilution rights consistent with
FINRA Rule 5110.
69
Junior Notes
In two separate closings dated October 11
and November 6, 2019, the Company sold 11.05 Subordinated Units of its securities for gross proceeds of $1,105,000, with each
Subordinated Unit priced at $100,000. After the expiration of a period of no less than 180 days following the effective date of
this offering, holders of Subordinated Units shall have one demand registration right, if Rule 144 under the Securities Act
is not then available, and unlimited piggyback registration rights with respect to the shares of common stock underlying the securities
that make up the Subordinated Units.
In connection with the Subordinated Unit offering described
above, we are required to issue a five year warrant to Joseph Gunnar & Co., LLC, the placement agent in such offering,
to purchase shares of our common stock. See "
Underwriting – Placement Agent Warrants
."
Between
May 22, 2020 and June 11, 2020, the Company and certain noteholders entered to a consent and first amendment to
Senior Notes and the Junior Notes, which do not affect the registration rights granted to the Senior Note holders and Junior Note
holders discussed above.
Anti-Takeover Matters
Bylaw Provisions
The DGCL and our bylaws include a number
of provisions that may have the effect of delaying, deferring or discouraging another person from acquiring control of our company
and discouraging takeover bids. These provisions may also have the effect of encouraging persons considering unsolicited tender
offers or other unilateral takeover proposals to negotiate with our board of directors rather than pursue non-negotiated takeover
attempts. These provisions include the items described below.
No Cumulative Voting
The DGCL provides that stockholders are
not entitled to the right to cumulate votes in the election of directors unless our certificate of incorporation provides otherwise.
Our bylaws provide that there shall be no cumulative voting.
Written Consent of Stockholders
Our bylaws provide that all stockholder
actions are required to be taken by a vote of the stockholders at an annual or special meeting, and that stockholders may take
any action by written consent in lieu of a meeting.
Meetings of Stockholders
Our bylaws will provide that a majority
of the members of our board of directors then in office, the Chairman of the Board, the Chief Executive Officer, the President,
or the holders of outstanding shares of common stock entitled to cast not less than 75% of the votes in a meeting may call special
meetings of stockholders and only those matters set forth in the notice of the special meeting may be considered or acted upon
at a special meeting of stockholders. Our bylaws limit the business that may be conducted at an annual meeting of stockholders
to those matters properly brought before the meeting.
Advance Notice Requirements
Our bylaws establish advance notice procedures
for stockholders seeking to bring business before an annual or special meeting of stockholders or to nominate candidates for election
as directors at our annual meeting of stockholders. These procedures provide that notice of stockholder proposals must be timely
given in writing to our corporate secretary prior to the meeting at which the action is to be taken. Generally, to be timely, notice
must be received at our principal executive offices not less than 120 days prior to the first anniversary date of the annual meeting
for the preceding year. The notice must contain certain information specified in the bylaws.
Amendment to Bylaws and Certificate
of Incorporation
The amendment of the provisions in our
certificate of incorporation will require approval by holders of at least 66
2
/
3
% of our outstanding capital
stock entitled to vote generally in the election of directors, in addition to any rights of the holders of our outstanding capital
stock to vote on such amendment under the DGCL. The amendment of the provisions in our bylaws will require approval by either
a majority of our board of directors or holders of at least 66
2
/
3
% of our outstanding capital stock entitled
to vote generally in the election of directors, in addition to any rights of the holders of our outstanding capital stock to vote
on such amendment under the DGCL.
70
Blank Check Preferred Stock
Our certificate of incorporation provides
for 5,000,000 authorized shares of preferred stock. The existence of authorized but unissued shares of preferred stock may enable
our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender
offer, proxy contest, or otherwise. For example, if in the due exercise of its fiduciary obligations, our board of directors were
to determine that a takeover proposal is not in the best interests of us or our stockholders, our board of directors could cause
shares of preferred stock to be issued without stockholder approval in one or more private offerings or other transactions that
might dilute the voting or other rights of the proposed acquirer or insurgent stockholder or stockholder group. In this regard,
our certificate of incorporation grants our board of directors broad power to establish the rights and preferences of authorized
and unissued shares of preferred stock. The issuance of shares of preferred stock could decrease the amount of earnings and assets
available for distribution to holders of shares of common stock. The issuance may also adversely affect the rights and powers,
including voting rights, of these holders and may have the effect of delaying, deterring, or preventing a change in control of
us.
Delaware General Corporation Law
Upon completion of this offering, we will
be subject to the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a publicly held Delaware corporation
from engaging in a "business combination" with an "interested stockholder" for a three-year period following
the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner.
A "business combination" includes, among other things, a merger, asset or stock sale, or other transaction resulting
in a financial benefit to the interested stockholder. An "interested stockholder" is a person or entity who, together
with affiliates and associates, owns, or did own within three years prior to the determination of interested stockholder status,
15% or more of the corporation's voting stock. Under Section 203, a business combination between a corporation and an
interested stockholder is prohibited unless it satisfies one of the following conditions:
•
before the stockholder became interested, our board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
•
upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee stock plans, in some instances; or
•
at or after the time the stockholder became interested, the business combination was approved by our board of directors and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder.
Any provision of our certificate of incorporation,
bylaws or Delaware law that has the effect of delaying, preventing or deterring a change in control could limit the opportunity
for our stockholders to receive a premium for their shares of our common stock, and could also affect the price that some investors
are willing to pay for our common stock.
Exclusive Forum for Resolution of Disputes
Pursuant to our amended and restated certificate
of incorporation, to the fullest extent permitted by law, unless we consent in writing to the selection of an alternative forum,
the Court of Chancery of the State of Delaware is the sole and exclusive forum for state law claims for (i) any derivative
action or proceeding brought on our behalf, (ii) any action asserting a claim of or based on a breach of a fiduciary duty
owed by any of our current or former directors, officers, or other employees to us or our stockholders, (iii) any action asserting
a claim against us arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation, or our
bylaws, or (iv) any action asserting a claim governed by the internal affairs doctrine. For the avoidance of doubt, this forum
selection clause will not apply to suits brought to enforce any liability or duty created by the Securities Act, the Exchange Act
or any other claim for which the federal courts have exclusive jurisdiction.
We recognize that the forum selection clause
may impose additional litigation costs on stockholders who assert the provision is not enforceable and may impose more general
additional litigation costs in pursuing any such claims. Additionally, the forum selection clause in our bylaws may limit our stockholders'
ability to obtain a favorable judicial forum for disputes with us. The Court of Chancery of the State of Delaware may also reach
different judgments or results than would other courts, including courts where a stockholder considering an action may be located
or would otherwise choose to bring the action, and such judgments may be more or less favorable to us than our stockholders.
71
Limitations of Director Liability and
Indemnification of Directors and Officers
As permitted by the DGCL, provisions in
our certificate of incorporation and bylaws that will be in effect upon the closing of this offering will limit or eliminate the
personal liability of our directors. Consequently, directors will not be personally liable to us or our stockholders for monetary
damages or breach of fiduciary duty as a director, except for liability for:
•
any breach of the director's duty of loyalty to us or our stockholders;
•
any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law;
•
any unlawful payments related to dividends or unlawful stock repurchases, redemptions or other distributions; or
•
any transaction from which the director derived an improper personal benefit.
These limitations of liability do not alter
director liability under the federal securities laws and do not affect the availability of equitable remedies, such as an injunction
or rescission.
In addition, our bylaws provide that:
•
we will indemnify our directors, officers and, in the discretion of our board of directors, certain employees, to the fullest extent permitted by the DGCL, subject to limited exceptions, including an exception for indemnification in connection with a proceeding (or counterclaim) initiated by such persons; and
•
we will advance expenses, including attorneys' fees, to our directors and, in the discretion of our board of directors, certain officers and employees, in connection with legal proceedings, subject to limited exceptions.
Prior to the completion of this offering,
we intend to enter into indemnification agreements with each of our executive officers and directors. These agreements provide
that, subject to limited exceptions and among other things, we will indemnify each of our executive officers and directors to the
fullest extent permitted by law and advance expenses to each indemnitee in connection with any proceeding in which a right to indemnification
is available.
We also intend to maintain general liability
insurance that covers certain liabilities of our directors and officers arising out of claims based on acts or omissions in their
capacities as directors or officers, including liabilities under the Securities Act. Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to directors, officers, or persons who control us, we have been informed that
in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.
These provisions may discourage stockholders
from bringing a lawsuit against our directors for breach of their fiduciary duty. 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. Furthermore, a stockholder's investment may be adversely affected to the extent
we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. We
believe that these provisions, the indemnification agreements and the insurance are necessary to attract and retain talented and
experienced directors and officers.
At present, there is no pending litigation
or proceeding involving any of our directors or officers where indemnification will be required or permitted. We are not aware
of any threatened litigation or proceeding that might result in a claim for such indemnification.
Transfer Agent and Registrar
The transfer agent and registrar for our
common stock is VStock Transfer, LLC. The transfer agent's address is 18 Lafayette Place, Woodmere, NY 11598, and its telephone
number is (212) 828-8436.
The Nasdaq Capital Market
We have applied to list our common stock
on The Nasdaq Capital Market under the symbol "KBNT." In conjunction therewith, we also applied to have the warrants
listed on The Nasdaq Capital Market under the symbol "KBNTW". No assurance can be given that our application will be
approved.
SHARES ELIGIBLE FOR FUTURE SALE
Prior to this offering, there has been
no public market for our shares. Future sales of our common stock in the public market, or the availability of such shares for
sale in the public market, could adversely affect market prices prevailing from time to time. As described below, only a limited
number of shares will be available for sale shortly after this offering due to contractual and legal restrictions on resale. Nevertheless,
sales of our common stock in the public market after such restrictions lapse, or the perception that those sales may occur, could
adversely affect the prevailing market price at such time and our ability to raise equity capital in the future.
72
Based on the number of shares outstanding
as of            , 2020, upon the completion of this offering         shares
of our common stock will be outstanding, assuming the automatic conversion of all convertible notes into an aggregate of         shares
of our common stock upon the closing of this offering, no exercise of the representative of the underwriter's option to purchase
additional shares and no exercise of outstanding warrants or options. Of the outstanding shares, all of the shares sold in this
offering will be freely tradable, except that any shares held by our affiliates, as that term is defined in Rule 144 under
the Securities Act, may only be sold in compliance with the limitations described below. All remaining shares of common stock held
by existing stockholders immediately prior to the completion of this offering will be "restricted securities" as such
term is defined in Rule 144. These restricted securities were issued and sold by us, or will be issued and sold by us, in
private transactions and are eligible for public sale only if registered under the Securities Act or if they qualify for an exemption
from registration under the Securities Act, including the exemptions provided by Rule 144 or Rule 701, summarized below.
Rule 144
In general, under Rule 144, beginning
90 days after the date of this prospectus, any person who is not our affiliate and has not been our affiliate at any time during
the preceding three months and has held their shares for at least six months, including the holding period of any prior owner other
than one of our affiliates, may sell shares without restriction, subject to the availability of current public information about
us. In addition, under Rule 144, any person who is not our affiliate and has not been our affiliate at any time during the
preceding three months and has held their shares for at least one year, including the holding period of any prior owner other than
one of our affiliates, would be entitled to sell an unlimited number of shares immediately upon the closing of this offering without
regard to whether current public information about us is available.
Beginning 90 days after the date of this
prospectus, a person who is our affiliate or who was our affiliate at any time during the preceding three months may sell any unrestricted
securities, as well as restricted securities that the person has beneficially owned for at least six months, including the holding
period of any prior owner other than one of our affiliates, under Rule 144. Affiliates selling restricted or unrestricted
securities may sell a number of shares within any three-month period that does not exceed the greater of:
•
1% of the number of shares then outstanding, which will equal approximately shares immediately after this offering, assuming no exercise of the representative of the underwriter's option to purchase additional shares; or
•
the average weekly trading volume in our common stock on The Nasdaq Capital Market during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.
Sales under Rule 144 by our affiliates are also subject
to manner of sale provisions and notice requirements and to the availability of current public information about us.
Rule 701
In general, under Rule 701 of the
Securities Act, any of our employees, consultants or advisors, other than our affiliates, who purchased shares from us in connection
with a qualified compensatory stock plan or other written agreement is eligible to resell these shares 90 days after the date of
this prospectus in reliance on Rule 144, but without compliance with the holding period requirements of Rule 144 and
without regard to the volume of such sales or the availability of public information about us.
However, substantially all Rule 701
shares are subject to lock-up agreements as described below and under "Underwriting" included elsewhere in this prospectus
and will become eligible for sale upon the expiration of the restrictions set forth in those agreements.
Lock-Up Agreements
In connection with this offering, we, our directors and officers
and holders of more than 5% of our equity securities outstanding immediately prior to this offering, have agreed, subject to certain
exceptions, not to offer, sell or transfer any shares of common stock or securities convertible into or exchangeable for our common
stock for 360 days after the date of this prospectus without the prior written consent of Maxim Group LLC and Joseph Gunnar &
Co. LLC.
In addition to the restrictions contained
in the lock-up agreements described above, we have entered into agreements with certain of our security holders, including our
investors' rights agreement and agreements governing our equity awards, that contain market stand-off provisions imposing
restrictions on the ability of such security holders to offer, sell or transfer our equity securities for a period of 180
days following the date of this prospectus.
73
Registration Rights
Upon completion of this offering, certain holders of our securities
will be entitled to various rights with respect to registration of their shares under the Securities Act. Registration of these
shares under the Securities Act would result in these shares becoming fully tradable without restriction under the Securities
Act immediately upon the effectiveness of the registration. See the section entitled "
Description of Securities
- Registration Rights
" appearing elsewhere in this prospectus for more information.
Equity Incentive Plans
We intend to file one or more registration
statements on Form S-8 under the Securities Act to register our shares issued or reserved for issuance under our equity incentive
plans. The first such registration statement is expected to be filed soon after the date of this prospectus and will automatically
become effective upon filing with the SEC. Accordingly, shares registered under such registration statement will be available for
sale in the open market, unless such shares are subject to vesting restrictions with us or the lock-up restrictions described above.
UNDERWRITING
Maxim Group LLC ("Maxim Group")
and Joseph Gunnar & Co. LLC ("Joseph Gunnar") are acting as co-representatives of the underwriters (collectively,
the "Representative"). Subject to the terms and conditions of an underwriting agreement between us and the Representative,
we have agreed to sell to each underwriter named below, and each underwriter named below has severally agreed to purchase, at the
public offering price less the underwriting discounts set forth on the cover page of this prospectus, the number of units
listed next to its name in the following table:
Name of Underwriter
Number of Units
Maxim Group LLC
Joseph Gunnar & Co. LLC
The Benchmark Company, LLC
The underwriters are committed to purchase
all the units offered by us other than those covered by the over-allotment option described below, if any, are purchased. The underwriting
agreement also provides that if an underwriter defaults, the purchase commitments of non-defaulting underwriters may be increased
or the offering may be terminated. The underwriters are not obligated to purchase the units covered by the underwriters'
over-allotment option described below. The underwriters are offering the units, subject to prior sale, when, as and if issued to
and accepted by them, subject to approval of legal matters by their counsel, and other conditions contained in the underwriting
agreement, such as the receipt by the underwriters of officer's certificates and legal opinions. The underwriters reserve
the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.
Discounts and Commissions
The underwriters propose initially to offer
the units to the public at the public offering price set forth on the cover page of this prospectus and to dealers at those
prices less a concession not in excess of $              per unit.
If all of the units offered by us are not sold at the public offering price, the underwriters may change the offering price and
other selling terms by means of a supplement to this prospectus.
The following table shows the public offering
price, underwriting discounts and commissions and proceeds before expenses to us. The information assumes either no exercise or
full exercise of the over-allotment option we granted to the Representative.
Per Unit
Total Without
Over-Allotment
Option
Total With Full
Over-Allotment
Option
Public offering price
$
$
$
Underwriting discount
$
$
$
Non-accountable expense allowance
$
$
$
Proceeds, before expenses, to us
$
$
$
We have agreed to pay a non-accountable
expense allowance to the Representative equal to 1% of the gross proceeds received at the closing of the offering (excluding any
proceeds received upon any subsequent exercise of the over-allotment option).
74
We have also agreed to pay the Representative's expenses
relating to the offering, including (a) all actual filing fees incurred in connection with the review of this offering by
the Financial Industry Regulatory Authority, or FINRA, and all fees and expenses relating to the listing of our shares of common
stock and warrants on Nasdaq; (b) all fees, expenses and disbursements relating to background checks of our officers and directors
in an amount not to exceed $10,000 in the aggregate; (c) all actual fees, expenses and disbursements relating to the registration
or qualification of securities offered under state securities laws, or "blue sky" laws, or under the securities laws
of foreign jurisdictions designated by the Representative, including reasonable fees and disbursements of "blue sky"
counsel not to exceed $15,000; (d) all actual fees, expenses and disbursements relating to the registration, qualification
or exemption of our shares of common stock and warrants under the securities laws of such foreign jurisdictions as the Representative
may reasonably designate; (e) the costs of all mailing and printing of the underwriting documents as the Representative may
reasonably deem necessary; (f) the costs associated with two sets of bound volumes of the public offering materials as well
as commemorative mementos and lucite tombstones in aggregate not to exceed $10,000; (g) the fees and expenses of the Representative's
legal counsel not to exceed $100,000, $20,000 of which has been paid in advance and will be returned to us to the extent that offering
expenses are not actually incurred in compliance with FINRA Rule 5110(f)(2)(C); (h) $26,500 for the underwriters'
use of Ipreo's book-building, prospectus tracking and compliance software for this offering; (i) up to $25,000 of the
Representative's actual accountable road show expenses for the offering, (j) the $4,800 cost associated with the use
of Finsight's deal road show presentation software and (k) the Representatives' cost of mailing prospectuses to
potential investors.
We estimate that the total expenses of
the offering payable by us, excluding the total underwriting discount and non-accountable expense allowance, will be approximately
$              .
Over-Allotment Option
We have granted the underwriters an over-allotment
option. This option, which is exercisable for up to 45 days after the date of this prospectus, permits the underwriters to purchase
up to             additional shares of our common stock and/or warrants
to purchase up to                shares of our common stock
from us, to cover over-allotments. If the underwriters exercise all or part of this option, they will purchase shares and/or warrants
included in the units covered by the option at the public offering price per share or warrant that appears on the cover page of
this prospectus, less the underwriting discount. If this option is exercised in full, the total price to the public will be $            
and the total net proceeds, before expenses, to us will be $          .
Representative's Warrants
We
have agreed to issue to the Representative (or its permitted assignees) warrants to purchase up to a total of                shares of common
stock (5% of the shares of common stock included in the Units, excluding the over-allotment, if any).
We are registering
hereby the issuance of the Representative's warrants and the shares of common stock issuable upon exercise of the warrants.
The warrants will be exercisable at any time, and from time to time, in whole or in part, during the four and one half year period
commencing 180 days from the effective date of the registration statement of which this prospectus is a part, which period is in
compliance with FINRA Rule 5110(f)(2)(G)(i). The warrants are exercisable for cash or on a cashless basis at a per share price
equal to $         per share, or 125% of the public offering price per Unit in the offering. The warrants have been deemed compensation
by FINRA and are therefore subject to a 180-day lock-up pursuant to Rule 5110(g)(1) of FINRA. The Representative (or
permitted assignees under Rule 5110(g)(1)) will not sell, transfer, assign, pledge, or hypothecate these warrants or the securities
underlying these warrants, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result
in the effective economic disposition of the warrants or the underlying securities for a period of 180 days from the effective
date of the registration statement of which this prospectus is a part. In addition, the warrants provide for certain demand and
piggyback registration rights. The piggyback registration rights provided will terminate 5 years from the effective date of the
registration statement of which this prospectus is a part in compliance with FINRA Rule 5110(f)(2)(G)(v). We will bear all
fees and expenses attendant to registering the securities issuable on exercise of the warrants other than underwriting commissions
incurred and payable by the holders. The exercise price and number of shares issuable upon exercise of the warrants may be adjusted
in certain circumstances including in the event of a stock dividend, extraordinary cash dividend or our recapitalization, reorganization,
merger or consolidation. However, the warrant exercise price or underlying shares will not be adjusted for issuances of shares
of common stock at a price below the warrant exercise price.
