<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>As filed with the Securities and Exchange
Commission on July 20, 2020.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: right">Registration No. 333-____________</P>

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

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

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

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

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

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

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

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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 34%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Delaware</B></P></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>4899</B></P></TD>
    <TD STYLE="width: 33%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>33-1135689</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(State or other jurisdiction of</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>incorporation or organization)</I></P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(Primary Standard Industrial</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>Classification Code Number)</I></P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>(I.R.S. Employer</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>Identification Number)</I></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>800 S. Commerce Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Las Vegas, NV 89106</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>702-701-9514</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11pt 0; text-align: center"><I>With a copy to:</I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Robert H. Friedman, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Olshan Frome Wolosky LLP</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>1325 Avenue of the Americas</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>New York, NY 10019</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>Telephone: (212) 451-2300</B></P></TD>
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>M. Ali Panjwani, Esq.</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Pryor Cashman LLP</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>7 Times Square</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>New York, NY 10036</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Telephone: (212) 421-4100</B></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Name, address, including zip code and telephone
number, including area code, of agent for service)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Approximate date of commencement
of proposed sale to the public:</B> As soon as practicable after the effective date of this registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the
following box. <FONT STYLE="font-family: Wingdings">&#253;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">If this Form is filed to register additional
securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">If this Form is a post-effective amendment
filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">If this Form is a post-effective amendment
filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font-size: 10pt; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%; padding-right: 5.4pt; padding-left: 5.4pt">Large accelerated filer <FONT STYLE="font-family: Wingdings">&#168;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 50%; padding-right: 5.4pt; padding-left: 5.4pt">Accelerated filer <FONT STYLE="font-family: Wingdings">&#168;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Non-accelerated filer <FONT STYLE="font-family: Wingdings">&#253;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Smaller reporting company <FONT STYLE="font-family: Wingdings">&#253;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">Emerging growth company <FONT STYLE="font-family: Wingdings">&#168;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">CALCULATION OF REGISTRATION FEE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11pt 0 0; text-align: justify"></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-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Title of
        Each Class of Securities to be Registered</B></P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Amount
        to be Registered</B></P></TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Proposed
        Maximum Offering Price per Security</B></P></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Proposed
        Maximum Aggregate Offering Price</B></P></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Amount
        of Registration Fee<SUP>(1)</SUP></B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Units consisting of:<SUP>(2)(3)</SUP></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 17.1pt; text-indent: -17.1pt"><FONT STYLE="font-size: 10pt">&#8239;&#8239;&nbsp;(i)&#9;Series A Cumulative Redeemable Perpetual Preferred Stock par value $0.001 per share</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">690,000</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">25.00</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">17,250,000</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">2,239.05</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 17.1pt; text-indent: -17.1pt"><FONT STYLE="font-size: 10pt">&#8239;&#8239;&nbsp;(ii)&#9;Warrants to purchase shares of common stock, par value $0.001 per share<SUP>(4)</SUP></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">[</FONT>&bull;<FONT STYLE="font-size: 10pt">]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">--</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">--</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">--</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">Shares of common stock, par value $0.001 per share, issuable upon exercise of the Warrants<SUP>(3)</SUP></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">[</FONT>&bull;<FONT STYLE="font-size: 10pt">]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">[</FONT>&bull;<FONT STYLE="font-size: 10pt">]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">8,625,000</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">1,119.53</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0">Total</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">[</FONT>&bull;<FONT STYLE="font-size: 10pt">]</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">[</FONT>&bull;<FONT STYLE="font-size: 10pt">]</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">$</FONT> </TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">25,875,000</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font-size: 10pt">3,358.58</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11pt 0 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17.1pt">(1)</TD><TD STYLE="text-align: justify">Calculated pursuant to Rule 457(a) under the Securities Act of 1933, as amended (the &ldquo;Securities
Act&rdquo;), based on an estimate of the proposed maximum aggregate offering price.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17.1pt">(2)</TD><TD STYLE="text-align: justify">The number of Units includes [&bull;] shares to cover the exercise of the over-allotment option
granted to the underwriters.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17.1pt">(3)</TD><TD STYLE="text-align: justify">We are issuing [&bull;] Warrants (the &ldquo;Warrants&rdquo;) each exercisable to purchase [&bull;]
shares of our common stock, par value $0.001 (&ldquo;Common Stock&rdquo;) as part of the units offered hereunder (the &ldquo;Units&rdquo;).
Each Unit consists of: (i) one share of 9.5% Series A Preferred Cumulative Redeemable Perpetual Preferred Stock (&ldquo;Series
A Preferred&rdquo;); and (ii) [&bull;] Warrants. The Warrants are exercisable for a period of five years from the date of issuance
to purchase [&bull;] shares of Common Stock at a price of $[&bull;] per share.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17.1pt">(4)</TD><TD STYLE="text-align: justify">In accordance with Rule 457(i) promulgated under the Securities Act, because the shares of our
common stock underlying the Warrants are registered hereby, no separate registration fee is required with respect to the Warrants
registered hereby.</TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11pt 0 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 11pt 0 0; text-align: justify"><B>The registrant hereby amends this
registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a
further amendment which specifically states that this registration statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act or until the registration statement shall become effective on such date as the Securities and
Exchange Commission, acting pursuant to said Section 8(a), may determine.</B></P>

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

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

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="border-bottom: Black 1pt solid; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; color: red; text-align: justify"><FONT STYLE="font-weight: normal">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; color: red"><FONT STYLE="text-transform: uppercase"><B>Subject
to completion, dated july </B></FONT><B>20, <FONT STYLE="text-transform: uppercase">2020</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; color: red"><B>PRELIMINARY PROSPECTUS</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">REMARK HOLDINGS, INC.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><BR>
600,000 Shares of 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: center"><B>[&bull;] Warrants to Purchase up to
[&bull;] Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>(and [&bull;] Shares of Common Stock
Issuable Upon Exercise of Warrants)</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">We are
offering a total of 600,000 units (each a &ldquo;Unit&rdquo; and collectively, the &ldquo;Units&rdquo;), each Unit consisting
of: (i) one share of our 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock (the &ldquo;Series A Preferred&rdquo;),
and (ii) one warrant (each, a &ldquo;Warrant&rdquo; and collectively, the &ldquo;Warrants&rdquo;) exercisable for [&bull;] shares
of our common stock, par value $0.001 per share (&ldquo;Common Stock&rdquo; or &ldquo;Warrants Shares&rdquo;), at an exercise
price of $[&bull;] (the &ldquo;Exercise Price&rdquo;) per Warrant Share. This prospectus also covers up to [&bull;] shares of
Common Stock issuable upon conversion of the Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">The Units will be
sold for a purchase price equal to $25.00 per Unit. Units will not be issued or certificated. The shares of Series A Preferred
Stock and the Warrants are immediately separable and will be issued separately. Subject to certain ownership limitations, each
Warrant is immediately exercisable on the date of issuance and will expire on the fifth anniversary of the date of issuance (the
 &ldquo;Warrant Expiration Date&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">For a more detailed
description of the Series A Preferred, see the section entitled &ldquo;Description of Offered Securities&mdash;Series A Preferred.&rdquo;
For a more detailed description of the Warrants, see the section entitled &ldquo;Description of Offered Securities&mdash;Warrants.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">Prior to this offering,
there has been no public market for the Units, the Series A Preferred or the Warrants. We anticipate that upon the Securities and
Exchange Commission (the &ldquo;SEC&rdquo;) declaring the registration statement effective, and Financial Industry Regulatory Authority,
Inc. (&ldquo;FINRA&rdquo;) approving the symbol we requested for the shares of Series A Preferred, that the Series A Preferred
will initially be subject to quotation and trading on The Nasdaq Stock Market LLC (&ldquo;Nasdaq&rdquo;), of which there can be
no assurance, under the symbol &ldquo;MARKP.&rdquo; Our common stock, par value $0.001 per share (&ldquo;Common Stock&rdquo;) is
listed on the Nasdaq Capital Market under the ticker symbol MARK. We do not intend the list the Warrants on any national securities
exchange or any other nationally recognized trading system.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Per Unit</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%">Public offering price</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Underwriting discounts and commissions <SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Proceeds, before expenses, to us</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in"><B>Investing
in our securities involves a high degree of risk. You should purchase these securities only if you can afford a complete loss
of your investment. See &ldquo;Risk Factors&rdquo; beginning on page 10 of this prospectus. You should carefully consider
these risk factors, as well as the information contained in this prospectus, before purchasing any of the securities offered
by this prospectus.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify">We
have granted the underwriters an option for a period of 45 days to purchase an additional 90,000 Units. If the underwriters exercise
the option in full, the total underwriting discounts and commissions payable by us will be $[&bull;], and the total proceeds to
us, before expenses, will be $[&bull;].</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in"><B>NEITHER THE SECURITIES
AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE
ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in">The underwriters expect
to deliver the shares of Series A Preferred and the Warrants to purchasers on or about [&bull;], 2020.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>Joint Book-Running Managers</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>&nbsp;</I></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>Roth Capital Partners</I></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>&nbsp;</I></P></TD>
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><I>The Benchmark Company</I></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">The date of this prospectus is [&bull;],
2020</P>

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

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="border-bottom: Black 1pt solid; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"></P></DIV>
    <!-- Field: /Page -->

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

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

<P STYLE="font: bold 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: right"><U>Page</U></P>

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#a">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></TD>
    <TD STYLE="width: 10%; text-align: right; padding-top: 0in; padding-bottom: 5pt">1</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#b">Prospectus Summary</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">2</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#c">The Offering</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">3</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#d">Risk Factors</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">10</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#e">Use of Proceeds</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">27</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#f">DETERMINATION OF OFFERING PRICE</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">27</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#g">Capitalization</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">28</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#h">DESCRIPTION OF CAPITAL STOCK</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">29</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#i">Description of Offered Securities</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">30</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#j">CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">40</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#k">UNDERWRITING</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">48</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#l">Legal Matters</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">52</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#m">Experts</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">52</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: White">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#n">Where You Can Find More Information</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">52</TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: bottom; text-transform: uppercase; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-top: 0in; padding-bottom: 5pt; padding-left: 0in"><A HREF="#o">INFORMATION INCORPORATED BY REFERENCE</A></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 5pt">53</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>You should rely only on the information
contained or incorporated into this prospectus. 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.
We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give
you. This prospectus is an offer to sell only the securities offered hereby, 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. You should also read
this prospectus together with the additional information described under &ldquo;<I>Additional Information</I>&rdquo; and &ldquo;<I>Information
Incorporated by Reference</I>.&rdquo; </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Unless the context otherwise requires,
we use the terms &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;the Company&rdquo; and &ldquo;our&rdquo; to refer to Remark Holdings,
Inc. and its consolidated subsidiaries.</B></P>

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

<!-- Field: Page; Sequence: 4; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->i<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="a"></A>SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The information included or incorporated
by reference in this prospectus contains &ldquo;forward-looking statements&rdquo; about our plans, strategies, objectives, goals
or expectations. You will find forward-looking statements principally in the sections entitled &ldquo;Prospectus Summary&rdquo;
and &ldquo;Risk Factors&rdquo;. These forward-looking statements are identifiable by words or phrases indicating that we or our
management &ldquo;expects,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;plans,&rdquo; &ldquo;believes,&rdquo; or &ldquo;estimates,&rdquo;
or that a particular occurrence or event &ldquo;will,&rdquo; &ldquo;may,&rdquo; &ldquo;could,&rdquo; &ldquo;should,&rdquo; or &ldquo;will
likely&rdquo; result, occur or be pursued or &ldquo;continue&rdquo; in the future, that the &ldquo;outlook&rdquo; or &ldquo;trend&rdquo;
is toward a particular result or occurrence, that a development is an &ldquo;opportunity,&rdquo; &ldquo;priority,&rdquo; &ldquo;strategy,&rdquo;
 &ldquo;focus,&rdquo; that we are &ldquo;positioned&rdquo; for a particular result, or similarly stated expectations. Undue reliance
should not be placed on these forward-looking statements, which speak only as of the date of this prospectus, other report, release,
presentation, or statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">In addition to other risks and uncertainties
described in connection with the forward-looking statements contained in this prospectus and other periodic reports filed with
the SEC, there are many important factors that could cause actual results to differ materially. Such risks and uncertainties include
general business conditions, changes in overall economic conditions, our ability to integrate acquired assets, the impact of competition
and other factors which are often beyond our control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">This should not be construed as a complete
list of all of the economic, competitive, governmental, technological and other factors that could adversely affect our expected
consolidated financial position, results of operations or liquidity. Additional risks and uncertainties not currently known to
us or that we currently believe are immaterial also may impair our business, operations, liquidity, financial condition and prospects.
We undertake no obligation to update or revise our forward-looking statements to reflect developments that occur or information
that we obtain after the date of this prospectus.</P>

<!-- Field: Page; Sequence: 5; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

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

<TABLE CELLPADDING="2" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; width: 100%">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-bottom: 0; margin-left: 0in; text-indent: 0in"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="b"></A>Prospectus
Summary</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>This prospectus summary contains
an overview of the information from this prospectus, but may not contain all of the information that is important to you. This
prospectus includes specific terms of the offering, information about our business, and financial data. We encourage you to read
this prospectus, including the &ldquo;Risk Factors&rdquo; section beginning on page 10, in its entirety before making an investing
decision. You should read this prospectus together with additional information described below under the heading &ldquo;Where You
Can Find Additional Information.&rdquo; As used in this prospectus, the terms &ldquo;we,&rdquo; &ldquo;us,&rdquo; and &ldquo;our&rdquo;
refer to Remark Holdings, Inc. and subsidiaries, which include our consolidated variable-interest entities (&ldquo;VIEs&rdquo;),
unless the context indicates a different meaning.</I></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Our Business</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">We
are primarily technology-focused. Our KanKan data intelligence platform serves as the basis for our development and deployment
of artificial-intelligence-based (&ldquo;AI-based&rdquo;) solutions for businesses in many industries and geographies. We also
own and operate an e-commerce digital media property focused on a luxury beach lifestyle. </FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">We
were originally incorporated in Delaware in March 2006 as HSW International, Inc., we changed our name to Remark Media, Inc. in
December 2011, and as our business continued to evolve, we changed our name to Remark Holdings, Inc. in April 2017.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Our
Common Stock is listed on the Nasdaq Capital Market under the ticker symbol MARK. Our website is </FONT><FONT STYLE="font-weight: normal">www.remarkholdings.com<FONT STYLE="font-style: normal">.
The information contained on, or that can be accessed through, our website is not a part of this prospectus.</FONT></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Our Address</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Our principal executive offices are
located at 800 S. Commerce Street, Las Vegas, NV 89106, and our telephone number is (702) 701-9514.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Before you invest in any of the securities
offered hereby, you should carefully consider all the information in this prospectus, including matters set forth under the heading
&ldquo;Risk Factors.&rdquo;</P>

</TD></TR>
</TABLE>

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

<!-- Field: Page; Sequence: 6; Options: NewSection; Value: 2 -->
    <DIV STYLE="margin-top: 0pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%; border-right: Black 1pt solid; border-left: Black 1pt solid"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR></TABLE><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="2" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="padding-right: 5.4pt; border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; width: 100%; padding-left: 5.4pt">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="c"></A>The
Offering</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The following summary contains basic
terms about this offering and the securities we are offering and is not intended to be complete. It may not contain all of the
information that is important to you. You should read the more detailed information contained in this prospectus, including but
not limited to, the risk factors beginning on page 10. For a more complete description of the terms of the securities we are offering,
see &ldquo;Description of Capital Stock&rdquo; and &ldquo;Description of the Securities Offered.&rdquo; Reference is also made
to the Certificate of Designations of 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock, which is filed as Exhibit
4.7 to the registration statement of which this prospectus is a part (the &ldquo;Series A Certificate of Designations&rdquo;) and
the form of Warrant to Purchase Common Stock, which is filed as Exhibit 4.8 to the registration statement of which this prospectus
is a part.</P>

</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"></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="padding-left: 5.4pt; border-left: Black 1pt solid; width: 35%; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Issuer</TD>
    <TD STYLE="border-right: Black 1pt solid; width: 65%; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">Remark Holdings, Inc.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: Black 1pt solid; padding-left: 5.4pt; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Securities Offered</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">600,000 Units, each Unit consisting of (i) one share of 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock and (ii) one Warrant exercisable for [&bull;] shares of Common Stock at an exercise price of $[&bull;] per Warrant Share (690,000 Units if the underwriters exercise in full their option to purchase additional Units). Units will not be issued or certificated. The shares of Series A Preferred and the Warrants are immediately separable and will be issued separately.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Offering Price</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">$25.00 per Unit.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 12pt; padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; text-align: left; font-weight: bold">Description of Series A Preferred Stock:</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; text-indent: 0.125in; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Dividends</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">Holders of shares of the Series A Preferred are entitled to receive, when, as and if declared by our board of directors (the &ldquo;Board&rsquo;), out of funds legally available for the payment of dividends, cumulative cash dividends at a rate of 9.5% per annum of the $25.00 per liquidation preference (equivalent to $2.375 per annum per share). All accrued dividends on the Series A Preferred shall be paid in cash only when, as and if declared by the Board out of funds, legally available therefor or upon a liquidation or redemption of the Series A Preferred.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Dividends on our Series A Preferred
        accrue daily and will be cumulative, from, and including, the date of original issue and payable on the 15<SUP>th</SUP> day of
        each calendar month (each such date, a &ldquo;Dividend Payment Date&rdquo;), provided that if any Dividend Payment Date is not
        a business day, then the dividend that would otherwise have been payable on that Dividend Payment Date may be paid on the next
        succeeding business day and no interest, additional dividends or other sums will accrue on the amount so payable for the period
        from and after that Dividend Payment Date to the next succeeding business day.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Dividends will be payable to holders
        of record as they appear in our stock records for the Series A Preferred at the close of business on the corresponding record date,
        which shall be the last day of the calendar month, whether or not a business day, immediately preceding the month in which the
        applicable Dividend Payment Date falls (each, a &ldquo;Dividend Record Date&rdquo;). As a result, holders of shares of Series A
        Preferred will not be entitled to receive dividends on a Dividend Payment Date if such shares were not issued and outstanding on
        the applicable Dividend Record Date. The first dividend on our Series A Preferred sold in this offering is payable on [&bull;],
        2020 (in the amount of $0.1979 per share) to holders of record of the Series A Preferred at the close of business on [&bull;],
        2020.</P></TD></TR>
</TABLE>

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

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

<!-- Field: Page; Sequence: 7; Options: NewSection; Value: 3 -->
    <DIV STYLE="margin-top: 0pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%; border-right: Black 1pt solid; border-left: Black 1pt solid"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="text-align: center; width: 100%">&nbsp;<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: Black 1pt solid; border-top: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify; font-weight: bold; width: 35%">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-top: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify; font-weight: bold; font-style: italic; width: 65%"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-style: normal; font-weight: normal"></FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-style: normal; font-weight: normal">Any dividend payable on the Series A Preferred, including dividends payable for any partial dividend period, will be computed on the basis of a 360-day year consisting of twelve 30-day months. Holders of shares of Series A Preferred offered hereby will be entitled to receive the full amount of all dividends payable on the Series A Preferred from the Dividend Payment Date immediately preceding the date of issuance of the Series A Preferred offered hereby.</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">No Maturity, Sinking Fund or Mandatory Redemption</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">The Series A Preferred has no maturity date, and we are not required to redeem the Series A Preferred. Accordingly, the Series A Preferred will remain outstanding indefinitely unless we decide to redeem it pursuant to our optional redemption right or special optional redemption right in connection with a Change of Control (as defined below). We are not required to set aside funds to redeem the Series A Preferred.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Optional Redemption</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">The Series A Preferred may be redeemed in whole or in part, at our option, any time on or after [&bull;], 2023, upon not less than 30 days nor more than 60 days&rsquo; written notice by mail prior to the date fixed for redemption thereof, for cash at a redemption price equal to $25.00 per share of Series A Preferred, plus any accumulated and unpaid dividends to, but not including, the redemption date. See the section entitled &ldquo;Description of the Series A Preferred&mdash;Redemption&mdash;Optional Redemption&rdquo; for further details.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: Black 1pt solid; padding-left: 5.4pt; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Special Optional Redemption</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">Upon the occurrence of a Change of Control, we may redeem the shares of Series A Preferred, at our option, in whole or in part, within 120 days of any such Change of Control, for cash at $25.00 per share of Series A Preferred, plus accumulated and unpaid dividends (whether or not declared) to, but excluding, the redemption date.</TD></TR>
</TABLE>

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

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

<!-- Field: Page; Sequence: 8; Options: NewSection; Value: 4 -->
    <DIV STYLE="margin-top: 0pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%; border-right: Black 1pt solid; border-left: Black 1pt solid"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="text-align: center; width: 100%">&nbsp;<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify; font-weight: bold; width: 35%; border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; width: 65%; border-right: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">A &ldquo;Change of Control&rdquo; is
        deemed to occur when, after the original issuance of the Series A Preferred, the following have occurred and are continuing:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
acquisition by any person, including any syndicate or group deemed to be a &ldquo;person&rdquo; under Section 13(d)(3) of the
Securities Exchange Act of 1934 (the &ldquo;Exchange Act&rdquo;) of beneficial ownership, directly or indirectly, through a purchase,
merger or other acquisition transaction or series of purchases, mergers or other acquisition transactions shall have acquired
our stock entitling that person to exercise more than 50% of the total voting power of all our stock entitled to vote generally
in the election of our directors (except that such person will be deemed to have beneficial ownership of all securities that such
person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent
condition); and</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>following
the closing of any transaction referred to in the bullet point above, neither the Company nor the acquiring or surviving entity
has a class of common equity securities (or American Depositary Receipts representing such securities) listed on the NYSE, the
NYSE American LLC or the Nasdaq Stock Market, or listed or quoted on an exchange or quotation system that is a successor to the
NYSE, the NYSE American LLC or the Nasdaq Stock Market.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Liquidation Preference</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">If we liquidate, dissolve or wind up, holders of the Series A Preferred will have the right to receive $25.00 per share, plus any accumulated and unpaid dividends to, but not including, the date of payment, before any payment is made to the holders of our Common Stock. Please see the section entitled &ldquo;Description of the Series A Preferred&mdash; Liquidation Preference.&rdquo;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: Black 1pt solid; padding-left: 5.4pt; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Ranking</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">The Series A Preferred will rank, with respect to rights to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding up, (1) senior to all classes or series of our Common Stock and to all other equity securities issued by us other than equity securities referred to in clauses (2) and (3); (2) on a parity with all equity securities issued by us with terms specifically providing that those equity securities rank on a parity with the Series A Preferred with respect to rights to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding up; (3) junior to all equity securities issued by us with terms specifically providing that those equity securities rank senior to the Series A Preferred with respect to rights to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding up, including any other series of Preferred Stock; and (4) junior to all of our existing and future indebtedness. See &ldquo;Description of the Series A Preferred&mdash;Ranking&rdquo; for further information.</TD></TR>
</TABLE>

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

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

<!-- Field: Page; Sequence: 9; Options: NewSection; Value: 5 -->
    <DIV STYLE="margin-top: 0pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%; border-right: Black 1pt solid; border-left: Black 1pt solid"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="text-align: center; width: 100%">&nbsp;<!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR></TABLE><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: Black 1pt solid; padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; text-align: left; font-weight: bold; width: 35%"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                                                                                                                            <P STYLE="margin-top: 0; margin-bottom: 0"></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Limited Voting Rights</P></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; width: 65%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Holders of Series A Preferred will have
        no voting rights, except as set forth below or as otherwise required by law.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Except as expressly stated in the Series
        A Certificate of Designations or as may be required by applicable law, the Series A Preferred does not bestow any relative, participating,
        optional or other special voting rights or powers, and the consent of the holders thereof shall not be required for the taking
        of any corporate action.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Please see the section entitled &ldquo;Description
        of the Series A Preferred&mdash;Voting Rights&rdquo; and the Series A Certificate of Designations.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Description of Warrants</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">The Warrants will have an exercise price of $[&bull;] per Warrant Share, will be immediately exercisable and will expire on the fifth anniversary of the date of issuance. This prospectus also relates to the offering of shares of Common Stock issuable upon exercise of the Warrants.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Shares of Common Stock Underlying the Warrants</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">[&bull;] shares.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Common Stock outstanding before this offering</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">99,408,916 shares.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Common Stock to be outstanding after this offering</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">[&bull;] shares (assuming the exercise of all Warrants issued in this offering).&#9;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Trading Market</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">Our Common Stock is listed on the Nasdaq Capital Market under the ticker symbol MARK. We anticipate that upon the SEC declaring the registration statement effective, and FINRA approving the symbol we requested for the shares of Series A Preferred, that the Series A Preferred will initially be subject to quotation and trading on Nasdaq, of which there can be no assurance, under the symbol &ldquo;MARKP.&rdquo; We do not intend to list the Warrants on any national securities exchange or any other nationally recognized trading system.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Use of Proceeds</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">We intend to use the net proceeds from this offering for general corporate purposes, which may include working capital, acquisitions and capital expenditures. See &ldquo;Use of Proceeds&rdquo; below for more information.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 5.4pt; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Risk Factors</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">Investing in our securities
    involves a high degree of risk. You should carefully consider the risks described under the section entitled &ldquo;Risk
    Factors&rdquo; beginning on page 10 for a discussion of some of the factors you should carefully consider before deciding to
    invest in our securities.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: Black 1pt solid; padding-left: 5.4pt; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Certain U.S. Federal Income Tax Considerations</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify">For a discussion of the U.S. federal income tax consequences of purchasing, owning and disposing of the Series A Preferred and the Warrants, please see the section entitled &ldquo;Certain U.S. Federal Income Tax Considerations.&rdquo; You should consult your independent tax advisor with respect to the U.S. federal income tax consequences of owning the Series A Preferred in light of your own particular situation and with respect to any tax consequences arising under the laws of any other taxing jurisdiction.</TD></TR>
</TABLE>

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

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

<!-- Field: Page; Sequence: 10; Options: NewSection; Value: 6 -->
    <DIV STYLE="margin-top: 0pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%; border-right: Black 1pt solid; border-left: Black 1pt solid"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="text-align: center; width: 100%">&nbsp;<!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD></TR></TABLE><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; border-top: Black 1pt solid; border-left: Black 1pt solid; padding-left: 5.4pt; text-align: left; font-weight: bold; width: 35%"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                                                                                                      <P STYLE="margin-top: 0; margin-bottom: 0"></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Form</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-top: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; width: 65%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Series A Preferred and the Warrants will
        be represented by one or more global certificates in definitive, fully registered form deposited with a custodian for, and registered
        in the name of, a nominee of The Depository Trust Company (&ldquo;DTC&rdquo;).</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-left: Black 1pt solid; padding-left: 5.4pt; padding-right: 5.4pt; padding-bottom: 12pt; text-align: left; font-weight: bold">Settlement</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><P STYLE="margin-top: 0; margin-bottom: 0">Delivery of the Series A Preferred and the Warrants offered hereby will be made against payment therefor through book-entry facilities of the DTC.</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
</TABLE>

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

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

<!-- Field: Page; Sequence: 11; Options: NewSection; Value: 7 -->
    <DIV STYLE="margin-top: 0pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%; border-right: Black 1pt solid; border-left: Black 1pt solid"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence -->&nbsp;</TD></TR></TABLE><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

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

<TABLE CELLPADDING="2" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-top: Black 1pt solid; padding-right: 5.4pt; border-right: Black 1pt solid; border-left: Black 1pt solid; width: 100%; padding-left: 5.4pt">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Summary
Selected Condensed Consolidated Financial Information</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following summary selected condensed consolidated
financial information as of and for the years ended December 31, 2019 and 2018 have been derived from our audited financial statements.
The financial information as of and for the three months ended March 31, 2020 and 2019 is derived from our unaudited condensed
consolidated financial statements. The condensed consolidated financial information set forth below should be read in conjunction
with &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo; and the financial
statements and notes thereto included in our Quarterly Report on Form 10-Q for the fiscal period ended March 31, 2020 and our Annual
Report on Form 10-K for the fiscal year ended December 31, 2019, each of which is incorporated by reference into this prospectus.
The results indicated below and elsewhere in this prospectus are not necessarily indicative of our future performance.</P>

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

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

</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 0.5pt solid; padding: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">March 31, 2020</FONT></TD>
    <TD STYLE="padding: 2pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 0.5pt solid; white-space: nowrap; padding: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">December 31, 2019</FONT></TD>
    <TD STYLE="padding: 2pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-right: Black 1pt solid; border-bottom: Black 0.5pt solid; padding: 2pt; white-space: nowrap; text-align: center"><FONT STYLE="font-size: 10pt">December 31, 2018</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="9" STYLE="text-align: center; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">(dollars in thousands)</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom; width: 55%"><FONT STYLE="font-size: 10pt">Cash and cash equivalents</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 13%; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">1,617</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 13%; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">272</FONT></TD>
    <TD STYLE="vertical-align: top; width: 5%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 13%; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">1,410</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; vertical-align: top; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Total assets</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">11,996</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">14,827</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">93,808</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Total Debt</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">14,931</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">15,025</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">38,314</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Total liabilities</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">37,267</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">42,555</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">106,932</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Total stockholders&rsquo; deficit</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(25,271)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(27,728</FONT>)</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"></TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(13,124</FONT>)</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt"></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; padding-right: 5.4pt; text-align: justify; width: 100%; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">In
the table above, the balance sheet information as of December 31, 2018 contains assets of a disposal group totaling $73,119 and
liabilities of a disposal group totaling $41,682.</P>
                                                                                                                                                                                                                                              <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>
</TABLE>

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

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

<!-- Field: Page; Sequence: 12; Options: NewSection; Value: 8 -->
    <DIV STYLE="margin-top: 0pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%; border-right: Black 1pt solid; border-left: Black 1pt solid"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="text-align: center; width: 100%">&nbsp;<!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD></TR></TABLE><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="padding-right: 5.4pt; border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; text-align: justify; width: 100%; padding-left: 5.4pt"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P><B>Summary Statement of Operations and Comprehensive Income Information</B></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; text-align: justify">&nbsp;</TD></TR>
</TABLE>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">Three Months
    Ended March 31,</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">Year Ended&nbsp;&nbsp;December
    31,</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; padding: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">2020</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; padding: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">2019</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; padding: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">2019</FONT></TD>
    <TD STYLE="border-top: Black 0.5pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-right: Black 1pt solid; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; padding: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">2018</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">(unaudited)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">(unaudited)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">(audited)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">(audited)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: center">(dollars in thousands, except per share amounts)</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom; width: 37%"><FONT STYLE="font-size: 10pt">Revenue</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 13%; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">431</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 13%; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">1,209</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 13%; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">5,020</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 13%; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">10,053</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; vertical-align: top; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Operating loss from continuing operations</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(3,484</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(5,855</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">22,754</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(44,500</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Total other income (expense), net</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">1,061</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(1,874</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(250</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">25,795</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-left: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt"><FONT STYLE="font-size: 10pt">Loss from continuing operations</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(2,423</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(7,729</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(23,004</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(18,565</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Loss from discontinued operations</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(1,123</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(2,610</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(2,993</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt"><FONT STYLE="font-size: 10pt">Net loss</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(2,423</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(8,852</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(25,614</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(21,558</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt"><FONT STYLE="font-size: 10pt">Comprehensive loss</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(2,241</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(8,946</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(25,873</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(21,641</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt 2.5pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Weighted-average shares outstanding, basic and diluted</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2.5pt double; vertical-align: bottom; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">53,775</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2.5pt double; vertical-align: bottom; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">39,258</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2.5pt double; vertical-align: bottom; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">44,432</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 2.5pt double; vertical-align: bottom; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">39,053</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; border-right: Black 1pt solid; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt"><FONT STYLE="font-size: 10pt">Net loss per share, basic and diluted</FONT></TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt"><FONT STYLE="font-size: 10pt">Continuing operations</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.05</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.20</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.52</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.48</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="border-left: Black 1pt solid; padding: 2pt 5.4pt; vertical-align: bottom"><FONT STYLE="font-size: 10pt">Discontinued operations</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.03</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.06</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.07</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 2pt 5.4pt 2.5pt; border-left: Black 1pt solid"><FONT STYLE="font-size: 10pt">Consolidated</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; border-top: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.05</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; border-top: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.23</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; border-top: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.58</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-bottom: 2.5pt; padding-top: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding-top: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; border-top: Black 1pt solid; padding-top: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(0.55</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; border-right: Black 1pt solid; padding-top: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
</TABLE>

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

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

<!-- Field: Page; Sequence: 13; Options: NewSection; Value: 9 -->
    <DIV STYLE="margin-top: 0pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font-size: 10pt; border-collapse: collapse; width: 100%; border-right: Black 1pt solid; border-left: Black 1pt solid"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="text-align: center; width: 100%"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence -->&nbsp;</TD></TR></TABLE><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="d"></A>Risk
Factors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><I>Investing in our securities involves
a high degree of risk. You should carefully consider and evaluate all of the information described below and in the documents incorporated
by reference into this prospectus that summarizes the risks that may materially affect our business before you decide to purchase
our securities. The risks and uncertainties described in this prospectus are not the only ones we face. Additional risks and uncertainties
that we do not presently know about or that we currently believe are not material may also adversely affect our business, business
prospects, results of operations or financial condition. Any of the risks and uncertainties set forth herein, as updated by annual,
quarterly and other reports and documents that we file with the SEC and incorporated by reference into this prospectus, could materially
and adversely affect our business, results of operations and financial condition. This could cause the market price of our stock
to decline, perhaps significantly, and you may lose part or all of your investment.</I></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Risks Related to this Offering
and Ownership of the Securities Offered Hereby</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">The Series A Preferred ranks junior to all of
our indebtedness and other liabilities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In the event of
our bankruptcy, liquidation, dissolution or winding-up of our affairs, our assets will be available to pay obligations on the Series
A Preferred only after all of our indebtedness and other liabilities have been paid. The rights of holders of the Series A Preferred
to participate in the distribution of our assets will rank junior to the prior claims of our current and future creditors and any
future series or class of preferred stock we may issue that ranks senior to the Series A Preferred. Also, the Series A Preferred
effectively ranks junior to all our existing and future indebtedness and to the indebtedness and other liabilities of our existing
subsidiaries and any future subsidiaries. Our existing subsidiaries are, and future subsidiaries would be, separate legal entities
and have no legal obligation to pay any amounts to us in respect of dividends due on the Series A Preferred.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">At March 31, 2020,
our total liabilities equaled approximately $37.3 million. If we are forced to liquidate our assets to pay our creditors, we may
not have sufficient assets to pay amounts due on any or all of the Series A Preferred then outstanding.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Any future debt
instruments we may issue may restrict the authorization, payment or setting apart of dividends on the Series A Preferred. Also,
future offerings of debt or senior equity securities may adversely affect the market price of the Series A Preferred. If we decide
to issue debt or senior equity securities in the future, it is possible that these securities will be governed by an indenture
or other instruments containing covenants restricting our operating flexibility. Additionally, any convertible or exchangeable
securities that we issue in the future may have rights, preferences and privileges more favorable than those of the Series A Preferred
and may result in dilution to owners of the Series A Preferred. We and, indirectly, our stockholders, will bear the cost of issuing
and servicing such securities. Because our decision to issue debt or equity securities in any future offering will depend on market
conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings.
The holders of the Series A Preferred will bear the risk of our future offerings, which may reduce the market price of the Series
A Preferred and will dilute the value of their holdings in us.</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">We must adhere to prescribed
legal requirements and also have sufficient cash in order to be able to pay dividends.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Our
ability to pay cash dividends on the Series A Preferred requires us to have either net profits or positive net assets (total assets
less total liabilities) over our capital, in order to be permitted to pay dividends under applicable provisions of the Delaware
General Corporation Law.&nbsp; We cannot assure you that we will have either net profits or positive net assets over our capital.</FONT></P>



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

<!-- Field: Page; Sequence: 14; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Further,
notwithstanding these factors, we may not have sufficient cash to pay dividends on the Series A Preferred. Our ability to pay dividends
may be impaired if any of the risks described in this prospectus, including the documents incorporated by reference herein, were
to occur. Also, payment of our dividends depends upon our financial condition and other factors as our Board may deem relevant
from time to time. We cannot assure you that our businesses will generate sufficient cash flow from operations or that future borrowings
will be available to us in an amount sufficient to enable us to make distributions on our Common Stock, if any, and preferred stock,
including the Series A Preferred to pay our indebtedness or to fund our other liquidity needs.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">If our Series A Preferred
is delisted, the ability to transfer or sell shares of the Series A Preferred may be limited and the market value of the Series
A Preferred will likely be materially adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">The
Series A Preferred does not contain provisions that are intended to protect investors if our Series A Preferred is delisted from
the Nasdaq Capital Market. If our Series A Preferred is delisted from the Nasdaq Capital Market, investors&rsquo; ability to transfer
or sell shares of the Series A Preferred will be limited and the market value of the Series A Preferred will likely be materially
adversely affected. Moreover, since the Series A Preferred has no stated maturity date, investors may be forced to hold shares
of the Series A Preferred indefinitely while receiving stated dividends thereon when, as and if authorized by our Board and paid
by us with no assurance as to ever receiving the liquidation value thereof.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The market for the Series
A Preferred may not provide investors with adequate liquidity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">While
we expect that the Series A Preferred will be listed on the Nasdaq Capital Market, the trading market for the Series A Preferred
may not be maintained and may not provide investors with adequate liquidity. The liquidity of the market for the Series A Preferred
depends on a number of factors, including prevailing interest rates, our financial condition and operating results, the number
of holders of the Series A Preferred, the market for similar securities and the interest of securities dealers in making a market
in the the Series A Preferred. We cannot predict the extent to which investor interest in our Company will maintain the trading
market in our securities, or how liquid that market will be. If an active market is not maintained, investors may have difficulty
selling shares of our securities.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">There is no public market
for the Warrants being offered by us in this offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">There
is no established trading market for the Warrants, and we do not expect a market to develop. We do not intend to list the Warrants
on any national securities exchange or any other nationally recognized trading system. Without an active market, the liquidity
of the Warrants will be limited.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The Warrants may not have
any value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">The
Warrants will be immediately exercisable and expire on the fifth anniversary of the date of issuance. The warrants will have an
initial exercise price per Warrant Share of $[&bull;]. In the event that the price of our Common Stock does not exceed the exercise
price of the Warrants during the period when the Warrants are exercisable, the Warrants may not have any value.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Future issuances of our
securities may reduce the value of the Series A Preferred and the Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Upon
the completion of this offering, we may sell additional shares of preferred stock, including shares of Series A Preferred, or other
securities on terms that may differ from those described in this prospectus. Such shares could rank on parity with or, subject
to the voting rights of the Series A Preferred Stock, senior to the Series A Preferred or Common Stock offered hereby as to distribution
rights or rights upon liquidation, winding up or dissolution. The subsequent issuance of additional shares of Series A Preferred,
or the creation and subsequent issuance of additional classes of preferred stock on parity with the Series A Preferred, could dilute
the interests of the holders of Series A Preferred offered hereby. Any issuance of preferred stock that is senior to the Series
A Preferred would not only dilute the interests of the holders of Series A Preferred offered hereby, but also could affect our
ability to pay distributions on, redeem or pay the liquidation preference on the Series A Preferred.</FONT></P>

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

<!-- Field: Page; Sequence: 15; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">In
addition, sales of a substantial number of shares of our Common Stock or other securities in the public markets, or the perception
that these sales may occur, could cause the market price of our Common Stock to decline and could materially impair our ability
to raise capital through the sale of additional securities. The shares of Common Stock issuable upon exercise of the Warrants sold
in this offering will be immediately freely tradable, without restriction, in the public market. The sale of a large number of
shares of our Common Stock also might make it more difficult for us to sell equity or equity-related securities in the future at
a time and at the prices that we deem appropriate.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Market interest rates may
materially and adversely affect the value of the Series A Preferred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">One
of the factors that influences the price of the Series A Preferred is the dividend yield on the Series A Preferred (as a percentage
of the market price of the Series A Preferred) relative to market interest rates. Continued increase in market interest rates,
which are currently at low levels relative to historical rates, may lead prospective purchasers of the Series A Preferred to expect
a higher dividend yield (and higher interest rates would likely increase our borrowing costs and potentially decrease funds available
for dividend payments). Thus, higher market interest rates could cause the market price of the Series A Preferred to materially
decrease.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Our ability to use our net
operating loss carryforwards may be limited and may be further diminished as a result of the Offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">As
of December 31, 2019, we had net operating loss carryforwards (&ldquo;NOLs&rdquo;) of $38.0 million. Our ability to fully utilize
our NOLs can be adversely affected by &ldquo;ownership changes&rdquo; within the meaning of Section 382 of the Internal Revenue
Code of 1986, as amended (the &ldquo;Code&rsquo;), in a three-year period. Any ownership change is generally defined as a greater
than 50% increase in equity ownership by &ldquo;5% stockholders,&rdquo; as that term is defined for purposes of Section 382 of
the Code in any three-year period. Although we have not completed a full analysis under Section 382 since 2014, equity financings
and other transactions that have occurred since then may have resulted in an ownership change as defined in Section 382, thereby
significantly reducing our ability to utilize our NOLs. Further, as a result of this Offering, our ability to utilize our NOLs
may be further diminished.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Our revenues, operating
results and cash flows may fluctuate in future periods, and we may fail to meet investor expectations, which may cause the price
of our Series A Preferred to decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Variations
in our quarterly and year-end operating results are difficult to predict, and our income and cash flows may fluctuate significantly
from period to period. If our operating results fall below the expectations of investors or securities analysts, the price of our
Series A Preferred could decline substantially. Specific factors that may cause fluctuations in our operating results include:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD><FONT STYLE="font-style: normal; font-weight: normal">demand and pricing for our products; </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD><FONT STYLE="font-style: normal; font-weight: normal">the impact of the COVID-19 pandemic;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">competition;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">fluctuations in our operating expenses due
to growth of our business; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: italic 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">general business conditions.</FONT></TD></TR></TABLE>

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

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

<!-- Field: Page; Sequence: 16; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The Series A Preferred represents
perpetual equity interests in us, and investors should not expect us to redeem the Series A Preferred on the date the Series A
Preferred becomes redeemable by us or on any particular date afterwards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">The
Series A Preferred represents perpetual equity interests in us, and it has no maturity or mandatory redemption date and are not
redeemable at the option of investors under any circumstances. As a result, the Series A Preferred will not give rise to a claim
for payment of a principal amount at a particular date. As a result, holders of the Series A Preferred may be required to bear
the financial risks of an investment in the Series A Preferred for an indefinite period of time. In addition, the Series A Preferred
will rank junior to all our current and future indebtedness and other liabilities. The Series A Preferred will also rank junior
to any other senior securities we may issue in the future with respect to assets available to satisfy claims against us.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The market price of the
Series A Preferred and the Common Stock could be substantially affected by various factors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The market price
of the Series A Preferred and the Common Stock could be subject to wide fluctuations in response to numerous factors. The price
of the Series A Preferred and the Common Stock that will prevail in the market after this offering may be higher or lower than
the offering price depending on many factors, some of which are beyond our control and may not be directly related to our operating
performance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">These factors include,
but are not limited to, the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">prevailing interest rates, increases in which may have an adverse effect on the market price of
the Series A Preferred;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">trading prices of similar securities;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">our history of timely dividend payments;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the annual yield from dividends on the Series A Preferred as compared to yields on other financial
instruments;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">general economic and financial market conditions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">government action or regulation;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the financial condition, performance and prospects of us and our competitors;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">changes in financial estimates or recommendations by securities analysts with respect to us or
our competitors in our industry;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">our issuance of additional preferred equity or debt securities; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">actual or anticipated variations in quarterly operating results of us and our competitors.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">As a result of these
and other factors, investors who purchase securities in this offering may experience a decrease, which could be substantial and
rapid, in the market price of the Series A Preferred and the Common Stock, including decreases unrelated to our operating performance
or prospects.</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">A holder of Series A Preferred
has extremely limited voting rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The voting rights
for a holder of Series A Preferred are limited. Our shares of Common Stock are the only class of our securities that carry full
voting rights. Voting rights for holders of the Series A Preferred exist primarily with respect to voting on amendments to our
Charter, including the Series A Certificate of Designations that materially and adversely affect the rights of the holders of Series
A Preferred or authorize, increase or create additional classes or series of our capital stock that are senior to the Series A
Preferred. Other than the limited circumstances described in the prospectus and except to the extent required by law, holders of
Series A Preferred do not have any voting rights. See &ldquo;Description of Offered Securities&mdash;Series A Preferred&mdash;Voting
Rights.&rdquo;</P>

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

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

<!-- Field: Page; Sequence: 17; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Holders of our Warrants
will have no rights as a common stockholder until they acquire our Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Until
you acquire shares of our Common Stock upon exercise of your Warrants, you will have no rights with respect to our Common Stock.
Upon exercise of your Warrants, you will be entitled to exercise the rights of a common stockholder only as to matters for which
the record date occurs after the exercise date.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">We have broad discretion
in the use of the net proceeds of this offering and may not use them effectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We intend to use
the net proceeds from this offering for general corporate purposes, which may include working capital, acquisitions and capital
expenditures. We have not allocated any specific portion of the net proceeds to any particular purpose, and our management will
have the discretion to allocate the proceeds as it determines. We will have significant flexibility and broad discretion in applying
the net proceeds of this offering. Our management might not be able to yield a significant return, if any, on any investment of
these net proceeds, and you will not have the opportunity to influence our decisions on how to use our net proceeds from this offering.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left">Risks Related to our Business and
Industry</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>The artificial intelligence market
is new and unproven, and it may decline or experience limited growth, which would adversely affect our ability to fully realize
the potential of our AI platform.</I></B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 270.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The artificial intelligence
market is relatively new and unproven and is subject to a number of risks and uncertainties. We believe that our future success
will depend in large part on the growth and acceptance of this market. The utilization of our platform by customers is still relatively
new, and customers may not recognize the need for, or benefits of, our platform, which may prompt them to decide to adopt alternative
products and services to satisfy their cognitive computing search and analytics requirements. Our ability to expand the market
that our platform addresses depends upon a number of factors, including the cost, performance and perceived value of our platform.
Market opportunity estimates are subject to significant uncertainty and are based on assumptions and estimates, including our internal
analysis and industry experience. Assessing the market for our AI-based products in each of the vertical markets we compete in,
or plan to compete in, is particularly difficult due to a number of factors, including limited available information and rapid
evolution of the market. As a result, we may experience significant reduction in demand for our products and services due to lack
of customer acceptance, technological challenges, competing products and services, decreases in spending by current and prospective
customers, weakening economic conditions and other causes. If our market does not experience significant growth, or if demand for
our AI-based products decreases, then our business, results of operations and financial condition will be adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Laws and regulations concerning
data privacy are continually evolving. Failure to comply with these laws and regulations could harm our business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Portions
of our business, primarily our AI solutions, are subject to certain privacy and data protection laws in the U.S and internationally.
Our failure to comply with existing privacy or data protection laws and regulations could increase our costs, force us to change
or limit the features of our AI software or result in proceedings or litigation against us by governmental authorities or others,
any or all of which could result in significant fines or judgments against us, result in damage to our reputation, and result
in negative effects on our financial condition and results of operations. Even if concerns raised by regulators, the media, or
consumers about our privacy and data protection or consumer protection practices are unfounded, we could suffer damage to our
reputation that causes significant negative effects on our financial condition and results of operations.</P>

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

<!-- Field: Page; Sequence: 18; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Privacy
and data protection laws are rapidly changing and likely will continue to do so for the foreseeable future, which could have an
impact on how we develop and customize our AI products and software. In the U.S., the California Consumer Privacy Act became effective
on January 1, 2020 and applies to processing of personal information of California residents. Other states, including Nevada,
have enacted or are considering similar privacy or data protection laws that may apply to us. The U.S. government, including the
Federal Trade Commission and the Department of Commerce, also continue to review the need for greater or different regulation
over the collection of personal information and information about consumer behavior on the Internet and on mobile devices, and
the U.S. Congress is considering a number of legislative proposals to regulate in this area. Various government and consumer agencies
worldwide have also called for new regulation and changes in industry practices. For example, the European Union (&ldquo;EU&rdquo;)
General Data Protection Regulation (&ldquo;GDPR&rdquo;) became effective on May 25, 2018. GDPR would apply to us should we expand
our AI business into member countries of the EU. Violations of the GDPR may result in significant penalties, and countries in
the EU are still enacting national laws that correspond to certain portions of the GDPR.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The
growth and development of AI may prompt calls for more stringent consumer privacy protection laws that may impose additional burdens
on companies such as ours. Any such changes would require us to devote legal and other resources to address such regulation.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our continuous access to publicly-available
data and to data from partners may be restricted, disrupted or terminated, which would restrict our ability to develop new products
and services, or to improve existing products and services, which are based upon our AI platform.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The success of our
AI-based solutions depends substantially on our ability to continuously ingest and process large amounts of data available in the
public domain and provided by our partners, and any interruption to our free access to such publicly-available data or to the data
we obtain from our partners will restrict our ability to develop new products and services, or to improve existing products and
services. While we have not encountered any significant disruption of such access to date, there is no guarantee that this trend
will continue without costs. Public data sources may change their policies to restrict access or implement procedures to make it
more difficult or costly for us to maintain access, and partners could decide to terminate our existing agreements with them. If
we no longer have free access to public data, or access to data from our partners, our ability to maintain or improve existing
products, or to develop new AI-based solutions may be severely limited. Furthermore, we may be forced to pay significant fees to
public data sources or to partners to maintain access, which would adversely affect our financial condition and results of operations.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0; margin-right: 0; margin-bottom: 0; background-color: white; color: #212529"><B><I>Our
AI software and our application software are highly technical and run on very sophisticated third-party hardware platforms. If
such software or hardware contains undetected errors, our AI solutions may not perform properly and our business could be adversely
affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Our AI-based solutions
and internal systems rely on software, including software developed or maintained internally and(or) by third parties, that is
highly technical and complex. In addition, our AI-based solutions and internal systems depend on the ability of such software to
store, retrieve, process, and manage immense amounts of data. The software on which we rely has contained, and may now or in the
future contain, undetected errors, bugs, or vulnerabilities. Some errors may only be discovered after the AI-based solution or
application software has been released for external or internal use. Errors or other design defects within the software on which
we rely may result in a negative experience for our customers, delay product introductions or enhancements, result in measurement
or billing errors, or compromise our ability to protect our customers&rsquo; data and(or) our intellectual property. Any errors,
bugs, or defects discovered in the software on which we rely could result in damage to our reputation, loss of users, loss of revenue,
or liability for damages, any of which could adversely affect our business and financial results.</P>

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

<!-- Field: Page; Sequence: 19; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>The successful operation of our
AI platform will depend upon the performance and reliability of the Internet infrastructure in China.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The successful operation
of KanKan will depend on the performance and reliability of the Internet infrastructure in China. Almost all access to the Internet
is maintained through state-owned telecommunication operators under the administrative control and regulatory supervision of the
Ministry of Industry and Information Technology of China. In addition, the national networks in China are connected to the Internet
through state-owned international gateways, which are the only channels through which a domestic user can connect to the Internet
outside of China. We may not have access to alternative networks in the event of disruptions, failures or other problems with China&rsquo;s
Internet infrastructure. In addition, the Internet infrastructure in China may not support the demands associated with continued
growth in Internet usage.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The failure of telecommunications
network operators to provide us with the requisite bandwidth could also interfere with the speed and availability of KanKan. We
have no control over the costs of the services provided by the national telecommunications operators. If the prices that we pay
for telecommunications and Internet services rise significantly, our gross margins could be adversely affected. In addition, if
Internet access fees or other charges to Internet users increase, our user traffic may decrease, which in turn may cause a decrease
in our revenues.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"><B><I>Delays in collecting
amounts receivable arising from our KanKan business in China could negatively impact our results of operations and cash flows.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Generally, Chinese
entities tend to pay their vendors on longer timelines than the timelines typically observed in U.S. commerce, while contracts
in China can lack the specificity regarding timing of collection that current accounting rules in the U.S. require to record revenue
from contracts with customers. The combination of longer collection times and lack of contract specificity regarding timing of
collection could result in higher amounts of bad debt expense, less revenue recorded in any particular period and mismatches between
the timing of our cash needs and the timing of our cash inflows that could negatively affect our reported results of operations
and harm relationships with our vendors, which in turn could harm our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>If the Chinese government deems
that the contractual arrangements in relation to our variable interest entities (&ldquo;VIEs&rdquo;) do not comply with its restrictions
on foreign investment, or if Chinese regulations or the interpretation of existing regulations changes in the future, we could
be subject to penalties or be forced to relinquish our interests in our China operations. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Various regulations
in China restrict or prohibit wholly foreign-owned enterprises from operating in specified industries such as Internet information,
financial services, Internet access and certain other industries. In order to comply with Chinese regulatory requirements, we conduct
certain of our operations in China through contractual arrangements with our VIEs, which are incorporated in China and owned by
members of our management team. These contractual arrangements are intended to give us effective control over each of the VIEs
and enable us to receive substantially all of the economic benefits arising from the VIEs as well as consolidate the financial
results of the VIEs in our results of operations. We expect that an increased amount of our revenue will be generated through our
VIEs. Although the VIE structure we have adopted is consistent with longstanding industry practice, and has been adopted by comparable
companies in China, there are substantial uncertainties regarding the interpretation and application of Chinese laws and regulations,
and there can be no assurance that the Chinese government would agree that these contractual arrangements comply with China&rsquo;s
licensing, registration or other regulatory requirements, with existing policies or with requirements or policies that may be adopted
in the future. Chinese laws and regulations governing the validity of these contractual arrangements are uncertain and the relevant
government authorities have broad discretion in interpreting these laws and regulations.</P>

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

<!-- Field: Page; Sequence: 20; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If the VIE structure
is deemed by Chinese regulators having competent authority to be illegal, either in whole or in part, we may lose control of our
VIEs and have to modify such structure to comply with regulatory requirements. However, there can be no assurance that we could
achieve this without material disruption to our business. Further, if the VIE structure is found to be in violation of any existing
or future Chinese laws or regulations, the relevant regulatory authorities would have broad discretion in dealing with such violations.
Furthermore, new Chinese laws, rules and regulations may be introduced to impose additional requirements that may be applicable
to our contractual arrangements with our VIEs. Occurrence of any of these events could materially and adversely affect our business,
financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Our contractual arrangements may
not be as effective in providing control over the VIEs as direct ownership.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Because we are restricted
or prohibited by the Chinese government from owning certain Internet operations in China, we are dependent on our VIEs, in which
we have no direct ownership interest, to provide our FinTech and AI-based products and services through contractual arrangements
among the parties and to hold some of our assets. These contractual arrangements may not be as effective in providing control over
our operations as direct ownership of these businesses. For example, if we had direct ownership of our VIEs, we would be able to
exercise our rights as a shareholder to effect changes in their boards of directors, which in turn could effect changes at the
management level. Due to our VIE structure, we have to rely on contractual rights to effect control and management of our VIEs,
which exposes us to the risk of potential breach of contract by the VIEs or their shareholders. In addition, as each of our VIEs
is jointly owned by its shareholders, it may be difficult for us to change our corporate structure if such shareholders refuse
to cooperate with us. In addition, some of our subsidiaries and VIEs could fail to take actions required for our business. Furthermore,
if the shareholders of any of our VIEs were involved in proceedings that had an adverse impact on their shareholder interests in
such VIE or on our ability to enforce relevant contracts related to the VIE structure, our business would be adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Any failure by our VIEs or their
shareholders to perform their obligations under the contractual arrangements would have a material adverse effect on our business,
financial condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If our VIEs or their
shareholders fail to perform their respective obligations under the contractual arrangements, we may have to incur substantial
costs and expend additional resources to enforce the arrangements. We have also entered into equity pledge agreements with respect
to each VIE to secure certain obligations of such variable interest entity or its shareholders to us under the contractual arrangements.
However, the enforcement of these agreements through arbitration or judicial agencies may be costly and time-consuming and will
be subject to uncertainties in China&rsquo;s legal system. Moreover, our remedies under the equity pledge agreements are primarily
intended to help us collect debts owed to us by the VIEs or the VIEs&rsquo; shareholders under the contractual arrangements and
may not help us in acquiring the assets or equity of the VIEs.</P>

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

<!-- Field: Page; Sequence: 21; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>The contractual arrangements with
our VIEs may be subject to scrutiny by China&rsquo;s tax authorities. Any adjustment of related party transaction pricing could
lead to additional taxes, and therefore substantially reduce our consolidated net income and the value of your investment.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The tax regime in
China is rapidly evolving and there is significant uncertainty for Chinese taxpayers as Chinese tax laws may be interpreted in
significantly different ways. China&rsquo;s tax authorities may assert that we or the VIEs or their shareholders are required to
pay additional taxes on previous or future revenue or income. In particular, under applicable Chinese laws, rules and regulations,
arrangements and transactions among related parties, such as the contractual arrangements with our VIEs, may be subject to audit
or challenge by China&rsquo;s tax authorities. If China&rsquo;s tax authorities determine that any contractual arrangements were
not entered into on an arm&rsquo;s length basis and therefore constitute a favorable transfer pricing, the China tax liabilities
of the relevant subsidiaries, VIEs or VIE shareholders could be increased, which could increase our overall tax liabilities. In
addition, China&rsquo;s tax authorities may impose interest on late payments. Our net income may be materially reduced if our tax
liabilities increase. It is uncertain whether any new China laws, rules or regulations relating to VIE structures will be adopted
or, if adopted, what they would provide.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If we or any of
our VIEs are found to be in violation of any existing or future China laws, rules or regulations, or if we fail to obtain or maintain
any of the required permits or approvals, the relevant China regulatory authorities would have broad discretion to take action
in dealing with these violations or failures, including revoking the business and operating licenses of our China subsidiaries
or the VIEs, requiring us to discontinue or restrict our operations, restricting our right to collect revenue, blocking one or
more of our websites, requiring us to restructure our operations or taking other regulatory or enforcement actions against us.
The imposition of any of these measures could result in a material adverse effect on our ability to conduct all or any portion
of our business operations. In addition, it is unclear what impact Chinese government actions would have on us and on our ability
to consolidate the financial results of any of our VIEs in our consolidated financial statements, if China&rsquo;s governmental
authorities were to find our legal structure and contractual arrangements to be in violation of China laws, rules and regulations.
If the imposition of any governmental actions causes us to lose our right to direct the activities of any of our material VIEs
or otherwise separate from any of these entities, and if we are not able to restructure our ownership structure and operations
in a satisfactory manner, we would no longer be able to consolidate the financial results of our VIEs in our consolidated financial
statements. Any of these events would have a material adverse effect on our business, financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>The shareholders, directors and
executive officers of the VIEs may have potential conflicts of interest with us.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Our VIEs are owned
by members of our management team. In addition, these individuals are also directors and officers of the VIEs. Chinese laws provide
that a director and an executive officer owe a fiduciary duty to the company he or she directs or manages. The directors and executive
officers of the VIEs must therefore act in good faith and in the best interests of the VIEs, and must not use their respective
positions for personal gain. These laws, however, do not require them to consider the best interests of Remark when making decisions
as a director or member of the management of the VIEs. Conflicts may arise between these individuals&rsquo; fiduciary duties as
directors and officers of the VIEs and Remark.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Conflicts of interest
may also arise due to the individuals&rsquo; roles as shareholders of the VIEs and their duties as our employees. The shareholders
of the VIEs may breach, or cause the VIEs to breach, the VIE contracts. As a result, we might have to rely on legal or arbitral
proceedings to enforce our contractual rights. Any failure by our VIEs or their shareholders to perform their obligations under
the contractual arrangements would have a material adverse effect on our business, financial condition and results of operations.</P>