Placement Agent Warrants
In connection with the Company's
private placement (the "Senior Note Private Placement") of $2,750,000 principal amount of convertible notes and warrants,
Joseph Gunnar and the Company entered into a letter agreement, dated March 11, 2019 (the "March 2019 Agreement").
In connection with the Company's private placement (the "Subordinated Note Private Placement") of $1,215,500
principal amount of convertible notes and warrants, Joseph Gunnar and the Company entered into a letter agreement, dated September 18,
2019 (the "September 2019 Agreement"). Both the March 2019 Agreement and the September 2019 Agreement
provided that Joseph Gunnar is entitled to receive warrants (the "Agent Warrants") to purchase 10% of the sum of (i) shares
into which the notes sold in the offering are convertible at an exercise price equal to the offering price per share sold in the
Qualified IPO, and (ii) shares for which the investor warrants are exercisable, at an exercise price equal to the warrant
exercise price of the warrant included in the Subordinated Units. Notwithstanding the foregoing, if a Qualified IPO does not occur
on or before the one-year anniversary of each of such agreements, then each Agent Warrant will be exercisable for that number of
shares of common stock equal to 20% of the principal amount of the notes sold in the offering divided by $0.55, at a per share
exercise price of $0.55.
75
The Company and Joseph Gunnar have agreed to amend the March
2019 Agreement and the September 2019 Agreement, pursuant to which effective immediately prior the effectiveness of this registration
statement, the right to receive all Placement Agent Warrants as contemplated in such agreements will be amended so that Joseph
Gunnar (or its designees) shall be entitled to receive warrants to purchase          shares of Common Stock (the "Replacement
Agent Warrants"). The Replacement Agent Warrants will be exercisable for cash or on a cashless basis at a per share exercise
price equal to $        , which price reflects 110% of the public offering price of the Units issued in the Offering. The Replacement
Agent Warrants shall expire on a date which is five years from the effectiveness of this registration statement and shall be subject
to a 180-day lock up pursuant to Rule 5110(g)(1) of FINRA. We will bear all fees and expenses attendant to registering
the shares of our common stock issuable upon exercise of the Replacement Agent Warrants The exercise price and the number of shares
of our common stock issuable upon exercise of the Agent Warrants may be proportionately adjusted in the event of a stock split,
stock dividend, recapitalization, reorganization, or similar event involving us in compliance with FINRA Rule 5110(f)(2)(G)(vi).
Notwithstanding the foregoing, if a Qualified IPO does not occur on or before December 31, 2020, then the Replacement Agent Warrants
will be exercisable for an aggregate number of shares of common stock equal to 20% of the original principal amount of the notes
sold in the Senior Note Private Placement and the Junior Note Private Placement divided by $        , at a per share exercise price
of $        .
Discretionary Accounts
The underwriters do not intend to confirm
sales of the securities offered hereby to any accounts over which they have discretionary authority.
Lock-Up Agreements
Pursuant to "lock-up" agreements,
we, our executive officers and directors, and certain of our stockholders, have agreed, without the prior written consent of the
Representative not to directly or indirectly, offer to sell, sell, pledge or otherwise transfer or dispose of any of shares of
(or enter into any transaction or device that is designed to, or could be expected to, result in the transfer or disposition by
any person at any time in the future of) our common stock, enter into any swap or other derivatives transaction that transfers
to another, in whole or in part, any of the economic benefits or risks of ownership of shares of our common stock, make any demand
for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the
registration of any shares of common stock or securities convertible into or exercisable or exchangeable for common stock or any
other securities of the Company or publicly disclose the intention to do any of the foregoing, subject to customary exceptions,
for a period of 360 days from the date of this prospectus, in the case of our directors and officers, 180 days from the date of
this prospectus, in the case of certain of our principal stockholders.
Right of First Refusal and Certain Post Offering Investments
Subject to the closing of this offering
and certain conditions set forth in the underwriting agreement, for a period of twenty-four (24) months after the closing of the
offering, each of Maxim Group and Joseph Gunnar shall have a right of first refusal to act as lead managing underwriters and book-runners
and/or placement agents for any and all future public or private equity, equity-linked or debt (excluding commercial bank debt)
offerings undertaken during such period by us, or any of our successors or subsidiaries, on terms customary to each of Maxim Group
and Joseph Gunnar. In the event that both Maxim Group and Joseph Gunnar exercise their respective right of first refusal as to
the same public equity offering, the economic participation between Maxim Group and Joseph Gunnar for this right of first refusal
on such future public equity offering shall be 50% to Maxim and 50% to Joseph Gunnar. Each of Maxim Group and Joseph Gunnar in
conjunction with us, shall have the sole right to determine whether or not any other broker-dealer shall have the right to participate
in any such offering and the economic terms of any such participation. In addition, the Company has also agreed to pay Maxim Group
and Joseph Gunnar an aggregate cash fee of 7% in the event investors previously directly introduced to the Company by such parties
provide capital to the Company during the period commencing 91 days following the closing of the offering and continuing for a
period of 18 months thereafter.
Indemnification
We have agreed to indemnify the underwriters
against certain liabilities, including liabilities under the Securities Act, and to contribute to payments that the underwriters
may be required to make for these liabilities.
Stabilization
In connection with this offering, the underwriters
may engage in stabilizing transactions, over-allotment transactions, syndicate-covering transactions, penalty bids and purchases
to cover positions created by short sales.
76
•
Stabilizing transactions permit bids to purchase securities so long as the stabilizing bids do not exceed a specified maximum, and are engaged in for the purpose of preventing or retarding a decline in the market price of the securities while the offering is in progress.
•
Over-allotment transactions involve sales by the underwriters of securities in excess of the number of securities that underwriters are obligated to purchase. This creates a syndicate short position which may be either a covered short position or a naked short position. In a covered short position, the number of securities over-allotted by the underwriters is not greater than the number of securities that they may purchase in the over-allotment option. In a naked short position, the number of securities involved is greater than the number of securities in the over-allotment option. The underwriters may close out any short position by exercising their over-allotment option and/or purchasing securities in the open market.
•
Syndicate covering transactions involve purchases of securities in the open market after the distribution has been completed in order to cover syndicate short positions. In determining the source of securities to close out the short position, the underwriters will consider, among other things, the price of securities available for purchase in the open market as compared with the price at which they may purchase securities through exercise of the over-allotment option. If the underwriters sell more securities than could be covered by exercise of the over-allotment option and, therefore, have a naked short position, the position can be closed out only by buying securities in the open market. A naked short position is more likely to be created if the underwriters are concerned that after pricing there could be downward pressure on the price of the securities in the open market that could adversely affect investors who purchase in the offering.
•
Penalty bids permit the Representative to reclaim a selling concession from a syndicate member when the securities originally sold by that syndicate member are purchased in stabilizing or syndicate covering transactions to cover syndicate short positions.
These stabilizing transactions, syndicate
covering transactions and penalty bids may have the effect of raising or maintaining the market price of our securities or preventing
or retarding a decline in the market price of our securities. As a result, the price of our securities in the open market may be
higher than it would otherwise be in the absence of these transactions. Neither we nor the underwriters make any representation
or prediction as to the effect that the transactions described above may have on the price of our securities. These transactions
may be effected on The Nasdaq Capital Market, in the over-the-counter market or otherwise and, if commenced, may be discontinued
at any time.
Passive Market Making
In connection with this offering, the underwriters
and selling group members may also engage in passive market making transactions in the our common stock. Passive market making
consists of displaying bids limited by the prices of independent market makers and effecting purchases limited by those prices
in response to order flow. Rule 103 of Regulation M promulgated by the SEC limits the amount of net purchases that each passive
market maker may make and the displayed size of each bid. Passive market making may stabilize the market price of the shares of
common stock at a level above that which might otherwise prevail in the open market and, if commenced, may be discontinued at any
time.
Electronic Offer, Sale and Distribution of Shares
A prospectus in electronic format may be
made available on the websites maintained by one or more underwriters or selling group members, if any, participating in the offering.
The underwriters may agree to allocate a number of shares of securities to underwriters and selling group members for sale to their
online brokerage account holders. Internet distributions will be allocated by the Representative to underwriters and selling group
members that may make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format,
the information on the underwriters' websites and any information contained in any other website maintained by the underwriters
is not part of this prospectus or the registration statement of which this prospectus forms a part.
Other Relationships
From time to time, certain of the underwriters
and their affiliates have provided, and may provide in the future, various advisory, investment and commercial banking and other
services to us in the ordinary course of business, for which they have received and may continue to receive customary fees and
commissions. However, except as disclosed in this prospectus, we have no present arrangements with any of the underwriters for
any further services.
Market Information
The public offering price will be determined
by discussions between us and the Representative. In addition to prevailing market conditions, the factors to be considered in
these discussions will include:
77
•
an assessment of our management and the underwriters as to the price at which investors might be willing to participate in this offering;
•
the history of, and prospects for, our company and the industry in which we compete;
•
our past and present financial information;
•
our past and present operations, and the prospects for, and timing of, our future revenues;
•
the present state of our development; and
•
the above factors in relation to market values and various valuation measures of other companies engaged in activities similar to ours.
An active trading market for the shares
may not develop. It is also possible that after the offering the shares will not trade in the public market at or above the public
offering price.
Offer and Sale Restrictions Outside the United States
Other than in the United States, no action
has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any
jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly
or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of
any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance
with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised
to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This
prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus
in any jurisdiction in which such an offer or a solicitation is unlawful.
Australia
This prospectus is not a disclosure document
under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian Securities and Investments Commission
and does not purport to include the information required of a disclosure document under Chapter 6D of the Australian Corporations
Act. Accordingly, (i) the offer of the securities under this prospectus is only made to persons to whom it is lawful to offer
the securities without disclosure under Chapter 6D of the Australian Corporations Act under one or more exemptions set out in section
708 of the Australian Corporations Act, (ii) this prospectus is made available in Australia only to those persons as set forth
in clause (i) above, and (iii) the offeree must be sent a notice stating in substance that by accepting this offer, the
offeree represents that the offeree is such a person as set forth in clause (i) above, and, unless permitted under the Australian
Corporations Act, agrees not to sell or offer for sale within Australia any of the securities sold to the offeree within 12 months
after its transfer to the offeree under this prospectus.
Canada
The securities may be sold in Canada only
to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument
45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined
in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the securities
must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable
securities laws.
Securities legislation in certain provinces
or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment
thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within
the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer
to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these
rights or consult with a legal advisor.
Pursuant to section 3A.3 of National Instrument
33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105
regarding underwriter conflicts of interest in connection with this offering.
78
China
The information in this document does not constitute a public
offer of the securities, whether by way of sale or subscription, in the People's Republic of China (excluding, for purposes
of this paragraph, Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan). The securities may
not be offered or sold directly or indirectly in the PRC to legal or natural persons other than directly to "qualified domestic
institutional investors."
European Economic Area — Belgium, Germany, Luxembourg
and Netherlands
In relation to each Member State of the
European Economic Area that has implemented the Prospectus Regulation (each, a "Relevant Member State") an offer to
the public of our securities may not be made in that Relevant Member State, except that an offer to the public in that Relevant
Member State of our securities may be made at any time under the following exemptions under the Prospectus Regulation:
(a)
to any legal entity which is a qualified investor as defined in the Prospectus Regulation;
(b)
to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Regulation), subject to obtaining the prior consent of the representative for any such offer; or
(c)
in any other circumstances falling within Article 1(4) of the Prospectus Regulation,
provided that no such offer of our securities
shall result in a requirement for the publication by us or any underwriter of a prospectus pursuant to Article 3 of the Prospectus
Regulation.
For the purposes of this provision, the
expression an "offer to the public" in relation to our securities in any Relevant Member State means the communication
in any form and by any means of sufficient information on the terms of the offer and our securities to be offered so as to enable
an investor to decide to purchase our securities, and the expression "Prospectus Regulation" means Regulation (EU)
2017/1129 (as amended).
This European Economic Area selling restriction
is in addition to any other selling restrictions set out below.
France
This document is not being distributed
in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning
of Article L.411-1 of the French Monetary and Financial Code (Code monétaire et financier) and Articles 211-1 et seq.
of the General Regulation of the French Autorité des marchés financiers ("AMF"). The securities have
not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France.
This document and any other offering material
relating to the securities have not been, and will not be, submitted to the AMF for approval in France and, accordingly, may not
be distributed or caused to distributed, directly or indirectly, to the public in France.
Such offers, sales and distributions have
been and shall only be made in France to (i) qualified investors (investisseurs qualifiés) acting for their own account,
as defined in and in accordance with Articles L.411-2-II-2° and D.411-1 to D.411-3, D. 744-1, D.754-1 and D.764-1 of the French
Monetary and Financial Code and any implementing regulation and/or (ii) a restricted number of non-qualified investors (cercle
restreintd'investisseurs) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2° and
D.411-4, D.744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation.
Pursuant to Article 211-3 of the General
Regulation of the AMF, investors in France are informed that the securities cannot be distributed (directly or indirectly) to the
public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 to L.621-8-3 of the French
Monetary and Financial Code.
Ireland
The information in this document does not
constitute a prospectus under any Irish laws or regulations and this document has not been filed with or approved by any Irish
regulatory authority as the information has not been prepared in the context of a public offering of securities in Ireland within
the meaning of the Irish Prospectus (Directive 2003/71/EC) Regulations 2005 (the "Prospectus Regulations"). The securities
have not been offered or sold, and will not be offered, sold or delivered directly or indirectly in Ireland by way of a public
offering, except to (i) qualified investors as defined in Regulation 2(l) of the Prospectus Regulations and (ii) fewer
than 100 natural or legal persons who are not qualified investors.
79
Hong Kong
The securities may not be offered or sold
in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within
the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32 of the Laws of Hong Kong) ("Companies
(Winding Up and Miscellaneous Provisions) Ordinance") or which do not constitute an invitation to the public within the meaning
of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) ("Securities and Futures Ordinance"), or
(ii) to "professional investors" as defined in the Securities and Futures Ordinance and any rules made thereunder,
or (iii) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies
(Winding Up and Miscellaneous Provisions) Ordinance, and no advertisement, invitation or document relating to our securities may
be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere),
which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted
to do so under the securities laws of Hong Kong) other than with respect to our securities that are or are intended to be disposed
of only to persons outside Hong Kong or only to "professional investors" in Hong Kong as defined in the Securities
and Futures Ordinance and any rules made thereunder
Israel
The securities offered by this prospectus
have not been approved or disapproved by the Israeli Securities Authority (the ISA), nor have such securities been registered for
sale in Israel. The shares may not be offered or sold, directly or indirectly, to the public in Israel, absent the publication
of a prospectus. The ISA has not issued permits, approvals or licenses in connection with the offering or publishing the prospectus;
nor has it authenticated the details included herein, confirmed their reliability or completeness, or rendered an opinion as to
the quality of the securities being offered. Any resale in Israel, directly or indirectly, to the public of the securities offered
by this prospectus is subject to restrictions on transferability and must be effected only in compliance with the Israeli securities
laws and regulations.
Italy
The offering of the securities in the Republic
of Italy has not been authorized by the Italian Securities and Exchange Commission (Commissione Nazionale per le Societ —
$$ — Aga e la Borsa, "CONSOB" pursuant to the Italian securities legislation and, accordingly, no offering material
relating to the securities may be distributed in Italy and such securities may not be offered or sold in Italy in a public offer
within the meaning of Article 1.1(t) of Legislative Decree No. 58 of 24 February 1998 ("Decree No. 58"),
other than:
•
to Italian qualified investors, as defined in Article 100 of Decree no. 58 by reference to Article 34-ter of CONSOB Regulation no. 11971 of 14 May 1999 ("Regulation no. 1197l") as amended ("Qualified Investors"); and
•
in other circumstances that are exempt from the rules on public offer pursuant to Article 100 of Decree No. 58 and Article 34-ter of Regulation No. 11971 as amended.
Any offer, sale or delivery of the securities
or distribution of any offer document relating to the securities in Italy (excluding placements where a Qualified Investor solicits
an offer from the issuer) under the paragraphs above must be:
•
made by investment firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with Legislative Decree No. 385 of 1 September 1993 (as amended), Decree No. 58, CONSOB Regulation No. 16190 of 29 October 2007 and any other applicable laws; and
•
in compliance with all relevant Italian securities, tax and exchange controls and any other applicable laws.
Any subsequent distribution of the securities
in Italy must be made in compliance with the public offer and prospectus requirement rules provided under Decree No. 58
and the Regulation No. 11971 as amended, unless an exception from those rules applies. Failure to comply with such rules may
result in the sale of such securities being declared null and void and in the liability of the entity transferring the securities
for any damages suffered by the investors.
Japan
The securities have not been and will not
be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended), or the FIEA. The
securities may not be offered or sold, directly or indirectly, in Japan or to or for the benefit of any resident of Japan (including
any person resident in Japan or any corporation or other entity organized under the laws of Japan) or to others for reoffering
or resale, directly or indirectly, in Japan or to or for the benefit of any resident of Japan, except pursuant to an exemption
from the registration requirements of the FIEA and otherwise in compliance with any relevant laws and regulations of Japan.
80
Portugal
This document is not being distributed
in the context of a public offer of financial securities (oferta pública de valores mobiliários) in Portugal, within
the meaning of Article 109 of the Portuguese Securities Code (Código dos Valores Mobiliários). The securities
have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal. This document
and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese Securities
Market Commission (Comissão do Mercado de Valores Mobiliários) for approval in Portugal and, accordingly, may not
be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances that
are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales and distributions of securities
in Portugal are limited to persons who are "qualified investors" (as defined in the Portuguese Securities Code). Only
such investors may receive this document and they may not distribute it or the information contained in it to any other person.
Singapore
This prospectus has not been registered
as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection
with the offer or sale, or invitation for subscription or purchase, of our securities may not be circulated or distributed, nor
may our securities be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or
indirectly, to persons in Singapore other than (i) to an institutional investor (as defined under Section 4A of the Securities
and Futures Act, Chapter 289 of Singapore, or the SFA) under Section 274 of the SFA, (ii) to a relevant person (as defined
in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A)
of the SFA, and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to,
and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to conditions set forth
in the SFA.
Where our securities are subscribed or
purchased under Section 275 of the SFA by a relevant person which is a corporation (which is not an accredited investor (as
defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which
is owned by one or more individuals, each of whom is an accredited investor, the securities (as defined in Section 239(1) of
the SFA) of that corporation shall not be transferable for 6 months after that corporation has acquired the shares under Section 275
of the SFA except: (1) to an institutional investor under Section 274 of the SFA or to a relevant person (as defined
in Section 275(2) of the SFA), (2) where such transfer arises from an offer in that corporation's securities
pursuant to Section 275(1A) of the SFA, (3) where no consideration is or will be given for the transfer, (4) where
the transfer is by operation of law, (5) as specified in Section 276(7) of the SFA, or (6) as specified in
Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 of Singapore ("Regulation
32").