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

<!-- Field: Page; Sequence: 22; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; color: #212529"><B><I>Our business operations may be harmed
by the recent coronavirus outbreak.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Our business operations
may be harmed by the effects of the recent global outbreak of a novel strain of coronavirus, COVID-19. We maintain significant
operations in China relating to our KanKan business. In an effort to halt the outbreak of COVID-19, national and local governmental
authorities in China placed significant restrictions on travel and other activities within China, leading to extended business
closures. These restrictions and business closures have limited our operational capabilities, which could have a material impact
on our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The virus has also spread
rapidly across the globe, including the U.S. The pandemic is having an unprecedented impact on the U.S. economy as federal, state
and local governments react to this public health crisis, which has created significant uncertainties. These uncertainties include,
but are not limited to, the potential adverse effect of the pandemic on the economy, our vendors, our employees and customers and
customer sentiment in general. Continued impacts of the pandemic could materially adversely impact global economic conditions,
our business, results of operations and financial condition, including our potential to conduct financings on terms acceptable
to us, if at all, and may require significant actions in response, including but not limited to expense reductions or pricing discounts,
in an effort to mitigate such impacts. In addition, governmental authorities around the world have instituted measures in an effort
to control the spread of COVID-19, including travel restrictions, shelter-in-place orders, school closings, closure of non-essential
businesses and other quarantine measures, which may make it much more difficult, or temporarily or permanently impossible, for
us to provide certain products and services to our customers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The
extent of the impact of the pandemic on our business and financial results will depend largely on future developments, including
the duration and severity of the outbreak, the length of the travel restrictions and business closures imposed by domestic and
foreign governments, the impact on capital and financial markets and the related impact on the financial circumstances of our customers,
all of which are highly uncertain and cannot be predicted. This situation is changing rapidly, and additional impacts may arise
that we are not aware of currently.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our products and internal systems
rely on software that is highly technical, and if it contains undetected errors, our business could be adversely affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Our products and internal
systems rely on software, including software developed or maintained internally and/or by third parties, that is highly technical
and complex. In addition, our products and internal systems depend on the ability of such software to store, retrieve, process,
and manage immense amounts of data. The software on which we rely has contained, and may now or in the future contain, undetected
errors, bugs, or vulnerabilities. Some errors may only be discovered after the code has been released for external or internal
use. Errors or other design defects within the software on which we rely may result in a negative experience for users and marketers
who use our products, delay product introductions or enhancements, result in measurement or billing errors, or compromise our ability
to protect the data of our users and/or our intellectual property. Any errors, bugs, or defects discovered in the software on which
we rely could result in damage to our reputation, loss of users, loss of revenue, or liability for damages, any of which could
adversely affect our business and financial results.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We may be subject to liability in
China with respect to Remark Entertainment for content that is alleged to be socially destabilizing, obscene, defamatory, libelous
or otherwise unlawful.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Under the laws of
the People&rsquo;s Republic of China, we will be required to monitor our websites and the websites hosted on our servers and mobile
interfaces for items or content deemed to be socially destabilizing, obscene, superstitious or defamatory, as well as items, content
or services that are illegal to sell online or otherwise in other jurisdictions in which we operate, and promptly take appropriate
action with respect to such items, content or services. We may also be subject to potential liability in China for any unlawful
actions of our customers or users of our websites or mobile interfaces or for content we distribute that is deemed inappropriate.
It may be difficult to determine the type of content that may result in liability to us, and if we are found to be liable, we may
be subject to fines, have our relevant business operation licenses revoked, or be prevented from operating our websites or mobile
interfaces in China.</P>

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

<!-- Field: Page; Sequence: 23; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Unauthorized use of our intellectual
property by third parties, and the expenses incurred in protecting our intellectual property rights, may adversely affect our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We regard our copyrights,
service marks, trademarks, trade secrets and other intellectual property as critical to our success. Unauthorized use of our intellectual
property by third parties may adversely affect our business and reputation. We rely on trademark and copyright law, trade secret
protection and confidentiality agreements with our employees, customers, business partners and others to protect our intellectual
property rights. Despite our precautions, it is possible for third parties to obtain and use our intellectual property without
authorization. Furthermore, the validity, enforceability and scope of protection of intellectual property in Internet related industries
are uncertain and still evolving. In particular, the laws of the People&rsquo;s Republic of China are uncertain or do not protect
intellectual property rights to the same extent as do the laws of the United States. Moreover, litigation may be necessary in the
future to enforce our intellectual property rights, to protect our trade secrets or to determine the validity and scope of the
proprietary rights of others. Future litigation could result in substantial costs and diversion of resources.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We may be subject to intellectual
property infringement claims, which may force us to incur substantial legal expenses and, if determined adversely against us, materially
disrupt our business.</I></B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We cannot be certain
that our brands and services will not infringe valid patents, copyrights or other intellectual property rights held by third parties.
We cannot provide assurance that we will avoid the need to defend against allegations of infringement of third-party intellectual
property rights, regardless of their merit. Intellectual property litigation is very expensive, and becoming involved in such litigation
could consume a substantial portion of our managerial and financial resources, regardless of whether we win. Substantially greater
resources may allow some of our competitors to sustain the cost of complex intellectual property litigation more effectively than
us; we may not be able to afford the cost of such litigation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Should we suffer an
adverse outcome from intellectual property litigation, we may incur significant liabilities, we may be required to license disputed
rights from third parties, or we may have to cease using the subject technology. If we are found to infringe upon third-party intellectual
property rights, we cannot provide assurance that we would be able to obtain licenses to such intellectual property on commercially
reasonable terms, if at all, or that we could develop or obtain alternative technology. If we fail to obtain such licenses at a
reasonable cost, such failure may materially disrupt the conduct of our business, and could consume substantial resources and create
significant uncertainties. Any legal action against us or our collaborators could lead to:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>payment of actual damages, royalties, lost profits, potentially treble damages and attorneys&rsquo; fees if we are found to
have willfully infringed a third party&rsquo;s patent rights;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>injunctive or other equitable relief that may effectively block our ability to further develop, commercialize and sell our
products;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>us or our collaborators having to enter into license arrangements that may not be available on commercially acceptable terms,
if at all; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD>significant cost and expense, as well as distraction of our management from our business.</TD></TR></TABLE>

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

<!-- Field: Page; Sequence: 24; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The negative outcomes
discussed above could adversely affect our ability to conduct business, financial condition, results of operations and cash flows.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>New regulations governing AI, the
Internet and e-commerce may negatively affect our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Any new legislation
or regulation, or the application of existing laws and regulations to the Internet or other online services, could have a material
adverse effect on our business, prospects, and financial conditions and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In 2013, the FTC issued
a letter reiterating the guidance it issued in 2002, which recommended that all search engine companies ensure that all paid search
results are clearly distinguished from non-paid results, that the use of paid search is clearly and conspicuously explained and
disclosed and that other disclosures are made to avoid misleading users about the possible effects of paid search listings on search
results. The adoption of laws or regulations relating to placement of paid search advertisements or user privacy, defamation or
taxation may inhibit the growth in use of the Internet, which in turn, could decrease the demand for our services and increase
our cost of doing business or otherwise have a material adverse effect on our business, prospects, financial condition and results
of operations.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>We face intense competition from
larger, more established companies, and we may not be able to compete effectively, which could reduce demand for our services.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The market for the
services we offer is increasingly and intensely competitive. Nearly all our competitors have longer operating histories, larger
customer bases, greater brand recognition and significantly greater financial, marketing and other resources than we do. Our competitors
may secure more favorable revenue arrangements with advertisers, devote greater resources to marketing and promotional campaigns,
adopt more aggressive growth strategies and devote substantially more resources to website and systems development than we do.
In addition, the Internet media and advertising industries continue to experience consolidation, including the acquisitions of
companies offering travel and finance-related content and services and paid search services. Industry consolidation has resulted
in larger, more established and well-financed competitors with a greater focus. If these industry trends continue, or if we are
unable to compete in the Internet media and paid search markets, our financial results may suffer.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Additionally, larger
companies may implement policies and/or technologies into their search engines or software that make it less likely that consumers
can reach our websites and less likely that consumers will click-through on sponsored listings from our advertisers. The implementation
of such technologies could result in a decrease in our revenues. If we are unable to successfully compete against current and future
competitors, our operating results will be adversely affected.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>If we do not effectively manage
our growth, our operating performance will suffer and our financial condition could be adversely affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Substantial future
growth will be required for us to realize our business objectives. To the extent we are capable of achieving this growth, it will
place significant demands on our managerial, operational and financial resources. Additionally, this growth will require us to
make significant capital expenditures, hire, train and manage a larger work force, and allocate valuable management resources.
We must manage any such growth through appropriate systems and controls in each of these areas. If we do not manage the growth
of our business effectively, our business, financial condition, results of operations and cash flows could be materially and adversely
affected.</P>

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

<!-- Field: Page; Sequence: 25; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In addition,
as our business grows, our technological and network infrastructure must keep in-line with our traffic and advertiser needs. Future
demand is difficult to forecast and we may not be able to adequately handle large increases unless we spend substantial amounts
to augment our ability to handle increased traffic. Additionally, the implementation of increased network capacity contains some
execution risks and may lead to ineffectiveness or inefficiency. This could lead to a diminished experience for our consumers and
advertisers and damage our reputation and relationship with them, leading to lower marketability and negative effects on our operating
results. Moreover, the pace of innovative change in network technology is fast and if we do not keep up, we may lag behind competitors.
The costs of upgrading and improving technology could be substantial and negatively affect our business, financial condition, results
of operations and cash flows.</P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-style: normal">Risks
Relating to Our Company</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">We have a history of operating
losses and we may not generate sufficient revenue to support our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">During
the year ended December 31, 2019, and in each fiscal year since our inception, we have incurred net losses and generated negative
cash flow from operations, resulting in an accumulated deficit of $346.8 million.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">We
cannot provide assurance that revenue generated from our businesses will be sufficient to sustain our operations in the long term.
We have implemented measures to reduce operating costs, and we continuously evaluate other opportunities to reduce costs further.
Additionally, we are working with our advisors to evaluate strategic alternatives, including the potential sale of certain non-core
assets, investment assets and operating businesses. We may also need to obtain additional capital through equity financing or debt
financing. Should we fail to successfully implement our plans described herein, such failure would have a material adverse effect
on our business, including the possible cessation of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Conditions
in the debt and equity markets, as well as the volatility of investor sentiment regarding macroeconomic and microeconomic conditions
(including developments and volatility arising from COVID-19) will play primary roles in determining whether we can successfully
obtain additional capital. We cannot be certain that we will be successful at raising capital, whether in an equity financing,
debt financing, or by divesting of certain assets or businesses, on commercially reasonable terms, if at all. In addition, if we
obtain capital by issuing equity, such transaction(s) may dilute existing stockholders.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Expanding our international
operations involves additional risks, and our exposure to such risks increases as our business continues to expand outside of the
United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">We
operate outside of the United States in China. China has different economic conditions, languages, currency, consumer expectations,
levels of consumer acceptance and use of the Internet for commerce, legislation, regulatory environments (including labor laws
and customs), tax laws and levels of political stability. We are subject to associated risks typical of international businesses,
including, but not limited to, the following:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Local economic or political instability;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Threatened or actual acts of terrorism;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Compliance with additional laws applicable
to companies operating internationally as well as local laws and regulations, including the Foreign Corrupt Practices Act, data
privacy requirements, labor and employment law, laws regarding advertisements and promotions and anti-competition regulations;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Diminished ability to legally enforce contractual
rights;</FONT></TD></TR></TABLE>

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

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

<!-- Field: Page; Sequence: 26; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Increased risk and limits on enforceability
of intellectual property rights;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Restrictions on, or adverse consequences
related to, the withdrawal of non-U.S. investment and earnings;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Restrictions on repatriation of cash as well
as restrictions on investments in operations;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Financial risk arising from transactions
in multiple currencies as well as foreign currency exchange restrictions;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Difficulties in managing staff and operations
due to distance, time zones, language and cultural differences; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-style: normal; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Uncertainty regarding liability for services,
content and intellectual property rights, including uncertainty as a result of local laws and lack of precedent.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Operating
our business in China exposes us to particular risks and uncertainties relating China&rsquo;s laws and regulations, some of which
restrict foreign investment in businesses including Internet content providers, mobile communication and related businesses. In
addition, compliance with legal, regulatory or tax requirements in multiple jurisdictions places demands on our time and resources,
and we may nonetheless experience unforeseen and potentially adverse legal, regulatory or tax consequences. In China, legal and
other regulatory requirements may prohibit or limit participation by foreign businesses, such as by making foreign ownership or
management of Internet businesses illegal or difficult, or may make direct participation in those markets uneconomic, which could
make our entry into and expansion in those markets difficult or impossible, require that we work with a local partner or result
in higher operating costs. Although we have established effective control of our Chinese business through a series of contractual
arrangements, future developments in the interpretation or enforcement of Chinese laws and regulations or a dispute relating to
these contractual arrangements could restrict our ability to operate or restructure our business or to engage in strategic transactions.
The success of our business in China, and of any future investments in China, is subject to risks and uncertainties regarding the
application, development and interpretation of China&rsquo;s laws and regulations. If we cannot effectively manage our China operations,
our business, results of operations and financial condition could be adversely affected.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-style: normal; font-weight: normal">Furthermore,
when we accumulate large amounts of cash in China, which we will consider indefinitely reinvested in our China operations, the
repatriation of such funds for use in the United States, including for corporate purposes such as acquisitions, stock repurchases,
dividends or debt refinancing, may result in additional U.S. income tax expense and higher cost for such capital.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>We continue to evolve our business
strategy and develop new brands, products and services, and our future prospects are difficult to evaluate.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We are in varying
stages of development with regard to our business, including our artificial intelligence business driven by our AI platform, so
our prospects must be considered in light of the many risks, uncertainties, expenses, delays, and difficulties frequently encountered
by companies in their early stages of development. Some of such risks and difficulties include our ability to, among other things:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">increase the number of users of our websites and mobile applications;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">manage and implement new business strategies;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">successfully commercialize and monetize our assets;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">successfully attract advertisers for our owned and operated websites;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">continue to raise additional working capital;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">manage operating expenses;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">establish and take advantage of strategic relationships;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">successfully avoid diversion of management&rsquo;s attention or of other resources from our existing
business;</TD></TR></TABLE>

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

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

<!-- Field: Page; Sequence: 27; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">successfully avoid impairment of goodwill or other intangible assets such as trademarks or other
intellectual property arising from acquisitions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">prevent, or successfully temper, adverse market reaction to acquisitions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">manage and adapt to rapidly changing and expanding operations;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">respond effectively to competitive developments; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">attract, retain and motivate qualified personnel.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Because of the early
stage of development of certain of our business operations, we cannot be certain that our business strategy will be successful
or that it will successfully address the risks described or alluded to above. Any failure by us to successfully implement our new
business plans could have a material adverse effect on our business, financial condition, results of operations and cash flows.
Furthermore, growth into new areas may require changes to our cost structure, modifications to our infrastructure and exposure
to new regulatory, legal and competitive risks.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If we fail to manage
our growth, we may need to improve our operational, financial and management systems and processes which may require significant
capital expenditures and allocation of valuable management and employee resources. As we continue to grow, we must effectively
integrate, develop and motivate new employees, including employees in international markets, while maintaining the beneficial aspects
of our company culture. If we do not manage the growth of our business and operations effectively, the quality of our platform
and efficiency of our operations could suffer, which could harm our brand, results of operations and business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We cannot assure
you that these investments will be successful or that such endeavors will result in the realization of the full benefits of synergies,
cost savings, innovation and operational efficiencies that may be possible or that we will achieve these benefits within a reasonable
period of time.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>If we are not able to attract
and retain key management, we may not successfully integrate acquired assets into our existing business or achieve our other business
objectives.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We will depend upon
the contributions of our senior management, for our future business success. The loss of the service of any of the key members
of our senior management team may significantly delay or prevent the integration of acquired assets and other business objectives.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>Our investment in Sharecare&rsquo;s
equity securities involves a substantial degree of risk.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Our investment in
Sharecare&rsquo;s equity securities is illiquid and might fail to appreciate and might decline in value or become worthless. Sharecare
is unlikely to pay current dividends on its equity securities, and our ability to realize a return on our investment, and recover
our investment, will be dependent on Sharecare&rsquo;s continued success.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Our ability to realize
the value of our investment might be limited, because it is a private company. There is no public market for Sharecare&rsquo;s
securities, which are subject to restrictions on resale that might prevent us from selling such securities during periods in which
it would be advantageous to do so. As a result, we might have to wait for a liquidity event, such as a public offering or the sale
of Sharecare, to realize the value of our investment, if any.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Our equity position
in Sharecare may be diluted if Sharecare issues additional equity, options, or warrants. If Sharecare makes a capital call of its
existing equity holders, our position may be diluted if we choose not to contribute additional capital.</P>

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

<!-- Field: Page; Sequence: 28; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B><I>We could incur further asset impairment
charges for intangible assets or other long-lived assets.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We have intangible
assets and other long-lived assets, therefore future lower-than-anticipated financial performance or changes in estimates and assumptions,
which in many cases require significant judgment, could result in impairment charges. We test intangible assets that are determined
to have an indefinite life for impairment during the fourth quarter of each fiscal year, and assess whether factors or indicators,
such as unfavorable variances from established business plans, significant changes in forecasted results or volatility inherent
to external markets and industries, become apparent that would require an interim test. Adverse changes in the operating environment
and related key assumptions used to determine the fair value of our indefinite lived intangible assets or declines in the value
of our Common Stock may result in future impairment charges for a portion or all of these assets. Any further impairment charge
could have a material adverse effect on our business, financial position and results of operations, but would not be expected to
have an impact on our cash flows or liquidity.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left">Risks Relating to Our Common Stock</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Our stock price has fluctuated considerably
and is likely to remain volatile, and various factors could negatively affect the market price or market for our Common Stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The trading price
of our Common Stock has been and may continue to be volatile. From January 1, 2018 through July 15, 2020, the high and low sales
prices for our Common Stock were $15.10 and $0.25, respectively. The trading price of our Common Stock may fluctuate significantly
in response to numerous factors, many of which are beyond our control, including:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">general market and economic conditions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the low trading volume and limited public market for our Common Stock;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">minimal third-party research regarding our company; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the current and anticipated future operating performance and equity valuation of Sharecare, in
which we have a significant equity investment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In addition, the
stock market in general, and the market prices for Internet-related companies in particular, have experienced volatility that often
has been unrelated to the operating performance of such companies. Such broad market and industry fluctuations may adversely affect
the price of our stock, regardless of our operating performance.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>The concentration of our stock ownership
may limit individual stockholder ability to influence corporate matters.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">As of July 15, 2020,
our Chairman and Chief Executive Officer, Kai-Shing Tao, may be deemed to beneficially own 10,200,634 shares, or 9.8% of our Common
Stock. As a result of his stock ownership, Mr. Tao may be able to exert significant control over our management and affairs requiring
stockholder approval, including approval of significant corporate actions. Such concentration of ownership may have the effect
of delaying or preventing a change in control and might adversely affect the market price of our Common Stock.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>A significant number of additional
shares of our Common Stock may be issued under the terms of existing securities, which issuances would substantially dilute existing
stockholders and may depress the market price of our Common Stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">As of&nbsp;July 15,
2020, we had outstanding stock options allowing for the purchase of as many as approximately&nbsp;10.2 million&nbsp;shares of Common
Stock and we had outstanding warrants to purchase approximately 6.6 million shares of Common Stock. The number of outstanding warrants
include certain of the warrants we issued as part of the consideration for our acquisition of assets of China Branding Group Limited
(the &ldquo;CBG Acquisition&rdquo; and such warrants, the &ldquo;CBG Acquisition Warrants&rdquo; and warrants we issued to affiliates
of our lenders in connection with the financing we obtained for the CBG Acquisition (the &ldquo;CBG Financing Warrants&rdquo;),
providing for the right to purchase 40,000 and 6,601,558 shares of Common Stock, respectively, at per-share exercise prices of
$10.00 and $1.93, respectively. We are also obligated to issue additional CBG Acquisition Warrants allowing for the purchase of
5,710,000 shares of Common Stock at a per-share exercise price of $10.00 (we have already accounted for the liability associated
with such unissued CBG Acquisition Warrants in our consolidated balance sheet as part of the line item Warrant liability). On February
21, 2018, we initiated a legal proceeding seeking, among other things, a declaration that we are not required to deliver the unissued
CBG Acquisition Warrants. The parties to the proceeding entered into a Stipulation for Settlement which sets forth terms with respect
to the issuance of such unissued CBG Acquisition Warrants. We describe the Stipulation for Settlement in more detail in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2019 (the &ldquo;Form 10-K&rdquo;).</P>

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

<!-- Field: Page; Sequence: 29; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The CBG Acquisition
Warrants and the CBG Financing Warrants are exercisable on a cashless basis only. As a result of the cashless exercise requirement,
neither the CBG Acquisition Warrants nor the CBG Financing Warrants can be exercised for the entire amount of shares purchasable
under the warrants, and they effectively cannot be exercised to purchase shares of Common Stock unless the applicable market value
of the Common Stock exceeds the applicable exercise price under the terms thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The issuance of Common
Stock pursuant to the warrants described above would substantially dilute the proportionate ownership and voting power of existing
stockholders, and their issuance, or the possibility of their issuance, may depress the market price of our Common Stock.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #212529"><B><I>We have insufficient
authorized capital stock to issue Common Stock to all of the holders of our outstanding stock options and warrants and will need
to seek stockholder approval to authorize additional shares of Common Stock in connection with the exercise of such outstanding
securities or any future equity financing transactions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; color: rgb(33,37,41)">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="color: #212529">Our
Charter authorizes us to issue up to 100,000,000 shares of our Common Stock, of which&nbsp;99,408,916&nbsp;shares were outstanding
</FONT>as of&nbsp;July 15, 2020<FONT STYLE="color: #212529">. In addition, </FONT>as of&nbsp;July 15, 2020<FONT STYLE="color: #212529">,
we had outstanding stock options allowing for the purchase of as many as approximately&nbsp;10.2 million&nbsp;shares of Common
Stock and we had outstanding warrants to purchase approximately 6.6 million shares of Common Stock. If all of our outstanding stock
options and warrants were exercised, the total number of shares of our Common Stock that we would be required to issue would greatly
exceed the number of our remaining authorized but unissued shares of Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><BR>
 &#9;As a result of such potential shortfall in the number of our authorized shares of Common Stock, we will have insufficient shares
of Common Stock available to issue in connection with the exercise of our outstanding stock options and warrants or any future
equity financing transaction we may seek to undertake. Accordingly, we intend to seek approval of an increase in the number of
our authorized shares of Common Stock at our 2020 annual meeting of stockholders. However, we cannot assure you that our stockholders
would authorize an increase in the number of shares of our Common Stock. Our failure to have a sufficient number of authorized
shares of Common Stock for issuance upon future conversion of our outstanding stock options and warrants could result in a breach
under such securities, which could adversely affect our business, financial condition, results of operations and prospects.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in; background-color: white; color: #212529">&nbsp;</P>

<!-- Field: Page; Sequence: 30; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; color: #212529"></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Provisions in our corporate charter
documents and under Delaware law could make an acquisition of Remark more difficult, which acquisition may be beneficial to stockholders.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Provisions in our
Charter and Amended and Restated Bylaws (&ldquo;Bylaws&rdquo;), as well as provisions of the Delaware General Corporation Law (the
 &ldquo;DGCL&rdquo;), which may discourage, delay or prevent a merger with, acquisition of or other change in control of Remark,
even if such a change in control would be beneficial to our stockholders, include the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">only our Board may call special meetings of our stockholders;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">our stockholders may take action only at a meeting of our stockholders and not by written consent;
and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">we have authorized, undesignated preferred stock, the terms of which may be established and shares
of which may be issued without stockholder approval.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Additionally, Section
203 of the DGCL prohibits a person who owns in excess of 15% of our outstanding voting stock from merging or combining with us
for a period of three years after the date of the transaction in which the person acquired in excess of 15% of our outstanding
voting stock, unless the merger or combination is approved in a prescribed manner. We have not opted out of the restriction under
Section 203, as permitted under DGCL.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="e"></A>Use
of Proceeds</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We estimate that
the net proceeds to us from the sale of the Units in this offering will be approximately $13.8 million (assuming the over-allotment
option is not exercised), based on the public offering price of $25.00 per Unit, after deducting the total underwriting discounts
and commissions payable, excluding estimated offering expenses. This amount does not include the proceeds that we may receive in
connection with any exercise of the Warrants issued in this offering. Assuming all of the Warrants issued in this offering were
exercised in full at the exercise price of $[&bull;] per share, we estimate that we would receive additional net proceeds of approximately
$[&bull;]. We cannot predict when or if the Warrants will be exercised, however, and it is possible that the Warrants may expire
and never be exercised.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We intend to use the
net proceeds of the offering for general corporate purposes, which may include working capital, acquisitions and capital expenditures.
The precise amount, use and timing of the application of such proceeds will depend on numerous factors, including the cash used
in or generated by our operations, the level of our expected sales and marketing activities and the attractiveness of any additional
acquisitions or investments. Pending these uses, we intend to invest the net proceeds that we receive from this offering in short-term,
investment-grade interest-bearing securities, such as money market accounts, certificates of deposit, commercial paper, and guaranteed
obligations of the U.S. government.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="f"></A>DETERMINATION
OF OFFERING PRICE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Prior to this offering, there was no public market for the Series
A Preferred or the Warrants. The initial public offering price will be determined by negotiation between us and Roth Capital Partners,
LLC and The Benchmark Company, LLC, the representatives of the underwriters. The principal factors to be considered in determining
the initial public offering price include:</P>


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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the information set forth in this preliminary prospectus and otherwise available to the representative;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our history and prospects and the history and prospects for the industry in which we compete;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our past and present financial performance;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">our prospects for future earnings and the present state of our development;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the general condition of the securities market at the time of this offering;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the recent market prices of, and demand for, publicly traded preferred stock of generally comparable
companies; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">other factors deemed relevant by the underwriters and us.</TD></TR></TABLE>

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

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

<!-- Field: Page; Sequence: 31; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The estimated public
offering price range set forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions
and other factors. Neither we nor the underwriters can assure investors that an active trading market will develop for the Series
A Preferred or the Warrants or that the Series A Preferred will trade in the public market at or above the initial public offering
price.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="g"></A>Capitalization</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Set forth below
is our cash and capitalization as of March 31, 2020:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">on an actual basis; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">on a pro forma as adjusted basis, reflecting the issuance of 600,000 Units offered by this prospectus,
at $25.00 per Unit, assuming net proceeds of approximately $13,800,000, excluding estimated offering expenses payable by us.</TD></TR></TABLE>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="padding-right: 2pt; padding-left: 3pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 2pt 0; text-align: center; text-indent: 2pt"><B>March
        31, 2020</B></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 2pt; padding-left: 3pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 2pt 0; text-align: center"><B>Actual</B></P></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 2pt; padding-left: 3pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 2pt 0; text-align: center"><B>As
        Adjusted</B></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="padding: 2pt; text-align: center"><FONT STYLE="font-size: 10pt">(in thousands, except par value data)</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; width: 71%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Cash and cash equivalents</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt double; vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt double; vertical-align: bottom; width: 12%; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">1,617</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt double; vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt double; vertical-align: bottom; width: 1%; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt double; vertical-align: bottom; width: 12%; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">15,417</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt double; vertical-align: top; width: 1%">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Note payable</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">3,000</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">3,000</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Loans payable, current, net of unamortized discount and debt issuance cost</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">11,931</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">11,931</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Total Debt</FONT></TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">14,931</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">14,931</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Common stock, $0.001 par value; 100,000,000 shares authorized; 66,133,888 shares issued and outstanding at March 31, 2020</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">66</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">66</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Additional paid-in capital</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">323,958</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">337,158</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Accumulated other comprehensive income</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(45</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(45</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Accumulated deficit</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(349,250</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(349,250</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">Total capitalization</FONT></TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(25,271</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD>
    <TD STYLE="padding-top: 2pt; padding-bottom: 2pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-top: 2pt; padding-bottom: 2pt; text-align: right"><FONT STYLE="font-size: 10pt">(12,070</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; padding-top: 2pt; padding-bottom: 2pt"><FONT STYLE="font-size: 10pt">)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The table above assumes no exercise of the underwriters&rsquo;
option to purchase additional Units, is based on 66,133,888 shares of Common Stock outstanding as of March 31, 2020, and excludes
the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">4,936,313 shares of Common Stock issuable upon exercise of warrants outstanding as of March 31,
2020, at a weighted-average exercise price of $3.06 per share, and 5,710,000 shares of Common Stock issuable upon exercise of warrants
we have agreed to issue, at an exercise price of $10.00 per share;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">10,290,454 shares of Common Stock issuable upon exercise of stock options outstanding as of March
31, 2020, at a weighted-average exercise price of $4.35 per share;</TD></TR></TABLE>