Where our securities are subscribed or
purchased under Section 275 of the SFA by a relevant person which is a trust (where the trustee is not an accredited investor
(as defined in Section 4A of the SFA)) whose sole purpose is to hold investments and each beneficiary of the trust is an accredited
investor, the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferable for 6 months
after that trust has acquired the shares under Section 275 of the SFA except: (1) to an institutional investor under
Section 274 of the SFA or to a relevant person (as defined in Section 275(2) of the SFA), (2) where such transfer
arises from an offer that is made on terms that such rights or interest are acquired at a consideration of not less than $200,000
(or its equivalent in a foreign currency) for each transaction (whether such amount is to be paid for in cash or by exchange of
securities or other assets), (3) where no consideration is or will be given for the transfer, (4) where the transfer
is by operation of law, (5) as specified in Section 276(7) of the SFA, or (6) as specified in Regulation 32.
Sweden
This document has not been, and will not
be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document
may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances that are deemed
not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980) om handel med finansiella
instrument). Any offering of securities in Sweden is limited to persons who are "qualified investors" (as defined in
the Financial Instruments Trading Act). Only such investors may receive this document and they may not distribute it or the information
contained in it to any other person.
Switzerland
The securities may not be publicly offered
in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated
trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses
under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27
ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland.
Neither this document nor any other offering material relating to the securities may be publicly distributed or otherwise made
publicly available in Switzerland.
81
Neither this document nor any other offering
material relating to the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular,
this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory
Authority (FINMA).
This document is personal to the recipient
only and not for general circulation in Switzerland.
United Arab Emirates
Neither this document nor the securities
have been approved, disapproved or passed on in any way by the Central Bank of the United Arab Emirates or any other governmental
authority in the United Arab Emirates, nor has the Company received authorization or licensing from the Central Bank of the United
Arab Emirates or any other governmental authority in the United Arab Emirates to market or sell the securities within the United
Arab Emirates. This document does not constitute and may not be used for the purpose of an offer or invitation. No services relating
to the securities, including the receipt of applications and/or the allotment or redemption of such shares, may be rendered within
the United Arab Emirates by the Company.
No offer or invitation to subscribe for
securities is valid or permitted in the Dubai International Financial Centre.
United Kingdom
Neither the information in this document
nor any other document relating to the offer has been delivered for approval to the Financial Services Authority in the United
Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended ("FSMA"))
has been published or is intended to be published in respect of the securities. This document is issued on a confidential basis
to "qualified investors" (within the meaning of section 86(7) of FSMA) in the United Kingdom, and the securities
may not be offered or sold in the United Kingdom by means of this document, any accompanying letter or any other document, except
in circumstances which do not require the publication of a prospectus pursuant to section 86(1) FSMA. This document should
not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by recipients to any other
person in the United Kingdom.
Any invitation or inducement to engage
in investment activity (within the meaning of section 21 of FSMA) received in connection with the issue or sale of the securities
has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United
Kingdom in circumstances in which section 21(1) of FSMA does not apply to the Company.
In the United Kingdom, this document is
being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments
falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions)
Order 2005 ("FPO"), (ii) who fall within the categories of persons referred to in Article 49(2)(a) to
(d) (high net worth companies, unincorporated associations, etc.) of the FPO, or (iii) to whom it may otherwise
be lawfully communicated (together "relevant persons"). The investments to which this document relates are available
only to, and any invitation, offer or agreement to purchase will be engaged in only with, relevant persons. Any person who is not
a relevant person should not act or rely on this document or any of its contents.
LEGAL MATTERS
The validity of the shares of common stock
offered hereby and certain other legal matters will be passed upon for us by Waller Lansden Dortch & Davis, LLP, Nashville,
Tennessee. Littman Krooks LLP, New York, New York is acting as counsel to the underwriters.
EXPERTS
The consolidated financial statements of Kubient, Inc.
as of December 31, 2019 and 2018 and for each of the two years in the period ended December 31, 2019 appearing in this prospectus
and registration statement, have been audited by Marcum LLP, independent registered public accounting firm, as set forth in their
report, which contains an explanatory paragraph as to the Company's ability to continue as a going concern, thereon appearing
elsewhere herein, and are included in reliance upon such report, given on the authority of such firm as experts in accounting and
auditing.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration
statement on Form S-1 under the Securities Act, with respect to the shares of common stock being offered by this prospectus.
This prospectus does not contain all of the information in the registration statement and its exhibits. For further information
with respect to Kubient, Inc. and the common stock offered by this prospectus, we refer you to the registration statement
and its exhibits. Statements contained in this prospectus as to the contents of any contract or any other document referred to
are not necessarily complete, and in each instance, we refer you to the copy of the contract or other document filed as an exhibit
to the registration statement. Each of these statements is qualified in all respects by this reference.
82
You can read our SEC filings, including
the registration statement, over the Internet at the SEC's website at http://www.sec.gov.
We are subject to the information reporting
requirements of the Exchange Act, and we will file reports, proxy statements and other information with the SEC. These reports,
proxy statements and other information will be available for inspection and copying at the public reference room and website of
the SEC referred to above. We also maintain a website at www.Kubient.com, at which you may access these materials free of charge
as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. The information contained
in, or that can be accessed through, our website is not part of this prospectus.
83
KUBIENT, INC.
INDEX TO FINANCIAL STATEMENTS
Page
Condensed Consolidated
    Balance Sheets as of March 31, 2020 (unaudited) and December 31, 2019
F-1
Unaudited Condensed
    Consolidated Statements of Operations for the Three Months Ended March 31, 2020 and 2019
F-2
Unaudited Condensed
    Consolidated Statements of Changes in Stockholders' Deficiency for the Three Months Ended March 31, 2020 and 2019
F-3
Unaudited Condensed
    Consolidated Statements of Cash Flows for the Three Months Ended March 30, 2020 and 2019
F-4
Notes to Unaudited
    Condensed Consolidated Financial Statements
F-5
Report of Independent
    Registered Public Accounting Firm
F-15
Consolidated Balance
    Sheets as of December 31, 2019 and 2018
F-16
Consolidated Statements
    of Operations for the Years Ended December 31, 2019 and 2018
F-17
Consolidated Statements
    of Changes in Stockholders' Deficiency for the Years Ended December 31, 2019 and 2018
F-18
Consolidated Statements
    of Cash Flows for the Years Ended December 31, 2019 and 2018
F-19
Notes to Consolidated
    Financial Statements
F-20
Kubient, Inc.
Condensed Consolidated Balance Sheets
March 31,
December 31,
2020
2019
(unaudited)
Assets
Current Assets:
Cash
$
21,017
$
33,785
Accounts receivable, net
534,081
38,704
Prepaid expenses and other current assets
44,629
28,072
Total Current Assets
599,727
100,561
Intangible assets, net
1,532,726
83,333
Property and equipment, net
5,128
4,549
Deferred offering costs
360,892
285,196
Total Assets
$
2,498,473
$
473,639
Liabilities and Stockholders' Deficiency
Current Liabilities:
Accounts payable - suppliers
$
534,161
$
785,180
Accounts payable - trade
2,109,786
867,554
Accrued expenses and other current liabilities
483,235
478,674
Accrued expenses and other current liabilities - related party
23,881
-
Accrued interest
173,204
117,912
Accrued interest - related parties
20,949
4,204
Due to related party
29,000
29,000
Notes payable
113,967
113,967
Convertible notes payable, net of discount of $254,316 and $630,994 as
    of March 31, 2020 and December 31, 2019, respectively
2,945,684
2,569,006
Convertible notes payable - related parties, net of
    discount of $197,533 and $281,701 as of March 31, 2020 and December 31, 2019, respectively
632,967
548,799
Total Current Liabilities
7,066,834
5,514,296
Notes payable - related parties
525,000
-
Total Liabilities
7,591,834
5,514,296
Commitments and contingencies (Note 9)
Stockholders' Deficiency:
Preferred stock, $0.00001 par value; 5,000,000 shares authorized; No
    shares issued and outstanding as of March 31, 2020 and December 31, 2019
-
-
Common stock, $0.00001 par value; 95,000,000 shares authorized; 32,413,686 shares issued and outstanding as of March 31, 2020 and
    December 31, 2019
324
324
Additional paid-in capital
3,367,830
3,362,436
Accumulated deficit
(8,461,515
)
(8,403,417
)
Total Stockholders' Deficiency
(5,093,361
)
(5,040,657
)
Total Liabilities and Stockholders' Deficiency
$
2,498,473
$
473,639
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-
1
Kubient, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
For the Three Months Ended
March 31,
2020
2019
Net Revenues
$
1,381,913
$
56,806
Operating Expenses:
Technology
480,401
372,951
General and administrative
663,926
132,607
Total Operating Expenses
1,144,327
505,558
Income (Loss) From Operations
237,586
(448,752
)
Other (Expense) Income:
Interest expense
(432,812
)
(16,436
)
Interest expense - related parties
(100,914
)
-
Gain on forgiveness of accounts payable - supplier
236,248
-
Other income
1,794
244
Total Other Expense
(295,684
)
(16,192
)
Net Loss
$
(58,098
)
$
(464,944
)
Net Loss Per Share - Basic and Diluted
$
(0.00
)
$
(0.01
)
Weighted Average Common Shares
    Outstanding - Basic and Diluted
32,413,686
32,393,686
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-
2
Kubient, Inc.
Condensed Consolidated Statements of Changes in Stockholders' Deficiency
(unaudited)
For the Three Months Ended March 31, 2020
Additional
Common Stock
Paid-In
Accumulated
Shares
Amount
Capital
Deficit
Total
Balance - January 1, 2020
32,413,686
$
324
$
3,362,436
$
(8,403,417
)
$
(5,040,657
)
Stock-based compensation:
Options
-
-
5,394
-
5,394
Net loss
-
-
-
(58,098
)
(58,098
)
Balance - March 31, 2020
32,413,686
$
324
$
3,367,830
$
(8,461,515
)
$
(5,093,361
)
For the Three Months Ended March 31, 2019
Additional
Common Stock
Paid-In
Accumulated
Shares
Amount
Capital
Deficit
Total
Balance - January 1, 2019
32,393,686
$
324
$
2,717,250
$
(4,270,544
)
$
(1,552,970
)
Stock-based compensation:
Options
-
-
5,502
-
5,502
Net loss
-
-
-
(464,944
)
(464,944
)
Balance - March 31, 2019
32,393,686
$
324
$
2,722,752
$
(4,735,488
)
$
(2,012,412
)
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-
3
Kubient, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
For the Three Months Ended
March 31,
2020
2019
Cash Flows From Operating Activities:
Net loss
$
(58,098
)
$
(464,944
)
Adjustments to reconcile net loss
    to net cash (used in) provided by operating activities:
Depreciation and amortization
51,115
-
Bad debt expense
5,749
1,215
Gain on forgiveness of accounts payable - supplier
(236,248
)
-
Stock-based compensation:
Stock options
5,394
5,502
Common stock
16,125
1,500
Contribution of capital - related party share transfer
-
-
Amortization of debt discount and debt issuance costs
376,678
4,483
Amortization of debt discount and debt issuance costs - related parties
84,168
-
Changes in operating assets and liabilities:
Accounts receivable
(501,126
)
(18,315
)
Prepaid expenses and other current assets
(16,557
)
(8,710
)
Accounts payable - suppliers
(14,771
)
150,256
Accounts payable - trade
112,251
23,354
Accrued expenses and other current liabilities
(87,260
)
316,285
Accrued expenses and other current liabilities - related party
23,881
-
Accrued interest
55,292
9,557
Accrued interest - related parties
16,745
-
Net Cash (Used In) Provided By Operating Activities
(166,662
)
20,183
Cash Flows From Investing Activities:
Purchase of intangible assets
(355,019
)
-
Purchase of property and equipment
(1,087
)
-
Net Cash Used In Investing Activities
(356,106
)
-
Cash Flows From Financing Activities:
Proceeds from issuance of notes payable
525,000
-
Repayment of notes payable
-
(27,369
)
Payment of deferred offering costs
(15,000
)
-
Net Cash Provided By (Used In) Financing Activities
510,000
(27,369
)
Net Decrease In Cash
(12,768
)
(7,186
)
Cash - Beginning of the Period
33,785
7,518
Cash - End of the Period
$
21,017
$
332
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest
$
-
$
2,396
Income taxes
$
-
$
-
Non-cash investing and financing activities:
Accrual of intangible assets
$
1,144,981
$
-
Accrual of deferred offering costs
$
75,696
$
37,476
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-
4
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
NOTE 1 – BUSINESS ORGANIZATION,
NATURE OF OPERATIONS, RISKS AND UNCERTAINTIES AND BASIS OF PRESENTATION
Organization and Operations
Kubient, Inc. ("Kubient"
or the "Company") was incorporated in the State of Delaware on May 24, 2017 and established a fiscal year end
of December 31.  Kubient has developed a cloud-based software platform for real-time trading of digital, programmatic
advertising. The platform allows both advertisers (ad space buyers) and publishers (ad space sellers) the ability to use machine
learning during any programmatic ad space auction.
Risks and Uncertainties
In March 2020, the World Health Organization
declared the outbreak of a novel strain of coronavirus ("COVID-19") as a pandemic which continues to spread throughout
the United States. The Company is closely monitoring the outbreak of COVID-19 and its impact on the Company's operations,
financial position, cash flows, supply chains, customer purchasing trends, customer payments, and the industry in general in addition
to the impact on the Company's employees. The Company has concluded that while it is reasonably possible that the virus could
have a negative impact on the results of operations, the specific impact is not readily determinable as of the date of these financial
statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. However,
if the pandemic continues to cause significant negative impacts to economic conditions, the Company's results of operations,
financial condition and liquidity could be adversely impacted.
Basis of Presentation
The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes
required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments
(consisting only of normal recurring items) which are considered necessary for a fair presentation of the unaudited condensed consolidated
financial statements of the Company as of March 31, 2020 and for the three months ended March 31, 2020 and 2019. The
results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results for
the full year ending December 31, 2020 or any other period. These unaudited condensed consolidated financial statements should
be read in conjunction with the audited consolidated financial statements and related disclosures as of December 31, 2019
and 2018 and for the years then ended which are included elsewhere in this filing.
NOTE 2 – GOING CONCERN AND MANAGEMENT'S
PLANS
The Company has not yet achieved profitability
and expects to continue to incur cash outflows from operations. It is expected that its operating expenses will continue to increase
and, as a result, the Company will eventually need to generate significant revenues to achieve profitability. These conditions
indicate that there is substantial doubt about the Company's ability to continue as a going concern within one year after
the issuance date of the financial statements.
The
Company is currently funding its operations on a month-to-month basis via proceeds received from the debt financing described below. Although
the Company's management believes that it has access to capital resources, there are currently no commitments in place for
new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms,
if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly curtail or
discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company's operating
needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures.
Subsequent to March 31, 2020, the Company received approximately $327,000 in the form of a loan in connection with the Paycheck
Protection Program, approximately $79,000 in the form of a loan in connection with the Economic and Disaster Loan assistance program
and approximately $60,000 in the form of a three-year note payable from a related party. See Note 11 – Subsequent Events
for additional details.
The accompanying condensed
consolidated financial statements have been prepared in conformity U.S. GAAP, which contemplate continuation of the Company
as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The
financial statements do not include any adjustment that might become necessary should the Company be unable to continue as a
going concern.
F-
5
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
NOTE 3 – SIGNIFICANT ACCOUNTING
POLICIES
There have been no material changes to
the significant accounting policies included in the audited consolidated financial statements as of December 31, 2019 and
2018 and for the years then ended, which are included elsewhere in this filing, except as disclosed in this note.
Accounts Receivable
Accounts receivable are carried at their
contractual amounts, less an estimate for uncollectible amounts. As of March 31, 2020 and December 31, 2019, there was
an allowance for uncollectible amounts of $40,689 and $34,115, respectively. Management estimates the allowance for bad debts based
on existing economic conditions, the financial conditions of the customers, and the amount and age of past due accounts.
Intangible Assets
Intangible
assets are comprised of costs to acquire and develop
computer software, including (i) the costs to acquire third-party
data which is used to improve the Company's artificial intelligence platform for client use as well as (i) the costs
to acquire third-party software as well as the related source code. The intangible assets have estimated useful lives of two years
for the computer software and five years for the capitalized data. Once placed into service, the Company amortizes the cost of
the intangible assets over their estimated useful lives on a straight-line basis.
Software Development Costs
The Company develops and utilizes software
in connection with its ability to generate customer revenue (which is further explained in Note 3 – Significant Accounting
Policies – Revenue Recognition). Costs incurred in this effort are accounted for under the provisions of ASC 985-20, Software
 – Cost of Software to be Sold, Leased or Marketed, whereby costs for the development of new software products and substantial
enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which
time any additional costs would be capitalized.
The Company capitalizes subsequent additions,
modifications, or upgrades to internally developed software only to the extent that such changes allow the software to perform
a task it previously did not perform.
Revenue Recognition
The Company recognizes revenue under ASC
606, "Revenue from Contracts with Customers" ("ASC 606"). The Company determines revenue recognition through
the following steps:
·
Identification of a contract with a customer;
·
Identification of the performance obligations in the contract;
·
Determination of the transaction price;
·
Allocation of the transaction price to the performance obligations in the contract; and
·
Recognition of revenue when or as the performance obligations are satisfied.
The Company maintains a contract with each
customer and supplier, which specify the terms of the relationship and access to the Company's platform. The Company provides
a service to its customers (the buy-side ad networks who work for advertisers) by providing its platform to connect advertisers
and publishers. For this service, the Company earns a mark-up, which is the spread between what the Company collects from the advertiser,
who wants to run an ad campaign, and what the Company remits to the publisher, who wants to sell its ad space. The transaction
price is determined based on the consideration to which it expects to be entitled, including the impact of any implicit price concessions
over the course of the contract. The Company's performance obligation is to facilitate the publication of advertisements.
The performance obligation is satisfied at the point in time that the ad is placed. Subsequent to a bid being won, the associated
fees are generally not subject to refund or adjustment. Historically, any refunds and adjustments have not been material.
The revenue recognized is the difference
between (i) the amount the Company is responsible to collect from the customer related to the placement of an ad (the "Gross
Billing") and (ii) the amount the Company remits to the supplier for the ad space (the "Supplier Cost").
The determination of whether the Company is the principal or agent, and hence whether to report revenue on a gross basis equal
to the Gross Billing or on a net basis for the difference between the Gross Billing and Supplier Cost, requires judgment. The Company
acts as an agent in arranging via its platform for the specified good (the ad space) to be purchased by the advertiser, as it does
not control the goods or services being transferred to the end customer, it does not take responsibility for the quality or acceptability
of the ad space, it does not bear inventory risk, nor does it have discretion in establishing price of the ad space. As a result,
the Company recognizes revenue on a net basis for the difference between the Gross Billing and the Supplier Cost. During the three
months ended March 31, 2020 and 2019, the Company recognized aggregate revenue of $81,575 and $56,806, respectively, in connection
with contracts where it acts as an agent.
F-
6
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
The Company invoices customers on a monthly
basis for the amount of Gross Billings in the relevant period. Invoice payment terms, negotiated on a customer-by- customer basis,
are typically between 45 to 90 days. However, for certain agency customers with sequential liability terms as specified by the
Interactive Advertising Bureau, (i) payments are not due to the Company until such agency customers has received payment from
its customers (ii) the Company is not required to make a payment to its supplier until payment is received from the Company's
customer and (iii) the supplier is responsible to pursue collection directly with the advertiser. As a result, once the Company
has met the requirements of each of the five steps under ASC 606, the Company's accounts receivable are recorded at the amount
of Gross Billings which represent amounts it is responsible to collect and accounts payable are recorded at the amount payable
to suppliers. In the event step 1 under ASC 606 is not met, the Company does not record either the accounts receivable or accounts
payable. Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis.
F-
7
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
Beginning during the three months ended
March 31, 2020, the Company recognized revenue in connection with contracts to scan a customers' first-party anonymized
data with the Company's proprietary patent-pending artificial intelligence product ("KAI"). Upon completion of
the scan, the Company delivered a report to the customer, which is the point in time the Company satisfied the performance obligation.
The Company acts as the principal for these contracts, as it is primarily responsible for fulfilling the promise to provide the
services and has discretion in establishing the price of service. As a result, the Company recognizes revenue on a gross basis.
During the three months ended March 31, 2020 and 2019, the Company recognized aggregate revenue of $1,300,338 and $0, respectively,
in connection with the contracts.
As of March 31, 2020 and December 31,
2019, the Company did not have any contract assets from contracts with customers. As of March 31, 2020 and December 31,
2019, the Company had $15,000 of contract liabilities where performance obligations have not yet been satisfied. The Company expects
to satisfy its remaining performance obligations and recognize the revenue within the next twelve months. During the three months
ended March 31, 2020 and 2019, no revenue was recognized from performance obligations satisfied (or partially satisfied) in
previous periods.
Net Loss Per Common Share
Basic net loss per common share is computed
by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per common
share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding
during each period. Dilutive common-equivalent shares consist of shares of options, warrants and convertible notes, if not anti-dilutive.
The following shares were excluded from
the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:
For the Three Months Ended
March 31,
2020
2019
Stock options
880,700
524,000
Warrants
10,247,000
1,595,000
Convertible notes [1]
193,670
167,628
11,321,370
2,286,628
[1] Excludes shares issuable upon conversion
of the Senior and Junior Notes, which are not currently convertible and whose conversion price is not currently known.
Reclassifications
Certain prior period balance sheet amounts have been reclassified
to conform to the fiscal 2020 presentation. These reclassifications have no impact on the previously reported net loss.
F-
8
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
NOTE 4 – INTANGIBLE ASSETS
Intangible assets consist of the following:
March 31,
December 31,
2020
2019
Acquired data
$
1,500,000
$
-
Acquired software
100,000
100,000
1,600,000
100,000
Less: accumulated amortization
(67,274
)
(16,667
)
Intangible assets, net
$
1,532,726
$
83,333
During the three months ended March 31,
2020, the Company acquired third-party data with a cost of $1,500,000 as a means using the data to support the evolution and growth
of the Company's artificial intelligence platform. As of March 31, 2020, the Company had a remaining liability in connection
with purchase of third-party data of $1,144,981, which is included within accounts payable – trade on the condensed consolidated
balance sheet.
Amortization
expense related to intangible assets was $50,607 and $0 for the three months ended March 31, 2020 and 2019, respectively.
The Company's intangible assets have a remaining weighted average amortization period of 4.7 years.
The estimated future amortization expense
is as follows:
For the Years Ending December 31,
Total
2020
$
262,500
2021
333,333
2022
300,000
2023
300,000
2024
300,000
Thereafter
36,893
$
1,532,726
NOTE 5 – ACCRUED EXPENSES AND
OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities
consisted of the following:
March 31,
December 31,
2020
2019
Accrued payroll taxes
$
-
$
163,746
Accrued supplier expenses
115,605
39,026
Accrued legal and professional fees
167,415
172,801
Accrued commissions
27,000
-
Credit card payable
32,420
30,113
Accrued director fees
38,128
-
Accrued programming expenses
50,513
36,993
Accrued issuable equity
16,125
-
Deferred revneue
15,000
15,000
Other
21,029
20,995
Total accrued expenses and other current liabilities
$
483,235
$
478,674
F-
9
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
NOTE 6 – NOTES PAYABLE
As of March 31, 2020 and as of the
date the condensed consolidated financial statements were issued, notes payable with an aggregate principal amount of $133,967
were past due and are classified as current liabilities on the condensed consolidated balance sheet as of March 31, 2020.
Such notes continue to accrue interest, which has been accrued as of March 31, 2020. See Note 9 - Commitments and Contingencies
 – Litigation for additional details. The Company is in negotiations to either extend the maturity dates of such notes or
to settle the amounts due.
During the three months ended March 31,
2020 and 2019, the Company recorded interest expense of $56,134 and $11,953, respectively, and non-cash amortization of debt discount
and debt issuance costs of $376,678 and $4,483, respectively, which is included in interest expense on the condensed consolidated
statements of operations. As of March 31, 2020 and December 31, 2019, the Company had $173,204 and $117,912, respectively,
of accrued interest related to notes payable.
During the three months ended March 31,
2020 and 2019, the Company recorded interest expense – related parties of $16,746 and $0, respectively, and non-cash amortization
of debt discount and debt issuance costs – related parties of $84,168 and $0, respectively, which is included in interest
expense – related parties on the condensed consolidated statements of operations. As of March 31, 2020 and December 31,
2019, the Company had $20,949 and $4,204, respectively, of accrued interest - related parties related notes payable.
Notes Payable – Related Parties
During the three months ended March 31, 2020, the Company
received aggregate proceeds of $525,000 in connection with three-year notes payable issued to three of its executive officers.
The notes bear interest ranging from 1.50% and 1.60% per annum, payable annually. The outstanding principal and accrued and unpaid
interest shall become immediately due and payable upon an initial public offering, sale of the Company or qualified financing with
equity proceeds of at least $5,000,000. There can be no assurance that the Company will complete an initial public offering, sale
of the Company or qualified financing with equity proceeds of at least $5,000,000. Furthermore, the holders have agreed to amend
such notes prior to the effectiveness of this registration statement to provide for conversion of principal and interest thereunder
into the units being issued in this offering at the public offering price per unit.
NOTE 7 – STOCKHOLDERS' DEFICIENCY
Stock-Based Compensation
During the three months ended March 31,
2020 and 2019, the Company recognized aggregate stock-based compensation expense of $21,519 ($16,125 related to common stock that
was not issued as of March 31, 2020 and, accordingly, was included in accrued expenses and other current liabilities and $5,394
related to stock options) and $7,002 ($1,500 related to common stock that was not issued as of March 31, 2019 and, accordingly,
was included in accrued expenses and other current liabilities and $5,502 related to stock options), respectively. As of March 31,
2020, there was $21,999 of unrecognized stock-based compensation expense, which will be recognized over approximately 2.1 years.
NOTE 8 - RELATED PARTY TRANSACTIONS
As of March 31, 2020, the Company
had outstanding notes payable – related parties, convertible notes payable – related parties and an advance due to
a related party of $525,000, $830,500 and $29,000, respectively. As of December 31, 2019, the Company had outstanding convertible
notes payable - related parties and an advance due to a related party of $830,500 and $29,000, respectively. See Note 6 –
Notes Payable for details of related party transactions.
Sublease Agreement
In
March 2019, Kubient entered into a sublease agreement with
OneQube, Inc. ("OneQube") that provides
for rent payments by Kubient to the sublessor equal to $600 per desk per month and ends in June 2021. The Company's
current Chief Executive Officer is a stockholder of OneQube and serves as Chairman of the Board of OneQube. During the three
months ended March 31, 2020 and 2019, rent expense associated with the OneQube sublease was $35,821 and $3,600, respectively,
which is included in general and administrative expenses on the condensed consolidated statements of operations. As of March 31,
2020 and December 31, 2019, the Company had a liability of $23,881 and $0, respectively, which is included within accrued
expenses and other current liabilities - related party on the condensed consolidated balance sheets. See Note 11 – Subsequent
Events for additional details.
F-
10
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
NOTE 9 – COMMITMENTS AND CONTINGENCIES
Litigation
From time to time, the Company is a defendant
or plaintiff in various legal actions that arise in the normal course of business. Liabilities for loss contingencies arising from
claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been
incurred and the amount of the assessment can be reasonably estimated.
On August 31, 2018, the Company received
a summons from the Los Angeles County Superior Court of California in connection with a civil action filed by a vendor against
the Company in the amount of $33,461 for breach of contract. On November 14, 2018, counsel representing the vendor filed a
request for default judgement against the Company in the amount of $35,936 which included legal costs of $785 and interest of $1,690.
On November 21, 2018, judgement was entered by the court against the Company. On April 16, 2020, a Writ of Execution
was issued against the Company in the amount of $40,997. On June 12, 2020, the Company filed a motion to vacate the default
judgement and the Court set a January 12, 2021 hearing date. As of March 31, 2020 and December 31, 2019, the Company
had accrued for all amounts.
On November 27, 2019, the Company
received a summons from the Los Angeles County Superior Court of California in connection with a civil action filed by a vendor
on November 25, 2019 against the Company in the amount of $20,764. On April 21, 2020, the Company made a settlement offer
to pay $20,000 within 90 days of execution of a settlement agreement. As of the date the financial statements were issued, the
parties had not executed a settlement agreement, however, that settlement offer was rejected by the vendor. On May 28, 2020,
the Company filed a motion to dismiss. As of March 31, 2020 and December 31, 2019, the Company had accrued approximately
$20,000.
F-
11
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
In March 2019 the Company entered
into a binding letter of intent to acquire substantially all of the assets of Aureus Holdings, LLC d/b/a Lo70s ("Lo70s").
In connection with the letter of intent, the Company paid a good faith deposit to Lo70s of $200,000. Subsequently, during the diligence
phase of the letter of intent, the Company received information such that it believes that Lo70s made material misrepresentations
regarding its business and diligence inquiries made by the Company to Lo70s. As a result, the Company terminated the letter of
intent under the clause that there was a material adverse change in the business. During the year ended December 31, 2019,
the Company recorded an allowance of $200,000 related to the deposit. The Company received a legal dispute letter dated February 20,
2020 from legal counsel representing Lo70s that indicated that Lo70s is prepared to file its claim against the Company in an amount
that exceeds $5 million. On February 28, 2020, the Company subsequently responded with its intention to vigorously defend
itself with respect to such demands made by Lo70s that the Company believes are without merit. As of March 31, 2020 and December 31,
2019, the Company had accrued for all probable and estimable amounts in its condensed consolidated financial statements.
Release of Liability
On March 10, 2020, the Company received
a letter from one of its vendors releasing it from aggregate liabilities of $236,248, which were accrued as of December 31,
2019. The Company recognized the gain on release of liability effective March 10, 2020, which is included in other expense
on the condensed consolidated statement of operations.
Settlement Agreements
On September 4, 2019, the Company
entered into a settlement agreement whereby the parties agreed to settle an outstanding note payable balance of approximately $45,000
for $16,000, which was to be paid by September 3, 2019 by the Company. As of March 31, 2020 and December 31, 2019,
the outstanding note payable balance was $38,967 on the condensed consolidated balance sheets.
On November 12, 2019, the Company
received a summons from the Palm Beach County Circuit Court of Florida in connection with a civil action filed by the plaintiff
against the Company in the aggregate amount of $207,502 ($132,502 for breach of contract and $75,000 for default under a promissory
note). On May 13, 2020, the parties reached a settlement agreement that requires the Company to make aggregate payments to
the plaintiff of a total of $135,000, which is due in seven (7) installments between May 20, 2020 and October 20,
2020. If the Company pays a total of $125,000 by September 15, 2020, the total amount due is automatically reduced to $125,000.
In the event the Company fails to make timely payments and the default is not cured by the conclusion of the specified grace period,
the plaintiff shall be entitled to the entry of a final judgment against the Company in the amount of $240,000, less any and all
payments made. As of the date the financial statements were issued, the Company had paid $5,000 to the plaintiff in connection
with the settlement agreement. As of March 31, 2020 and December 31, 2019, the Company had accrued approximately $177,000.
NOTE 10 – CONCENTRATIONS
Customer Concentrations
The following table sets forth information
as to each customer that accounted for 10% or more of the Company's Gross Billings for the following periods:
For the Three Months Ended
March 31,
Customer
2020
2019
Customer A
N/A
78.70
%
Customer F
36.94
%
N/A
Customer G
53.51
%
N/A
Total
90.44
%
78.70
%
F-
12
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
The following table sets forth information
as to each customer that accounted for 10% or more of the Company's gross accounts receivable as of:
March 31,
December 31,
Customer
2020
2019
Customer D
*
13.73
%
Customer E
*
12.23
%
Customer F
29.37
%
N/A
Customer G
48.11
%
N/A
Total
77.48
%
25.96
%
*
Less than 10%.
A reduction in sales from or loss of these
customers would have a material adverse effect on the Company's results of operations and financial condition.
Supplier Concentrations
The following table sets forth information
as to each supplier that accounted for 10% or more of the Company's Supplier Costs for the following periods:
For
    the Three Months Ended March 31,
Supplier
2020
2019
Supplier A
N/A
80.76
%
Supplier B
19.96
%
N/A
Supplier C
13.72
%
N/A
Supplier D
12.87
%
N/A
Supplier E
10.29
%
N/A
Total
56.83
%
80.76
%
NOTE 11 – SUBSEQUENT EVENTS
The Company has evaluated events that
have occurred after the balance sheet and through the date the financial statements were issued. Based upon the evaluation, the
Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure
in the financial statements, except as disclosed below.
Note Payable – Related Parties
Subsequent to March 31, 2020, the Company received proceeds
of $60,000 in connection with a three-year note payable issued to an executive officer. The note bears interest at 0.91% per annum,
payable annually. The outstanding principal and accrued and unpaid interest shall become immediately due and payable upon an initial
public offering, sale of the Company or qualified financing with equity proceeds of at least $5,000,000. There can be no assurance
that the Company will complete an initial public offering, sale of the Company or qualified financing with equity proceeds of at
least $5,000,000. Furthermore, the holders have agreed to amend such notes prior to the effectiveness of this registration statement
to provide for conversion of principal and interest thereunder into the units being issued in this offering at the public offering
price per unit.
F-
13
KUBIENT, INC.
Notes to Unaudited Condensed Consolidated
Financial Statements
For the Three Months Ended March 31,
2020 and 2019
Convertible Notes Payable
Between
May 22, 2020 and June 11, 2020, the Company and all of the holders of Senior Notes and Junior Notes entered to
a consent and first amendment to the Senior Notes and Junior Notes (the "Amended Senior Notes" and "Amended
Junior Notes", respectively). The Amended Senior Notes were amended as follows: (i) the holders authorized the Company
to incur certain indebtedness, including certain government loans as well as non-government loans with a principal amount not
to exceed $1,000,000 in the aggregate (the "Permitted Indebtedness"), (ii) the Amended Senior Notes are subordinated
to the Permitted Indebtedness, (iii) effective May 1, 2020, the interest rate increased from 5% to 10% per annum, (iv) the
original issuance discount was increased from 10% to 20%, (v) the maturity date of the Amended Senior Notes was extended
to October 26, 2020 and (vi) in connection with the exercise price of the investor warrants, the date under which the
Qualified IPO must occur on or before was extended to October 26, 2020. The Amended Junior Notes were amended as follows:
(i) the holders authorized the Company to incur the Permitted Indebtedness and (ii) the Amended Junior Notes are subordinated
to the Permitted Indebtedness, (iii) effective May 1, 2020, the interest rate increased from 5% to 10% per annum, (iv) the
original issuance discount was increased from 10% to 20%, (v) the maturity date of the Amended Junior Notes was extended
to April 11, 2021 and (vi) in connection with the exercise price of the investor warrants, the date under which the
Qualified IPO must occur on or before was extended to October 26, 2020.
As a result, there were outstanding Amended
Senior Notes and Amended Junior Notes in the aggregate principal amount of $3,000,000 and $1,326,000, respectively.
Paycheck Protection Program Loan
On
April 6, 2020, the Company received loan proceeds in the amount of approximately $327,000 (the "PPP Loan") under
the Paycheck Protection Program ("PPP") under the Coronavirus Aid, Relief and Economic Security Act
and applicable
regulations (the "CARES Act").
Under the terms of the CARES Act, as amended
by the Paycheck Protection Program Flexibility Act of 2020, the Company is eligible to apply for and receive forgiveness for all
or a portion of its PPP Loan. Such forgiveness will be determined, subject to limitations, based on the use of the loan proceeds
for certain permissible purposes as set forth in the PPP, including, but not limited to, payroll costs (as defined under the PPP)
and mortgage interest, rent or utility costs (collectively, "Qualifying Expenses") incurred during the 24 weeks subsequent
to funding, and on the maintenance of employee and compensation levels, as defined, following the funding of the PPP Loan. The
Company intends to use the proceeds of its PPP Loan for Qualifying Expenses. However, no assurance is provided that the Company
will be able to obtain forgiveness of the PPP Loan in whole or in part. Any amounts that are not forgiven incur interest at 1.0%
per annum and monthly repayments of principal and interest are deferred until the Small Business Administration makes a determination
on forgiveness. The loan forgiveness amount will be reduced for the EIDL loan that the Company received, which is discussed further
below. While the Company's PPP Loan currently has a two-year maturity, the amended law will permit the Company to request
a five-year maturity.
EIDL Loan
On
June 20, 2020, the Company executed the loan documents required for securing a loan, which include the SBA Secured Disaster
Loan Note, the Loan Authorization and Agreement and the Security Agreement (the "EIDL Loan") from the
United
States Small Business Administration (the "SBA") under its Economic Injury Disaster Loan assistance program
in light of the impact of the COVID-19 pandemic on the Company's business. The principal amount of the EIDL Loan
is $78,900, with proceeds to be used for working capital purposes. Interest on the EIDL Loan accrues at the rate of 3.75% per
annum. Monthly installment payments in the amount of $385 per month, including principal and interest, will begin twelve months
from the date of the EIDL Loan and the balance of principal and interest will be payable thirty years from the date of the promissory
note. The EIDL Loan is collateralized by the assets of the Company. The Company received the proceeds from the EIDL Loan on June 23,
2020. Such EIDL Loan amount will reduce the Company's PPP loan forgiveness amount described above.
Common Stock
Subsequent to March 31, 2020, the
Company issued an aggregate of 10,000 shares of common stock to nonemployees in connection with services provided to the Company.
Sublease Agreement
On June 18, 2020, the Company's
sublease agreement was terminated effective March 31, 2020. Pursuant to the termination agreement, the parties agreed that
the Company shall have no obligation to pay the sublessor any amount arising from its obligations under the sublease for rent during
the period from January 1 to March 31, 2020.
Founder Employee Incentive Program
On July 2, 2020, the Company's board
of directors adopted the Founder Employee Incentive Program (the "Founder Program") under the 2017 Plan. The purposes
of the Founder Program are to offer near-term and long-term incentives to founder employees of the Company that are intended to
keep such employees in the employ of the Company, and that are based on individual performance, the achievement of financial goals
of the Company and the total return to the Company's stockholders.
F-
14
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
To the Shareholders and Board of Directors
of
Kubient, Inc.
Opinion on the Financial Statements
We
have audited the accompanying
consolidated balance sheets of Kubient, Inc. (the "Company") as of December 31,
2019 and 2018, the related consolidated statements of operations, changes in stockholders' deficiency and cash flows for
each of the two years in the period ended December 31, 2019, and the related notes (collectively referred to as the "financial
statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position
of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the two
years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States
of America.
Explanatory Paragraph – Going Concern
The accompanying financial statements
have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 2, the Company
has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its
obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a
going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB")
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with
the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have,
nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required
to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures
to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide
a reasonable basis for our opinion.
/s/ Marcum
llp
Marcum
llp
We have served as the Company's auditor since 2019.
New York, NY
May 6, 2020
F-
15
Kubient, Inc.