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

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

<!-- Field: Page; Sequence: 32; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">8,894,452 shares of Common Stock reserved and available as of March 31, 2020 for future issuance
under our equity incentive plans; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 11pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">33,275,028 shares of Common Stock issued since March 31, 2020.</TD></TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="h"></A>DESCRIPTION
OF CAPITAL STOCK</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-weight: normal">Our
Charter authorizes us to issue up to 101,000,000 shares, including 100,000,000 shares of Common Stock and 1,000,000 shares of preferred
stock, par value $0.001 per share, of which 690,000 shares have been designated as shares of Series A Preferred. As of close of
business on July 15, 2020, there were 99,408,916 shares of Common Stock issued and outstanding, and no shares of preferred stock
issued and outstanding.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-weight: normal">The
following descriptions are summaries of the material provisions and terms of our capital stock and are qualified by reference to
our Charter and our Bylaws.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Common Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-weight: normal">Each
share of Common Stock entitles its holder to one vote on all matters to be voted upon by the stockholders. Common stockholders
are not entitled to cumulative voting with respect to the election of directors. Subject to the preferences of any outstanding
shares of preferred stock, holders of Common Stock may receive ratably any dividends that our Board may declare out of funds legally
available for that purpose. In the event of our liquidation, dissolution or winding up, the holders of Common Stock are entitled
to share ratably in all assets remaining after payment of liabilities and liquidation preferences of any outstanding shares of
preferred stock. The Common Stock has no preemptive rights, conversion rights or other subscription rights or redemption or sinking
fund provisions.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Under our Charter, our Board is
authorized generally without stockholder approval to issue shares of preferred stock in one or more series and, in connection with
the creation of each such series, to fix the number of shares of such series and designate the powers, preferences and rights of
such series, including dividend rights, redemption rights, liquidation preferences, sinking fund provisions, conversion rights
and voting rights, any or all of which may be greater than the rights of the Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Anti-Takeover Provisions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Provisions in our
Charter and Bylaws, as well as provisions of the DGCL, may discourage, delay or prevent a merger, acquisition or other change in
control of Remark, even if such a change in control would be beneficial to stockholders. These provisions include the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">only our Board may call special meetings of our stockholders;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">our stockholders may take action only at a meeting of our stockholders and not by written consent;
and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">we have authorized undesignated preferred stock, the terms of which may be established and shares
of which may be issued without stockholder approval.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Additionally, Section
203 of the DGCL prohibits a person who owns in excess of 15% of our outstanding voting stock from merging or combining with us
for a period of three years after the date of the transaction in which the person acquired in excess of 15% of our outstanding
voting stock, unless the merger or combination is approved in a prescribed manner. We have not opted out of the restriction under
Section 203, as permitted under the DGCL.</P>

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

<!-- Field: Page; Sequence: 33; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Listing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Our Common Stock
is currently quoted on the NASDAQ Capital Market under the symbol MARK.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Transfer Agent and Registrar</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-weight: normal">The
transfer agent and registrar for the Series A Preferred and for our Common Stock is Computershare.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="i"></A>Description
of Offered Securities</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The description
of certain terms of the Units, the Series A Preferred and the Warrant in this summary does not purport to be complete and is in
all respects subject to, and qualified in its entirety by the provisions of our Charter, the Series A Certificate of Designations,
our Bylaws and the form of Warrant, copies of which have been filed as exhibits to the registration statement of which this prospectus
is a part.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Each Unit offered
hereby consists of (i) one share of Series A Preferred and (ii) one Warrant exercisable for [&bull;] shares of Common Stock at
an exercise price of [&bull;] per Warrant Share. The Units will not be issued or certificated. The shares of Series A Preferred
Stock and the Warrants are immediately separable and will be issued separately.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We are currently
authorized to designate and issue up to 1,000,000 shares of preferred stock, par value $0.001 per share, in one or more series
and, subject to the limitations prescribed by our Charter and the DGCL, with such powers, preferences and rights as our Board may
determine, without any vote or action by our stockholders. As of the date of this prospectus, we have [&bull;] shares of Series
A Preferred authorized and no shares outstanding.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The Series A Preferred
offered hereby, when issued, delivered and paid for in accordance with the terms of the underwriting agreement, will be fully paid
and nonassessable. Our Board may, without the approval of holders of the Series A Preferred or our Common Stock, designate additional
series of authorized preferred stock ranking junior to or on parity with the Series A Preferred or designate additional shares
of Series A Preferred and authorize the issuance of such shares. Designation of preferred stock ranking senior to the Series A
Preferred will require approval of the holders of Series A Preferred, as described below in &ldquo;Voting Rights.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The registrar, transfer
agent and dividend and redemption price disbursing agent in respect of the Series A Preferred is Computershare. Its principal business
address is 150 Royall Street, Canton, MA 02021.</P>

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

<!-- Field: Page; Sequence: 34; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Listing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We expect that the
Series A Preferred will be quoted on the Nasdaq Capital Market under the symbol &ldquo;MARKP.&rdquo; Our goal is to apply to list
our Series A Preferred on the Nasdaq Capital Market but there can be no assurance that our Series A Preferred will, in fact, qualify
for listing or quotation on Nasdaq.</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">No Maturity, Sinking Fund or Mandatory Redemption</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The Series A Preferred
has no stated maturity and will not be subject to any sinking fund or mandatory redemption. Shares of the Series A Preferred will
remain outstanding indefinitely unless we decide to redeem or otherwise repurchase them. We are not required to set aside funds
to redeem the Series A Preferred.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The Series A Preferred
will rank, with respect to rights to the payment of dividends and the distribution of assets upon our liquidation, dissolution
or winding up:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD STYLE="text-align: justify">senior to all classes or series of our Common Stock and to all other equity securities issued by
us other than equity securities referred to in clauses (2) and (3) below;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD STYLE="text-align: justify">on a par with all equity securities issued by us with terms specifically providing that those equity
securities rank on a parity with the Series A Preferred with respect to rights to the payment of dividends and the distribution
of assets upon our liquidation, dissolution or winding up;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(3)</TD><TD STYLE="text-align: justify">junior to all equity securities issued by us with terms specifically providing that those equity
securities rank senior to the Series A Preferred with respect to rights to the payment of dividends and the distribution of assets
upon our liquidation, dissolution or winding up (See &ldquo;Voting Rights&rdquo; below); and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(4)</TD><TD STYLE="text-align: justify">junior to all of our existing and future indebtedness (including indebtedness convertible to our
Common Stock or preferred stock) and to any indebtedness and other liabilities of our existing subsidiaries.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Holders of shares
of the Series A Preferred are entitled to receive, when, as and if declared by the Board, out of funds legally available for the
payment of dividends, cumulative cash dividends at the rate of 9.5% per annum of the $25.00 per share liquidation preference (equivalent
to $2.375 per annum per share). All accrued dividends on the Series A Preferred shall be paid in cash only when, as and if declared
by the Board out of funds legally available therefor or upon a liquidation or redemption of the Series A Preferred.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Dividends on our
Series A Preferred are payable monthly on the 15<SUP>th</SUP> day of each month (each such date, a &ldquo;Dividend Payment Date&rdquo;);
provided that if any Dividend Payment Date is not a business day, as defined in the Series A Certificate of Designations, then
the dividend that would otherwise have been payable on that Dividend Payment Date may be paid on the next succeeding business day
and no interest, additional dividends or other sums will accrue on the amount so payable for the period from and after that Dividend
Payment Date to that next succeeding business day. &ldquo;Business day&rdquo; shall mean any day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which banking institutions in New York, New York are authorized or required by law,
regulation or executive order to close.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Dividends will be
payable to holders of record as they appear in our stock records for the Series A Preferred at the close of business on the corresponding
record date, which shall be the last day of the calendar month, whether or not a business day, immediately preceding the month
in which the applicable Dividend Payment Date falls (each, a &ldquo;Dividend Record Date&rdquo;). As a result, holders of shares
of Series A Preferred will not be entitled to receive dividends on a Dividend Payment Date if such shares were not issued and outstanding
on the applicable Dividend Record Date. The first dividend on our Series A Preferred sold in this offering is payable on [&bull;],
2020 (in the amount of $0.1979 per share, which includes dividends accrued from [&bull;], 2020) to holders of record of the Series
A Preferred as of [&bull;], 2020.</P>

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

<!-- Field: Page; Sequence: 35; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Any dividend payable
on the Series A Preferred, including dividends payable for any partial dividend period, will be computed on the basis of a 360-day
year consisting of twelve 30-day months. However, the shares of Series A Preferred offered hereby will be credited as having accrued
dividends since the first day of the calendar month in which they are issued.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">No dividends on
shares of Series A Preferred shall be authorized by our Board or paid or set apart for payment by us at any time when the terms
and provisions of any agreement of ours, including any agreement relating to our indebtedness, prohibit the authorization, payment
or setting apart for payment thereof or provide that the authorization, payment or setting apart for payment thereof would constitute
a breach of the agreement or a default under the agreement, or if the authorization, payment or setting apart for payment shall
be restricted or prohibited by law. You should review the information appearing above under &ldquo;Risk Factors&mdash; We must
adhere to prescribed legal requirements and also have sufficient cash in order to be able to pay dividends&rdquo; for information
as to, among other things, other circumstances under which we may be unable to pay dividends on the Series A Preferred.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Notwithstanding
the foregoing, dividends on the Series A Preferred will accrue whether or not we have earnings, whether or not there are funds
legally available for the payment of those dividends and whether or not those dividends are declared by our Board. No interest,
or sum in lieu of interest, will be payable in respect of any dividend payment or payments on the Series A Preferred that may be
in arrears, and holders of the Series A Preferred will not be entitled to any dividends in excess of full cumulative dividends
described above. Any dividend payment made on the Series A Preferred shall first be credited against the earliest accumulated but
unpaid dividend due with respect to those shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Future dividends
on our Common Stock and preferred stock, including the Series A Preferred, will be at the discretion of our Board and will depend
on, among other things, our results of operations, cash flow from operations, financial condition and capital requirements, any
debt service requirements and any other factors our Board deems relevant. Accordingly, we cannot guarantee that we will be able
to make cash dividends on our preferred stock or what the actual dividends will be for any future period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Unless full cumulative
dividends on all shares of Series A Preferred have been or contemporaneously are declared and paid or declared and a sum sufficient
for the payment thereof has been or contemporaneously is set apart for payment for all past Dividend Payment Dates, no dividends
(other than in shares of Common Stock or in shares of any series of preferred stock that we may issue ranking junior to the Series
A Preferred as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up) shall be
declared or paid or set aside for payment upon shares of our Common Stock or preferred stock that we may issue ranking junior to,
or on a parity with, the Series A Preferred as to the payment of dividends or the distribution of assets upon liquidation, dissolution
or winding up. Nor shall any other dividend be declared or made upon shares of our Common Stock or preferred stock that we may
issue ranking junior to, or on a parity with, the Series A Preferred as to the payment of dividends or the distribution of assets
upon liquidation, dissolution or winding up.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">When dividends are
not paid in full (or a sum sufficient for such full payment is not so set apart) upon the Series A Preferred and the shares of
any other series of preferred stock that we may issue ranking on a parity as to the payment of dividends with the Series A Preferred,
all dividends declared upon the Series A Preferred and any other series of preferred stock that we may issue ranking on a parity
as to the payment of dividends with the Series A Preferred shall be declared pro rata so that the amount of dividends declared
per share of Series A Preferred and such other series of preferred stock that we may issue shall in all cases bear to each other
the same ratio that accrued dividends per share on the Series A Preferred and such other series of preferred stock that we may
issue (which shall not include any accrual in respect of unpaid dividends for prior dividend periods if such preferred stock does
not have a cumulative dividend) bear to each other. No interest, or sum of money in lieu of interest, shall be payable in respect
of any dividend payment or payments on the Series A Preferred that may be in arrears.</P>

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

<!-- Field: Page; Sequence: 36; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Liquidation Preference</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In the event of
our voluntary or involuntary liquidation, dissolution or winding up, the holders of shares of Series A Preferred will be entitled
to be paid out of the assets we have legally available for distribution to our stockholders, subject to the preferential rights
of the holders of any class or series of our capital stock we may issue ranking senior to the Series A Preferred with respect to
the distribution of assets upon liquidation, dissolution or winding up, a liquidation preference of $25.00 per share, plus an amount
equal to any accumulated and unpaid dividends (whether or not declared) to, but not including, the date of payment, before any
distribution of assets is made to holders of our Common Stock or any other class or series of our capital stock we may issue that
ranks junior to the Series A Preferred as to liquidation rights.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In the event that,
upon any such voluntary or involuntary liquidation, dissolution or winding up, our available assets are insufficient to pay the
amount of the liquidating distributions on all outstanding shares of Series A Preferred and the corresponding amounts payable on
all shares of other classes or series of our capital stock that we may issue ranking on a parity with the Series A Preferred in
the distribution of assets, then the holders of the Series A Preferred and all other such classes or series of capital stock shall
share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they would otherwise
be respectively entitled.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Holders of Series
A Preferred will be entitled to written notice of any such liquidation, dissolution or winding up no fewer than 30 days and no
more than 60 days prior to the payment date. After payment of the full amount of the liquidating distributions to which they are
entitled, the holders of Series A Preferred will have no right or claim to any of our remaining assets. The consolidation or merger
of us with or into any other corporation, trust or entity or of any other entity with or into us, or the sale, lease, transfer
or conveyance of all or substantially all of our property or business, shall not be deemed a liquidation, dissolution or winding
up of us (although such events may give rise to the special optional redemption to the extent described below).</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Redemption</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The Series A Preferred
is not redeemable by us prior to [&bull;], 2023, except as described below under &ldquo;Optional Redemption&rdquo; and &ldquo;Special
Optional Redemption.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Optional Redemption</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The Series A Preferred
is not redeemable by us prior to [&bull;], 2023. The Series A Preferred may be redeemed in whole or in part (at our option) any
time on or after [&bull;], 2023, upon not less than 30 days nor more than 60 days&rsquo; written notice by mail prior to the date
fixed for redemption thereof, for cash at a redemption price equal to per share, plus any accumulated and unpaid dividends to,
but not including, redemption date. If we elect to redeem any shares of Series A Preferred as described in this paragraph, we may
use any available cash to pay the redemption price.</P>

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

<!-- Field: Page; Sequence: 37; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Special Optional Redemption</I>&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Upon the occurrence
of a Change of Control, we may, at our option, upon not less than 30 nor more than 60 days&rsquo; written notice, redeem the Series
A Preferred, in whole or in part, within 120 days after the first date on which such Change of Control occurred, for cash at a
redemption price of $25.00 per share, plus any accumulated and unpaid dividends thereon to, but not including, the redemption date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">A &ldquo;Change
of Control&rdquo; is deemed to occur when the following have occurred and are continuing:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the acquisition by any person, including any syndicate or group deemed to be a &ldquo;person&rdquo;
under Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other
acquisition transaction or series of purchases, mergers or other acquisition transactions of our stock entitling that person to
exercise more than 50% of the total voting power of all our stock entitled to vote generally in the election of our directors (except
that such person will be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether
such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">following the closing of any transaction referred to above, neither we nor the acquiring or surviving
entity has a class of common securities (or American Depositary Receipts representing such securities) listed on the NYSE, the
NYSE American LLC or Nasdaq Stock Market, or listed or quoted on an exchange or quotation system that is a successor to the NYSE,
the NYSE American LLC or Nasdaq Stock Market.</TD></TR></TABLE>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Redemption Procedures</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In the event we
elect to redeem Series A Preferred, the notice of redemption will be mailed to each holder of record of the Series A Preferred
called for redemption at such holder&rsquo;s address as it appear on our stock transfer records, not less than 30 nor more than
60 days prior to the redemption date, and will state the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the redemption date;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the number of shares of Series A Preferred to be redeemed;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the redemption price;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the place or places where certificates (if any) for the Series A Preferred other than through The
Depositary Trust Company (&ldquo;DTC&rdquo;) are to be surrendered for payment of the redemption price;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">that dividends on the shares of Series A Preferred to be redeemed will cease to accumulate on the
redemption date;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">whether such redemption is being made pursuant to the provisions described above under &ldquo;Optional
Redemption&rdquo; or &ldquo;&mdash; Special Optional Redemption&rdquo;; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">if applicable, that such redemption is being made in connection with a Change of Control and, in
that case, a brief description of the transaction or transactions constituting such Change of Control.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If less than all
of the Series A Preferred held by any holder are to be redeemed, the notice mailed to such holder shall also specify the number
of shares of Series A Preferred held by such holder to be redeemed. No failure to give such notice or any defect thereto or in
the mailing thereof shall affect the validity of the proceedings for the redemption of any shares of Series A Preferred except
as to the holder to whom notice was defective or not given.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">On or after the
date fixed for redemption, each holder of Series A Preferred that holds a certificate other than through DTC book entry described
below, shall surrender the Series A Preferred at the place designated in the notice of redemption and shall be entitled to the
redemption price and any accumulated and unpaid dividends payable upon the redemption following the surrender. If notice of redemption
of any shares of Series A Preferred has been given and if we have irrevocably set aside the funds necessary for redemption in trust
for the benefit of the holders of the shares of Series A Preferred so called for redemption, then from and after the redemption
date (unless default shall be made by us in providing for the payment of the redemption price plus accumulated and unpaid dividends,
if any), dividends will cease to accrue on those shares of Series A Preferred, those shares of Series A Preferred shall no longer
be deemed outstanding and all rights of the holders of those shares will terminate, except the right to receive the redemption
price plus accumulated and unpaid dividends, if any, payable upon redemption. If any redemption date is not a business day, then
the redemption price and accumulated and unpaid dividends, if any, payable upon redemption may be paid on the next business day
and no interest, additional dividends or other sums will accrue on the amount payable for the period from and after that redemption
date to that next business day. If less than all of the outstanding Series A Preferred is to be redeemed, the Series A Preferred
to be redeemed shall be selected pro rata (as nearly as may be practicable without creating fractional shares) or by any other
equitable method we determine.</P>

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

<!-- Field: Page; Sequence: 38; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In connection with
any redemption of Series A Preferred, we shall pay, in cash, any accumulated and unpaid dividends to, but not including, the redemption
date, unless a redemption date falls after a Dividend Record Date and prior to the corresponding Dividend Payment Date, in which
case each holder of Series A Preferred at the close of business on such Dividend Record Date shall be entitled to the dividend
payable on such shares on the corresponding Dividend Payment Date notwithstanding the redemption of such shares before such Dividend
Payment Date. Except as provided above, we will make no payment or allowance for unpaid dividends, whether or not in arrears, on
shares of the Series A Preferred to be redeemed.</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Voting Rights</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Holders of the Series
A Preferred do not have any voting rights, except as set forth below or as otherwise required by the DGCL.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">So long as any shares
of Series A Preferred remain outstanding, we will not, without the affirmative vote or consent of the holders of at least two-thirds
of the votes entitled to be cast by the holders of the Series A Preferred outstanding at the time, given in person or by proxy,
either in writing or at a meeting (voting together as a class with all other series of parity preferred stock that we may issue
upon which like voting rights have been conferred and are exercisable), (a) authorize or create, or increase the authorized or
issued amount of, any class or series of capital stock ranking senior to the Series A Preferred with respect to payment of dividends
or the distribution of assets upon liquidation, dissolution or winding up or reclassify any of our authorized capital stock into
such shares, or create, authorize or issue any obligation or security convertible into or evidencing the right to purchase any
such shares; or (b) amend, alter, repeal or replace our Charter, including by way of a merger, consolidation or otherwise in which
we may or may not be the surviving entity, so as to materially and adversely affect and deprive holders of Series A Preferred of
any right, preference, privilege or voting power of the Series A Preferred (each, an &ldquo;Event&rdquo;). An increase in the amount
of the authorized preferred stock, including the Series A Preferred, or the creation or issuance of any additional Series A Preferred
or other series of preferred stock that we may issue, or any increase in the amount of authorized shares of such series, in each
case ranking on a parity with or junior to the Series A Preferred with respect to payment of dividends or the distribution of assets
upon liquidation, dissolution or winding up, shall not be deemed an Event and will not require us to obtain two-thirds of the votes
entitled to be cast by the holders of the Series A Preferred and all such other similarly affected series, outstanding at the time
(voting together as a class).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The foregoing voting
provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required
is effected, such outstanding shares of Series A Preferred are subject to a notice of redemption pursuant to the provisions described
above under &ldquo;&mdash;Redemption&mdash;Optional Redemption&rdquo; or &ldquo;&mdash;Redemption&mdash;Special Optional Redemption&rdquo;
above and funds sufficient to pay the applicable redemption price, including accumulated and unpaid dividends, for all of such
shares of Series A Preferred or called for redemption have been set aside for payment.</P>

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

<!-- Field: Page; Sequence: 39; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">When the Series
A Preferred is entitled to vote, such shares are entitled to one vote per share. In any matter in which the Series A Preferred
may vote as a single class with any other series of our preferred stock (as described in this prospectus or as may be required
by law), each share of Series A Preferred shall be entitled to one vote per $25.00 of stated liquidation preference.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Except as expressly
stated in the Series A Certificate of Designations, or as may be required by applicable law, the Series A Preferred does not bestow
any relative, participating, optional or other special voting rights or powers and the consent of the holders thereof shall not
be required for the taking of any corporate action.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Information Rights</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">During any period
in which we are not subject to Section 13 or 15(d) of the Exchange Act and any shares of Series A Preferred are outstanding, we
will use our best efforts to (i) transmit by mail (or other permissible means under the Exchange Act) to all holders of Series
A Preferred, as their names and addresses appear on our record books and without cost to such holders, copies of the Annual Reports
on Form 10-K and Quarterly Reports on Form 10-Q that we would have been required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act if we were subject thereto (other than any exhibits that would have been required) and (ii) promptly,
upon request, supply copies of such reports to any holders or prospective holder of Series A Preferred. We will use our best effort
to mail (or otherwise provide) the information to the holders of the Series A Preferred within 30 days after the respective dates
by which a periodic report on Form 10-K or Form 10-Q, as the case may be, in respect of such information would have been required
to be filed with the SEC, if we were subject to Section 13 or 15(d) of the Exchange Act, in each case, based on the dates on which
we would be required to file such periodic reports if we were a &ldquo;non-accelerated filer&rdquo; within the meaning of the Exchange
Act.</P>

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

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Preemptive Rights</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">No holders of the
Series A Preferred will, as holders of Series A Preferred, have any preemptive rights to purchase or subscribe for our Common Stock
or any other security.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Book-Entry Procedures</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">DTC acts as securities
depository for our outstanding Series A Preferred. With respect to the Series A Preferred offered hereunder, we will issue one
or more fully registered global securities certificates in the name of DTC&rsquo;s nominee, Cede &amp; Co. These certificates will
represent the total aggregate number of shares of Series A Preferred. We will deposit these certificates with DTC or a custodian
appointed by DTC. We will not issue certificates to you for the shares of Series A Preferred that you purchase, unless DTC&rsquo;s
services are discontinued as described below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Title to book-entry
interests in the Series A Preferred will pass by book-entry registration of the transfer within the records of DTC in accordance
with its procedures. Book-entry interests in the securities may be transferred within DTC in accordance with procedures established
for these purposes by DTC. Each person owning a beneficial interest in shares of the Series A Preferred must rely on the procedures
of DTC and the participant through which such person owns its interest to exercise its rights as a holder of the Series A Preferred.</P>

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

<!-- Field: Page; Sequence: 40; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">DTC has advised
us that it is a limited-purpose trust company organized under the New York Banking Law, a member of the Federal Reserve System,
a &ldquo;clearing corporation&rdquo; within the meaning of the New York Uniform Commercial Code and a &ldquo;clearing agency&rdquo;
registered under the provisions of Section 17A of the Exchange Act. DTC holds securities that its participants (&ldquo;Direct Participants&rdquo;)
deposit with DTC. DTC also facilitates the settlement among Direct Participants of securities transactions, such as transfers and
pledges in deposited securities through electronic computerized book-entry changes in Direct Participants&rsquo; accounts, thereby
eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other organizations. Access to the DTC system is also available to others
such as securities brokers and dealers, including the placement agent, banks and trust companies that clear through or maintain
a custodial relationship with a Direct Participant, either directly or indirectly (&ldquo;Indirect Participants&rdquo;). The rules
applicable to DTC and its Direct and Indirect Participants are on file with the SEC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">When you purchase
shares of Series A Preferred within the DTC system, the purchase must be by or through a Direct Participant. The Direct Participant
will receive a credit for the Series A Preferred on DTC&rsquo;s records. You will be considered to be the &ldquo;beneficial owner&rdquo;
of the Series A Preferred. Your beneficial ownership interest will be recorded on the Direct and Indirect Participants&rsquo; records,
but DTC will have no knowledge of your individual ownership. DTC&rsquo;s records reflect only the identity of the Direct Participants
to whose accounts shares of Series A Preferred are credited.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">You will not receive
written confirmation from DTC of your purchase. The Direct or Indirect Participants through whom you purchased the Series A Preferred
should send you written confirmations providing details of your transactions, as well as periodic statements of your holdings.
The Direct and Indirect Participants are responsible for keeping an accurate account of the holdings of their customers like you.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Transfers of ownership
interests held through Direct and Indirect Participants will be accomplished by entries on the books of Direct and Indirect Participants
acting on behalf of the beneficial owners.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The laws of some
states may require that specified purchasers of securities take physical delivery of shares of Series A Preferred in definitive
form. These laws may impair the ability to transfer beneficial interests in the global certificates representing the Series A Preferred.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Conveyance of notices
and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants
and Indirect Participants to beneficial owners will be governed by arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We understand that,
under DTC&rsquo;s existing practices, in the event that we request any action of the holders, or an owner of a beneficial interest
in a global security, such as you, desires to take any action that a holder is entitled to take under our amended and restated
certificate of incorporation (including the Series A Certificate of Designations), DTC would authorize the Direct Participants
holding the relevant shares to take such action, and those Direct Participants and any Indirect Participants would authorize beneficial
owners owning through those Direct and Indirect Participants to take such action or would otherwise act upon the instructions of
beneficial owners owning through them.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Any redemption notices
with respect to the Series A Preferred will be sent to Cede &amp; Co. If less than all of the outstanding shares of Series A Preferred
are being redeemed, DTC will reduce each Direct Participant&rsquo;s holdings of shares of Series A Preferred in accordance with
its procedures.</P>

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

<!-- Field: Page; Sequence: 41; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In those instances
where a vote is required, neither DTC nor Cede &amp; Co. itself will consent or vote with respect to the shares of Series A Preferred.
Under its usual procedures, DTC would mail an omnibus proxy to us as soon as possible after the record date. The omnibus proxy
assigns Cede &amp; Co.&rsquo;s consenting or voting rights to those Direct Participants whose accounts the shares of Series A Preferred
are credited to on the record date, which are identified in a listing attached to the omnibus proxy.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Dividends on the
Series A Preferred are made directly to DTC (or its successor, if applicable). DTC&rsquo;s practice is to credit participants&rsquo;
accounts on the relevant payment date in accordance with their respective holdings shown on DTC&rsquo;s records unless DTC has
reason to believe that it will not receive payment on that payment date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Payments by Direct
and Indirect Participants to beneficial owners will be governed by standing instructions and customary practices, as is the case
with securities held for the accounts of customers in bearer form or registered in &ldquo;street name.&rdquo; These payments will
be the responsibility of the participant and not of DTC, us or any agent of ours.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">DTC may discontinue
providing its services as securities depositary with respect to the Series A Preferred at any time by giving reasonable notice
to us. Additionally, we may decide to discontinue the book-entry only system of transfers with respect to the Series A Preferred.
In that event, we will print and deliver certificates in fully registered form for the Series A Preferred. If DTC notifies us that
it is unwilling to continue as securities depositary, or it is unable to continue or ceases to be a clearing agency registered
under the Exchange Act and a successor depositary is not appointed by us within 90 days after receiving such notice or becoming
aware that DTC is no longer so registered, we will issue the Series A Preferred in definitive form, at our expense, upon registration
of transfer of, or in exchange for, such global security.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">According to DTC,
the foregoing information with respect to DTC has been provided to the financial community for informational purposes only and
is not intended to serve as a representation, warranty or contract modification of any kind.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Global Clearance and Settlement Procedures</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Initial settlement
for the Series A Preferred will be made in immediately available funds. Secondary market trading among DTC&rsquo;s participants
occurs in the ordinary way in accordance with DTC&rsquo;s rules and will be settled in immediately available funds using DTC&rsquo;s
Same-Day Funds Settlement System.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Direct Registration System</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">&#9;The Series A Preferred will be registered
in book-entry form through the Direct Registration System (the &ldquo;DRS&rdquo;). The DRS is a system administered by DTC pursuant
to which the depositary may register the ownership of uncertificated shares, which ownership shall be evidenced by periodic statements
issued by the depositary to the holders of shares of Series A Preferred entitled thereto. This direct registration form of ownership
allows investors to have securities registered in their names without requiring the issuance of a physical stock certificate,
eliminates the need for you to safeguard and store certificates and permits the electronic transfer of securities to effect transactions
without transferring physical certificates.</P>

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

<!-- Field: Page; Sequence: 42; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt"><B>Warrants to Purchase Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Each Warrant will
be exercisable for [&bull;] shares of our Common Stock at an exercise price of $[&bull;] per share. Each Warrant will be exercisable
from its date of issuance and at any time up to the date that is five years after its original date of issuance. A holder shall
have no right to exercise any portion of a Warrant, to the extent that, after giving effect to such exercise, such holder, together
with such holder&rsquo;s affiliates, and any persons acting as a group together with such holder or any such affiliate, would beneficially
own in excess of 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of the
shares of Common Stock upon such exercise (subject to the right of the holder to increase or decrease such beneficial ownership
limitation upon not less than 61 days prior notice provided that such limitation can never exceed 9.99% and such 61 day period
cannot be waived). Beneficial ownership of the holder and its affiliates will be determined in accordance with Section 13(d) of
the Exchange Act, and the rules and regulations promulgated thereunder. Holders of Warrants who are subject to such beneficial
ownership limitation are and will remain responsible for ensuring their own compliance with Regulation 13D-G promulgated under
the Exchange Act, consistent with their individual facts and circumstances. In addition, pursuant to Rule 13d-3(d)(1)(i) of the
Exchange Act, any person who acquires such Warrants with the purpose or effect of changing or influencing the control of our company,
or in connection with or as a participant in any transaction having such purpose or effect, immediately upon such acquisition will
be deemed to be the beneficial owner of the underlying Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The Warrants are
exercisable for cash or, solely in the absence of an effective registration statement or prospectus, by cashless exercise, in which
case the holder would receive upon such exercise the net number of shares of Common Stock determined according to the formula set
forth in the Warrant. No fractional shares will be issued upon the exercise of a Warrant. As to any fraction of a share which the
holder would otherwise be entitled to purchase upon such exercise, we will, at our election, either pay a cash adjustment in respect
of such final fraction in an amount equal to such fraction multiplied by the exercise price or round up to the next whole share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The exercise price
of the Warrants is subject to adjustment (but not below the par value of our Common Stock) in the case of stock splits, stock combinations,
reclassifications or similar events affecting our Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In addition, in
the event we consummate a merger or consolidation with or into another person or other reorganization event in which shares of
our Common Stock are converted or exchange for securities, cash or other property, or we sell, lease, license, assign, transfer,
convey or otherwise dispose of all or substantially all of our assets or we or another person acquire 50% or more of our outstanding
Common Stock, then following such event, the holders of the Warrants will be entitled to receive upon exercise of the Warrants
the same kind and amount of securities, cash or property which the holders would have received had they exercised the Warrants
immediately prior to such fundamental transaction. Any successor to us or surviving entity shall assume the obligations under the
Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Prior to the exercise
of any Warrants, holders of the Warrants will not have any of the rights of holders of the Common Stock purchasable upon exercise,
including voting rights, however, the holders of the Warrants will have certain rights to participate in distributions or dividends
paid on our Common Stock to the extent set forth in the Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The provisions of
the Warrants may be amended as a single class if we have obtained the written consent of holders representing not less than a majority
of shares of our Common Stock then exercisable under the Warrants collectively (in which case such amendments shall be binding
on all holders of Warrants). However, the number of shares of our Common Stock exercisable, the exercise price or the exercise
period may not be amended without the written consent of the holder of each such Warrant. The Warrants are governed by New York
law and if either party commences an action, suit or proceeding to enforce any provisions of the Warrants, other than pursuant
to federal securities laws, then the prevailing party in such action, suit or proceeding shall be reimbursed by the other party
for its reasonable attorneys&rsquo; fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such action or proceeding.</P>

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

<!-- Field: Page; Sequence: 43; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The Warrants will
be issued in book-entry form under a warrant agent agreement between Computershare, as warrant agent, and us, and shall initially
be represented by one or more book-entry certificates deposited with DTC, and registered in the name of Cede &amp; Co., a nominee
of DTC, or as otherwise directed by DTC. We do not plan on applying to list any of the warrants on any national securities exchange
or any other nationally recognized trading system.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="j"></A>CERTAIN
U.S. FEDERAL INCOME TAX CONSIDERATIONS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The following discussion
summarizes certain U.S. federal income tax considerations that may be applicable to &ldquo;U.S. Holders&rdquo; and &ldquo;Non-U.S.
Holders&rdquo; (each as defined below and together, a &ldquo;Holder&rdquo;) with respect to the initial purchase, ownership and
disposition of the Series A Preferred or Warrants (together, the &ldquo;Securities&rdquo;) offered by this prospectus. This discussion
only applies to persons purchasing the Securities in this offering and holding the Securities as capital assets within the meaning
of Section 1221 of the Code. This discussion does not describe all of the tax consequences that may be relevant to a specific purchaser
in light of circumstances particular to such purchaser.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">This discussion
does not address any alternative minimum tax consequences or any tax considerations arising under the laws of any U.S. state or
local or any non-U.S. jurisdiction. In addition, this discussion does not address all tax considerations applicable to an investor&rsquo;s
particular circumstances and, this discussion does not address any tax considerations to any person that may be subject to special
tax rules, including, without limitation:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">an insurance company;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a tax-exempt organization;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a dealer in securities or currencies;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a trader in securities that make mark-to-market elections with respect to their securities holdings;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">certain financial institutions, banks, brokers and other financial institutions;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a &ldquo;S&rdquo; corporation, a grantor trust, a partnership and any other entity treated as a
pass-through for U.S. federal income tax purposes;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a commodity broker;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a real estate investment trust and a regulated investment company;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a &ldquo;controlled foreign corporation,&rdquo; a &ldquo;passive foreign investment company,&rdquo;
and a corporation that accumulates earnings to avoid U.S. federal income tax;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a tax qualified retirement plan, including but not limited to a &ldquo;qualified foreign pension
fund&rdquo; as defined in Section 897(l)(2) of the Code and any entity all of the interests of which are held by any qualified
foreign pension fund;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a person whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a U.S. expatriate and a former U.S. citizen or former long-term U.S. resident;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a personal holdings company;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a person that holds shares as part of a hedge, straddle, conversion, constructive sale or other
integrated transaction;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a person who owns shares pursuant to the exercise of any employee stock options or otherwise as
compensation;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a person subject to special tax accounting rules as a result of any item of gross income with respect
to shares being taken into account in an applicable financial statement; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a person who, directly, indirectly or constructively (under attribution rules applicable for U.S.
federal income tax purposes), owns greater than 5% of our shares.</TD></TR></TABLE>

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

<!-- Field: Page; Sequence: 44; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">This discussion
does not address the U.S. federal income tax treatment of any entity treated as a pass-through that holds any Securities for U.S.
federal income tax purposes (such as a partnership) or of any equity owner (such as a partner) of a pass-through entity that holds
any Securities. Accordingly, if you are a pass-through entity or an equity owner of a pass-through entity holding any Security,
you should consult your tax advisors as to the particular U.S. federal income tax consequences of acquiring, holding and disposing
of any Security.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><B>You should consult
your own tax advisor concerning the U.S. federal income tax consequences to you of acquiring, owning, and disposing of any Security,
as well as any tax consequences arising under the laws of any state, local, foreign, or other tax jurisdiction and the possible
effects of changes in U.S. federal or other tax laws.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>U.S. Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">You are a &ldquo;U.S.
Holder&rdquo; if you are a beneficial owner (other than a partnership or any other entity or arrangement that is treated as a pass-through
entity for U.S. federal income tax purposes) of any Security and you are for U.S. federal income tax purposes:&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">an individual citizen or resident of the United States;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created
or organized in or under the laws of the United States, any state thereof or the District of Columbia;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">an estate the income of which is subject to U.S. federal income taxation regardless of its source;
or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">a trust if it (i) is subject to the primary supervision of a court within the United States and
one or more United States persons have the authority to control all substantial decisions of the trust or (ii) has a valid election
in effect under applicable United States Treasury Regulations to be treated as a United States person.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Non-U.S. Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">You are a &ldquo;Non-U.S. Holder&rdquo; if you
are a beneficial owner (other than a partnership or any other entity or arrangement that is treated as a pass-through entity for
U.S. federal income tax purposes) of any Security and you are not a U.S. Holder.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: white"><B>Allocation of Purchase Price
for All Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">For
U.S. federal income tax purposes, the purchase of a Unit will be treated as the purchase of two components: a component consisting
of one share of our Series A Preferred and a component consisting of one Warrant to purchase [&bull;] shares of our Common Stock.
The purchase price for each Unit will be allocated between its components in proportion to the relative fair market value of each
at the time the Unit is purchased by the Holder. This allocation of the purchase price for each Unit will establish a Holder&rsquo;s
initial tax basis for U.S. federal income tax purposes in the Securities that compose each Unit.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: white"><B>Tax Consequences to U.S. Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: white"><I>Exercise of Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">A
U.S. Holder generally will not recognize gain or loss on the exercise of a Warrant and related receipt of shares of our Common
Stock (unless cash is received in lieu of the issuance of a fractional share of our Common Stock). A U.S. Holder&rsquo;s initial
tax basis in the shares of our Common Stock received upon the exercise of a Warrant will be equal to the sum of (i) such U.S. Holder&rsquo;s
tax basis in such Warrant plus (ii) the exercise price paid by such U.S. Holder on the exercise of such Warrant. A U.S. Holder&rsquo;s
holding period for the shares of our Common Stock received upon the exercise of a Warrant will begin on the day after the date
that the Warrant is exercised.</P>

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

<!-- Field: Page; Sequence: 45; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; background-color: white"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In
certain limited circumstances, a U.S. Holder may be permitted to undertake a cashless exercise of Warrants into shares of our Common
Stock. The U.S. federal income tax treatment of a cashless exercise of Warrants into shares of Common Stock is unclear, and the
tax consequences of a cashless exercise could differ from the consequences upon the exercise of a Warrant described in the preceding
paragraph. U.S. Holders should consult their own tax advisors regarding the U.S. federal income tax consequences of a cashless
exercise of Warrants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: white"><I>Expiration of Warrants </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Upon
the lapse or expiration of a Warrant, a U.S. Holder will recognize a loss in an amount equal to such U.S. Holder&rsquo;s tax basis
in the Warrant. Any such loss generally will be a capital loss and will be long-term capital loss if the Warrant is held for more
than one year. Deductions for capital losses are subject to certain limitations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; background-color: white"><I>Distributions
on Series A Preferred </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If distributions
are made with respect to the Series A Preferred, such distributions will be treated as dividends to the extent of our current or
accumulated earnings and profits as determined under the Code. Any portion of a distribution that exceeds such earnings and profits
will first be applied to reduce a U.S. Holder&rsquo;s tax basis in the Series A Preferred on a share-by-share basis, and the excess
will be treated as gain from the disposition of the Series A Preferred, the tax treatment of which is discussed below under &ldquo;Certain
U.S. Federal Income Tax Considerations&mdash;Tax Consequences to U.S. Holders&mdash;Disposition of Our Securities, Including Redemptions.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Under current law,
dividends received by an individual U.S. Holder of the Series A Preferred will be subject to a reduced maximum tax rate of 20%
if such dividends are treated as &ldquo;qualified dividend income&rdquo; for U.S. federal income tax purposes. The rate reduction
does not apply to dividends received to the extent that the individual U.S. Holder elects to treat the dividends as &ldquo;investment
income,&rdquo; which may be taken into account as an offset against investment expenses in determining the individual U.S. Holder&rsquo;s
investment interest expense deduction. Furthermore, the rate reduction does not apply to dividends that are paid to an individual
U.S. Holder with respect to Series A Preferred that is held for 60 days or less during the 121 day period beginning on the date
which is 60 days before the date on which the Series A Preferred becomes ex-dividend (or where the dividend is attributable to
a period or periods in excess of 366 days, Series A Preferred that is held for 90 days or less during the 181 day period beginning
on the date which is 90 days before the date on which the Series A Preferred becomes ex-dividend). Also, if a dividend received
by an individual U.S. Holder that qualifies for the rate reduction is an &ldquo;extraordinary dividend&rdquo; within the meaning
of Section 1059 of the Code, any loss recognized by such individual U.S. Holder on a subsequent disposition of the stock will be
treated as long-term capital loss to the extent of such &ldquo;extraordinary dividend,&rdquo; irrespective of such individual U.S.
Holder&rsquo;s holding period for the stock. An individual U.S. Holder should consult its own tax advisors regarding the implications
of these rules in light of their particular circumstances.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Dividends received by a corporate
U.S. Holder generally will be eligible for the dividends received deduction. Each domestic corporate U.S. Holder of the
Series A Preferred is urged to consult with its tax advisors with respect to the eligibility for and the amount of any
dividends received deduction and the application of Section 1059 of the Code to any dividends it may receive on the Series A
Preferred.</P>

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

<!-- Field: Page; Sequence: 46; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Constructive Distributions on Series
A Preferred</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">A U.S. Holder may
have to include the excess of the redemption price over the issue price (the &ldquo;Redemption Premium&rdquo;) in income as a constructive
distribution on the Series A Preferred, unless the Redemption Premium is <I>de minimis</I> (as discussed below) or it is determined
that the Company is not likely to exercise the Call Option (as defined below). If the Redemption Premium is treated as a constructive
distribution, a U.S. Holder would be required to treat the Redemption Premium as a distribution on the Series A Preferred. The
constructive distribution of the Redemption Premium would accrue without regard to the U.S. Holder&rsquo;s method of accounting
for U.S. federal income tax purposes at a constant yield determined under principles similar to the determination of original issue
discount (&ldquo;OID&rdquo;) pursuant to Treasury Regulations under Sections 1271 through 1275 of the Code (the &ldquo;OID Rules&rdquo;),
although the application of principles, similar to those applicable to debt instruments with OID, to the Redemption Premium is
uncertain. The constructive distribution of the Redemption Premium would be treated as an actual distribution for U.S. federal
income tax purposes that would constitute a dividend, return of capital or capital gain to the U.S. Holder of the Series A Preferred
in the same manner as cash distributions described under &ldquo;Certain U.S. Federal Income Tax Considerations&mdash;Tax Consequences
to U.S. Holders&mdash;Distributions on Series A Preferred.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If the issue price
of the Series A Preferred is determined under principles similar to the OID Rules, the issue price for the Series A Preferred should
be the initial offering price to the public (excluding bond houses and brokers) at which a substantial amount of the Series A Preferred
is sold minus the amount allocated to the Warrants as discussed above under &ldquo;Certain U.S. Federal Income Tax Considerations&mdash;Allocation
of Purchase Price for All Holders.&rdquo; However, the Redemption Premium for the Series A Preferred may be treated as <I>de minimis,
</I>as determined under principles similar to the OID Rules. Under the OID Rules, the Redemption Premium will be considered&nbsp;<I>de
minimis</I>&nbsp;if the Redemption Premium is less than 0.0025 of the Series A Preferred&rsquo;s liquidation value of $25.00 at
maturity, multiplied by the number of complete years to maturity. Because the determination under the OID Rules of a maturity date
for the Series A Preferred is unclear, the remainder of this discussion assumes that the Series A Preferred is issued with a Redemption
Premium greater than a&nbsp;<I>de minimis</I>&nbsp;amount.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We have the right
to call the Series A Preferred for redemption on or after [&bull;], 2023, and have the option to redeem the Series A Preferred
upon any Change of Control (collectively the &ldquo;Call Option&rdquo;). The stated redemption price of the Series A Preferred
upon any redemption pursuant to our Call Option is equal to $25.00 per share, plus any accrued and unpaid dividends and is payable
in cash.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The Call Option
should not require constructive distributions of the Redemption Premium, if based on all of the facts and circumstances as of the
issue date, a redemption pursuant to the Call Option is not likely to occur. The Treasury Regulations provide that an issuer&rsquo;s
right to redeem will not be treated as more likely than not to occur if: (i) the issuer and the holder of the stock are not related
within the meaning of Section 267(b) or Section 707(b) of the Code (substituting &ldquo;20%&rdquo; for the phrase &ldquo;50%&rdquo;)&#894;
(ii) there are no plans, arrangements, or agreements that effectively require or are intended to compel the issuer to redeem the
stock&#894; and (iii) exercise of the right to redeem would not reduce the yield on the stock determined using principles applicable
to the determination of OID under the OID Rules. The fact that a redemption right is not within the safe harbor described in the
preceding sentence does not mean that an issuer&rsquo;s right to redeem is more likely than not to occur and the issuer&rsquo;s
right to redeem must still be tested under all the facts and circumstances to determine if it is more likely than not to occur.
We do not believe that a redemption pursuant to the Call Option should be treated as more likely than not to occur under the foregoing
test. Accordingly, no U.S. holder of the Series A Preferred should be required to recognize constructive distributions of the Redemption
Premium because of our Call Option.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Prospective U.S.
Holders of the Series A Preferred should consult their own tax advisors regarding the potential implications of the constructive
distribution rules.<I>&nbsp;</I></P>

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

<!-- Field: Page; Sequence: 47; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Disposition of Our Securities, Including
Redemptions</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Upon any sale, exchange,
redemption (except as discussed below) or other disposition of any Security, a U.S. Holder will recognize capital gain or loss
equal to the difference between the amount realized by the U.S. Holder and the U.S. Holder&rsquo;s adjusted tax basis in the Security.
Such capital gain or loss will be long-term capital gain or loss if the U.S. Holder&rsquo;s holding period for the Security is
longer than one year. A U.S. Holder should consult its own tax advisors with respect to applicable tax rates and netting rules
for capital gains and losses. Certain limitations exist on the deduction of capital losses by both corporate and non-corporate
taxpayers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">A redemption of
your Series&nbsp;A Preferred for cash will be treated as a sale or exchange if it (1)&nbsp;results in a &ldquo;complete termination&rdquo;
of your interest in our stock, (2)&nbsp;is not &ldquo;essentially equivalent to a dividend&rdquo; with respect to you, or (3) is
 &ldquo;substantially disproportionate&rdquo; with respect to you, each within the meaning of Section&nbsp;302(b) of the Code. In
determining whether any of these tests have been met, stock considered to be owned by you by reason of certain constructive ownership
rules, as well as shares actually owned by you, must generally be taken into account. If you do not own (actually or constructively)
any additional Securities or our Common Stock, or own only an insubstantial percentage of our stock, and do not participate in
our control or management, a redemption of your Series&nbsp;A Preferred will generally qualify for sale or exchange treatment.
Otherwise, the redemption may be taxable as a dividend to the extent of our current or accumulated earnings and profits as discussed
above with respect to distributions generally. Because the determination as to whether any of the alternative tests of Section&nbsp;302(b)
of the Code will be satisfied with respect to any particular U.S. Holder depends upon the facts and circumstances at the time that
the determination must be made, prospective U.S. Holders are advised to consult their own tax advisors regarding the tax treatment
of a redemption. If a redemption of Series&nbsp;A Preferred is treated as an exchange, it will be taxable as described in the preceding
paragraph. If a redemption is treated as a distribution, the entire amount received will be treated as a distribution and will
be taxable as described under the caption &ldquo;Certain U.S. Federal Income Tax Considerations&mdash;Tax Consequences to U.S.
Holders&mdash;Distributions on Series A Preferred&rdquo; above.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Additional Medicare Contribution
Tax</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">An additional tax
of 3.8% generally will be imposed on the &ldquo;net investment income&rdquo; of U.S. Holders who meet certain requirements and
are individuals, estates or certain trusts. Among other items, &ldquo;net investment income&rdquo; generally includes gross income
from dividends and net gain attributable to the disposition of certain property, such as any Security. In the case of individuals,
this tax will only apply to the lesser of (i) the individual&rsquo;s &ldquo;net investment income&rdquo; or (ii) the excess of
such individual&rsquo;s modified adjusted gross income over $200,000 ($250,000 for married couples filing a joint return and surviving
spouses, and $125,000 for married individuals filing a separate return). U.S. Holders should consult their tax advisors regarding
the possible applicability of this additional tax in their particular circumstances.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Information Reporting and Backup
Withholding</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Information reporting
and backup withholding may apply with respect to payments of dividends, constructive or actual, on any Security and to certain
payments of proceeds on the sale or other disposition of any Security. Certain non-corporate U.S. Holders may be subject to U.S.
backup withholding (currently at a rate of 24%) on payments of dividends, constructive or actual, on any Security and certain payments
of proceeds on the sale or other disposition of any Security unless the beneficial owner thereof furnishes the payor or its agent
with a taxpayer identification number, certified under penalties of perjury, and certain other information, or otherwise establishes,
in the manner prescribed by law, an exemption from backup withholding. U.S. backup withholding tax is not an additional tax. Any
amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a U.S. Holder&rsquo;s U.S. federal
income tax liability, which may entitle the U.S. Holder to a refund, provided the U.S. Holder timely furnishes the required information
to the Internal Revenue Service (&ldquo;IRS&rdquo;).</P>

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

<!-- Field: Page; Sequence: 48; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Tax Consequences to Non-U.S. Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Exercise of Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">See discussion of
the rules applicable to the exercise of a Warrant and related receipt of shares of our Common Stock under &ldquo;Certain U.S. Federal
Income Tax Considerations&mdash;Tax Consequences to U.S. Holders&mdash;Exercise of Warrants.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Expiration of Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If a Warrant expires
without being exercised, a Non-U.S. Holder that is engaged in a U.S. trade or business to which any income from the Warrant would
be effectively connected or who is present in the United States for a period or periods aggregating 183 days or more during the
calendar year in which the expiration occurs (and certain other conditions are met) will recognize a capital loss as described
under &ldquo;Certain U.S. Federal Income Tax Considerations&mdash;Tax Consequences to U.S. Holders&mdash;Expiration of Warrants.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Distributions on the Series A Preferred&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If distributions
are made with respect to the Series A Preferred, such distributions will be treated as dividends to the extent of our current and
accumulated earnings and profits as determined under the Code and may be subject to withholding as discussed below. Any portion
of a distribution that exceeds our current and accumulated earnings and profits will first be applied to reduce the Non-U.S. Holder&rsquo;s
basis in the Series A Preferred and, to the extent such portion exceeds the Non-U.S. Holder&rsquo;s basis, the excess will be treated
as gain from the disposition of the Series A Preferred, the tax treatment of which is discussed below under &ldquo;Certain U.S.
Federal Income Tax Considerations&mdash;Tax Consequences to Non-U.S. Holders&mdash;Disposition of Our Securities, Including Redemptions.&rdquo;
In addition, if we are a U.S. real property holding corporation,&nbsp;i.e.&nbsp;a &ldquo;USRPHC,&rdquo; and any distribution exceeds
our current and accumulated earnings and profits, we will need to choose to satisfy our withholding requirements either by treating
the entire distribution as a dividend, subject to the withholding rules in the following paragraph (and withhold at a minimum rate
of 30% or such lower rate as may be specified by an applicable income tax treaty for distributions from a USRPHC), or by treating
only the amount of the distribution equal to our reasonable estimate of our current and accumulated earnings and profits as a dividend,
subject to the withholding rules in the following paragraph, with the excess portion of the distribution subject to withholding
at a rate of 15% or such lower rate as may be specified by an applicable income tax treaty as if such excess were the result of
a sale of shares in a USRPHC (discussed below under &ldquo;Certain U.S. Federal Income Tax Considerations&mdash;Tax Consequences
to Non-U.S. Holders&mdash;Disposition of Our Securities, Including Redemptions&rdquo;), with a credit generally allowed against
the Non-U.S. Holder&rsquo;s U.S. federal income tax liability in an amount equal to the amount withheld from such excess.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Dividends paid to
a Non-U.S. Holder of the Series A Preferred will be subject to withholding of U.S. federal income tax at a 30% rate or such lower
rate as may be specified by an applicable income tax treaty. However, dividends that are effectively connected with the conduct
of a trade or business by the Non-U.S. Holder within the United States (and, where a tax treaty applies, are attributable to a
permanent establishment maintained by the Non-U.S. Holder in the United States) are not subject to the withholding tax, provided
that certain certification and disclosure requirements are satisfied including completing IRS Form W-8ECI (or other applicable
form). Instead, such dividends are subject to U.S. federal income tax on a net income basis in the same manner as if the Non-U.S.
Holder were a United States person as defined under the Code, unless an applicable income tax treaty provides otherwise. Any such
effectively connected dividends received by a foreign corporation may be subject to an additional &ldquo;branch profits tax&rdquo;
at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. A Non-U.S. Holder of the Series A Preferred
who wishes to claim the benefit of an applicable treaty rate and avoid backup withholding, as discussed below, for dividends will
be required to (i) complete IRS Form W-8BEN or Form W-8BEN-E (or other applicable form) and certify under penalty of perjury that
such Non-U.S. Holder is not a United States person as defined under the Code and is eligible for treaty benefits, or (ii) if the
Series A Preferred is held through certain foreign intermediaries, satisfy the relevant certification requirements of applicable
Treasury Regulations. A Non-U.S. Holder of the Series A Preferred eligible for a reduced rate of U.S. withholding tax pursuant
to an income tax treaty may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with
the IRS.</P>

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

<!-- Field: Page; Sequence: 49; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Constructive Distributions on Series
A Preferred </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">A Non-U.S. Holder
may have to include the Redemption Premium in income as a constructive distribution on the Series A Preferred, unless the Redemption
Premium is <I>de minimis</I> or it is determined that the Company is not likely to exercise the Call Option, in the same manner
as discussed under &ldquo;Certain U.S. Federal Income Tax Considerations&mdash;Tax Consequences to U.S. Holders&mdash;Constructive
Distributions on Series A Preferred.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Disposition of Our Securities, Including
Redemptions&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Any gain realized
by a Non-U.S. Holder on the disposition of any Security will not be subject to U.S. federal income or withholding tax unless:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the gain is effectively connected with a trade or business of the Non-U.S. Holder in the United
States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment maintained by the Non-U.S.
Holder in the United States);</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">the Non-U.S. Holder is an individual who is present in the United States for 183 days or more in
the taxable year of disposition, and certain other conditions are met; or</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">we are a USRPHC for U.S. federal income tax purposes, at any time within the shorter of the five-year
period preceding the disposition or the Non-U.S. Holder&rsquo;s holding period for any Security.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">A Non-U.S. Holder
described in the first bullet point immediately above will generally be subject to tax on the net gain derived from the sale under
regular U.S. federal income tax rates in the same manner as if the Non-U.S. Holder were a United States person as defined under
the Code, and if it is a corporation, may also be subject to the branch profits tax equal to 30% of its effectively connected earnings
and profits or at such lower rate as may be specified by an applicable income tax treaty. An individual Non-U.S. Holder described
in the second bullet point immediately above will be subject to a flat 30% tax (or at such reduced rate as may be provided by an
applicable treaty) on the gain derived from the sale, which may be offset by U.S. source capital losses, even though the individual
is not considered a resident of the United States. For a Non-U.S. Holder described in the third bullet point above, we believe
we are not currently and do not anticipate becoming a USRPHC. However, because the determination of whether we are a USRPHC depends
on the fair market value of our United States real property interests relative to the fair market value of our other business assets,
there can be no assurance that we will not become a USRPHC in the future. Even if we become a USRPHC, a Non-U.S. Holder may qualify
for an exemption from U.S federal income tax based on our status as a USRPHC.&nbsp;&nbsp;If no exemption is available and we are
a USRPHC, a Non-U.S. Holder&rsquo;s proceeds received on the disposition of any Security will generally be subject to withholding
at a rate of 15% and such Non-U.S. Holder will generally be taxed on any gain in the same manner as gain that is effectively connected
with the conduct of a U.S. trade or business, except that the branch profits tax generally will not apply.&nbsp;&nbsp;Non-U.S.
Holders should consult with their tax advisors on the availability of any such exemption in the event of we become a USRPHC.</P>

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

<!-- Field: Page; Sequence: 50; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">If a Non-U.S. Holder
is subject to U.S. federal income tax on any sale, exchange, redemption (except as discussed below), or other disposition of any
Security, such a Non-U.S. Holder will recognize capital gain or loss equal to the difference between the amount realized by the
Non-U.S. Holder and the Non-U.S. Holder&rsquo;s adjusted tax basis in the Security. Such capital gain or loss will be long-term
capital gain or loss if the Non-U.S. Holder&rsquo;s holding period for the Security is longer than one year. A Non-U.S. Holder
should consult its own tax advisors with respect to applicable tax rates and netting rules for capital gains and losses. Certain
limitations exist on the deduction of capital losses by both corporate and non-corporate taxpayers. The receipt of any redemption
proceeds attributable to any accrued but unpaid dividends on the Series A Preferred generally will be subject to the rules discussed
above in &ldquo;Certain U.S. Federal Income Tax Considerations&mdash;Tax Consequences to Non-U.S. Holders&mdash;Distributions on
the Series A Preferred.&rdquo; A payment made in redemption of the Series A Preferred may be treated as a dividend, rather than
as payment in exchange for the Series A Preferred, in the same circumstances discussed above under &ldquo;Certain U.S. Federal
Income Tax Considerations&mdash;Tax Consequences to U.S. Holders&mdash;Disposition of Our Securities, Including Redemptions.&rdquo;
Each Non-U.S. Holder of the Series A Preferred should consult its own tax advisors to determine whether a payment made in redemption
of the Series A Preferred will be treated as a dividend or as payment in exchange for the Series A Preferred.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Information Reporting and Backup
Withholding</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We must report annually
to the IRS and to each Non-U.S. Holder the amount of dividends, constructive or actual, paid to such Non-U.S. Holder and the tax
withheld with respect to such dividends, regardless of whether withholding was required. Copies of the information returns reporting
such dividends and withholding may also be made available to the tax authorities in the country in which the Non-U.S. Holder resides
under the provisions of an applicable income tax treaty. A Non-U.S. Holder will not be subject to backup withholding on dividends,
constructive or actual, paid to such Non-U.S. Holder as long as such Non-U.S. Holder certifies under penalty of perjury that it
is a Non-U.S. Holder (and the payor does not have actual knowledge or reason to know that such Non-U.S. Holder is a United States
person as defined under the Code), or such Non-U.S. Holder otherwise establishes an exemption. Depending on the circumstances,
information reporting and backup withholding may apply to the proceeds received from a sale or other disposition of any Security
unless the beneficial owner certifies under penalty of perjury that it is a Non-U.S. Holder (and the payor does not have actual
knowledge or reason to know that the beneficial owner is a United States person as defined under the Code), or such owner otherwise
establishes an exemption. U.S. backup withholding tax is not an additional tax. Any amounts withheld under the backup withholding
rules may be allowed as a refund or a credit against a Non-U.S. Holder&rsquo;s U.S. federal income tax liability provided the required
information is timely furnished to the IRS.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><I>Foreign Account Tax Compliance Act</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Sections 1471 through
1474 of the Code (provisions which are commonly referred to as &ldquo;FATCA&rdquo;), generally impose a 30% withholding tax on
dividends, on any Security paid on or after July 1, 2014, and the gross proceeds of a sale or other disposition of any Security
paid on or after January 1, 2019, to: (i) a foreign financial institution (as that term is defined in Section 1471(d)(4) of the
Code) unless that foreign financial institution enters into an agreement with the U.S. Treasury Department to collect and disclose
information regarding U.S. account holders of that foreign financial institution (including certain account holders that are foreign
entities that have U.S. owners) and satisfies other requirements; and (ii) specified other foreign entities unless such an entity
certifies that it does not have any substantial U.S. owners or provides the name, address and taxpayer identification number of
each substantial U.S. owner and such entity satisfies other specified requirements. Non-U.S. Holders should consult their own tax
advisors regarding the application of FATCA to them and whether it may be relevant to their purchase, ownership and disposition
of any Security.</P>

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

<!-- Field: Page; Sequence: 51; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="k"></A>UNDERWRITING</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Roth Capital Partners,
LLC and The Benchmark Company, LLC are joint bookrunning managers of the offering, and are acting as representatives of the underwriters
named below. Subject to the terms and conditions stated in the underwriting agreement dated the date of this prospectus, each underwriter
named below has agreed to purchase severally and not jointly, and we have agreed to sell to that underwriter, the respective number
of Units set forth opposite the underwriter&rsquo;s name.</P>