Consolidated
Balance Sheets
December 31,
2019
2018
Assets
Current Assets:
Cash
$
33,785
$
7,518
Accounts receivable, net
38,704
372,630
Prepaid expenses
    and other current assets
28,072
-
Total Current Assets
100,561
380,148
Property and equipment, net
4,549
-
Intangible assets, net
83,333
-
Deferred offering
    costs
285,196
-
Total Assets
$
473,639
$
380,148
Liabilities and Stockholders' Deficiency
Current Liabilities:
Accounts payable - suppliers
$
785,180
$
961,414
Accounts payable - trade
867,554
265,846
Accrued expenses and other current
    liabilities
585,790
393,167
Deferred revenue
15,000
15,000
Due to related party
29,000
45,000
Notes payable
113,967
204,394
Convertible notes payable, current
    portion, net of discount of $912,695 and $16,703 as of December 31,
    2019 and December 31, 2018, respectively
3,117,805
3,297
Total Current Liabilities
5,514,296
1,888,118
Convertible notes payable, non-current
    portion
-
45,000
Total Liabilities
5,514,296
1,933,118
Commitments and contingencies (Note 10)
Stockholders' Deficiency:
Preferred stock, $0.00001 par value; 5,000,000 shares
    authorized;
No shares issued and outstanding
-
-
Common stock, $0.00001 par value; 95,000,000 shares
    authorized;
32,413,686 and 32,393,686 shares
    issued and outstanding
324
324
Additional paid-in capital
3,362,436
2,717,250
Accumulated
    deficit
(8,403,417
)
(4,270,544
)
Total Stockholders'
    Deficiency
(5,040,657
)
(1,552,970
)
Total Liabilities
    and Stockholders' Deficiency
$
473,639
$
380,148
The accompanying notes are an integral part of these
consolidated financial statements.
F-
16
Kubient, Inc.
Consolidated
Statements of Operations
For the Years Ended
December 31,
2019
2018
Net Revenues
$
177,635
$
106,422
Operating Expenses:
Technology
1,486,056
2,058,660
General and
    administrative
2,007,362
1,820,942
Total Operating
    Expenses
3,493,418
3,879,602
Loss From
    Operations
(3,315,783
)
(3,773,180
)
Other Income (Expense):
Gain on forgiveness of accounts
    payable - supplier
-
66,804
Interest expense
(819,482
)
(51,129
)
Other income
2,392
28,408
Total Other
    (Expense) Income
(817,090
)
44,083
Net Loss
$
(4,132,873
)
$
(3,729,097
)
Net Loss Per
    Share - Basic and Diluted
$
(0.13
)
$
(0.12
)
Weighted
    Average Common Shares Outstanding - Basic and Diluted
32,402,837
31,879,846
The accompanying
notes are an integral part of these consolidated financial statements.
F-
17
Kubient, Inc.
Consolidated
Statements of Changes in Stockholders' Deficiency
For
the Years Ended December 31, 2019 and 2018
Additional
Common
    Stock
Paid-In
Accumulated
Shares
Amount
Capital
Deficit
Total
Balance - January 1, 2018
30,649,416
$
306
$
(45,082
)
$
(541,447
)
$
(586,223
)
Shares issued for cash
1,367,941
14
752,354
-
752,368
Shares issued upon conversion
    of notes payable and accrued interest
246,329
3
135,478
-
135,481
Stock-based compensation:
Common stock
130,000
1
71,499
-
71,500
Options
-
-
32,300
-
32,300
Warrants
-
-
661,020
-
661,020
Beneficial conversion feature
    of convertible note payable
-
-
17,931
-
17,931
Contribution of capital - related
    party share transfer
-
-
1,091,750
-
1,091,750
Net loss
-
-
-
(3,729,097
)
(3,729,097
)
Balance - December 31, 2018
32,393,686
$
324
$
2,717,250
$
(4,270,544
)
$
(1,552,970
)
Issuance of investor and placement
    agent warrants in connection with
issuance of
    convertible notes payable, net of issuance costs [1]
-
-
617,911
-
617,911
Stock-based compensation:
Common stock
20,000
-
6,000
-
6,000
Options
-
-
21,275
-
21,275
Net loss
-
-
-
(4,132,873
)
(4,132,873
)
Balance - December 31,
    2019
32,413,686
$
324
$
3,362,436
$
(8,403,417
)
$
(5,040,657
)
[1] Net of issuance
costs of $127,122.
The accompanying
notes are an integral part of these consolidated financial statements.
F-
18
Kubient, Inc.
Consolidated
Statements of Cash Flows
For the Years Ended
December 31,
2019
2018
Cash Flows From Operating Activities:
Net loss
$
(4,132,873
)
$
(3,729,097
)
Adjustments to reconcile net loss
    to net cash used in operating activities:
Depreciation and amortization
17,131
-
Bad debt expense
285
88,393
Non-cash interest expense
-
1,228
Gain on forgiveness of accounts
    payable - supplier
-
(66,804
)
Allowance for other asset
200,000
-
Stock-based compensation
27,275
764,820
Contribution of capital - related
    party share transfer
-
1,091,750
Amortization of debt discount and
    debt issuance costs
700,945
-
Changes in operating assets and
    liabilities:
Accounts receivable
333,641
(221,612
)
Prepaid expenses and other current
    assets
(28,072
)
-
Other asset
(200,000
)
-
Accounts payable - suppliers
(176,234
)
299,933
Accounts payable - trade
601,708
265,846
Accrued expenses and other current
    liabilities
(36,206
)
297,196
Deferred revenue
-
15,000
Net Cash
    Used In Operating Activities
(2,692,400
)
(1,193,347
)
Cash Flows From Investing Activities:
Purchase of intangible assets
(100,000
)
-
Purchase of property and equipment
(5,013
)
-
Advances to related party
(75,000
)
-
Repayment
    of related party advances
75,000
-
Net Cash
    Used In Investing Activities
(105,013
)
-
Cash Flows From Financing Activities:
Proceeds from sale of common stock
-
752,368
Proceeds from related party
-
45,000
Advances from related parties
29,905
-
Repayment of advances from related
    party
(45,905
)
-
Proceeds from issuance of convertible
    notes payable and investor warrants [1]
2,986,474
190,000
Proceeds from issuance of notes
    payable
-
278,700
Repayment of notes payable
(90,427
)
(74,306
)
Payment of
    deferred offering costs
(56,367
)
-
Net Cash
    Provided By Financing Activities
2,823,680
1,191,762
Net Increase (Decrease) In
    Cash
26,267
(1,585
)
Cash - Beginning of the Year
7,518
9,103
Cash - End of the Year
$
33,785
$
7,518
[1] The amount for the year ended December 31, 2019 includes
gross proceeds of $3,605,000, less issuance costs of $618,526 deducted directly from the offering proceeds.
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest
$
7,346
$
25,001
Income taxes
$
-
$
-
Non-cash investing and financing activities:
Shares issued upon conversion of notes payable and accrued
    interest
$
-
$
135,481
Beneficial conversion feature of convertible note payable
$
-
$
17,931
Original issue discount in connection with convertible notes
    payable
$
360,500
$
-
Issuance of investor and placement agent warrants in connection
    with
issuance of convertible notes payable
$
617,911
$
-
Accrual of deferred offering costs
$
228,829
$
-
Equity issuance costs - placement agent warrants
$
24,033
$
-
The accompanying
notes are an integral part of these consolidated financial statements.
F-
19
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
NOTE
1 – BUSINESS ORGANIZATION AND NATURE OF OPERATIONS
Organization
and Operations
Kubient, Inc.
("Kubient" or the "Company") was incorporated in the State of Delaware on May 24, 2017 and established
a fiscal year end of December 31.  Kubient has developed a cloud-based software platform for real-time trading of digital,
programmatic advertising. The platform allows both advertisers (ad space buyers) and publishers (ad space sellers) the ability
to use machine learning during any programmatic ad space auction.
NOTE
2 – GOING CONCERN AND MANAGEMENT'S PLANS
The
Company has not yet achieved profitability and expects to continue to incur cash outflows from operations. It is expected that
its operating expenses will continue to increase and, as a result, the Company will eventually need to generate significant revenues
to achieve profitability. These conditions indicate that there is substantial doubt about the Company's ability to continue
as a going concern within one year after May 6, 2020, the date the financial statements were issued.
The
Company is currently funding its operations on a month-to-month basis via proceeds received from the debt financing described
below. Although the Company's management believes that it has access to capital resources, there are currently no commitments
in place for new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially
acceptable terms, if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly
curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company's
operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital
expenditures. Subsequent to December 31, 2019, the Company raised aggregate net proceeds of $585,000 in the form of notes
payable from related parties as well as approximately $327,000 in the form of a loan in connection with the Paycheck Protection
Program. See Note 12 – Subsequent Events for additional details.
The
accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted
in the United States of America ("U.S. GAAP"), which contemplate continuation of the Company as a going concern and
the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include
any adjustment that might become necessary should the Company be unable to continue as a going concern.
NOTE
3 – SIGNIFICANT ACCOUNTING POLICIES
Use
of Estimates
The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, 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. The Company's significant
estimates used in these financial statements include, but are not limited to, fair value calculations for equity securities, revenue
recognition, stock-based compensation, the collectability of receivables and the valuation allowance related to the Company's
deferred tax assets. Certain of the Company's estimates could be affected by external conditions, including those unique
to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on
the Company's estimates and may cause actual results to differ from those estimates.
Principles
of Consolidation
On
August 20, 2019, the Company formed its wholly owned subsidiary, Fidelity Media, LLC ("Fidelity"), by filing
a certificate of formation with the State of Delaware. The consolidated financial statements of the Company include the accounts
of Fidelity. All intercompany transactions have been eliminated in the consolidation.
F-
20
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
Cash
and Cash Equivalents
The
Company maintains cash in bank accounts, which, at times, may exceed Federal Deposit Insurance Corporation ("FDIC")
insured limits. The Company has not experienced any losses in such accounts, periodically evaluates the creditworthiness of the
financial institutions and has determined the credit exposure to be negligible. As of December 31, 2019 and 2018, the Company
did not have cash balances in excess of FDIC insured limits. The Company considers all highly liquid investments with an original
maturity of three months or less when purchased to be cash equivalents. As of December 31, 2019 and 2018, the Company did
not have any cash equivalents.
Accounts
Receivable and Accounts Payable
Accounts
receivable are carried at their contractual amounts, less an estimate for uncollectible amounts. As of December 31, 2019
and 2018, there was an allowance for uncollectible amounts of $34,115 and $41,728, respectively. Management estimates the allowance
for bad debts based on existing economic conditions, the financial conditions of the customers, and the amount and age of past
due accounts.
Receivables
are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off
against the corresponding accounts payable in the event that the Company's contract contains sequential liability terms,
with the excess receivable being written off against the allowance for bad debts only after all collection attempts have been
exhausted.
The
Company's accounts receivable are recorded at the amount the Company is responsible to collect from the customer related
to the placement of an ad (the "Gross Billing") and accounts payable are recorded at the amount the Company remits
to the supplier for the ad space (the "Supplier Cost"). See Note 3 – Significant Accounting Policies –
Revenue Recognition for additional details. In the event that the Company does not collect the Gross Billing amount from the customer,
the Company generally is not contractually obligated to pay the associated Supplier Cost. In such instances when the Gross Billing
amount is not collected, the Company in its sole discretion may, from time-to-time, determine that it is in its best interests
to voluntarily pay the Supplier Cost in order to maintain business relationships with its suppliers. During the years ended December 31,
2019 and 2018, voluntary payments made by the Company were not material.
Convertible
Instruments
The
Company evaluates its convertible instruments to determine if those contracts or embedded components of those contracts qualify
as derivative financial instruments to be separately accounted for in accordance with the Financial Accounting Standards Board
("FASB") Accounting Standards Codification ("ASC") Topic 815 "Derivatives and Hedging" ("ASC
815"). The accounting treatment of derivative financial instruments requires that the Company record embedded conversion
options and any related freestanding instruments at their fair values as of the inception date of the agreement and at fair value
as of each subsequent balance sheet date. Any change in fair value is recorded in earnings each period as non-operating, non-cash
income or expense. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the
classification changes as a result of events during the period, the contract is reclassified as of the date of the event that
caused the reclassification. Embedded conversion options and any related freestanding instruments are recorded as a discount to
the host instrument. The Company allocates proceeds based on the relative fair values of the debt and equity components.
If
the instrument is not determined to be a derivative liability, the Company then evaluates for the existence of a beneficial conversion
feature by comparing the fair value of the Company's common stock as of the commitment date to the effective conversion
price of the instrument (the intrinsic value). The intrinsic value of the beneficial conversion feature is recorded as a debt
discount with a corresponding amount to additional paid-in capital.
F-
21
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
Deferred
Offering Costs
Deferred
offering costs, which consist of direct, incremental professional fees incurred in connection with the Company's future
offerings of equity (including the Company's contemplated initial public offering) and debt securities that have yet to
close, are capitalized as non-current assets on the consolidated balance sheet. Upon the closing of the offering, the deferred
offering costs are either (i) charged off against the offering proceeds in connection with an equity offering or (ii) reclassified
such that they represent a reduction in the carrying amount of the face value of the debt security.
Property
and Equipment
Property
and equipment are stated at cost, net of accumulated depreciation which is recorded commencing at the in-service date using the
straight-line method at rates sufficient to charge the cost of depreciable assets to operations over their estimated useful lives,
which is three years. Leasehold improvements are amortized over the lesser of (a) the useful life of the asset; or (b) the
remaining lease term. Maintenance and repairs are charged to operations as incurred. The Company capitalizes cost attributable
to the betterment of property and equipment when such betterment extends the useful life of the assets.
Intangible
Assets
Intangible
assets are comprised of computer software, as well as the related source code, which has an estimated useful life of two years.
Once placed into service, the Company amortizes the cost of the intangible assets over their estimated useful lives on a straight-line
basis.
Impairment
of Long-lived Assets
The
Company reviews for the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying
amount of an asset might not be recoverable. An impairment would be recognized when estimated future cash flows expected to result
from the use of the asset and its eventual disposition are less than its carrying amount. The Company did not record any impairment
losses during the years ended December 31, 2019 and 2018.
Fair
Value of Financial Instruments
The
Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 "Fair Value Measurements
and Disclosures" ("ASC 820").
ASC
820 defines fair value 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. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may
be used to measure fair value:
Level
1 — quoted prices in active markets for identical assets or liabilities
Level
2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable
Level
3 — inputs that are unobservable (for example, cash flow modeling inputs based on assumptions)
The
carrying amounts of the Company's financial instruments, such as cash, accounts receivable, accounts payable, convertible
notes and notes payable approximate fair value due to the short-term nature of these instruments. The carrying amounts of the
Company's short–term credit obligations approximate fair value because the effective yields on these obligations,
which include contractual interest rates, are comparable to rates of returns for instruments of similar credit risk.
F-
22
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
Income
Taxes
The
Company is subject to Federal, New York State and City, and State of California income taxes and files tax returns in those jurisdictions.
The
Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included
or excluded in the financial statements or tax returns. Deferred tax assets and liabilities are determined on the basis of the
difference between the tax basis of assets and liabilities and their respective financial reporting amounts ("temporary
differences") at enacted tax rates in effect for the years in which the temporary differences are expected to reverse.
The
Company utilizes a recognition threshold and measurement process for financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return.
The
Company's policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general
and administrative expenses in the consolidated statements of operations.
Revenue
Recognition
The
Company recognizes revenue under ASC 606, "Revenue from Contracts with Customers" ("ASC 606"). The Company
determines revenue recognition through the following steps:
•
Identification
    of a contract with a customer;
•
Identification
    of the performance obligations in the contract;
•
Determination
    of the transaction price;
•
Allocation
    of the transaction price to the performance obligations in the contract; and
•
Recognition
    of revenue when or as the performance obligations are satisfied.
The
Company maintains a contract with each customer and supplier, which specify the terms of the relationship and access to the Company's
platform. The Company provides a service to its customers (the buy-side ad networks who work for advertisers) by providing its
platform to connect advertisers and publishers. For this service, the Company earns a mark-up, which is the spread between what
the Company collects from the advertiser, who wants to run an ad campaign, and what the Company remits to the publisher, who wants
to sell its ad space. The transaction price is determined based on the consideration to which it expects to be entitled, including
the impact of any implicit price concessions over the course of the contract. The Company's performance obligation is to
facilitate the publication of advertisements. The performance obligation is satisfied at the point in time that the ad is placed.
Subsequent to a bid being won, the associated fees are generally not subject to refund or adjustment. Historically, any refunds
and adjustments have not been material.
The
revenue recognized is the difference between (i) the Gross Billing and (ii) the Supplier Cost. The determination of
whether the Company is the principal or agent, and hence whether to report revenue on a gross basis equal to the Gross Billing
or on a net basis for the difference between the Gross Billing and Supplier Cost, requires judgment. The Company acts as an agent
in arranging via its platform for the specified good (the ad space) to be purchased by the advertiser, as it does not control
the goods or services being transferred to the end customer, it does not take responsibility for the quality or acceptability
of the ad space, it does not bear inventory risk, nor does it have discretion in establishing price of the ad space. As a result,
the Company recognizes revenue on a net basis for the difference between the Gross Billing and the Supplier Cost.
The
Company invoices customers on a monthly basis for the amount of Gross Billings in the relevant period. Invoice payment terms,
negotiated on a customer-by- customer basis, are typically between 45 to 90 days. However, for certain agency customers with
sequential liability terms as specified by the Interactive Advertising Bureau, (i) payments are not due to the Company
until such agency customers has received payment from its customers (ii) the Company is not required to make a payment
to its supplier until payment is received from the Company's customer and (iii) the supplier is responsible to
pursue collection directly with the advertiser. As a result, once the Company has met the requirements of each of the five
steps under ASC 606, the Company's accounts receivable are recorded at the amount of Gross Billings which represent
amounts it is responsible to collect and accounts payable are recorded at the amount payable to suppliers. In the event step
1 under ASC 606 is not met, the Company does not record either the accounts receivable or accounts payable. Accordingly, both
accounts receivable and accounts payable appear large in relation to revenue reported on a net basis.
F-
23
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
As
of December 31, 2019 and 2018, the Company did not have any contract assets from contracts with customers. As of December 31,
2019 and 2018, the Company had $15,000 of contract liabilities where performance obligations have not yet been satisfied. The
Company expects to satisfy its remaining performance obligations and recognize the revenue within the next twelve months. During
the years ended December 31, 2019 and 2018, $0 of revenue was recognized from performance obligations satisfied (or partially
satisfied) in previous periods.
Advertising
Costs
Advertising
costs are charged to operations in the year incurred and totaled approximately $68,000 and $1,500 for the year ended December 31,
2019 and 2018 and are reflected in general and administrative expenses in the consolidated statements of operations.
Stock-Based
Compensation
The
Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award.
The fair value of the award is measured on the grant date. The fair value amount is then recognized over the period during which
services are required to be provided in exchange for the award, usually the vesting period. Upon the exercise of an award, the
Company issues new shares of common stock out of its authorized shares.
During
the year ended December 31, 2018, the Company estimated the fair value of its common stock using the most recent selling
price available. See Note 8 – Stockholders' Deficiency – Common Stock for details.
During
the year ended December 31, 2019, the Company obtained a third-party 409A valuation of its common stock, which was also considered
in management's estimation of the value of the equity instruments issued during that period. The estimates used by management
are considered highly complex and subjective. The third-party valuation, which utilized the Backsolve method that analyzed the
2019 closings of the Company's convertible debt offerings, was done in accordance with the guidance outlined in the American
Institute of Certified Public Accountants' Accounting and Valuation Guide,
Valuation of Privately-Held-Company Equity
Securities Issued as Compensation
.
Fair
Value of Stock Options and Warrants
The
Company has computed the fair value of stock options and warrants granted using the Black-Scholes option pricing model. Option
forfeitures are accounted for at the time of occurrence. The expected term used for options is the estimated period of time that
options granted are expected to be outstanding. The expected term used for warrants is the contractual life. The Company utilizes
the "simplified" method to develop an estimate of the expected term of "plain vanilla" option grants.
The Company does not currently have a sufficient trading history to support its historical volatility calculations. Accordingly,
the Company is utilizing an expected volatility figure based on a review of the historical volatility of comparable entities over
a period of time equivalent to the expected life of the instrument being valued. The risk-free interest rate was determined from
the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument
being valued.