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

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

</P>

</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold">Underwriters</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of Units</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Roth Capital Partners, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">The Benchmark Company, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">[&bull;]</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%">Total</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 18%; text-align: right">600,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The underwriting agreement
provides that the obligations of the underwriters to purchase the aggregate number of Units included in this offering are subject
to approval of legal matters by counsel and to other conditions. The underwriters are obligated to purchase all of the Units offered
hereby (other than those covered by the underwriters&rsquo; option to purchase additional Units described below) if they purchase
any Units.</P>

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

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0"><B>Option to Purchase Additional Securities</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We have granted to
the underwriters an option, exercisable for up to 45 days from the date of this prospectus, to purchase up to 90,000 additional
Series A Preferred and/or [&bull;] additional Warrants, at the public offering price less the underwriting discount. To the extent
the option is exercised, each underwriter must purchase the number of additional Series A Preferred and/or Warrants approximately
proportionate to that underwriter&rsquo;s initial purchase commitment.</P>

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

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0"><B>Underwriting Discount and Expenses</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">The underwriters are
purchasing the Units from us at $[&bull;] per Unit (representing approximately $[&bull;] aggregate gross proceeds to us, before
we deduct our out-of-pocket expenses of approximately $[&bull;]). The underwriters propose to offer the Units to the public at
the public offering price set forth on the cover page of this prospectus. The underwriters may effect such transactions by selling
Units to or through dealers, at that price less a concession not in excess of&thinsp;$[&bull;] per Unit. Such dealers may receive
compensation in the form of discounts, concessions or commissions from the underwriters and/or purchasers of Units for whom they
may act as agents or to whom they may sell as principal.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The following table
shows the public offering price, the underwriting discounts and commissions that we are to pay the underwriters and the proceeds,
before expenses, to us in connection with this offering. Such amounts are shown assuming both no exercise and full exercise of
the underwriters&rsquo; option to purchase additional shares.</P>

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

<!-- Field: Page; Sequence: 52; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; padding-bottom: 0.5pt; line-height: 8pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 8pt">&nbsp;</TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 8pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 1pt solid; padding-top: 8pt; padding-bottom: 2.5pt; text-align: center; line-height: 8pt"><FONT STYLE="font-size: 10pt"><B>Per Unit</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 8pt">&nbsp;</TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 8pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: black 1pt solid; padding-top: 8pt; padding-bottom: 2.5pt; text-align: center; line-height: 8pt"><FONT STYLE="font-size: 10pt"><B>Total</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 8pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; padding-bottom: 0.5pt; line-height: 9pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 9pt">&nbsp;</TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 9pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; padding-top: 8pt; padding-bottom: 2.15pt; text-align: center; line-height: 9pt"><FONT STYLE="font-size: 10pt"><B>Without<BR>
Option to<BR>
Purchase<BR>
Additional<BR>
Units</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 9pt">&nbsp;</TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 9pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; padding-top: 8pt; padding-bottom: 2.15pt; text-align: center; line-height: 9pt"><FONT STYLE="font-size: 10pt"><B>With Option<BR>
to Purchase<BR>
Additional<BR>
Units</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 9pt">&nbsp;</TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 9pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; padding-top: 8pt; padding-bottom: 2.15pt; text-align: center; line-height: 9pt"><FONT STYLE="font-size: 10pt"><B>Without<BR>
Option to<BR>
Purchase<BR>
Additional<BR>
Units</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 9pt">&nbsp;</TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 9pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; padding-top: 8pt; padding-bottom: 2.15pt; text-align: center; line-height: 9pt"><FONT STYLE="font-size: 10pt"><B>With Option<BR>
to Purchase<BR>
Additional<BR>
Units</B></FONT></TD>
    <TD STYLE="border-bottom: white 1pt solid; padding-top: 8pt; text-align: center; line-height: 9pt"><FONT STYLE="font-size: 10pt"><B>&#8203;</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 299px; padding-top: 3.25pt; padding-bottom: 0.5pt; line-height: 10pt"><FONT STYLE="font-size: 10pt">Public offering price</FONT></TD>
    <TD STYLE="width: 7px; text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="width: 7px; text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="width: 6px; padding-left: 0.05in; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.25pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.25pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="width: 5px; padding-left: 0.05in; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 7px; text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="width: 7px; text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="width: 11px; padding-left: 7.25pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.25pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.25pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="width: 10px; padding-left: 7.25pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 7px; text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="width: 7px; text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0px; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.25pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.25pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="width: 0px; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 7px; text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="width: 7px; text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0px; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.25pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.25pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="width: 0px; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="width: 0px; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; line-height: 10pt"><FONT STYLE="font-size: 10pt">Underwriting discounts and commissions</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="padding-left: 0.05in; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="padding-left: 0.05in; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="padding-left: 7.25pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="padding-left: 7.25pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; line-height: 10pt"><FONT STYLE="font-size: 10pt">Proceeds to us, before expenses</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="padding-left: 0.05in; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="padding-left: 0.05in; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="padding-left: 7.25pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="padding-left: 7.25pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt"></FONT></TD>
    <TD STYLE="white-space: nowrap; padding-top: 3.5pt; padding-bottom: 0.5pt; text-align: right; line-height: 10pt"></TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD>
    <TD STYLE="text-align: right; line-height: 10pt"><FONT STYLE="font-size: 10pt">&#8203;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We estimate that the
total expenses of this offering, including registration, filing and listing fees, printing fees and legal and accounting expenses,
but excluding underwriting discounts and reimbursements, will be approximately $[&bull;]. We have also agreed to reimburse the
Underwriters for certain expenses incurred in connection with this offering pursuant to the underwriting agreement, including certain
legal fees, in an amount not to exceed $[&bull;].</P>

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

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Lock-Up Agreement</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We have agreed with
the underwriters, subject to certain limited exceptions, not to sell or transfer any Units or securities that are substantially
similar to the Units (collectively, the &ldquo;Lock-up Securities&rdquo;), for 90 days after the date of this prospectus without
first obtaining the written consent of Roth Capital Partners, LLC, on behalf of the underwriters. Specifically, we have agreed,
subject to certain limited exceptions, not to (i)&nbsp;sell, offer, contract to sell, pledge, grant any option to purchase or otherwise
dispose of, directly or indirectly, any Lock-up Securities, or any securities convertible into or exercisable or exchangeable for
Lock-Up Securities, or (ii) enter into any swap or other arrangement that transfer to another, in whole or in part, any of the
economic consequences of ownership of the Lock-Up Securities, whether any such transaction described in clause (i)&nbsp;or (ii)
above is to be settled by delivery of Units or such other securities, in cash or otherwise, or (3)&nbsp;file any registration statement
with the Commission relating to the offering of any Lock-Up Securities or any securities convertible into or exercisable or exchangeable
for Lock-Up Securities, except for the offering of the Units pursuant to the underwriting agreement and this prospectus.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The representatives,
in their sole discretion, may release any of the Lock-up Securities in whole or in part at any time with or without notice. The
representatives have no present intent or arrangement to release any of the Lock-up Securities. The release of any lock-up is considered
on a case-by-case basis. Factors that will be considered in deciding whether to release Units may include the length of time before
the lock-up period expires, the number of Units involved, the reason for the requested release, market conditions, the trading
price of the Series A Preferred and the Common Stock and the historical trading volume of the Common Stock.</P>

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

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Listing</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We expect that the
Series A Preferred will be quoted on the Nasdaq Capital Market under the symbol &ldquo;MARKP&rdquo;. Our goal is to apply to list
our Series A Preferred on the Nasdaq Capital Market but there can be no assurance that our Series A Preferred will, in fact, qualify
for listing or quotation on Nasdaq. However, our plan is to have the initial closing of our Series A Preferred after the sale of
[&bull;] Series A Preferred, resulting in proceeds of $[&bull;] million which will qualify for quotation on Nasdaq, provided that
we have the minimum number of holders of the Series A Preferred. See &ldquo;Risk Factors.&rdquo; We do not plan on applying to
list any of the Warrants on any national securities exchange or any other nationally recognized trading system.</P>

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

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Passive Market Making</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In connection with
the offering, the underwriters may engage in passive market making transactions in shares of Series A Preferred or our Common Stock
on the Nasdaq Capital Market in accordance with Rule&nbsp;103 of Regulation&nbsp;M under the Exchange Act during the period before
the commencement of offers or sales of securities in this offering and extending through the completion of distribution. A passive
market maker must display its bids at a price not in excess of the highest independent bid of the security. However, if all independent
bids are lowered below the passive market maker&rsquo;s bid, that bid must be lowered when specified purchase limits are exceeded.</P>

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

<!-- Field: Page; Sequence: 53; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Price Stabilization, Short Positions
and Penalty Bids</B></P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">In connection with
the offering, the representatives, on behalf of the underwriters, may purchase and sell the securities offered hereby in the open
market. These transactions may include short sales, syndicate covering transactions and stabilizing transactions. Short sales involve
syndicate sales of securities in excess of the number of securities to be purchased by the underwriters in the offering, which
creates a syndicate short position. &ldquo;Covered&rdquo; short sales are sales of securities made in an amount up to the number
of Units represented by the underwriters&rsquo; over-allotment option. In determining the source of securities to close out the
covered syndicate short position, the underwriters will consider, among other things, the price securities available for purchase
in the open market as compared to the price at which they may purchase our securities through the over-allotment option. Transactions
to close out the covered syndicate short position involve either purchases of securities in the open market after the distribution
has been completed or the exercise of the over-allotment option. The underwriters may also make &ldquo;naked&rdquo; short sales
of our securities in excess of the over-allotment option. The underwriters must close out any naked short position by purchasing
our securities in the open market. A naked short position is more likely to be created if the underwriters are concerned that there
may be downward pressure on the price of our securities in the open market after pricing that could adversely affect investors
who purchase in the offering. Stabilizing transactions consist of bids for or purchases of securities in the open market while
the offering is in progress.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The underwriters also
may impose a penalty bid. Penalty bids permit the underwriters to reclaim a selling concession from a syndicate member when a representative
repurchases securities originally sold by that syndicate member in order to cover syndicate short positions or make stabilizing
purchases.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Any of these activities
may have the effect of preventing or retarding a decline in the market price of our stock. They may also cause the price of shares
of Series A Preferred or our Common Stock to be higher than the price that would otherwise exist in the open market in the absence
of these transactions. The underwriters may conduct these transactions on the NASDAQ Global Select Market or in the over- the-counter
market, or otherwise. If the underwriters commence any of these transactions, they may discontinue them at any time.</P>

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

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Additional Relationships and Conflict
of Interest</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The underwriters and
their affiliates may, from time to time in the future, engage in transactions with and perform services for us in the ordinary
course of their business. In the ordinary course of their various business activities, the underwriters and their respective affiliates
may make or hold a broad array of investments in us and actively trade in our debt and equity securities (or related derivative
and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time
hold long and short positions in such securities and instruments.</P>

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

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Electronic Distribution</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">This prospectus and
the accompanying prospectus in electronic format may be made available on the websites maintained by one or more of the underwriters.
The underwriters may agree to allocate a number of Units for sale to their online brokerage account holders. Unit will be allocated
to underwriters that may make Internet distributions on the same basis as other allocations. In addition, Units may be sold by
the underwriters to securities dealers who resell such Units to online brokerage account holders.</P>

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

<!-- Field: Page; Sequence: 54; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Other than this prospectus
and the accompanying prospectus in electronic format, information contained in any website maintained by an underwriter is not
part of this prospectus or the accompanying prospectus or registration statement of which the accompanying prospectus forms a part,
has not been endorsed by us and should not be relied on by investors in deciding whether to purchase our securities. The underwriters
are not responsible for information contained in websites that they do not maintain.</P>

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

<P STYLE="font: 10pt/11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Indemnification</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We have agreed to
indemnify the underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the
 &ldquo;Securities Act&rdquo;), or to contribute to payments the underwriters may be required to make because of any of those liabilities.</P>

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><B>Offer Restrictions Outside the
United States</B></P>

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

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

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Selling Restrictions</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">This prospectus
does not constitute an approved prospectus under Directive 2003/71/EC and no such prospectus is intended to be prepared and approved
in connection with this offering. Accordingly, in relation to each Member State of the European Economic Area which has implemented
Directive 2003/71/EC (each, a &ldquo;Relevant Member State&rdquo;) an offer to the public of any securities which are the subject
of the offering contemplated by this prospectus may not be made in that Relevant Member State except that an offer to the public
in that Relevant Member State of any securities may be made at any time under the following exemptions under the Prospectus Directive,
if and to the extent that they have been implemented in that Relevant Member State:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(a)</TD><TD STYLE="text-align: justify">to any legal entity which is a qualified investor as defined in the Prospectus Directive;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;
</FONT>to fewer than 100 or, if the Relevant Member State has implemented the relevant provision of the 2010 PD Amending Directive,
150, natural or legal persons (other than qualified investors as defined in the Prospectus Directive), subject to obtaining the
prior consent of the representatives of the underwriters for any such offer; or</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(c)</TD><TD STYLE="text-align: justify">in any other circumstances which do not require any person to publish a prospectus pursuant to
Article 3 of the Prospectus Directive.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">For the purposes of this
provision, the expression an &ldquo;offer to the public&rdquo; in relation to any 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 any securities to be offered
so as to enable an investor to decide to purchase any securities, as the expression may be varied in that Member State by any measure
implementing the Prospectus Directive in that Member State and the expression &ldquo;Prospectus Directive&rdquo; means Directive
2003/71/EC (and any amendments thereto including the 2010 PD Amending Directive to the extent implemented in each Relevant Member
State) and includes any relevant implementing measure in each Relevant Member State and the expression &ldquo;2010 PD Amending
Directive&rdquo; means Directive 2010/73/EU.</P>

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

<!-- Field: Page; Sequence: 55; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">This prospectus is not
an approved prospectus for purposes of the UK Prospectus Rules, as implemented under the EU Prospectus Directive (2003/71/EC),
and have not been approved under section 21 of the Financial Services and Markets Act 2000 (as amended) (the &ldquo;FSMA&rdquo;)
by a person authorized under FSMA. The financial promotions contained in this prospectus are directed at, and this prospectus is
only being distributed to, (1)&nbsp;persons who receive this prospectus outside of the United Kingdom, and (2)&nbsp;persons in
the United Kingdom who fall within the exemptions under articles 19 (investment professionals) and 49(2)(a) to (d) (high net worth
companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (all
such persons together being referred to as &ldquo;Relevant Persons&rdquo;). This prospectus must not be acted upon or relied upon
by any person who is not a Relevant Person. Any investment or investment activity to which this prospectus relates is available
only to Relevant Persons and will be engaged in only with Relevant Persons. This prospectus and its contents are confidential and
should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person that is
not a Relevant Person.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The underwriter
has represented, warranted and agreed that:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(a)</TD><TD STYLE="text-align: justify">it has only communicated or caused to be communicated and will only communicate or cause to be
communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) in connection
with the issue or sale of any of the shares of common stock in circumstances in which section 21(1) of the FSMA does not apply
to the issuer; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(b)</TD><TD STYLE="text-align: justify">it has complied with and will comply with all applicable provisions of the FSMA with respect to
anything done by it in relation to the shares of common stock in, from or otherwise involving the United Kingdom.</TD></TR></TABLE>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="l"></A>Legal
Matters</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The validity of
the securities offered hereby will be passed upon by Olshan Frome Wolosky LLP, New York, New York. Pryor Cashman LLP, New York,
New York, is counsel for the Underwriters in connection with this offering.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="m"></A>Experts</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Cherry Bekaert LLP,
our independent registered public accounting firm, has audited our consolidated financial statements as of December 31, 2019 and
2018, and for the years then ended, contained in our Annual Report on Form 10-K for the year ended December 31, 2019. These financial
statements are incorporated by reference in this prospectus and elsewhere in this registration statement. Such financial statements
are incorporated by reference in reliance on their reports given upon their authority as experts in auditing and accounting.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="n"></A>Where
You Can Find More Information</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We have filed with
the SEC a registration statement on Form S-1, including exhibits and schedules, under the Securities Act with respect to the securities
to be sold pursuant to this prospectus. This prospectus does not contain all the information contained in the registration statement.
For additional information with respect to the Company and the securities that may be sold pursuant to this prospectus, we refer
you to the registration statement and the exhibits and schedules attached to the registration statement. Statements contained in
this prospectus as to the contents of any contract, agreement or other document referred to are not necessarily complete. When
we make such statements, we refer you to the copies of the contracts or documents that are filed as exhibits to the registration
statement because those statements are qualified in all respects by reference to those exhibits.</P>

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

<!-- Field: Page; Sequence: 56; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">We are also subject
to the informational requirements of the Exchange Act. In accordance with the Exchange Act, we file periodic reports, proxy and
information statements and other information with the SEC. Our filings with the SEC are available to the public over the Internet
at the SEC&rsquo;s website at www.sec.gov. You may also request copies of such documents, upon payment of a duplicating fee, by
writing to the SEC at 100 F Street, N.E., Washington, D.C. 20549. You may also find documents we filed on our website at www.remarkholdings.com.
Information contained in or accessible through our website does not constitute a part of this prospectus.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-transform: uppercase; text-align: center; text-indent: 0in"><A NAME="o"></A>INFORMATION
INCORPORATED BY REFERENCE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The SEC allows us
to incorporate by reference information contained in documents we file with it, which means that we can disclose important information
to you by referring you to those documents already on file with the SEC that contain that information. The information incorporated
by reference is considered to be part of this prospectus, and later information that we file with the SEC will automatically update
and supersede this information. We incorporate by reference the documents listed below and any future information filed (rather
than furnished) with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act between the date of this prospectus and
the termination of the offering of the securities covered by this prospectus, provided, however, that we are not incorporating
any information furnished under any of Item 2.02 or Item 7.01 of any Current Report on Form 8-K (and exhibits filed on such form
that are related to such items):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify">Our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC
on <A HREF="http://www.sec.gov/ix?doc=/Archives/edgar/data/1368365/000136836520000028/mark2019form10-k.htm" STYLE="-sec-extract: exhibit">May 29, 2020</A>;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify">Our Quarterly Report on Form 10-Q for the fiscal period ended March 31, 2020, filed with the SEC
on <A HREF="http://www.sec.gov/ix?doc=/Archives/edgar/data/1368365/000136836520000042/mark31mar202010q.htm" STYLE="-sec-extract: exhibit">July 6, 2020</A>; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify">Our Current Reports on Form 8-K filed with the SEC on <A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000003/mark_formx8-kxlistingrules.htm" STYLE="-sec-extract: exhibit">January 6, 2020</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000005/mark_formx8-kx2020xaspirex.htm" STYLE="-sec-extract: exhibit">March 4, 2020</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000009/mark_formx8-kx2020xaspirex.htm" STYLE="-sec-extract: exhibit">March 6, 2020</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000011/mark_formx8-kxmggxaccelera.htm" STYLE="-sec-extract: exhibit">March 20, 2020</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000014/mark_formx8-kxextensionxof.htm" STYLE="-sec-extract: exhibit">March 27, 2020</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000016/mark_formx8-kxaspireamendm.htm" STYLE="-sec-extract: exhibit">April 14, 2020</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000021/mark_formx8-kxextensionxof.htm" STYLE="-sec-extract: exhibit">May 13, 2020</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000023/mark_formx8-kxnasdaqxcompl.htm" STYLE="-sec-extract: exhibit">May 26, 2020</A> and <A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000025/markform8-kearningsrel.htm" STYLE="-sec-extract: exhibit">May 28, 2020</A>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">Upon written or oral request,
we will provide at no cost to the requester a copy of all of the information that has been incorporated by reference in this prospectus
but not delivered with this prospectus. You may obtain copies of these documents from us, excluding the exhibits to such filings
which we have not specifically incorporated by reference in such filings, at no cost, by requesting them in writing or by telephone
at the following address:</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">800 S. Commerce Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Las Vegas, NV 89106</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(702) 701-9514</P>

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

<!-- Field: Page; Sequence: 57; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: center"><BR>
600,000 Shares of 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: center"><B>[&bull;] Warrants to Purchase up to
[&bull;] Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><B>(and [&bull;] Shares of Common Stock
Issuable Upon Exercise of Warrants)</B></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><BR>
<BR>
REMARK HOLDINGS, INC.<BR>
<BR>
PROSPECTUS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">[&bull;], 2020</P>

<!-- Field: Page; Sequence: 58; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">PART II<BR>
<BR>
INFORMATION NOT REQUIRED IN PROSPECTUS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0pt">Item 13. Other Expenses of Issuance and Distribution.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify">The following table
sets forth the fees and expenses payable by the registrant in connection with the issuance and distribution of the securities
being registered. All of the amounts shown are estimates, except for the SEC registration fee:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 70%; text-align: left">SEC registration fee</TD><TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 18%; text-align: right">3,358.58</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">FINRA filing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Transfer agent fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Printing expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Miscellaneous fees and expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 10pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3,358.58</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><B>Item 14. Indemnification of Directors
and Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-weight: normal">Our
Charter provides that, to the fullest extent permitted by the DGCL, our directors shall not be personally liable to us or our stockholders
for monetary damages for breach of fiduciary duty as a director. Each of our Charter and Bylaws also provide as follows:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-weight: normal">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-weight: normal">The Company shall indemnify any person who was or is a party
or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the Company) by reason of the fact that the person
is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including
attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection
with such action, suit or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in,
or not opposed to, the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable
cause to believe the person&rsquo;s conduct was unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the
person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests
of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that the person&rsquo;s
conduct was unlawful.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-weight: normal">(b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-weight: normal">The Company shall indemnify any person who was or is a party
or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company to
procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee or agent of the Company,
or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise against expenses (including attorneys&rsquo; fees) actually and reasonably incurred by
the person in connection with the defense or settlement of such action or suit if the person acted in good faith and in a manner
the person reasonably believed to be in or not opposed to the best interests of the Company and except that no indemnification
shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company
unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was
brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the
case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court
shall deem proper.</FONT></TD></TR></TABLE>

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

<!-- Field: Page; Sequence: 59; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-weight: normal">(c)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-weight: normal">To the extent that a present or former director or officer of
the Company has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in sections
(a) and (b) above, or in defense of any claim, issue or matter therein, such person shall be indemnified against expenses (including
attorneys&rsquo; fees) actually and reasonably incurred by such person in connection therewith.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-weight: normal">(d)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-weight: normal">Any indemnification under sections (a) and (b) above (unless
ordered by a court) shall be made by the Company only as authorized in the specific case upon a determination that indemnification
of the present or former director, officer, employee or agent is proper in the circumstances because the person has met the applicable
standard of conduct set forth in sections (a) and (b) above. Such determination shall be made, with respect to a person who is
a director or officer at the time of such determination, (i) by a majority vote of the directors who are not parties to such action,
suit or proceeding, even though less than a quorum, or (ii) by a committee of such directors designated by majority vote of such
directors, even though less than a quorum, or (iii) if there are no such directors, or if such directors so direct, by independent
legal counsel in a written opinion, or (iv) by the stockholders of the Company.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-weight: normal">We
have obtained liability insurance covering our directors and executive officers for claims asserted against them or incurred by
them in such capacity.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Item 15. Recent Sales of Unregistered
Securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-weight: normal">During
the past three years, we sold the following securities without registration under the Securities Act:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-weight: normal">On January 23, 2017 and March 16, 2017, we issued a total of
290,000 and 92,308 shares, respectively, of our Common Stock to accredited investors in private placements in exchange for $1.0
million and $0.3 million, respectively. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">On September 5, 2017, we issued a total of 751,880 shares of our Common Stock to an accredited
investor in a private placement in exchange for $2.0 million.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-weight: normal">On November 13, 2017, we sold 142,857 shares to an accredited
investor in a private placement for $0.5 million. On December 20, 2017, we sold 833,334 shares to Charoen Pokphand Group in a private
placement for $10.0 million.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">On November 2, 2018, we sold 200,000 shares to an accredited investor in a private placement for
$0.5 million. On December 4, 2018, we sold an aggregate of 2,384,616 shares to accredited investors in private placements for an
aggregate of $3.1 million.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol; font-weight: normal">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-weight: normal">On June 19, 2019, we issued 1,250,000 shares of our Common Stock
to an accredited investor in a private placement in exchange for $1.0 million.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">On September 13, 2019, we issued 2,300,000 shares of our Common Stock to an accredited investor
in a private placement in exchange for $1.8 million.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">On December 23, 2019, we issued 1,000,000 shares of our Common Stock to an accredited investor
in a private placement in exchange for $0.5 million.</TD></TR></TABLE>

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

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

<!-- Field: Page; Sequence: 60; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0pt; text-align: justify"><FONT STYLE="font-weight: normal">We
made the offers and sales of securities in the above-described private placements in reliance upon an exemption from registration
requirements pursuant to Section 4(a)(2) under the Securities Act, as amended, based upon representations made to us by the investors
in purchase agreements we entered into with the investors.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt">Item 16. Exhibits and Financial Statement Schedules</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: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="border-bottom: black 1.5pt solid; padding: 1.5pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 1.5pt"><B>Incorporated Herein</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 1.5pt"><B>By Reference To</B></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid; padding: 1.5pt; width: 9%; text-align: center; text-indent: 1.5pt"><FONT STYLE="font-size: 10pt"><B>Exhibit Number</B></FONT></TD>
    <TD STYLE="padding: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; padding: 1.5pt; width: 58%; text-align: center"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD>
    <TD STYLE="padding: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; padding: 1.5pt; width: 10%; text-align: center; text-indent: 1.5pt"><FONT STYLE="font-size: 10pt"><B>Document</B></FONT></TD>
    <TD STYLE="padding: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; padding: 1.5pt; width: 10%; text-align: center; text-indent: 1.5pt"><FONT STYLE="font-size: 10pt"><B>Filed On</B></FONT></TD>
    <TD STYLE="padding: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; padding: 1.5pt; width: 9%; text-align: center; text-indent: 1.5pt"><FONT STYLE="font-size: 10pt"><B>Exhibit Number</B></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">1.1 <SUP>*</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">Underwriting Agreement</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">2.1 <SUP>1</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000141588915002814/ex21to8k09196001_08182015.htm" STYLE="-sec-extract: exhibit">Unit Purchase Agreement, dated August 18, 2015, by and among Remark Media, Inc. (n/k/a Remark Holdings, Inc.), Vegas.com, LLC and the sellers listed on the signature page thereto</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">08/20/2015</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">2.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">2.2 <SUP>1</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836516000063/ex21secondamendedcbgassets.htm" STYLE="-sec-extract: exhibit">Second Amended and Restated Asset and Securities Purchase Agreement, dated as September 20, 2016, by and among China Branding Group Limited (in official liquidation), certain of its managers and subsidiaries listed on the signature page thereto, the joint official liquidators, KanKan Limited and Remark Media, Inc. (n/k/a Remark Holdings, Inc.)</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">09/26/2016</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">2.1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">2.3 <SUP>1</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000119380519000308/ex21to8k09196029_03182019.htm" STYLE="-sec-extract: exhibit">Membership Interest Purchase Agreement, dated as of March 15, 2019, by and between VDC-MGG Holdings LLC and Remark Holdings, Inc.</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">03/19/2019</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">2.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000092189514002749/ex31to8k09196001_12232014.htm" STYLE="-sec-extract: exhibit">Amended and Restated Certificate of Incorporation</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">12/30/2014</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">3.1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">3.2</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836516000034/ex31certificateofamendment.htm" STYLE="-sec-extract: exhibit">Certificate of Amendment to the Amended and Restated Certificate of Incorporation</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">01/12/2016</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">3.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">3.3</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836516000050/ex31certificateofamendment.htm" STYLE="-sec-extract: exhibit">Certificate of Amendment to the Amended and Restated Certificate of Incorporation</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">06/08/2016</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">3.1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">3.4</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836517000017/ex31certificateofamendment.htm" STYLE="-sec-extract: exhibit">Certificate of Amendment to the Amended and Restated Certificate of Incorporation</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">04/11/2017</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">3.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">3.6</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000092189515000331/ex31to8k09196001_02112015.htm" STYLE="-sec-extract: exhibit">Amended and Restated Bylaws</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">02/13/2015</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">3.1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">4.1</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836512000036/exhibit_4-1.htm" STYLE="-sec-extract: exhibit">Specimen certificate of common stock of Remark Media, Inc. (n/k/a Remark Holdings, Inc.)</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">10-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">03/23/2012</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">4.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">4.2</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000092189515002158/ex104to8k09196003_09242015.htm" STYLE="-sec-extract: exhibit">Registration Rights Agreement dated as of September 24, 2015 by and between Remark Media, Inc. (n/k/a Remark Holdings, Inc.) and the Subscribers listed on the signature page thereto</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">09/28/2015</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">10.4</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">4.3</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836516000063/ex41formofcbgacquisitionwa.htm" STYLE="-sec-extract: exhibit">Form of CBG Acquisition Warrant</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">09/26/2016</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">4.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">4.4</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836516000063/ex42formofcbgfinancingwarr.htm" STYLE="-sec-extract: exhibit">Form of CBG Financing Warrant</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">09/26/2016</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">4.2</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">4.5</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000005/ex41rra_03mar20.htm" STYLE="-sec-extract: exhibit">Registration Rights Agreement, dated as of March 3, 2020, by and between Remark Holdings, Inc. and Aspire Capital Fund, LLC</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">03/04/2020</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">4.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">4.6</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000028/mark31dec2019ex46.htm" STYLE="-sec-extract: exhibit">Description of Registrant&rsquo;s Securities</A></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">10-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">05/29/2020</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">4.6</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">4.7<SUP>*</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">Certificate of Designations of 9.5% Series A Cumulative
    Redeemable Perpetual Preferred Stock</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="color: #000000">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">4.8<SUP>*</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">Form of Warrant to Purchase Common Stock</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="color: #000000">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">5.1<SUP>*</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">Opinion of Olshan Frome Wolosky LLP</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="color: #000000">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">10.1&nbsp;<SUP>2</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836510000023/exhibit_10-34.htm" STYLE="-sec-extract: exhibit">2010 Equity Incentive Plan</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">06/21/2010</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">10.34</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">10.2&nbsp;<SUP>2</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836516000034/ex101amended2014incentivep.htm" STYLE="-sec-extract: exhibit">2014 Incentive Plan, as amended January 11, 2016</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">01/12/2016</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt; color: #000000">10.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000">10.3&nbsp;<SUP>2</SUP></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: #000000">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: #000000"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836518000006/ex1012017incentiveplan.htm" STYLE="-sec-extract: exhibit">2017 Incentive Plan</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">01/24/2018</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">10.1</FONT></TD></TR>
</TABLE>

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

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

<!-- Field: Page; Sequence: 61; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt; width: 9%"><FONT STYLE="font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; width: 58%"><FONT STYLE="font-size: 10pt; color: Black"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000092189515002158/ex101to8k09196003_09242015.htm" STYLE="-sec-extract: exhibit">Letter Agreement dated September 24, 2015 by and among Remark Media, Inc. (n/k/a Remark Holdings, Inc.), Vegas.com, LLC, and James B. Gibson in his capacity as Seller Representative</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom; width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center; width: 10%"><FONT STYLE="font-size: 10pt; color: Black">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom; width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center; width: 10%"><FONT STYLE="font-size: 10pt; color: Black">09/28/2015</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom; width: 1%"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt; text-align: center; width: 9%"><FONT STYLE="font-size: 10pt; color: Black">10.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: Black">10.5</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom"><FONT STYLE="color: Black">&nbsp;</FONT></TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt; color: Black"><U STYLE="text-decoration: none"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836516000063/ex102registrationrightsagr.htm" STYLE="-sec-extract: exhibit">Registration Rights Agreement dated as of September 20, 2016, by and between Remark Media, Inc. (n/k/a Remark Holdings, Inc.) and the Subscribers listed on the signature page thereto</A></U></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">8-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">09/26/2016</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">10.2</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">21.1</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1368365/000136836520000028/mark31dec2019ex211.htm" STYLE="-sec-extract: exhibit">List of Subsidiaries</A></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">10-K</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">05/29/2020</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center"><FONT STYLE="font-size: 10pt">21.1</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">23.1</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt"><A HREF="e619790_ex23-1.htm" STYLE="-sec-extract: exhibit">Consent of Cherry Bekaert LLP</A></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">23.2*</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">Consent of Olshan Frome Wolosky LLP (included in Exhibit 5.1)</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt">24.1</FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt"><FONT STYLE="font-size: 10pt"><A HREF="#poa">Power of Attorney (included on signature page)</A></FONT></TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">_____________</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0">* To be filed by amendment.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0"><SUP>1</SUP> We have omitted certain schedules and exhibits
to these agreements in accordance with item 601(b)(2) of Regulation S-K. We will furnish a copy of any omitted schedule and/or
exhibit to the SEC upon request.</P>

<P STYLE="font: 10pt/12pt Times New Roman, Times, Serif; margin: 0 0 12pt"><SUP>2</SUP> Management contract or compensation plan
or arrangement.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Item 17. Undertakings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The undersigned registrant hereby undertakes:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(a)</TD><TD>The undersigned registrant hereby undertakes:</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(1)</TD><TD>To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">to reflect in the prospectus any facts or events arising after the effective date of the registration
statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume
of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation
from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement;
and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">to include any material information with respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such information in the registration statement.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(2)</TD><TD STYLE="text-align: justify">That, for the purpose of determining any liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</TD></TR></TABLE>

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

<!-- Field: Page; Sequence: 62; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(3)</TD><TD STYLE="text-align: justify">To remove from registration by means of a post-effective amendment any of the securities being
registered which remain unsold at the termination of the offering.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(5)</TD><TD STYLE="text-align: justify">That, for the purpose of determining liability of the registrant under the Securities Act of 1933
to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other
than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to
be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that
no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated
or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will,
as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement or made in any such document immediately prior
to such date of first use.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">(6)</TD><TD STYLE="text-align: justify">That, for the purpose of determining liability of the registrant under the Securities Act of 1933
to any purchaser in the initial distribution of the securities:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify">The undersigned registrant undertakes
that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the
underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means
of any of the following communications, the undersigned registrant shall be a seller to the purchaser and shall be considered to
offer or sell such securities to such purchaser:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(i)</TD><TD STYLE="text-align: justify">Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering
required to be filed pursuant to Rule 424;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(ii)</TD><TD STYLE="text-align: justify">Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned
registrant or used or referred to by the undersigned registrant;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iii)</TD><TD STYLE="text-align: justify">The portion of any other free writing prospectus relating to the offering containing material information
about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in">(iv)</TD><TD STYLE="text-align: justify">Any other communication that is an offer in the offering made by the undersigned registrant to
the purchaser.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(b)</TD><TD STYLE="text-align: justify">The undersigned registrant hereby undertakes that, for purposes of determining any liability under
the Securities Act of 1933, each filing of the registrant&rsquo;s annual report pursuant to section 13(a) or section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan&rsquo;s annual report pursuant
to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall
be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">(h)</TD><TD STYLE="text-align: justify">Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted
to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the 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.</TD></TR></TABLE>

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

<!-- Field: Page; Sequence: 63; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt; text-align: right; font-size: 8pt"><A HREF="#toc">Table of Contents</A></P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">SIGNATURES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Pursuant to the requirements of Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Las Vegas, State of Nevada, on the 20<SUP>th</SUP> day of July, 2020.</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="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><B>REMARK HOLDINGS, INC.</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">By:</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ Kai-Shing Tao</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 46%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 8%; padding-right: 5.4pt; padding-left: 5.4pt">Name:</TD>
    <TD STYLE="width: 41%; padding-right: 5.4pt; padding-left: 5.4pt">Kai-Shing Tao</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Title:</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Chairman and Chief Executive Officer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">(principal executive, financial and accounting officer)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"><A NAME="poa"></A>POWER OF ATTORNEY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Each of the undersigned officers and
directors of Remark Holdings, Inc. hereby constitutes and appoints Kai-Shing Tao, and each of them any of whom may act without
joinder of the other, the individual&rsquo;s true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution,
for the person and in his or her name, place and stead, in any and all capacities, to sign this registration statement on Form
S-1, and any other registration statement relating to the same offering (including any registration statement, or amendment thereto,
that is to become effective upon filing pursuant to Rule 462(b) under the Securities Act of 1933, as amended), and any and all
amendments thereto (including post-effective amendments to the registration statement), and to file the same, with all exhibits
thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to
be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming all that said attorneys-in-fact and agents or any of them, or their substitute or substitutes, may lawfully do or
cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Pursuant to the requirements of the
Securities Act of 1933, this registration statement has been signed below by the following persons in the capacities and on the
dates indicated.</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%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Name and
        Signature</B></P></TD>
    <TD STYLE="width: 47%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Title</B></P></TD>
    <TD STYLE="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Date</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ Kai-Shing Tao</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Chief Executive Officer and Chairman</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">July 20, 2020</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Kai-Shing Tao</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">(principal executive, financial and accounting officer)</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ Theodore Botts</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Director</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">July 20, 2020</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Theodore Botts</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ Brett Ratner</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Director</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">July 20, 2020</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Brett Ratner</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ Daniel Stein</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Director</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">July 20, 2020</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Daniel Stein</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="border-bottom: Black 0.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ Elizabeth Xu</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Director</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">July 20, 2020</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">Elizabeth Xu</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="border-bottom: Black 1pt solid; text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">60</P>