Net
Loss Per Common Share
Basic
net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during
the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive
common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of options, warrants
and convertible notes, if not anti-dilutive.
F-
24
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
The
following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have
been anti-dilutive:
For the Years Ended
December 31,
2019
2018
Stock options
845,700
524,000
Warrants
10,247,000
1,595,000
Convertible notes [1]
180,648
161,117
11,273,348
2,280,117
[1]
Excludes shares issuable upon conversion of the Senior and Junior Notes. See Note 7 - Notes Payable for additional details.
Reclassifications
Certain
prior period operating expenses have been reclassified to conform to the fiscal 2019 presentation. These reclassifications have
no impact on the previously reported net loss.
Recently
Issued Accounting Standards
In
February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02
requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the
statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing
its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to
make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition,
lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified
retrospective approach. The FASB issued ASU No. 2018-10 "Codification Improvements to Topic 842, Leases" ("ASU
2018-10"), ASU No. 2018-11 "Leases (Topic 842) Targeted Improvements" ("ASU 2018-11") in July 2018,
and ASU No. 2018-20 "Leases (Topic 842) - Narrow Scope Improvements for Lessors" ("ASU 2018-20")
in December 2018. ASU 2018-10 and ASU 2018-20 provide certain amendments that affect narrow aspects of the guidance issued
in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional (and optional) transition method
of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect
adjustment to the opening balance of retained earnings in the period of adoption. See ASU 2019-10 below, which defers the effective
date for ASC 842. The Company is currently evaluating these ASUs and their impact on its consolidated financial statements and
disclosures.
In
June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments" ("ASU 2016-13"). The accounting standard changes the methodology for
measuring credit losses on financial instruments and the timing when such losses are recorded. See ASU 2019-10 below, which defers
the effective date for ASC 326. The Company is currently evaluating ASU 2016-13 and its impact on its consolidated financial statements
and disclosures.
In
August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes
to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). The amendments in ASU 2018-13 modify
the disclosure requirements on fair value measurements based on the concepts in the FASB Concepts Statement, including the consideration
of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant
unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty
should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption.
All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are
effective for fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim
period. The Company is currently evaluating ASU 2018-13 and its impact on its consolidated financial statements and disclosures.
F-
25
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
In
November 2019, the FASB issued ASU 2019-11, "Codification Improvements to Topic 326, Financial Instruments –
Credit Losses" ("ASU 2019-11"). ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13, "Financial
Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The amendments update
guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net
investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded
from the scope that have the contractual right to receive cash. The amendments in this ASU are effective for annual reporting
periods beginning after December 15, 2022, including interim periods within those fiscal years. All entities may adopt the
amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which
the guidance is effective (that is, a modified-retrospective approach). The Company is currently evaluating ASU 2019-11 and its
impact on its consolidated financial statements and disclosures.
In
December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes"
("ASU 2019-12"). The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions
to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas
of Topic 740 by clarifying and amending existing guidance. This update for fiscal years beginning after December 15, 2021,
and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted,
including adoption in any interim period for periods for which financial statements have not yet been made available for issuance.
An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of
the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments
in the same period. The Company is currently evaluating ASU 2019-12 and its impact on its consolidated financial statements and
disclosures.
Recently
Adopted Accounting Standards
In
January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")
2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business" ("ASU 2017-01").
These amendments clarify the definition of a business. The amendments affect all companies and other reporting organizations that
must determine whether they have acquired or sold a business. The definition of a business affects many areas of accounting including
acquisitions, disposals, goodwill, and consolidation. The amendments are intended to help companies and other organizations evaluate
whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This update is effective
for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15,
2019. The Company adopted ASU 2017-01 effective January 1, 2019 and its adoption did not have a material impact on its consolidated
financial statements and disclosures.
In
July 2017, the FASB issued ASU No. 2017-11, "Earnings Per Share (Topic 260) and Derivatives and Hedging (Topic
815) - Accounting for Certain Financial Instruments with Down Round Features" ("ASU 2017-11"). Equity-linked
instruments, such as warrants and convertible instruments may contain down round features that result in the strike price being
reduced on the basis of the pricing of future equity offerings. Under ASU 2017-11, a down round feature will no longer require
a freestanding equity-linked instrument (or embedded conversion option) to be classified as a liability that is remeasured at
fair value through the income statement (i.e. marked-to-market). However, other features of the equity-linked instrument (or embedded
conversion option) must still be evaluated to determine whether liability or equity classification is appropriate. Equity classified
instruments are not marked-to-market. For earnings per share ("EPS") reporting, the ASU requires companies to recognize
the effect of the down round feature only when it is triggered by treating it as a dividend and as a reduction of income available
to common shareholders in basic EPS. The amendments in this ASU are effective for fiscal years beginning after December 15,
2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption
in any interim period. The Company adopted ASU 2017-11 effective January 1, 2019 and relied upon the guidance in connection
with its evaluation of the classification of the embedded conversion options in its convertible notes, such that it determined
that the embedded conversion options were not required to be bifurcated.
F-
26
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
NOTE
4 – ASSET PURCHASE AGREEMENT
On
June 1, 2019, the Company entered into an agreement ("Software Purchase Agreement") with Elman Systems Limited
and FM Labs LLC d/b/a Fidelity Media FMX SSP ("Seller") to purchase certain software, as well as the related source
code, object code, documentation, software trade secrets for aggregate consideration of $100,000, of which, $70,000 was payable
upon execution of the agreement and $30,000 was payable within three (3) months from the execution of the agreement. On August 20,
2019, Kubient transferred and assigned all of its rights and obligations in, to and under the Software Purchase Agreement to Fidelity.
As of December 31, 2019, the Company had paid $100,000 to the Seller, the software had been transferred to the Company and
had been placed into service.
The
asset acquired was recognized based on the cost to acquire such asset. In connection with the Software Purchase Agreement, the
Company agreed to enter into independent contractor agreements with specified individuals who previously worked with the Seller.
NOTE
5 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued
expenses and other current liabilities consisted of the following:
December 31,
2019
2018
Accrued payroll
$
-
$
142,843
Accrued payroll taxes
163,746
90,547
Accrued supplier expenses
39,026
75,233
Accrued legal and professional fees
172,801
21,338
Accrued rent
-
18,280
Accrued commissions
-
9,889
Accrued interest
122,117
21,210
Credit card payable
30,113
-
Accrued programming expenses
36,993
-
Other
20,994
13,827
Total accrued expenses and other current liabilities
$
585,790
$
393,167
Subsequent
to December 31, 2019, the Company paid its outstanding payroll taxes in the approximate amount of $166,000, which included
penalties and interest of approximately $11,000.
F-
27
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
NOTE
6 – INCOME TAXES
The
Company is subject to income taxes in the United States Federal, State of New York, City of New York, and State of California
jurisdictions.
The
provision for income taxes consists of the following provisions/(benefits):
For the Years Ended December 31,
2019
2018
Deferred tax benefit:
Federal
$
(718,716
)
$
(553,356
)
State and local
(444,920
)
(385,189
)
(1,163,636
)
(938,545
)
Change in valuation allowance
1,163,636
938,545
Provision for income taxes
$
-
$
-
The
provision for income taxes differs from the statutory federal income tax rates as follows:
For the Years Ended December 31,
2019
2018
Tax expense at the federal statutory rate
21.0
%
21.0
%
State taxes, net of federal benefit
13.0
%
13.0
%
Permanent differences
(5.8
)%
(10.0
)%
Prior period adjustment
0.0
%
1.1
%
Change in valuation allowance
(28.2
)%
(25.1
)%
Effective income tax rate
0.0
%
0.0
%
The
components of deferred tax assets as of December 31, 2019 and 2018 relate to temporary differences and carryforwards as follows:
As of December 31,
2019
2018
Net operating loss carryforwards
$
1,884,942
$
812,900
Stock-based compensation expense
287,800
235,729
Other reserve
68,000
-
Accrued compensation
-
28,477
Deferred tax assets
2,240,742
1,077,106
Valuation allowance
(2,240,742
)
(1,077,106
)
Deferred tax assets, net
$
-
$
-
At
December 31, 2019, the Company had approximately $5,544,000 of net operating loss ("NOL") carryforwards that
may be available to offset future taxable income. As of that date, approximately $533,000 of federal net operating losses will
expire in 2037 and approximately $5,011,000 have no expiration. The utilization of NOL carryforwards to offset future taxable
income may be subject to limitations under Section 382 of the Internal Revenue Code and similar state statutes as a result
of ownership changes that could occur in the future. If necessary, the deferred tax assets will be reduced by any carryforward
that expires prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance.
F-
28
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
The
Company has assessed the likelihood that deferred tax assets will be realized in accordance with the provisions of ASC 740
Income
Taxes
("ASC 740"). ASC 740 requires that such a review considers all available positive and negative evidence, including
the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. ASC 740 requires
that a valuation allowance be established when it is "more likely than not" that all, or a portion of, deferred tax
assets will not be realized. After the performance of such reviews as of December 31, 2019 and 2018, management believes
that uncertainty exists with respect to future realization of its deferred tax assets and has, therefore, established a full valuation
allowance as of those dates. Thus, the Company increased the valuation allowance by $1,163,636 and $938,545 during the years ended
December 31, 2019 and 2018, respectively.
Management
has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company's consolidated
financial statements as of December 31, 2019 and 2018. The Company does not expect any significant changes in its unrecognized
tax benefits within twelve months of the reporting date.
No
tax audits were commenced or were in process during the years ended December 31, 2019 and 2018. No tax related interest or
penalties were incurred during the years ended December 31, 2019 and 2018. The Company's Federal, New York State and City,
and State of California income tax returns filed since inception remain subject to examination.
NOTE
7 – NOTES PAYABLE
As
of December 31, 2019 and May 6, 2020, the date the financial statements were issued, notes payable with an aggregate
principal amount of $133,967 and $2,223,967, respectively, were past due and are classified as current liabilities on the consolidated
balance sheet as of December 31, 2019. Such notes continue to accrue interest which has been accrued as of December 31,
2019. See Note 10 - Commitments and Contingencies – Litigation and Note 12 – Subsequent Events – Convertible
Notes Payable for additional details. The Company is in negotiations to either extend the maturity dates of such notes or to settle
the amounts due.
Convertible
Notes Payable
Senior
Offering
The
following is a summary of the balances associated with Senior Offering convertible notes payable:
For the Year Ended December 31, 2019
Issuance
Amortization
Balance
Convertible Notes Payable - Senior
    Offering:
Principal
$
2,750,000
$
-
$
2,750,000
Less:
Original issue discount
(250,000
)
144,581
(105,419
)
Debt issuance costs
(393,832
)
227,762
(166,070
)
Debt discount
(416,667
)
240,968
(175,699
)
Total
$
1,689,501
$
613,311
$
2,302,812
On
various dates between April 26, 2019 and June 28, 2019, the Company sold units (the "Senior Offering")
consisting of (a) senior secured convertible notes in the aggregate amount of $2,750,000 (the "Senior
Notes") and (b) five-year warrants. The Senior Notes mature on April 26, 2020 and bear interest at 5% per
annum and have an original issue discount of 10%, or $250,000 in the aggregate, such that the gross proceeds received by the
Company was $2,500,000. The Company's Chief Executive Officer purchased a Senior Note in the amount of $165,000 for
gross proceeds of $150,000. The Senior Notes are not convertible unless in the event of the closing of a public offering
resulting in gross proceeds of at least $5 million and common stock being traded on a national securities exchange
("Qualified IPO"), in which event the Senior Notes would automatically convert into common stock at the lesser of
(i) 70% of the offering price per share sold in the Qualified IPO, or (ii) the price per share obtained by dividing
$18 million by the Company's fully diluted capitalization immediately prior to the Qualified IPO ("Conversion
Price"). The Company determined the embedded conversion option ("ECO") was not required to be bifurcated
and accounted for as a derivative liability under ASC 815. The Company determined that the Senior Notes contained a
contingent beneficial conversion feature, which will be measured (since the Conversion Price is unknown) and recognized when
the contingency is resolved (at the time of a Qualified IPO).
F-
29
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
The
holders received warrants to purchase an aggregate of 5,000,000 shares of common stock at a per share exercise price of $0.55
that become exercisable on the one-year anniversary of the date of issuance (the "Senior Investor Warrants"). If a
Qualified IPO occurs on or before the one year anniversary of the issuance of the Senior Notes, then the holders will instead
receive warrants to purchase a number of shares of the Company's common stock equal to the quotient obtained by dividing
$2,750,000 by the Conversion Price at an exercise price per share equal to 120% of the Conversion Price (the "Senior Qualified
IPO Investor Warrants"). The Company estimated the relative fair value of the Senior Investor Warrants as $416,667 using
the Black-Scholes option pricing model, which was setup as a debt discount with a corresponding credit to additional paid-in capital
and then amortized over the term of the Senior Notes using the interest method.
There
were cash debt issuance costs of $372,599. In addition, the Company's placement agent is entitled to receive warrants to
purchase 1,000,000 shares of common stock of the Company at a per share exercise price of $0.55 that become exercisable on the
one-year anniversary of the date of issuance (the "Senior Placement Agent Warrants"). If a Qualified IPO occurs on
or before April 26, 2020, the placement agent will instead receive warrants to purchase 10% of the sum of (i) shares
into which the Senior Notes sold in the Senior Offering are convertible at an exercise price equal to the price per share sold
in the Qualified IPO, and (ii) shares for which the investor warrants are exercisable, at an exercise price equal to the
price per share sold in the Qualified IPO that become exercisable on the one-year anniversary of the date of issuance (the "Senior
Qualified IPO Placement Agent Warrants"). The Company estimated the fair value of the Senior Placement Agent Warrants as
$100,000 using the Black-Scholes option pricing model which was credited to additional paid-in capital, which, together with the
cash issuance costs, were allocated between the debt and equity instruments. Issuance costs of $393,832 that were allocated to
the Senior Notes were reported as an adjustment to the carrying amount of the Senior Notes and then amortized over the term of
the Senior Notes using the interest method, while issuance costs of $78,767 that were allocated to the Senior Investor Warrants
were recorded as a reduction of additional paid-in capital.
The
Senior Notes shall also constitute and serve as a security agreement in which the Company grants to the holders of the Senior
Notes a ratable security interest in all of the Company's assets. The Company shall default on the Senior Notes if it defaults
on any other debt obligations exceeding $50,000, whether such indebtedness existed at the time of issuance or shall hereafter
be created. Upon the occurrence of any Event of Default (other than an Event of Default related to a bankruptcy) and at any time
thereafter during the continuance of such Event of Default, the Noteholder Agent may, with the written consent of a majority of
noteholders, declare all outstanding indebtedness represented by the Senior Notes to be immediately due and payable. Upon the
occurrence of any Event of Default related to a bankruptcy, immediately and without notice, all outstanding indebtedness represented
by the Senior Notes shall automatically become immediately due and payable.
During
the year ended December 31, 2019, the Company recognized total amortization of debt discount and debt issuance costs of $613,311
associated with the Senior Offering.
See
Note 12 – Subsequent Events – Convertible Notes Payable for details associated with the amendment of certain Senior
Notes.
F-
30
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
Subordinated
Offering
The
following is a summary of the balances associated with Subordinated Offering convertible notes payable:
For the Year Ended December 31, 2019
Issuance
Amortization
Balance
Convertible Notes Payable - Subordinated
    Offering:
Principal
$
1,215,500
$
-
$
1,215,500
Less:
Original issue discount
(110,500
)
14,611
(95,889
)
Debt issuance costs
(241,772
)
31,969
(209,803
)
Debt discount
(184,167
)
24,352
(159,815
)
Total
$
679,061
$
70,932
$
749,993
On
various dates between October 11, 2019 and November 6, 2019, the Company sold units (the "Subordinated Offering")
consisting of (a) one-year subordinated convertible notes in the aggregate amount of $1,215,500 (the "Junior Notes")
and (b) five-year warrants to purchase securities sold in its public offering. The Junior Notes bear interest at 5% per annum
and have an original issue discount of 10%, or $110,500 in the aggregate, such that the gross proceeds received by the Company
was $1,105,000. The Company's Chief Executive Officer, Chief Digital Officer and Board member each purchased Junior Notes
in the amount of $308,000, $330,000 and $27,500, respectively, for aggregate gross proceeds of $605,000. The Junior Notes are
subordinated to the Senior Notes. The Junior Notes automatically convert into common stock upon closing of Qualified IPO at the
Conversion Price. The Company determined the ECO was not required to be bifurcated and accounted for as a derivative liability
under ASC 815. The Company determined that the Junior Notes contained a contingent beneficial conversion feature, which will be
measured (since the Conversion Price is unknown) and recognized when the contingency is resolved (at the time of a Qualified IPO).
The
holders received warrants to purchase an aggregate of 2,210,000 shares of common stock at a per share exercise price of $0.55
that become exercisable on the one-year anniversary of the date of issuance (the "Junior Investor Warrants"). If a
Qualified IPO occurs on or before the one year anniversary of the issuance of the Junior Notes, then the holders will instead
receive warrants to purchase a number of shares of the Company's common stock equal to the quotient obtained by dividing
$1,215,500 by the Conversion Price at an exercise price per share equal to 120% of the Conversion Price (the "Junior Qualified
IPO Investor Warrants"). The Company estimated the relative fair value of the warrants as $184,167 using the Black-Scholes
option pricing model, which was setup as a debt discount with a corresponding credit to additional paid-in capital and then amortized
over the term of the Junior Notes using the interest method.
There
were cash debt issuance costs of $238,985. In addition, the Company's placement agent is entitled to receive warrants to
purchase 442,000 shares of common stock of the Company at a per share exercise price of $0.55 that become exercisable on the one-year
anniversary of the date of issuance (the "Junior Placement Agent Warrants"). If a Qualified IPO occurs on or before
October 11, 2020, the placement agent will instead receive warrants to purchase 10% of the sum of (i) shares into which
the Senior Notes sold in the Senior Offering are convertible at an exercise price equal to the price per share sold in the Qualified
IPO, and (ii) shares for which the investor warrants are exercisable, at an exercise price equal to the price per share sold
in the Qualified IPO that become exercisable on the one-year anniversary of the date of issuance (the "Junior Qualified
IPO Placement Agent Warrants"). The Company estimated the fair value of the Junior Placement Agent Warrants as $44,199 using
the Black-Scholes option pricing model which was credited to additional paid-in capital, which, together with the cash issuance
costs, were allocated between the debt and equity instruments. Issuance costs of $241,772 that were allocated to the Junior Notes
were reported as an adjustment to the carrying amount of the Junior Notes and then amortized over the term of the Junior Notes
using the interest method, while issuance costs of $48,355 that were allocated to the Investor Warrants were recorded as a reduction
of additional paid-in capital.
F-
31
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
The
Junior Notes shall also constitute and serve as a security agreement in which the Company grants to the holders of the Junior
Notes a ratable security interest in all of the Company's assets. The Company shall default on the Junior Notes if it defaults
on any other debt obligations exceeding $50,000, whether such indebtedness existed at the time of issuance or shall hereafter
be created. Upon the occurrence of any Event of Default (other than an Event of Default related to a bankruptcy) and at any time
thereafter during the continuance of such Event of Default, the Noteholder Agent may, with the written consent of a majority of
noteholders, declare all outstanding indebtedness represented by the Junior Notes to be immediately due and payable. Upon the
occurrence of any Event of Default related to a bankruptcy, immediately and without notice, all outstanding indebtedness represented
by the Junior Notes shall automatically become immediately due and payable.
During
the year ended December 31, 2019, the Company recognized total amortization of debt discount and debt issuance costs of $70,932
associated with the Subordinated Offering.
See
Note 12 – Subsequent Events – Convertible Notes Payable for details associated with the amendment of certain Junior
Notes.
Other
Convertible Notes
During
the year ended December 31, 2018, the Company issued convertible notes payable with an aggregate principal amount of $190,000
to certain lenders. The convertible notes bear interest at rates ranging between 10.0% and 23.4% per annum, payable at maturity,
with maturity dates ranging between August 2018 through June 2020. The lenders are entitled to convert all of the respective
outstanding and unpaid principal and accrued interest into shares of the Company's common stock at conversion prices ranging
between $0.29 and $0.55 per share, depending on the note. With respect to notes with an aggregate principal amount of $170,000,
if the holder has not exercised their conversion rights in full on or before dates ranging between February 2018 and May 2018,
depending on the note, the Company shall be entitled to, in its sole discretion, convert all of the outstanding principal and
accrued interest into shares of the Company's common stock at a conversion price of $0.55 per share. The Company determined
the ECO was not required to be bifurcated and accounted for as a derivative liability under ASC 815. The Company determined a
note payable with a principal amount of $20,000 contained a beneficial conversion feature because the effective conversion price
of $0.29 per share was less than the estimated fair value of the Company's common stock as of the commitment date of $0.55
per share. The Company measured the beneficial conversion feature of $17,931, which was recorded as a debt discount and was recognized
over the term of the note.
During
the year ended December 31, 2018, convertible notes payable with an aggregate principal amount of $125,000 and accrued interest
of $10,481 were converted at the option of the holder into an aggregate of 246,329 shares of common stock.
The
Company recognized amortization of debt discount of $16,703 and $1,228 during the years ended December 31, 2019 and 2018,
respectively, as interest expense.
During
the years ended December 31, 2019 and 2018, the Company recorded interest expense of $12,530 and $16,041, respectively, excluding
the amortization of debt discount disclosed above. As of December 31, 2019 and 2018, the Company had $18,091 and $5,561 of
accrued interest, respectively, related to these convertible notes payable which are included in accrued expenses and other current
liabilities on the consolidated balance sheets.
Notes
Payable
During
the year ended December 31, 2018, the Company issued notes payable with an aggregate principal amount of $278,700 to certain
lenders. The notes bear interest at rates ranging between 6.0% and 21.5% per annum. One of the notes with a principal amount of
$100,000 requires weekly payments of principal and interest of $2,977 per week. This note is secured by present and future accounts,
receivables, chattel paper, deposit accounts, personal property, assets and fixtures, general intangibles, instruments, equipment
and inventory, and was personally guaranteed by a majority shareholder of the Company. The other notes specify payments either
on a monthly basis or at maturity. The notes have maturity dates ranging between May 2018 and April 2019.
During
the years ended December 31, 2019 and 2018, the Company made aggregate principal repayments of $90,427 and $74,306, respectively.
F-
32
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
Due
to Related Party
During
the year ended December 31, 2018, the Company received a non-interest-bearing advance in the amount of $45,000 from its founder
and Board member. The Company repaid this amount during the year ended December 31, 2019.
During
the year ended December 31, 2019, the Company received non-interest-bearing advances in the aggregate amount of $29,905 from
a company controlled by an executive officer. The Company repaid $905 during the year ended December 31, 2019.
NOTE
8 – STOCKHOLDERS' DEFICIENCY
Authorized
Capital
The
authorized capital of Kubient consists of 95,000,000 shares of common stock, par value $0.00001 per share, and 5,000,000 shares
of preferred stock, par value $0.00001 per share. The holders of the Company's common stock are entitled to one vote per
share.
2017
Equity Incentive Plan
The
Company's 2017 Equity Incentive Plan (the "Plan"), as amended on October 2, 2019, permits the granting
of stock options, restricted stock, restricted units and other stock-based awards as determined by the administrator of the Plan,
in order to enhance Kubient's ability to attract, retain and motivate persons who make (or are expected to make) important
contributions to Kubient by providing such persons with equity ownership opportunities and thereby better aligning the interests
of such persons with those of Kubient's stockholders. There are 3,000,000 shares reserved under the Plan, however, after
January 1, 2018, awards may be made under the Plan covering up to 10% of the issued and outstanding shares of common stock
measured at the time of grant of the award. If any award expires or lapses or is terminated, surrendered or canceled without having
been full exercised or is forfeited in whole or in part, not being issued or being so reacquired by the Company, the unused common
stock award shall again be available for the grant of awards under the Plan. As of December 31, 2019, there were 2,154,300
shares available for grant under the Plan.
Stock-Based
Compensation
For
the years ended December 31, 2019 and 2018, the Company recognized aggregate stock-based compensation expense of $27,275
and $1,856,570 (which amount includes $1,091,750 related to a contribution of capital in the form of a related party share transfer
which is further described below), respectively, related to stock options, warrants and common stock. As of December 31,
2019, there was $26,757 of unrecognized stock-based compensation expense, which will be recognized over approximately 2.2 years.
Common
Stock
During
the year ended December 31, 2018, the Company issued an aggregate of 1,367,941 shares of common stock at $0.55 per share
for aggregate consideration of $752,368.
During
the year ended December 31, 2018, the Company issued an aggregate of 130,000 shares of immediately vested common stock to
non-employee service providers. The shares had an issuance date fair value of an aggregate of $71,500, or $0.55 per share, which
was recognized immediately.
During
the year ended December 31, 2018, the Company incurred expenses in connection with various services provided (business development,
investor relations and legal services provided by third parties and services provided by the Company's Chief Technology
Officer). Due to cash restraints, the Company's founder agreed to pay these providers with an aggregate of 1,985,000 shares
of the Company's common stock with a fair value of $1,091,750 that was personally held by him. The Company's founder
agreed not to seek reimbursement from the Company for such shares, such that the transaction was a contribution of capital. As
a result, the net effect of the transaction was reflected as stock-based compensation expense on the Company's statements
of operations during the year ended December 31, 2018 with a corresponding credit to additional paid-in capital.
During
the year ended December 31, 2019, the Company issued 20,000 shares of immediately vested common stock with fair value of
$6,000 to an executive officer of the Company in connection with an employment agreement.
See
Note 7 – Notes Payable for additional details associated with the issuance of common stock upon conversion of notes payable.
F-
33
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
Stock
Options
During
the year ended December 31, 2019, the Company granted to three executives ten-year options to purchase an aggregate of 356,700
shares of common stock at an exercise price of $3.75 per share under the 2017 Plan. The options vest over four years, with 25%
of the shares vesting on the one-year anniversary of the grant date and the remaining vesting monthly thereafter. The options
had an aggregate grant date fair value of $6,467, or $0.02 per share, which will be recognized over the vesting period.
In
applying the Black-Scholes option pricing model to stock options granted, the Company used the following approximate assumptions:
For the Years Ended
December 31,
2019
2018
Expected term (years)
6.08
n/a
Expected volatility
55.8%
n/a
Risk free interest rate
1.48%-1.81%
n/a
Expected dividends
0.00%
n/a
A
summary of the Company's stock option activity during the years ended December 31, 2019 and 2018 is as follows:
Weighted
Weighted
Average
Average
Number of
Exercise
Remaining
Intrinsic
Options
Price
Term (Years)
Value
Outstanding at January 1, 2018
1,014,000
$
0.33
Granted
-
-
Forfeited
(490,000
)
0.33
Exercised
-
-
Outstanding at December 31, 2018
524,000
0.33
Granted
356,700
3.75
Forfeited
(35,000
)
0.33
Exercised
-
-
Outstanding at December 31, 2019
845,700
$
1.77
5.2
$
-
Exercisable at December 31, 2019
275,022
$
0.33
1.7
$
-
The
following table presents information related to stock options as of December 31, 2019:
Options Outstanding
Options Exercisable
Weighted
Outstanding
Average
Exercisable
Exercise
Number of
Remaining Life
Number of
Price
Options
In Years
Options
$
0.33
489,000
1.7
275,022
$
3.75
356,700
-
-
845,700
1.7
275,022
F-
34
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
Stock
Warrants
See
Note 7 – Notes Payable – Convertible Notes Payable for details regarding the issuance of warrants during the year
ended December 31, 2019.
During
the year ended December 31, 2018, the Company issued five-year immediately vested warrants to purchase 1,595,000 shares of
the Company's common stock at an exercise price of $0.55 per share to employees and non-employees. The warrants were valued
at the issuance date using a Black-Scholes option pricing model with the following assumptions; risk-free interest rates between
2.56% and 2.96%, expected dividend yield of 0%, contractual term of 5 years and an expected volatility ranging between 100% and
102%. The aggregate issuance date fair value of $661,020 was recognized immediately.
In
applying the Black-Scholes option pricing model to stock warrants issued, the Company used the following approximate assumptions:
For the Years Ended
December 31,
2019
2018
Expected term (years)
5.00
5.00
Expected volatility
55.8%-56.1%
100.0%-102.0%
Risk free interest rate
1.59%-2.32%
2.56%-2.96%
Expected dividends
0.00%
0.00%
A
summary of the warrant activity during the years ended December 31, 2019 and 2018 is presented below:
Weighted
Weighted
Average
Average
Remaining
Number of
Exercise
Life
Intrinsic
Warrants
Price
In Years
Value
Outstanding at January 1, 2018
-
$
-
Issued
1,595,000
0.55
Exercised
-
-
Expired
-
-
Outstanding, December 31, 2018
1,595,000
0.55
Granted
8,652,000
0.55
Exercised
-
-
Expired
-
-
Outstanding, December 31, 2019
10,247,000
$
0.55
4.3
$
-
Exercisable, December 31, 2019
1,595,000
$
0.55
3.3
$
-
NOTE
9 - RELATED PARTY TRANSACTIONS
As
of December 31, 2019, the Company had outstanding notes payable to related parties of an aggregate of $830,500 and had an
outstanding advance to a related party of $29,000. See Note 7 – Notes Payable for details. See Note 8 – Stockholders'
Deficiency for details of additional related party transactions.
Related
Party Advances
During
the year ended December 31, 2019, the Company advanced an aggregate of $75,000 to OneQube, Inc.
("OneQube") in connection with a non-binding letter of intent between the parties that was eventually mutually
terminated by the parties. $75,000 was repaid by OneQube as of December 31, 2019. The Company's current Chief
Executive Officer beneficially owns 27.6% of the capital stock of OneQube and serves as Chairman of the Board of
OneQube.
F-
35
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
CenterPoint
During
the year ended December 31, 2018, Kubient and CenterPoint Media, LLC ("CenterPoint"), the Company's predecessor,
made various payments to one another for operating expenses that were paid for on the other party's behalf. During the year
ended December 31, 2018, Kubient made aggregate payments of approximately $109,000 for the benefit of CenterPoint (of which,
$71,000 was paid directly to CenterPoint and $38,000 was for CenterPoint expenses paid by Kubient) and CenterPoint made aggregate
payments of approximately $56,000 on behalf of Kubient.
During
the year ended December 31, 2018, the Company wrote-off receivables from CenterPoint in the amount of approximately $61,000,
which it deemed to be uncollectible.
Sublease
Agreement
On
March 6, 2018 and effective April 14, 2018, the Company extended their lease agreement with CenterPoint whereby the
Company became responsible for the entire monthly rent payment, plus common maintenance charges, which totaled $9,139 per month
for a period of 10 months and ended on February 14, 2019.
In
March 2019, Kubient entered into a sublease agreement with OneQube that provides for rent payments by Kubient to the sublessor
equal to $600 per desk per month and ends in June 2021.
During
the years ended December 31, 2019 and 2018, rent expense was $91,169 and $106,779, respectively, which included the rent
paid to related parties discussed above.
NOTE
10 – COMMITMENTS AND CONTINGENCIES
Litigation
From
time to time, the Company is a defendant or plaintiff in various legal actions that arise in the normal course of business. Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it
is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.
On
August 31, 2018, the Company received a summons from the Los Angeles County Superior Court of California in connection with
a civil action filed by a vendor against the Company in the amount of $33,461 for breach of contract. On November 14, 2018,
counsel representing the vendor filed a request for default judgement against the Company in the amount of $35,936 which included
legal costs of $785 and interest of $1,690. On November 21, 2018, judgement was entered by the court against the Company.
As of December 31 2019 and 2018, the Company had accrued for all amounts in its financial statements.
On
March 11, 2019, the United States District Court for the Southern District of New York ordered a judgement against the Company
in connection with the default of terms of a settlement agreement between the Company and a vendor dated November 27, 2018.
The court ordered that an amount in the aggregate of $91,692 (including $667 of interest and $870 of legal costs) be paid by the
Company, which amount was accrued as of December 31, 2018. During the year ended December 31, 2019, the matter was settled
and the amount was paid in full by the Company.
On
November 12, 2019, the Company received a summons from the Palm Beach County Circuit Court of Florida in connection with
a civil action filed by the plaintiff against the Company in the aggregate amount of $207,502 ($132,502 for breach of
contract and $75,000 for default under a promissory note). Settlement discussions amongst the parties are ongoing and the
trial is currently scheduled for August 2020. The Company intends to vigorously defend itself with respect to this
claim. As of December 31, 2019, the Company had accrued approximately $177,000 in its consolidated financial
statements.
On
November 27, 2019, the Company received a summons from the Los Angeles County Superior Court of California in connection
with a civil action filed by a vendor against the Company in the amount of $20,764. On April 21, 2020, the Company made a
settlement offer to pay $20,000 within 90 days of execution of a settlement agreement. As of May 6, 2020, the date the financial
statements were issued, the parties had not executed the settlement agreement. As of December 31, 2019, the Company had accrued
approximately $20,000 in its consolidated financial statements.
F-
36
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
In
March 2019 the Company entered into a binding letter of intent to acquire substantially all of the assets of Aureus Holdings,
LLC d/b/a Lo70s ("Lo70s"). In connection with the letter of intent, the Company paid a good faith deposit to Lo70s
of $200,000. Subsequently, during the diligence phase of the letter of intent, the Company received information such that it believes
that Lo70s made material misrepresentations regarding its business and diligence inquiries made by the Company to Lo70s. As a
result, the Company terminated the letter of intent under the clause that there was a material adverse change in the business.
During the year ended December 31, 2019, the Company recorded an allowance of $200,000 related to the deposit. The Company
received a legal dispute letter dated February 20, 2020 from legal counsel representing Lo70s that indicated that Lo70s is
prepared to file its claim against the Company in an amount that exceeds $5 million. On February 28, 2020, the Company subsequently
responded with its intention to vigorously defend itself with respect to such demands made by Lo70s that the Company believes
are without merit. As of December 31, 2019, the Company had accrued for all probable and estimable amounts in the consolidated
financial statements.
Non-Binding
Letter of Intent
On
August 23, 2019, the Company entered in a non-binding letter of intent with Advisio Solutions, LLC ("Advisio").
The Company's potential acquisition is subject to its negotiation and entry into definitive, binding agreements with Advisio,
which will not occur prior to the closing of the public offering. The closing of the proposed transaction will be subject to customary
conditions including the Company's satisfactory completion of due diligence and the receipt of any waivers, regulatory approvals
and third-party consents. The non-binding letter of intent expired on December 31, 2019.
Settlement
and Release Agreement
On
August 23, 2019 and effective December 31, 2018, the Company entered into a settlement and release agreement with one
of its suppliers. In connection with the agreement, the supplier agreed to release the Company from liabilities in the amount
of $66,804 owed by the Company to the supplier. As a result, the Company recognized a gain on forgiveness of accounts payable
 – supplier in the amount of $66,804 during the year ended December 31, 2018.
Settlement
Agreement
On
September 4, 2019, the Company entered into a settlement agreement whereby the parties agreed to settle an outstanding note
payable balance of approximately $45,000 for $16,000, which was to be paid by September 3, 2019 by the Company. As of December 31,
2019 and the date of filing, the Company had not made the $16,000 payment. As of December 31, 2019, the outstanding note
payable balance was $38,967 on the consolidated balance sheet.
Employment
Agreements
On
May 15, 2019, the Company entered into an employment agreement with its newly hired Chief Executive Officer that provides
for a base salary of $220,000 per year, comprised of cash of $120,000 and equity awards of $100,000 in the form of non-qualified
stock options. The executive is eligible to receive an annual performance bonus up to 30% of the current base salary, subject
to the achievement of specified performance goals established by the Board. The employment agreement can be terminated by either
party at any time. Upon termination of the executive other than for cause or resignation by the executive for good reason, as
defined, the executive is entitled to receive (i) a cash payment equal to three (3) months of the executive's
then base salary, (ii) payment of medical insurance for at least six (6) months and (iii) the acceleration of vesting
with respect to that number of shares subject to executive's then outstanding equity awards that would have become vested
during the three (3) month period following the termination date.
F-
37
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
On
June 17, 2019, the Company entered into an employment agreement with its newly hired Chief Digital Officer whereby the parties
agreed that the Company shall employ the executive for a period of one (1) year, with renewal for an additional twelve (12)
months if certain specified Company financial metrics are reached. The agreement provides for a base salary of $180,000 per year.
The executive is eligible to receive cash commissions up to $320,000, computed as 15% of net revenue, and, in the event the cash
commission maximum has been reached, the executive is eligible for commissions payable quarterly in common stock with a value
up to $250,000. If the executive earns aggregate commissions of $580,000, commissions shall be paid at a rate of 7% of net revenue.
In addition, if the business relationships managed by the executive exceed $5,000,000 in gross revenue before the effective date
of the Company's contemplated initial public offering, the executive will be issued 20,000 shares of common stock. In connection
with the employment agreement, the executive issued 20,000 immediately-vested shares of the Company's common stock (see
Note 8 for details). Upon termination of the executive other than for cause or resignation by the executive for good reason, as
defined, the executive is entitled to receive (i) cash payments for twelve (12) months of the executive's then base
salary, (ii) payment of medical insurance for at least six (6) months and (iii) the acceleration of vesting with
respect to that number of shares subject to executive's then outstanding equity awards that would have become vested during
the three (3) month period following the termination date.
On
December 23 2019, the Company entered into an employment agreement with its newly hired Chief Financial Officer that provides
for a base salary of $150,000 per year, increasing to a base salary of $275,000 per year on the earlier of (i) 90 days following
the date of the employment agreement or (ii) the date of an initial public offering. The executive is eligible to receive
an annual performance bonus up to 30% of the current base salary, subject to the achievement of specified performance goals established
by the Board, commencing fiscal year 2020. The employment agreement can be terminated by either party at any time. Upon termination
of the executive other than for cause or resignation by the executive for good reason, as defined, the executive is entitled to
receive (i) a cash payment equal to six (6) months of the executive's then base salary, (ii) payment of medical
insurance for at least six (6) months and (iii) the acceleration of vesting with respect to that number of shares subject
to executive's then outstanding equity awards that would have become vested during the three (3) month period following
the termination date. In connection with the employment agreement, the executive was (i) granted options to purchase 150,000
shares of common stock at an exercise price of $3.75 per shares (see Note 8 for details) and (ii) effective 90 days following
the commencement of the executive's employment with the Company, the Company will issue 20,000 shares of immediately-vested
common stock to the executive.
NOTE
11 – CONCENTRATIONS
Customer
Concentrations
The
following table sets forth information as to each customer that accounted for 10% or more of the Company's Gross Billings
for the following periods:
For the Years Ended
December 31,
Customer
2019
2018
Customer A
74.50
%
58.89
%
Customer B
10.06
%
10.02
%
Total
84.57
%
68.91
%
F-
38
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
The
following table sets forth information as to each customer that accounted for 10% or more of the Company's gross accounts
receivable as of:
As of
December 31,
Customer
2019
2018
Customer D
13.73
%
*
Customer E
12.23
%
*
Customer A
*
57.25
%
Customer C
*
11.06
%
Total
25.96
%
68.32
%
A
reduction in sales from or loss of these customers would have a material adverse effect on the Company's results of operations
and financial condition.
Supplier
Concentrations
The
following table sets forth information as to each supplier that accounted for 10% or more of the Company's Supplier Costs
for the following periods:
For the Years Ended
December 31,
Supplier
2019
2018
Supplier A
78.85
%
56.05
%
NOTE
12 – SUBSEQUENT EVENTS
The
Company has evaluated events that have occurred after the balance sheet and through May 6, 2020, the date the financial statements
were issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would
have required adjustment or disclosure in the financial statements, except as disclosed below.
Customer
Contract
Effective
February 5, 2020, the Company entered into a Master Services Agreement (the "Agreement") with The Associated
Press (the "Customer") whereby the Company agreed to provide advertising and related business revenue consultation
services to the Customer. In consideration for the services provided, commencing on March 1, 2020, the Company is entitled
to certain revenue share amounts in connection with the Customer's consumer offerings outlined in the Agreement, which amounts
were included in Exhibit B to the Agreement which was entered into as of March 27, 2020 and are summarized as follows:
Monthly
Revenue
Below Threshold
Above Threshold
Type
Threshold
Customer
Kubient
Customer
Kubient
Programmatic/display
$
300,000
90
%
10
%[A]
50
%
50
%
Video
$
30,000
100
%
0
%
50
%
50
%
Direct deals
$
-
100
%
0
%
50
%
50
%
Native
$
100,000
100
%
0
%
50
%
50
%
Data/newsletter
$
-
0
%
0
%
50
%
50
%
Podcasts
$
-
0
%
0
%
50
%
50
%
Other
$
-
0
%
0
%
50
%
50
%
[A]
    - Expires on September 1, 2020.
F-
39
KUBIENT, INC.
Notes
to Consolidated Financial Statements
For
the Years Ended December 31, 2019 and 2018
Notes
Payable – Related Parties
Subsequent
to December 31, 2019, the Company received aggregate proceeds of $585,000 in connection with three-year notes payable issued
to three of its executive officers. The notes bear interest ranging from 0.91% and 1.60% per annum, payable annually. The outstanding
principal and accrued and unpaid interest shall become immediately due and payable upon an initial public offering, sale of the
Company or qualified financing with equity proceeds of at least $5,000,000.
Release
of Liability
On
March 10, 2020, the Company received a letter from one of its vendors releasing it from aggregate liabilities of $236,248,
which were accrued as of December 31, 2019. The Company recognized the gain on release of liability effective March 10,
2020.
Paycheck
Protection Program Loan
On
April 6, 2020, the Company received loan proceeds in the amount of approximately $327,000 under the Paycheck Protection Program
("PPP"). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"),
provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying
business. The loans and accrued interest are forgivable after eight weeks as long as the borrower uses the loan proceeds for eligible
purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will
be reduced if the borrower terminates employees or reduces salaries during the eight-week period.
The
unforgiven portion of the PPP loan is payable over two years at an interest rate of 1%, with a deferral of payments for the first
six months. The Company intends to use the proceeds for purposes consistent with the PPP. While the Company currently believes
that its use of the loan proceeds will meet the conditions for forgiveness of the loan, there can be no assurance that the Company
will not take actions that could cause the Company to be ineligible for forgiveness of the loan, in whole or in part.
Convertible
Notes Payable
Subsequent
to December 31, 2019, the Company and certain noteholders entered to a consent and first amendment to Senior Notes and Junior
Notes in the aggregate principal amount of $660,000 and $665,500, respectively (the "Amended Senior Notes" and "Amended
Junior Notes", respectively). The Amended Senior Notes were amended as follows: (i) the holders authorized the Company
to incur certain indebtedness, including certain government loans as well as non-government loans with a principal amount not
to exceed $1,000,000 in the aggregate (the "Permitted Indebtedness"), (ii) the Amended Senior Notes are subordinated
to the Permitted Indebtedness and (iii) the maturity date of the Amended Senior Notes is August 27, 2020. The Amended
Junior Notes were amended as follows: (i) the holders authorized the Company to incur the Permitted Indebtedness and (ii) the
Amended Junior Notes are subordinated to the Permitted Indebtedness.
As
of May 6, 2020, the date the financial statements were issued, Senior Notes with aggregate outstanding principal amount of
$2,090,000 were past due. Such failure to repay the Senior Notes by the maturity date constituted an event of default and, accordingly,
at any time thereafter during the continuance of such event of default, the noteholder agent may, with the written consent of
a majority of noteholders, by written notice to the Company, declare all outstanding indebtedness represented by the Senior Notes
to be immediately due and payable. The Company is in negotiations with the noteholders to extend the maturity dates of such Senior
Notes.
F-
40
GLOSSARY
"
Ad
Network
" means an intermediary network or company that acts as a broker between advertisers who want to purchase ad
placements and content publishers who want to host the advertiser's ads. Examples of advertisers are consumer good companies,
multimedia companies and automobile manufacturers. Publishers in the context are website operators or app developers.
"
Ad Tech
" means the software and tools that help agencies and brands target, deliver, and analyze their digital
advertising efforts.
"
Bot
"
or "internet bot" means an autonomous program (or robot) running on a network (usually, the internet) that can interact
with computer systems or users. Typically, Bots perform tasks that are both simple and structurally repetitive, at a much higher
rate than would be possible for a human alone. According to Imperva, more than half of all web traffic is fraudulent, as it is
made up of Bots rather than actual human beings.
"
Brand
"
means a particular name used to identify a type of product or products manufactured by a particular company.
"
Data
Management Platform
" or "DMP" means a technology platform used for collecting and managing data, mainly
for digital marketing purposes. It allows Ad Networks to generate audience segments, which are then used to target specific users
in online advertising campaigns.
"
Demand
Side Platform
" or "DSP" means a system that allows buyers of digital advertising space (ie, advertisers)
to manage multiple ad exchange and data exchange accounts through one interface.
"
Double
monetization
" means our ability to serve both a video advertisement as well as a display advertisement where there would
traditionally be one or the other.
"
Full
stack
" means computer engineering that encompasses databases, servers, systems engineering, and clients, across mobile
applications, web based applications and native applications.
"
GDPR
"
means the General Data Protection Regulation, which was agreed upon by the European Parliament and Council in April 2016,
regulates how companies (including American companies) must protect European Union citizens' personal data.
"
Latency
"
means the lag time between a customer click on an internet link and the conversion of that customer to a sale. The term can also
refer to the lag time between ad inventory's purchase and its display on publisher's media.
"
Omni-channel
marketing
" means marketing that is intended to reach target consumers across all advertising channels -- mobile, video,
desktop, and more -- within the context of how the specific customer has interacted with a brand (for example, those first seeing
an ad about a brand they have never experienced will receive a different message from those who have engaged with that brand a
number of times).
"
Programmatic
advertising
" means the purchase of advertising space meant to target audiences using Ad Tech, rather than the traditional
method of purchasing time slots in mass media, such as television programming.
"
Pre-bid
"
means the bid placed by an advertiser for placement of its ad, verified prior to such ad being run or displayed.
"
Post-bid
"
means the verification of the running or display of an ad, after such running or display has occurred.
"
Publisher
"
means a source of ad inventory, such as website owners, website operators or app developers. Publishers are generally either managed
or owned and operated. An owned and operated publisher receives 100% of the profit for impressions sold. This is opposed to a
managed publisher: a publisher that does not own its inventory but has a financial relationship with those who do.
"
Specialist
coding language
" means certain coding languages that deliver performance above and beyond traditional coding languages.
"
Supply
Side Platform
" or "SSP" means a platform that enables Publishers to access advertiser demand from a variety
of networks, exchanges, and platforms via one interface.
"
300-millisecond
window
" means the window of time adopted by the digital advertising industry in which a website or app has to load the
content on their website and auction off the advertising space on their web property.
"
Verification
companies
" or "ad verification companies" means companies that offer a technological service that ensures
that ads appear on intended sites and reach the targeted audience.
"
Volume
"
means the concept buying large scale amounts of media in hopes of reaching a specific, smaller audience that lives within that
larger pool.
Units
PROSPECTUS
Maxim
Group LLC	     	     	     Joseph Gunnar &
Co. LLC
The
Benchmark Company, LLC
,
2020
Through
and including              , 2020 (the 25
th
day
after the date of this offering), all dealers effecting transactions in these securities, whether or not participating in this
offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus
when acting as an underwriter and with respect to an unsold allotment or subscription.
PART II
INFORMATION
NOT REQUIRED IN PROSPECTUS
Item 13.
Other Expenses of Issuance and Distribution
The
following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable in connection
with the sale and distribution of the securities being registered. All amounts are estimated except the SEC registration fee,
the FINRA filing fee and The Nasdaq Capital Market listing fee. Except as otherwise noted, all the expenses below will be paid
by us.
SEC
    Registration Fees
$
2,851.55
FINRA
    Fees
*
The
    Nasdaq Capital Market Listing Fee
*
Printing
    and Engraving Expenses
*
Legal
    Fees and Expenses
*
Accounting
    Fees and Expenses
*
Transfer
    Agent Fees
*
Miscellaneous
*
Total
$
*
*        
Estimated expenses not presently known.
II-
1
Item 14.
Indemnification of Directors and Officers
Section 102(b)(7) of
the DGCL allows a corporation to provide in its certificate of incorporation that a director of the corporation will not be personally
liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except where the
director breached the duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a
law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an
improper personal benefit. Our certificate of incorporation provides for this limitation of liability.
Section 145
of the DGCL, or Section 145, provides that a Delaware corporation may indemnify any person who was, is or is threatened to
be made, party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was
an officer, director, employee or agent of such corporation or is or was serving at the request of such corporation as a director,
officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding, provided such person acted in good faith and in a manner he reasonably believed to be in or not opposed
to the corporation's best interests and, with respect to any criminal action or proceeding, had no reasonable cause to believe
that his or her conduct was illegal. A Delaware corporation may indemnify any persons who are, were or are a party to any threatened,
pending or completed action or suit by or in the right of the corporation by reason of the fact that such person is or was a director,
officer, employee or agent of another corporation or enterprise. The indemnity may include expenses (including attorneys'
fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit, provided
such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the corporation's best
interests, provided that no indemnification is permitted without judicial approval if the officer, director, employee or agent
is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise in the defense
of any action referred to above, the corporation must indemnify him against the expenses which such officer or director has actually
and reasonably incurred.
Section 145
further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer,
employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or
agent of another corporation or enterprise, against any liability asserted against him and incurred by him in any such capacity,
or arising out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify him under
Section 145.
Our
bylaws provide that we must indemnify our directors and officers to the fullest extent permitted by the DGCL and must also pay
expenses incurred in defending any such proceeding in advance of its final disposition upon delivery of an undertaking, by or
on behalf of an indemnified person, to repay all amounts so advanced if it should be determined ultimately that such person is
not entitled to be indemnified.
The
indemnification rights set forth above shall not be exclusive of any other right which an indemnified person may have or hereafter
acquire under any statute, provision of our certificate of incorporation, our bylaws, agreement, vote of stockholders or disinterested
directors or otherwise.
We
intend to maintain standard policies of insurance that provide coverage (1) to our directors and officers against loss rising
from claims made by reason of breach of duty or other wrongful act, and (2) to us with respect to indemnification payments
that we may make to such directors and officers.
The
proposed form of Underwriting Agreement to be filed as Exhibit 1.1 to this registration statement will provide for indemnification
of our directors and officers by the placement agent party thereto against certain liabilities. See "
Item 17. Undertakings
"
for a description of the SEC's position regarding such indemnification provisions.
Item 15.
Recent Sales of Unregistered Securities
In
September 2017, we issued warrants to certain stockholders, consultants and attorneys to purchase up to 1,270,000 shares
of Common Stock at a price per share of $0.55. The term of the warrant extends until 5 years from the grant date and the
warrant is exercisable at any time during that five-year period. The foregoing shares were issued in reliance upon an exemption
from registration pursuant to Rule 701 promulgated under the Securities Act of 1933, as amended (the "Securities Act").
In
three separate closings dated April 26, May 23, and June 28, 2019, the Company sold 25 units of its securities
for gross proceeds of $2,500,000, with each unit priced at $100,000 (each, a " Senior Unit" and, collectively, the
 " Senior Units"). Each Senior Unit sold in the offering consisted of (i) a 5% Senior Secured Convertible Promissory
Note in the principal amount of $110,000, reflecting an Original Issue Discount of 10% of the Company that is convertible into
shares of the Company's common stock and (ii) a five-year warrant to purchase a number of shares of the Company's
common stock equal to the quotient obtained by dividing $110,000 by the Conversion Price (as defined in the warrants) at an exercise
price equal to 120% of the Conversion Price. Under certain circumstances, such as a qualified initial public offering, the conversion
of the foregoing 5% Senior Secured Convertible Promissory Note might be issued in a combination of warrants and shares of the
Company's common stock.
II-
2
In
connection with the Unit offering described above, we will issue/have issued a five year warrant that is immediately exercisable
upon the date of issuance to the placement agent in the offering to purchase 10% of the aggregate number of issuable shares sold
in the offering, at the same price per share as in the Unit offering.
In
two separate closings dated October 11, and November 6, 2019, the Company sold 11.25 units of its securities for gross
proceeds of $1,105,000, with each unit priced at $100,000 (each, a "Subordinated Unit" and, collectively, the "Subordinated
Units"). Each Subordinated Unit sold in the offering consisted of (i) a 5% Subordinated Unsecured Convertible Promissory
Note in the principal amount of $110,000, reflecting an Original Issue Discount of 10% of the Company that is convertible into
shares of the Company's common stock, and (ii) a five-year warrant to purchase a number of shares of the Company's
common stock equal to the quotient obtained by dividing $110,000 by the Conversion Price (as defined in the warrants) at an exercise
price equal to 120% of the Conversion Price. Under certain circumstances, such as a qualified initial public offering, the conversion
of the foregoing 5% Subordinated Unsecured Convertible Promissory Note might be issued in a combination of warrants and shares
of the Company's common stock.
In
connection with the Subordinated Unit offering described above, we will issue/have issued a five year warrant that is immediately
exercisable upon the date of issuance to the placement agent in the offering to purchase 10% of the aggregate number of issuable
shares sold in the offering, at the same price per share as in the Subordinated Unit offering.
The
sale and the issuance of the foregoing securities were offered and sold in reliance upon exemptions from registration pursuant
to Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") and Rule 506 of
Regulation D promulgated under the Securities Act ("Regulation D"). We made this determination based on the representations
of each investor which included, in pertinent part, that each such investor was either (a) an "accredited investor"
within the meaning of Rule 501 of Regulation D or (b) a "qualified institutional buyer" within the meaning
of Rule 144A under the Securities Act. In addition, there was no general solicitation or advertising for securities issued
in reliance upon these exemptions.
Pursuant
to the terms of his employment agreement, the Company issued Mr. Andrews 20,000 shares of common stock on July 17, 2019.
Pursuant
to the terms of his employment agreement, the Company issued Mr. Weiss 20,000 shares of common stock on March 22, 2020.
Pursuant
to the terms of its consulting agreement, the Company issued Gateway Group, Inc. 10,000 shares of common stock on June 5,
2020.
The
foregoing shares were issued in reliance upon an exemption from registration pursuant to Rule 701 promulgated under the Securities
Act.
II-
3
Item 16.
Exhibits and Financial Statement Schedules
(a)
Exhibits.
Exhibit No.
Description
    of Exhibit
1.1
Form of Underwriting Agreement**
3.1
Amended and Restated Certificate of Incorporation of Kubient, Inc.**
3.2
Amended and Restated Bylaws of Kubient, Inc.**
4.1
Form of Common Stock Certificate**
4.2
Form of Representatives' Warrant to be issued upon
    completion of this offering**
5.1
Form of Opinion of Waller Lansden Dortch & Davis,
    LLP**
10.1
Amended and Restated Kubient, Inc. Incentive Stock Plan
    dated October 2, 2019*
10.2
License Agreement with OneQube, Inc. dated June 1,
    2018*
10.3
Sublease Termination Agreement
with OneQube, Inc. dated June 18, 2020
10.4
Employment Agreement with Christopher Andrews dated June 17,
    2019*
10.5
Employment Agreement with Peter Bordes dated May 15,
    2019*
10.6
Employment Agreement with Christopher Francia dated May 26,
    2017
10.7
Employment Agreement with Pavel Medvedev dated April 12,
    2018*
10.8
Employment Agreement with Paul Roberts dated May 26,
    2017*
10.9
Employment Agreement with Joshua Weiss dated December 23,
    2019
10.10
Amendment to Employment Agreement with Paul Roberts dated
    October 2, 2019*
10.11
Amendment to Employment Agreement with Pavel Medvedev dated
    November 21, 2019*
10.12
License Agreement with Sphere Digital, LLC dated June 1, 2018
10.13
Master Services Agreement with Sphere Digital, LLC dated June 1, 2018
10.14
Master Services Agreement with The Associated Press dated February 5, 2020
21.1
Subsidiary of the Registrant*
23.1
Consent of Marcum LLP
23.3
Consent of Waller Lansden Dortch & Davis, LLP (included
    in Exhibit 5.1)**
24.1
Power of Attorney (see page II-5 to this registration
    statement)
*
Previously
filed.
**
To
be filed by amendment.
+
Indicates
a management contract or compensatory plan or arrangement.
II-
4
(b)
Financial
    statement schedules.
No
financial statement schedules are provided because the information called for is not required or is shown in the financial statements
or related notes.
Item 17.
Undertakings
The
undersigned Registrant hereby undertakes to provide to the underwriters at the closing specified in the Underwriting Agreement,
certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each
purchaser.
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons
of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant
of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered,
the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court
of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities
Act and will be governed by the final adjudication of such issue.
The
undersigned Registrant hereby undertakes that:
(1)  For
purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part
of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant
to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration
statement as of the time it was declared effective.
(2) For
the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus
shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
II-
5
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, we have 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 New York, State of New York, on the 2nd day of July,
2020.
KUBIENT
    , INC.
By:
/s/
    Peter A. Bordes, Jr.
Peter
    A. Bordes, Jr.
Chief
    Executive Officer
POWER
OF ATTORNEY
KNOW
ALL PERSONS BY THESE PRESENTS, that each person whose individual signature appears below hereby authorizes and appoints Peter A.
Bordes, Jr. and Paul Roberts, and each of them, with full power of substitution and resubstitution and full power to act without
the other, as his true and lawful attorney-in-fact and agent to act in his name, place and stead and to execute in the name and
on behalf of each person, individually and in each capacity stated below, and to file any and all amendments to this registration
statement on Form S-1, and to file the same, with all exhibits thereto, and other documents in connection therewith,
with the SEC, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each
and every act and thing, ratifying and confirming all that said attorneys-in-fact and agents or any of them or their or his substitute
or substitutes may lawfully do or cause to be done by virtue thereof.
Pursuant
to the requirements of the Securities Act, this registration statement has been signed by the following persons in the capacities
and on the dates indicated.
Signature
Title
Date
/s/ Peter A. Bordes, Jr.
Chief Executive Officer, Director (
principal executive officer
)
July 2, 2020
Peter A. Bordes, Jr.
/s/ Joshua Weiss
Chief Financial Officer (
principal financial and accounting officer
)
July 2, 2020
Joshua Weiss
/s/ Paul Roberts
Chief Strategy Officer, President and Chairman
July 2, 2020
Paul Roberts
/s/ Grainne Coen
Director
July 2, 2020
Grainne Coen
/s/ Elisabeth DeMarse
Director
July 2, 2020
Elisabeth DeMarse
/s/ Jeannie Mun
Director
July 2, 2020
Jeannie Mun
/s/ Christopher H. Smith
Director
July 2, 2020
Christopher H. Smith