</P>


</P>


</BODY>
</HTML>
[{"type": "S-1", "sequence": "1", "filename": "s109196037_07202020.htm", "secsgml_size_bytes": 512063}]
{"company-data": {"conformed-name": "REMARK HOLDINGS, INC.", "cik": "0001368365", "assigned-sic": "4899", "irs-number": "331135689", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-239944", "film-number": "201035153"}, "business-address": {"street1": "800 S COMMERCE ST", "city": "LAS VEGAS", "state": "NV", "zip": "89106", "phone": "7027019514"}, "mail-address": {"street1": "800 S COMMERCE ST", "city": "LAS VEGAS", "state": "NV", "zip": "89106"}, "former-company": [{"former-conformed-name": "Remark Media, Inc.", "date-changed": "20120103"}, {"former-conformed-name": "HSW International, Inc.", "date-changed": "20060706"}]}
As filed with the Securities and Exchange
Commission on July 20, 2020.
Registration No. 333-____________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
REMARK HOLDINGS, INC.
(Exact name of registrant as specified in
its charter)
Delaware
4899
33-1135689
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
800 S. Commerce Street
Las Vegas, NV 89106
702-701-9514
(Address, including zip code and telephone number,
including area code, of registrant's principal executive offices)
With a copy to:
Robert H. Friedman, Esq.
Olshan Frome Wolosky LLP
1325 Avenue of the Americas
New York, NY 10019
Telephone: (212) 451-2300
M. Ali Panjwani, Esq.
Pryor Cashman LLP
7 Times Square
New York, NY 10036
Telephone: (212) 421-4100
(Name, address, including zip code and telephone
number, including area code, of agent for service)
Approximate date of commencement
of proposed sale to the public:
As soon as practicable after the effective date of this registration statement.
If any of the securities being registered
on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the
following box.
ý
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, 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
ý
Smaller reporting company
ý
Emerging growth company
¨
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
¨
CALCULATION OF REGISTRATION FEE
Title of
        Each Class of Securities to be Registered
Amount
        to be Registered
Proposed
        Maximum Offering Price per Security
Proposed
        Maximum Aggregate Offering Price
Amount
        of Registration Fee
(1)
Units consisting of:
(2)(3)
(i)	Series A Cumulative Redeemable Perpetual Preferred Stock par value $0.001 per share
690,000
$
25.00
$
17,250,000
$
2,239.05
(ii)	Warrants to purchase shares of common stock, par value $0.001 per share
(4)
[
•
]
--
--
--
Shares of common stock, par value $0.001 per share, issuable upon exercise of the Warrants
(3)
[
•
]
[
•
]
$
8,625,000
$
1,119.53
Total
[
•
]
$
[
•
]
$
25,875,000
$
3,358.58
(1)
Calculated pursuant to Rule 457(a) under the Securities Act of 1933, as amended (the "Securities
Act"), based on an estimate of the proposed maximum aggregate offering price.
(2)
The number of Units includes [•] shares to cover the exercise of the over-allotment option
granted to the underwriters.
(3)
We are issuing [•] Warrants (the "Warrants") each exercisable to purchase [•]
shares of our common stock, par value $0.001 ("Common Stock") as part of the units offered hereunder (the "Units").
Each Unit consists of: (i) one share of 9.5% Series A Preferred Cumulative Redeemable Perpetual Preferred Stock ("Series
A Preferred"); and (ii) [•] Warrants. The Warrants are exercisable for a period of five years from the date of issuance
to purchase [•] shares of Common Stock at a price of $[•] per share.
(4)
In accordance with Rule 457(i) promulgated under the Securities Act, because the shares of our
common stock underlying the 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 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.
Subject
to completion, dated july
20,
2020
PRELIMINARY PROSPECTUS
REMARK HOLDINGS, INC.
600,000 Shares of 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock
[•] Warrants to Purchase up to
[•] Shares of Common Stock
(and [•] Shares of Common Stock
Issuable Upon Exercise of Warrants)
We are
offering a total of 600,000 units (each a "Unit" and collectively, the "Units"), each Unit consisting
of: (i) one share of our 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock (the "Series A Preferred"),
and (ii) one warrant (each, a "Warrant" and collectively, the "Warrants") exercisable for [•] shares
of our common stock, par value $0.001 per share ("Common Stock" or "Warrants Shares"), at an exercise
price of $[•] (the "Exercise Price") per Warrant Share. This prospectus also covers up to [•] shares of
Common Stock issuable upon conversion of the Warrants.
The Units will be
sold for a purchase price equal to $25.00 per Unit. Units will not be issued or certificated. The shares of Series A Preferred
Stock and the Warrants are immediately separable and will be issued separately. Subject to certain ownership limitations, each
Warrant is immediately exercisable on the date of issuance and will expire on the fifth anniversary of the date of issuance (the
 "Warrant Expiration Date").
For a more detailed
description of the Series A Preferred, see the section entitled "Description of Offered Securities—Series A Preferred."
For a more detailed description of the Warrants, see the section entitled "Description of Offered Securities—Warrants."
Prior to this offering,
there has been no public market for the Units, the Series A Preferred or the Warrants. We anticipate that upon the Securities and
Exchange Commission (the "SEC") declaring the registration statement effective, and Financial Industry Regulatory Authority,
Inc. ("FINRA") approving the symbol we requested for the shares of Series A Preferred, that the Series A Preferred
will initially be subject to quotation and trading on The Nasdaq Stock Market LLC ("Nasdaq"), of which there can be
no assurance, under the symbol "MARKP." Our common stock, par value $0.001 per share ("Common Stock") is
listed on the Nasdaq Capital Market under the ticker symbol MARK. We do not intend the list the Warrants on any national securities
exchange or any other nationally recognized trading system.
Per Unit
Total
Public offering price
$
$
Underwriting discounts and commissions
(1)
$
$
Proceeds, before expenses, to us
$
$
Investing
in our securities involves a high degree of risk. You should purchase these securities only if you can afford a complete loss
of your investment. See "Risk Factors" beginning on page 10 of this prospectus. You should carefully consider
these risk factors, as well as the information contained in this prospectus, before purchasing any of the securities offered
by this prospectus.
We
have granted the underwriters an option for a period of 45 days to purchase an additional 90,000 Units. If the underwriters exercise
the option in full, the total underwriting discounts and commissions payable by us will be $[•], and the total proceeds to
us, before expenses, will be $[•].
NEITHER THE SECURITIES
AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE
ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The underwriters expect
to deliver the shares of Series A Preferred and the Warrants to purchasers on or about [•], 2020.
Joint Book-Running Managers
Roth Capital Partners
The Benchmark Company
The date of this prospectus is [•],
2020
TABLE OF CONTENTS
Page
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
1
Prospectus Summary
2
The Offering
3
Risk Factors
10
Use of Proceeds
27
DETERMINATION OF OFFERING PRICE
27
Capitalization
28
DESCRIPTION OF CAPITAL STOCK
29
Description of Offered Securities
30
CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS
40
UNDERWRITING
48
Legal Matters
52
Experts
52
Where You Can Find More Information
52
INFORMATION INCORPORATED BY REFERENCE
53
You should rely only on the information
contained or incorporated into this prospectus. 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.
We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give
you. This prospectus is an offer to sell only the securities offered hereby, 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. You should also read
this prospectus together with the additional information described under "
Additional Information
" and "
Information
Incorporated by Reference
."
Unless the context otherwise requires,
we use the terms "we," "us," "the Company" and "our" to refer to Remark Holdings,
Inc. and its consolidated subsidiaries.
i
Table of Contents
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
The information included or incorporated
by reference in this prospectus contains "forward-looking statements" about our plans, strategies, objectives, goals
or expectations. You will find forward-looking statements principally in the sections entitled "Prospectus Summary"
and "Risk Factors". These forward-looking statements are identifiable by words or phrases indicating that we or our
management "expects," "anticipates," "plans," "believes," or "estimates,"
or that a particular occurrence or event "will," "may," "could," "should," or "will
likely" result, occur or be pursued or "continue" in the future, that the "outlook" or "trend"
is toward a particular result or occurrence, that a development is an "opportunity," "priority," "strategy,"
 "focus," that we are "positioned" for a particular result, or similarly stated expectations. Undue reliance
should not be placed on these forward-looking statements, which speak only as of the date of this prospectus, other report, release,
presentation, or statement.
In addition to other risks and uncertainties
described in connection with the forward-looking statements contained in this prospectus and other periodic reports filed with
the SEC, there are many important factors that could cause actual results to differ materially. Such risks and uncertainties include
general business conditions, changes in overall economic conditions, our ability to integrate acquired assets, the impact of competition
and other factors which are often beyond our control.
This should not be construed as a complete
list of all of the economic, competitive, governmental, technological and other factors that could adversely affect our expected
consolidated financial position, results of operations or liquidity. Additional risks and uncertainties not currently known to
us or that we currently believe are immaterial also may impair our business, operations, liquidity, financial condition and prospects.
We undertake no obligation to update or revise our forward-looking statements to reflect developments that occur or information
that we obtain after the date of this prospectus.
1
Table of Contents
Prospectus
Summary
This prospectus summary contains
an overview of the information from this prospectus, but may not contain all of the information that is important to you. This
prospectus includes specific terms of the offering, information about our business, and financial data. We encourage you to read
this prospectus, including the "Risk Factors" section beginning on page 10, in its entirety before making an investing
decision. You should read this prospectus together with additional information described below under the heading "Where You
Can Find Additional Information." As used in this prospectus, the terms "we," "us," and "our"
refer to Remark Holdings, Inc. and subsidiaries, which include our consolidated variable-interest entities ("VIEs"),
unless the context indicates a different meaning.
Our Business
We
are primarily technology-focused. Our KanKan data intelligence platform serves as the basis for our development and deployment
of artificial-intelligence-based ("AI-based") solutions for businesses in many industries and geographies. We also
own and operate an e-commerce digital media property focused on a luxury beach lifestyle.
We
were originally incorporated in Delaware in March 2006 as HSW International, Inc., we changed our name to Remark Media, Inc. in
December 2011, and as our business continued to evolve, we changed our name to Remark Holdings, Inc. in April 2017.
Our
Common Stock is listed on the Nasdaq Capital Market under the ticker symbol MARK. Our website is
www.remarkholdings.com
.
The information contained on, or that can be accessed through, our website is not a part of this prospectus.
Our Address
Our principal executive offices are
located at 800 S. Commerce Street, Las Vegas, NV 89106, and our telephone number is (702) 701-9514.
Before you invest in any of the securities
offered hereby, you should carefully consider all the information in this prospectus, including matters set forth under the heading
"Risk Factors."
2
Table of Contents
The
Offering
The following summary contains basic
terms about this offering and the securities we are offering and is not intended to be complete. It may not contain all of the
information that is important to you. You should read the more detailed information contained in this prospectus, including but
not limited to, the risk factors beginning on page 10. For a more complete description of the terms of the securities we are offering,
see "Description of Capital Stock" and "Description of the Securities Offered." Reference is also made
to the Certificate of Designations of 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock, which is filed as Exhibit
4.7 to the registration statement of which this prospectus is a part (the "Series A Certificate of Designations") and
the form of Warrant to Purchase Common Stock, which is filed as Exhibit 4.8 to the registration statement of which this prospectus
is a part.
Issuer
Remark Holdings, Inc.
Securities Offered
600,000 Units, each Unit consisting of (i) one share of 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock and (ii) one Warrant exercisable for [•] shares of Common Stock at an exercise price of $[•] per Warrant Share (690,000 Units if the underwriters exercise in full their option to purchase additional Units). Units will not be issued or certificated. The shares of Series A Preferred and the Warrants are immediately separable and will be issued separately.
Offering Price
$25.00 per Unit.
Description of Series A Preferred Stock:
Dividends
Holders of shares of the Series A Preferred are entitled to receive, when, as and if declared by our board of directors (the "Board'), out of funds legally available for the payment of dividends, cumulative cash dividends at a rate of 9.5% per annum of the $25.00 per liquidation preference (equivalent to $2.375 per annum per share). All accrued dividends on the Series A Preferred shall be paid in cash only when, as and if declared by the Board out of funds, legally available therefor or upon a liquidation or redemption of the Series A Preferred.
Dividends on our Series A Preferred
        accrue daily and will be cumulative, from, and including, the date of original issue and payable on the 15
th
day of
        each calendar month (each such date, a "Dividend Payment Date"), provided that if any Dividend Payment Date is not
        a business day, then the dividend that would otherwise have been payable on that Dividend Payment Date may be paid on the next
        succeeding business day and no interest, additional dividends or other sums will accrue on the amount so payable for the period
        from and after that Dividend Payment Date to the next succeeding business day.
Dividends will be payable to holders
        of record as they appear in our stock records for the Series A Preferred at the close of business on the corresponding record date,
        which shall be the last day of the calendar month, whether or not a business day, immediately preceding the month in which the
        applicable Dividend Payment Date falls (each, a "Dividend Record Date"). As a result, holders of shares of Series A
        Preferred will not be entitled to receive dividends on a Dividend Payment Date if such shares were not issued and outstanding on
        the applicable Dividend Record Date. The first dividend on our Series A Preferred sold in this offering is payable on [•],
        2020 (in the amount of $0.1979 per share) to holders of record of the Series A Preferred at the close of business on [•],
        2020.
3
Table of Contents
Any dividend payable on the Series A Preferred, including dividends payable for any partial dividend period, will be computed on the basis of a 360-day year consisting of twelve 30-day months. Holders of shares of Series A Preferred offered hereby will be entitled to receive the full amount of all dividends payable on the Series A Preferred from the Dividend Payment Date immediately preceding the date of issuance of the Series A Preferred offered hereby.
No Maturity, Sinking Fund or Mandatory Redemption
The Series A Preferred has no maturity date, and we are not required to redeem the Series A Preferred. Accordingly, the Series A Preferred will remain outstanding indefinitely unless we decide to redeem it pursuant to our optional redemption right or special optional redemption right in connection with a Change of Control (as defined below). We are not required to set aside funds to redeem the Series A Preferred.
Optional Redemption
The Series A Preferred may be redeemed in whole or in part, at our option, any time on or after [•], 2023, upon not less than 30 days nor more than 60 days' written notice by mail prior to the date fixed for redemption thereof, for cash at a redemption price equal to $25.00 per share of Series A Preferred, plus any accumulated and unpaid dividends to, but not including, the redemption date. See the section entitled "Description of the Series A Preferred—Redemption—Optional Redemption" for further details.
Special Optional Redemption
Upon the occurrence of a Change of Control, we may redeem the shares of Series A Preferred, at our option, in whole or in part, within 120 days of any such Change of Control, for cash at $25.00 per share of Series A Preferred, plus accumulated and unpaid dividends (whether or not declared) to, but excluding, the redemption date.
4
Table of Contents
A "Change of Control" is
        deemed to occur when, after the original issuance of the Series A Preferred, the following have occurred and are continuing:
·
the
acquisition by any person, including any syndicate or group deemed to be a "person" under Section 13(d)(3) of the
Securities Exchange Act of 1934 (the "Exchange Act") of beneficial ownership, directly or indirectly, through a purchase,
merger or other acquisition transaction or series of purchases, mergers or other acquisition transactions shall have acquired
our stock entitling that person to exercise more than 50% of the total voting power of all our stock entitled to vote generally
in the election of our directors (except that such person will be deemed to have beneficial ownership of all securities that such
person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent
condition); and
·
following
the closing of any transaction referred to in the bullet point above, neither the Company nor the acquiring or surviving entity
has a class of common equity securities (or American Depositary Receipts representing such securities) listed on the NYSE, the
NYSE American LLC or the Nasdaq Stock Market, or listed or quoted on an exchange or quotation system that is a successor to the
NYSE, the NYSE American LLC or the Nasdaq Stock Market.
Liquidation Preference
If we liquidate, dissolve or wind up, holders of the Series A Preferred will have the right to receive $25.00 per share, plus any accumulated and unpaid dividends to, but not including, the date of payment, before any payment is made to the holders of our Common Stock. Please see the section entitled "Description of the Series A Preferred— Liquidation Preference."
Ranking
The Series A Preferred will rank, with respect to rights to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding up, (1) senior to all classes or series of our Common Stock and to all other equity securities issued by us other than equity securities referred to in clauses (2) and (3); (2) on a parity with all equity securities issued by us with terms specifically providing that those equity securities rank on a parity with the Series A Preferred with respect to rights to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding up; (3) junior to all equity securities issued by us with terms specifically providing that those equity securities rank senior to the Series A Preferred with respect to rights to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding up, including any other series of Preferred Stock; and (4) junior to all of our existing and future indebtedness. See "Description of the Series A Preferred—Ranking" for further information.
5
Table of Contents
Limited Voting Rights
Holders of Series A Preferred will have
        no voting rights, except as set forth below or as otherwise required by law.
Except as expressly stated in the Series
        A Certificate of Designations or as may be required by applicable law, the Series A Preferred does not bestow any relative, participating,
        optional or other special voting rights or powers, and the consent of the holders thereof shall not be required for the taking
        of any corporate action.
Please see the section entitled "Description
        of the Series A Preferred—Voting Rights" and the Series A Certificate of Designations.
Description of Warrants
The Warrants will have an exercise price of $[•] per Warrant Share, will be immediately exercisable and will expire on the fifth anniversary of the date of issuance. This prospectus also relates to the offering of shares of Common Stock issuable upon exercise of the Warrants.
Shares of Common Stock Underlying the Warrants
[•] shares.
Common Stock outstanding before this offering
99,408,916 shares.
Common Stock to be outstanding after this offering
[•] shares (assuming the exercise of all Warrants issued in this offering).
Trading Market
Our Common Stock is listed on the Nasdaq Capital Market under the ticker symbol MARK. We anticipate that upon the SEC declaring the registration statement effective, and FINRA approving the symbol we requested for the shares of Series A Preferred, that the Series A Preferred will initially be subject to quotation and trading on Nasdaq, of which there can be no assurance, under the symbol "MARKP." We do not intend to list the Warrants on any national securities exchange or any other nationally recognized trading system.
Use of Proceeds
We intend to use the net proceeds from this offering for general corporate purposes, which may include working capital, acquisitions and capital expenditures. See "Use of Proceeds" below for more information.
Risk Factors
Investing in our securities
    involves a high degree of risk. You should carefully consider the risks described under the section entitled "Risk
    Factors" beginning on page 10 for a discussion of some of the factors you should carefully consider before deciding to
    invest in our securities.
Certain U.S. Federal Income Tax Considerations
For a discussion of the U.S. federal income tax consequences of purchasing, owning and disposing of the Series A Preferred and the Warrants, please see the section entitled "Certain U.S. Federal Income Tax Considerations." You should consult your independent tax advisor with respect to the U.S. federal income tax consequences of owning the Series A Preferred in light of your own particular situation and with respect to any tax consequences arising under the laws of any other taxing jurisdiction.
6
Table of Contents
Form
The Series A Preferred and the Warrants will
        be represented by one or more global certificates in definitive, fully registered form deposited with a custodian for, and registered
        in the name of, a nominee of The Depository Trust Company ("DTC").
Settlement
Delivery of the Series A Preferred and the Warrants offered hereby will be made against payment therefor through book-entry facilities of the DTC.
7
Table of Contents
Summary
Selected Condensed Consolidated Financial Information
The following summary selected condensed consolidated
financial information as of and for the years ended December 31, 2019 and 2018 have been derived from our audited financial statements.
The financial information as of and for the three months ended March 31, 2020 and 2019 is derived from our unaudited condensed
consolidated financial statements. The condensed consolidated financial information set forth below should be read in conjunction
with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the financial
statements and notes thereto included in our Quarterly Report on Form 10-Q for the fiscal period ended March 31, 2020 and our Annual
Report on Form 10-K for the fiscal year ended December 31, 2019, each of which is incorporated by reference into this prospectus.
The results indicated below and elsewhere in this prospectus are not necessarily indicative of our future performance.
Summary Balance Sheet Information
March 31, 2020
December 31, 2019
December 31, 2018
(dollars in thousands)
Cash and cash equivalents
$
1,617
$
272
$
1,410
Total assets
11,996
14,827
93,808
Total Debt
14,931
15,025
38,314
Total liabilities
37,267
42,555
106,932
Total stockholders' deficit
(25,271)
(27,728
)
(13,124
)
In
the table above, the balance sheet information as of December 31, 2018 contains assets of a disposal group totaling $73,119 and
liabilities of a disposal group totaling $41,682.
8
Table of Contents
Summary Statement of Operations and Comprehensive Income Information
Three Months
    Ended March 31,
Year Ended  December
    31,
2020
2019
2019
2018
(unaudited)
(unaudited)
(audited)
(audited)
(dollars in thousands, except per share amounts)
Revenue
$
431
$
1,209
$
5,020
$
10,053
Operating loss from continuing operations
(3,484
)
(5,855
)
22,754
(44,500
)
Total other income (expense), net
1,061
(1,874
)
(250
)
25,795
Loss from continuing operations
$
(2,423
)
$
(7,729
)
$
(23,004
)
$
(18,565
)
Loss from discontinued operations
—
(1,123
)
(2,610
)
(2,993
)
Net loss
$
(2,423
)
$
(8,852
)
$
(25,614
)
$
(21,558
)
Comprehensive loss
$
(2,241
)
$
(8,946
)
$
(25,873
)
$
(21,641
)
Weighted-average shares outstanding, basic and diluted
53,775
39,258
44,432
39,053
Net loss per share, basic and diluted
Continuing operations
$
(0.05
)
$
(0.20
)
$
(0.52
)
$
(0.48
)
Discontinued operations
—
(0.03
)
(0.06
)
(0.07
)
Consolidated
$
(0.05
)
$
(0.23
)
$
(0.58
)
$
(0.55
)
9
Table of Contents
Risk
Factors
Investing in our securities involves
a high degree of risk. You should carefully consider and evaluate all of the information described below and in the documents incorporated
by reference into this prospectus that summarizes the risks that may materially affect our business before you decide to purchase
our securities. The risks and uncertainties described in this prospectus are not the only ones we face. Additional risks and uncertainties
that we do not presently know about or that we currently believe are not material may also adversely affect our business, business
prospects, results of operations or financial condition. Any of the risks and uncertainties set forth herein, as updated by annual,
quarterly and other reports and documents that we file with the SEC and incorporated by reference into this prospectus, could materially
and adversely affect our business, results of operations and financial condition. This could cause the market price of our stock
to decline, perhaps significantly, and you may lose part or all of your investment.
Risks Related to this Offering
and Ownership of the Securities Offered Hereby
The Series A Preferred ranks junior to all of
our indebtedness and other liabilities
In the event of
our bankruptcy, liquidation, dissolution or winding-up of our affairs, our assets will be available to pay obligations on the Series
A Preferred only after all of our indebtedness and other liabilities have been paid. The rights of holders of the Series A Preferred
to participate in the distribution of our assets will rank junior to the prior claims of our current and future creditors and any
future series or class of preferred stock we may issue that ranks senior to the Series A Preferred. Also, the Series A Preferred
effectively ranks junior to all our existing and future indebtedness and to the indebtedness and other liabilities of our existing
subsidiaries and any future subsidiaries. Our existing subsidiaries are, and future subsidiaries would be, separate legal entities
and have no legal obligation to pay any amounts to us in respect of dividends due on the Series A Preferred.
At March 31, 2020,
our total liabilities equaled approximately $37.3 million. If we are forced to liquidate our assets to pay our creditors, we may
not have sufficient assets to pay amounts due on any or all of the Series A Preferred then outstanding.
Any future debt
instruments we may issue may restrict the authorization, payment or setting apart of dividends on the Series A Preferred. Also,
future offerings of debt or senior equity securities may adversely affect the market price of the Series A Preferred. If we decide
to issue debt or senior equity securities in the future, it is possible that these securities will be governed by an indenture
or other instruments containing covenants restricting our operating flexibility. Additionally, any convertible or exchangeable
securities that we issue in the future may have rights, preferences and privileges more favorable than those of the Series A Preferred
and may result in dilution to owners of the Series A Preferred. We and, indirectly, our stockholders, will bear the cost of issuing
and servicing such securities. Because our decision to issue debt or equity securities in any future offering will depend on market
conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings.
The holders of the Series A Preferred will bear the risk of our future offerings, which may reduce the market price of the Series
A Preferred and will dilute the value of their holdings in us.
We must adhere to prescribed
legal requirements and also have sufficient cash in order to be able to pay dividends.
Our
ability to pay cash dividends on the Series A Preferred requires us to have either net profits or positive net assets (total assets
less total liabilities) over our capital, in order to be permitted to pay dividends under applicable provisions of the Delaware
General Corporation Law.  We cannot assure you that we will have either net profits or positive net assets over our capital.
10
Table of Contents
Further,
notwithstanding these factors, we may not have sufficient cash to pay dividends on the Series A Preferred. Our ability to pay dividends
may be impaired if any of the risks described in this prospectus, including the documents incorporated by reference herein, were
to occur. Also, payment of our dividends depends upon our financial condition and other factors as our Board may deem relevant
from time to time. We cannot assure you that our businesses will generate sufficient cash flow from operations or that future borrowings
will be available to us in an amount sufficient to enable us to make distributions on our Common Stock, if any, and preferred stock,
including the Series A Preferred to pay our indebtedness or to fund our other liquidity needs.
If our Series A Preferred
is delisted, the ability to transfer or sell shares of the Series A Preferred may be limited and the market value of the Series
A Preferred will likely be materially adversely affected.
The
Series A Preferred does not contain provisions that are intended to protect investors if our Series A Preferred is delisted from
the Nasdaq Capital Market. If our Series A Preferred is delisted from the Nasdaq Capital Market, investors' ability to transfer
or sell shares of the Series A Preferred will be limited and the market value of the Series A Preferred will likely be materially
adversely affected. Moreover, since the Series A Preferred has no stated maturity date, investors may be forced to hold shares
of the Series A Preferred indefinitely while receiving stated dividends thereon when, as and if authorized by our Board and paid
by us with no assurance as to ever receiving the liquidation value thereof.
The market for the Series
A Preferred may not provide investors with adequate liquidity.
While
we expect that the Series A Preferred will be listed on the Nasdaq Capital Market, the trading market for the Series A Preferred
may not be maintained and may not provide investors with adequate liquidity. The liquidity of the market for the Series A Preferred
depends on a number of factors, including prevailing interest rates, our financial condition and operating results, the number
of holders of the Series A Preferred, the market for similar securities and the interest of securities dealers in making a market
in the the Series A Preferred. We cannot predict the extent to which investor interest in our Company will maintain the trading
market in our securities, or how liquid that market will be. If an active market is not maintained, investors may have difficulty
selling shares of our securities.
There is no public market
for the Warrants being offered by us in this offering.
There
is no established trading market for the Warrants, and we do not expect a market to develop. We do not intend to list the Warrants
on any national securities exchange or any other nationally recognized trading system. Without an active market, the liquidity
of the Warrants will be limited.
The Warrants may not have
any value.
The
Warrants will be immediately exercisable and expire on the fifth anniversary of the date of issuance. The warrants will have an
initial exercise price per Warrant Share of $[•]. In the event that the price of our Common Stock does not exceed the exercise
price of the Warrants during the period when the Warrants are exercisable, the Warrants may not have any value.
Future issuances of our
securities may reduce the value of the Series A Preferred and the Common Stock.
Upon
the completion of this offering, we may sell additional shares of preferred stock, including shares of Series A Preferred, or other
securities on terms that may differ from those described in this prospectus. Such shares could rank on parity with or, subject
to the voting rights of the Series A Preferred Stock, senior to the Series A Preferred or Common Stock offered hereby as to distribution
rights or rights upon liquidation, winding up or dissolution. The subsequent issuance of additional shares of Series A Preferred,
or the creation and subsequent issuance of additional classes of preferred stock on parity with the Series A Preferred, could dilute
the interests of the holders of Series A Preferred offered hereby. Any issuance of preferred stock that is senior to the Series
A Preferred would not only dilute the interests of the holders of Series A Preferred offered hereby, but also could affect our
ability to pay distributions on, redeem or pay the liquidation preference on the Series A Preferred.
11
Table of Contents
In
addition, sales of a substantial number of shares of our Common Stock or other securities in the public markets, or the perception
that these sales may occur, could cause the market price of our Common Stock to decline and could materially impair our ability
to raise capital through the sale of additional securities. The shares of Common Stock issuable upon exercise of the Warrants sold
in this offering will be immediately freely tradable, without restriction, in the public market. The sale of a large number of
shares of our Common Stock also might make it more difficult for us to sell equity or equity-related securities in the future at
a time and at the prices that we deem appropriate.
Market interest rates may
materially and adversely affect the value of the Series A Preferred.
One
of the factors that influences the price of the Series A Preferred is the dividend yield on the Series A Preferred (as a percentage
of the market price of the Series A Preferred) relative to market interest rates. Continued increase in market interest rates,
which are currently at low levels relative to historical rates, may lead prospective purchasers of the Series A Preferred to expect
a higher dividend yield (and higher interest rates would likely increase our borrowing costs and potentially decrease funds available
for dividend payments). Thus, higher market interest rates could cause the market price of the Series A Preferred to materially
decrease.
Our ability to use our net
operating loss carryforwards may be limited and may be further diminished as a result of the Offering.
As
of December 31, 2019, we had net operating loss carryforwards ("NOLs") of $38.0 million. Our ability to fully utilize
our NOLs can be adversely affected by "ownership changes" within the meaning of Section 382 of the Internal Revenue
Code of 1986, as amended (the "Code'), in a three-year period. Any ownership change is generally defined as a greater
than 50% increase in equity ownership by "5% stockholders," as that term is defined for purposes of Section 382 of
the Code in any three-year period. Although we have not completed a full analysis under Section 382 since 2014, equity financings
and other transactions that have occurred since then may have resulted in an ownership change as defined in Section 382, thereby
significantly reducing our ability to utilize our NOLs. Further, as a result of this Offering, our ability to utilize our NOLs
may be further diminished.
Our revenues, operating
results and cash flows may fluctuate in future periods, and we may fail to meet investor expectations, which may cause the price
of our Series A Preferred to decline.
Variations
in our quarterly and year-end operating results are difficult to predict, and our income and cash flows may fluctuate significantly
from period to period. If our operating results fall below the expectations of investors or securities analysts, the price of our
Series A Preferred could decline substantially. Specific factors that may cause fluctuations in our operating results include:
·
demand and pricing for our products;
·
the impact of the COVID-19 pandemic;
·
competition;
·
fluctuations in our operating expenses due
to growth of our business; and
·
general business conditions.
12
Table of Contents
The Series A Preferred represents
perpetual equity interests in us, and investors should not expect us to redeem the Series A Preferred on the date the Series A
Preferred becomes redeemable by us or on any particular date afterwards.
The
Series A Preferred represents perpetual equity interests in us, and it has no maturity or mandatory redemption date and are not
redeemable at the option of investors under any circumstances. As a result, the Series A Preferred will not give rise to a claim
for payment of a principal amount at a particular date. As a result, holders of the Series A Preferred may be required to bear
the financial risks of an investment in the Series A Preferred for an indefinite period of time. In addition, the Series A Preferred
will rank junior to all our current and future indebtedness and other liabilities. The Series A Preferred will also rank junior
to any other senior securities we may issue in the future with respect to assets available to satisfy claims against us.
The market price of the
Series A Preferred and the Common Stock could be substantially affected by various factors.
The market price
of the Series A Preferred and the Common Stock could be subject to wide fluctuations in response to numerous factors. The price
of the Series A Preferred and the Common Stock that will prevail in the market after this offering may be higher or lower than
the offering price depending on many factors, some of which are beyond our control and may not be directly related to our operating
performance.
These factors include,
but are not limited to, the following:
·
prevailing interest rates, increases in which may have an adverse effect on the market price of
the Series A Preferred;
·
trading prices of similar securities;
·
our history of timely dividend payments;
·
the annual yield from dividends on the Series A Preferred as compared to yields on other financial
instruments;
·
general economic and financial market conditions;
·
government action or regulation;
·
the financial condition, performance and prospects of us and our competitors;
·
changes in financial estimates or recommendations by securities analysts with respect to us or
our competitors in our industry;
·
our issuance of additional preferred equity or debt securities; and
·
actual or anticipated variations in quarterly operating results of us and our competitors.
As a result of these
and other factors, investors who purchase securities in this offering may experience a decrease, which could be substantial and
rapid, in the market price of the Series A Preferred and the Common Stock, including decreases unrelated to our operating performance
or prospects.
A holder of Series A Preferred
has extremely limited voting rights.
The voting rights
for a holder of Series A Preferred are limited. Our shares of Common Stock are the only class of our securities that carry full
voting rights. Voting rights for holders of the Series A Preferred exist primarily with respect to voting on amendments to our
Charter, including the Series A Certificate of Designations that materially and adversely affect the rights of the holders of Series
A Preferred or authorize, increase or create additional classes or series of our capital stock that are senior to the Series A
Preferred. Other than the limited circumstances described in the prospectus and except to the extent required by law, holders of
Series A Preferred do not have any voting rights. See "Description of Offered Securities—Series A Preferred—Voting
Rights."
13
Table of Contents
Holders of our Warrants
will have no rights as a common stockholder until they acquire our Common Stock.
Until
you acquire shares of our Common Stock upon exercise of your Warrants, you will have no rights with respect to our Common Stock.
Upon exercise of your Warrants, you will be entitled to exercise the rights of a common stockholder only as to matters for which
the record date occurs after the exercise date.
We have broad discretion
in the use of the net proceeds of this offering and may not use them effectively.
We intend to use
the net proceeds from this offering for general corporate purposes, which may include working capital, acquisitions and capital
expenditures. We have not allocated any specific portion of the net proceeds to any particular purpose, and our management will
have the discretion to allocate the proceeds as it determines. We will have significant flexibility and broad discretion in applying
the net proceeds of this offering. Our management might not be able to yield a significant return, if any, on any investment of
these net proceeds, and you will not have the opportunity to influence our decisions on how to use our net proceeds from this offering.
Risks Related to our Business and
Industry
The artificial intelligence market
is new and unproven, and it may decline or experience limited growth, which would adversely affect our ability to fully realize
the potential of our AI platform.
The artificial intelligence
market is relatively new and unproven and is subject to a number of risks and uncertainties. We believe that our future success
will depend in large part on the growth and acceptance of this market. The utilization of our platform by customers is still relatively
new, and customers may not recognize the need for, or benefits of, our platform, which may prompt them to decide to adopt alternative
products and services to satisfy their cognitive computing search and analytics requirements. Our ability to expand the market
that our platform addresses depends upon a number of factors, including the cost, performance and perceived value of our platform.
Market opportunity estimates are subject to significant uncertainty and are based on assumptions and estimates, including our internal
analysis and industry experience. Assessing the market for our AI-based products in each of the vertical markets we compete in,
or plan to compete in, is particularly difficult due to a number of factors, including limited available information and rapid
evolution of the market. As a result, we may experience significant reduction in demand for our products and services due to lack
of customer acceptance, technological challenges, competing products and services, decreases in spending by current and prospective
customers, weakening economic conditions and other causes. If our market does not experience significant growth, or if demand for
our AI-based products decreases, then our business, results of operations and financial condition will be adversely affected.
Laws and regulations concerning
data privacy are continually evolving. Failure to comply with these laws and regulations could harm our business.
Portions
of our business, primarily our AI solutions, are subject to certain privacy and data protection laws in the U.S and internationally.
Our failure to comply with existing privacy or data protection laws and regulations could increase our costs, force us to change
or limit the features of our AI software or result in proceedings or litigation against us by governmental authorities or others,
any or all of which could result in significant fines or judgments against us, result in damage to our reputation, and result
in negative effects on our financial condition and results of operations. Even if concerns raised by regulators, the media, or
consumers about our privacy and data protection or consumer protection practices are unfounded, we could suffer damage to our
reputation that causes significant negative effects on our financial condition and results of operations.
14
Table of Contents
Privacy
and data protection laws are rapidly changing and likely will continue to do so for the foreseeable future, which could have an
impact on how we develop and customize our AI products and software. In the U.S., the California Consumer Privacy Act became effective
on January 1, 2020 and applies to processing of personal information of California residents. Other states, including Nevada,
have enacted or are considering similar privacy or data protection laws that may apply to us. The U.S. government, including the
Federal Trade Commission and the Department of Commerce, also continue to review the need for greater or different regulation
over the collection of personal information and information about consumer behavior on the Internet and on mobile devices, and
the U.S. Congress is considering a number of legislative proposals to regulate in this area. Various government and consumer agencies
worldwide have also called for new regulation and changes in industry practices. For example, the European Union ("EU")
General Data Protection Regulation ("GDPR") became effective on May 25, 2018. GDPR would apply to us should we expand
our AI business into member countries of the EU. Violations of the GDPR may result in significant penalties, and countries in
the EU are still enacting national laws that correspond to certain portions of the GDPR.
The
growth and development of AI may prompt calls for more stringent consumer privacy protection laws that may impose additional burdens
on companies such as ours. Any such changes would require us to devote legal and other resources to address such regulation.
Our continuous access to publicly-available
data and to data from partners may be restricted, disrupted or terminated, which would restrict our ability to develop new products
and services, or to improve existing products and services, which are based upon our AI platform.
The success of our
AI-based solutions depends substantially on our ability to continuously ingest and process large amounts of data available in the
public domain and provided by our partners, and any interruption to our free access to such publicly-available data or to the data
we obtain from our partners will restrict our ability to develop new products and services, or to improve existing products and
services. While we have not encountered any significant disruption of such access to date, there is no guarantee that this trend
will continue without costs. Public data sources may change their policies to restrict access or implement procedures to make it
more difficult or costly for us to maintain access, and partners could decide to terminate our existing agreements with them. If
we no longer have free access to public data, or access to data from our partners, our ability to maintain or improve existing
products, or to develop new AI-based solutions may be severely limited. Furthermore, we may be forced to pay significant fees to
public data sources or to partners to maintain access, which would adversely affect our financial condition and results of operations.
Our
AI software and our application software are highly technical and run on very sophisticated third-party hardware platforms. If
such software or hardware contains undetected errors, our AI solutions may not perform properly and our business could be adversely
affected.
Our AI-based solutions
and internal systems rely on software, including software developed or maintained internally and(or) by third parties, that is
highly technical and complex. In addition, our AI-based solutions and internal systems depend on the ability of such software to
store, retrieve, process, and manage immense amounts of data. The software on which we rely has contained, and may now or in the
future contain, undetected errors, bugs, or vulnerabilities. Some errors may only be discovered after the AI-based solution or
application software has been released for external or internal use. Errors or other design defects within the software on which
we rely may result in a negative experience for our customers, delay product introductions or enhancements, result in measurement
or billing errors, or compromise our ability to protect our customers' data and(or) our intellectual property. Any errors,
bugs, or defects discovered in the software on which we rely could result in damage to our reputation, loss of users, loss of revenue,
or liability for damages, any of which could adversely affect our business and financial results.
15
Table of Contents
The successful operation of our
AI platform will depend upon the performance and reliability of the Internet infrastructure in China.
The successful operation
of KanKan will depend on the performance and reliability of the Internet infrastructure in China. Almost all access to the Internet
is maintained through state-owned telecommunication operators under the administrative control and regulatory supervision of the
Ministry of Industry and Information Technology of China. In addition, the national networks in China are connected to the Internet
through state-owned international gateways, which are the only channels through which a domestic user can connect to the Internet
outside of China. We may not have access to alternative networks in the event of disruptions, failures or other problems with China's
Internet infrastructure. In addition, the Internet infrastructure in China may not support the demands associated with continued
growth in Internet usage.
The failure of telecommunications
network operators to provide us with the requisite bandwidth could also interfere with the speed and availability of KanKan. We
have no control over the costs of the services provided by the national telecommunications operators. If the prices that we pay
for telecommunications and Internet services rise significantly, our gross margins could be adversely affected. In addition, if
Internet access fees or other charges to Internet users increase, our user traffic may decrease, which in turn may cause a decrease
in our revenues.
Delays in collecting
amounts receivable arising from our KanKan business in China could negatively impact our results of operations and cash flows.
Generally, Chinese
entities tend to pay their vendors on longer timelines than the timelines typically observed in U.S. commerce, while contracts
in China can lack the specificity regarding timing of collection that current accounting rules in the U.S. require to record revenue
from contracts with customers. The combination of longer collection times and lack of contract specificity regarding timing of
collection could result in higher amounts of bad debt expense, less revenue recorded in any particular period and mismatches between
the timing of our cash needs and the timing of our cash inflows that could negatively affect our reported results of operations
and harm relationships with our vendors, which in turn could harm our business.
If the Chinese government deems
that the contractual arrangements in relation to our variable interest entities ("VIEs") do not comply with its restrictions
on foreign investment, or if Chinese regulations or the interpretation of existing regulations changes in the future, we could
be subject to penalties or be forced to relinquish our interests in our China operations.
Various regulations
in China restrict or prohibit wholly foreign-owned enterprises from operating in specified industries such as Internet information,
financial services, Internet access and certain other industries. In order to comply with Chinese regulatory requirements, we conduct
certain of our operations in China through contractual arrangements with our VIEs, which are incorporated in China and owned by
members of our management team. These contractual arrangements are intended to give us effective control over each of the VIEs
and enable us to receive substantially all of the economic benefits arising from the VIEs as well as consolidate the financial
results of the VIEs in our results of operations. We expect that an increased amount of our revenue will be generated through our
VIEs. Although the VIE structure we have adopted is consistent with longstanding industry practice, and has been adopted by comparable
companies in China, there are substantial uncertainties regarding the interpretation and application of Chinese laws and regulations,
and there can be no assurance that the Chinese government would agree that these contractual arrangements comply with China's
licensing, registration or other regulatory requirements, with existing policies or with requirements or policies that may be adopted
in the future. Chinese laws and regulations governing the validity of these contractual arrangements are uncertain and the relevant
government authorities have broad discretion in interpreting these laws and regulations.
16
Table of Contents
If the VIE structure
is deemed by Chinese regulators having competent authority to be illegal, either in whole or in part, we may lose control of our
VIEs and have to modify such structure to comply with regulatory requirements. However, there can be no assurance that we could
achieve this without material disruption to our business. Further, if the VIE structure is found to be in violation of any existing
or future Chinese laws or regulations, the relevant regulatory authorities would have broad discretion in dealing with such violations.
Furthermore, new Chinese laws, rules and regulations may be introduced to impose additional requirements that may be applicable
to our contractual arrangements with our VIEs. Occurrence of any of these events could materially and adversely affect our business,
financial condition and results of operations.
Our contractual arrangements may
not be as effective in providing control over the VIEs as direct ownership.
Because we are restricted
or prohibited by the Chinese government from owning certain Internet operations in China, we are dependent on our VIEs, in which
we have no direct ownership interest, to provide our FinTech and AI-based products and services through contractual arrangements
among the parties and to hold some of our assets. These contractual arrangements may not be as effective in providing control over
our operations as direct ownership of these businesses. For example, if we had direct ownership of our VIEs, we would be able to
exercise our rights as a shareholder to effect changes in their boards of directors, which in turn could effect changes at the
management level. Due to our VIE structure, we have to rely on contractual rights to effect control and management of our VIEs,
which exposes us to the risk of potential breach of contract by the VIEs or their shareholders. In addition, as each of our VIEs
is jointly owned by its shareholders, it may be difficult for us to change our corporate structure if such shareholders refuse
to cooperate with us. In addition, some of our subsidiaries and VIEs could fail to take actions required for our business. Furthermore,
if the shareholders of any of our VIEs were involved in proceedings that had an adverse impact on their shareholder interests in
such VIE or on our ability to enforce relevant contracts related to the VIE structure, our business would be adversely affected.
Any failure by our VIEs or their
shareholders to perform their obligations under the contractual arrangements would have a material adverse effect on our business,
financial condition and results of operations.
If our VIEs or their
shareholders fail to perform their respective obligations under the contractual arrangements, we may have to incur substantial
costs and expend additional resources to enforce the arrangements. We have also entered into equity pledge agreements with respect
to each VIE to secure certain obligations of such variable interest entity or its shareholders to us under the contractual arrangements.
However, the enforcement of these agreements through arbitration or judicial agencies may be costly and time-consuming and will
be subject to uncertainties in China's legal system. Moreover, our remedies under the equity pledge agreements are primarily
intended to help us collect debts owed to us by the VIEs or the VIEs' shareholders under the contractual arrangements and
may not help us in acquiring the assets or equity of the VIEs.
17
Table of Contents
The contractual arrangements with
our VIEs may be subject to scrutiny by China's tax authorities. Any adjustment of related party transaction pricing could
lead to additional taxes, and therefore substantially reduce our consolidated net income and the value of your investment.
The tax regime in
China is rapidly evolving and there is significant uncertainty for Chinese taxpayers as Chinese tax laws may be interpreted in
significantly different ways. China's tax authorities may assert that we or the VIEs or their shareholders are required to
pay additional taxes on previous or future revenue or income. In particular, under applicable Chinese laws, rules and regulations,
arrangements and transactions among related parties, such as the contractual arrangements with our VIEs, may be subject to audit
or challenge by China's tax authorities. If China's tax authorities determine that any contractual arrangements were
not entered into on an arm's length basis and therefore constitute a favorable transfer pricing, the China tax liabilities
of the relevant subsidiaries, VIEs or VIE shareholders could be increased, which could increase our overall tax liabilities. In
addition, China's tax authorities may impose interest on late payments. Our net income may be materially reduced if our tax
liabilities increase. It is uncertain whether any new China laws, rules or regulations relating to VIE structures will be adopted
or, if adopted, what they would provide.
If we or any of
our VIEs are found to be in violation of any existing or future China laws, rules or regulations, or if we fail to obtain or maintain
any of the required permits or approvals, the relevant China regulatory authorities would have broad discretion to take action
in dealing with these violations or failures, including revoking the business and operating licenses of our China subsidiaries
or the VIEs, requiring us to discontinue or restrict our operations, restricting our right to collect revenue, blocking one or
more of our websites, requiring us to restructure our operations or taking other regulatory or enforcement actions against us.
The imposition of any of these measures could result in a material adverse effect on our ability to conduct all or any portion
of our business operations. In addition, it is unclear what impact Chinese government actions would have on us and on our ability
to consolidate the financial results of any of our VIEs in our consolidated financial statements, if China's governmental
authorities were to find our legal structure and contractual arrangements to be in violation of China laws, rules and regulations.
If the imposition of any governmental actions causes us to lose our right to direct the activities of any of our material VIEs
or otherwise separate from any of these entities, and if we are not able to restructure our ownership structure and operations
in a satisfactory manner, we would no longer be able to consolidate the financial results of our VIEs in our consolidated financial
statements. Any of these events would have a material adverse effect on our business, financial condition and results of operations.
The shareholders, directors and
executive officers of the VIEs may have potential conflicts of interest with us.
Our VIEs are owned
by members of our management team. In addition, these individuals are also directors and officers of the VIEs. Chinese laws provide
that a director and an executive officer owe a fiduciary duty to the company he or she directs or manages. The directors and executive
officers of the VIEs must therefore act in good faith and in the best interests of the VIEs, and must not use their respective
positions for personal gain. These laws, however, do not require them to consider the best interests of Remark when making decisions
as a director or member of the management of the VIEs. Conflicts may arise between these individuals' fiduciary duties as
directors and officers of the VIEs and Remark.
Conflicts of interest
may also arise due to the individuals' roles as shareholders of the VIEs and their duties as our employees. The shareholders
of the VIEs may breach, or cause the VIEs to breach, the VIE contracts. As a result, we might have to rely on legal or arbitral
proceedings to enforce our contractual rights. Any failure by our VIEs or their shareholders to perform their obligations under
the contractual arrangements would have a material adverse effect on our business, financial condition and results of operations.
18
Table of Contents
Our business operations may be harmed
by the recent coronavirus outbreak.
Our business operations
may be harmed by the effects of the recent global outbreak of a novel strain of coronavirus, COVID-19. We maintain significant
operations in China relating to our KanKan business. In an effort to halt the outbreak of COVID-19, national and local governmental
authorities in China placed significant restrictions on travel and other activities within China, leading to extended business
closures. These restrictions and business closures have limited our operational capabilities, which could have a material impact
on our business.
The virus has also spread
rapidly across the globe, including the U.S. The pandemic is having an unprecedented impact on the U.S. economy as federal, state
and local governments react to this public health crisis, which has created significant uncertainties. These uncertainties include,
but are not limited to, the potential adverse effect of the pandemic on the economy, our vendors, our employees and customers and
customer sentiment in general. Continued impacts of the pandemic could materially adversely impact global economic conditions,
our business, results of operations and financial condition, including our potential to conduct financings on terms acceptable
to us, if at all, and may require significant actions in response, including but not limited to expense reductions or pricing discounts,
in an effort to mitigate such impacts. In addition, governmental authorities around the world have instituted measures in an effort
to control the spread of COVID-19, including travel restrictions, shelter-in-place orders, school closings, closure of non-essential
businesses and other quarantine measures, which may make it much more difficult, or temporarily or permanently impossible, for
us to provide certain products and services to our customers.
The
extent of the impact of the pandemic on our business and financial results will depend largely on future developments, including
the duration and severity of the outbreak, the length of the travel restrictions and business closures imposed by domestic and
foreign governments, the impact on capital and financial markets and the related impact on the financial circumstances of our customers,
all of which are highly uncertain and cannot be predicted. This situation is changing rapidly, and additional impacts may arise
that we are not aware of currently.
Our products and internal systems
rely on software that is highly technical, and if it contains undetected errors, our business could be adversely affected.
Our products and internal
systems rely on software, including software developed or maintained internally and/or by third parties, that is highly technical
and complex. In addition, our products and internal systems depend on the ability of such software to store, retrieve, process,
and manage immense amounts of data. The software on which we rely has contained, and may now or in the future contain, undetected
errors, bugs, or vulnerabilities. Some errors may only be discovered after the code has been released for external or internal
use. Errors or other design defects within the software on which we rely may result in a negative experience for users and marketers
who use our products, delay product introductions or enhancements, result in measurement or billing errors, or compromise our ability
to protect the data of our users and/or our intellectual property. Any errors, bugs, or defects discovered in the software on which
we rely could result in damage to our reputation, loss of users, loss of revenue, or liability for damages, any of which could
adversely affect our business and financial results.
We may be subject to liability in
China with respect to Remark Entertainment for content that is alleged to be socially destabilizing, obscene, defamatory, libelous
or otherwise unlawful.
Under the laws of
the People's Republic of China, we will be required to monitor our websites and the websites hosted on our servers and mobile
interfaces for items or content deemed to be socially destabilizing, obscene, superstitious or defamatory, as well as items, content
or services that are illegal to sell online or otherwise in other jurisdictions in which we operate, and promptly take appropriate
action with respect to such items, content or services. We may also be subject to potential liability in China for any unlawful
actions of our customers or users of our websites or mobile interfaces or for content we distribute that is deemed inappropriate.
It may be difficult to determine the type of content that may result in liability to us, and if we are found to be liable, we may
be subject to fines, have our relevant business operation licenses revoked, or be prevented from operating our websites or mobile
interfaces in China.
19
Table of Contents
Unauthorized use of our intellectual
property by third parties, and the expenses incurred in protecting our intellectual property rights, may adversely affect our business.
We regard our copyrights,
service marks, trademarks, trade secrets and other intellectual property as critical to our success. Unauthorized use of our intellectual
property by third parties may adversely affect our business and reputation. We rely on trademark and copyright law, trade secret
protection and confidentiality agreements with our employees, customers, business partners and others to protect our intellectual
property rights. Despite our precautions, it is possible for third parties to obtain and use our intellectual property without
authorization. Furthermore, the validity, enforceability and scope of protection of intellectual property in Internet related industries
are uncertain and still evolving. In particular, the laws of the People's Republic of China are uncertain or do not protect
intellectual property rights to the same extent as do the laws of the United States. Moreover, litigation may be necessary in the
future to enforce our intellectual property rights, to protect our trade secrets or to determine the validity and scope of the
proprietary rights of others. Future litigation could result in substantial costs and diversion of resources.
We may be subject to intellectual
property infringement claims, which may force us to incur substantial legal expenses and, if determined adversely against us, materially
disrupt our business.
We cannot be certain
that our brands and services will not infringe valid patents, copyrights or other intellectual property rights held by third parties.
We cannot provide assurance that we will avoid the need to defend against allegations of infringement of third-party intellectual
property rights, regardless of their merit. Intellectual property litigation is very expensive, and becoming involved in such litigation
could consume a substantial portion of our managerial and financial resources, regardless of whether we win. Substantially greater
resources may allow some of our competitors to sustain the cost of complex intellectual property litigation more effectively than
us; we may not be able to afford the cost of such litigation.
Should we suffer an
adverse outcome from intellectual property litigation, we may incur significant liabilities, we may be required to license disputed
rights from third parties, or we may have to cease using the subject technology. If we are found to infringe upon third-party intellectual
property rights, we cannot provide assurance that we would be able to obtain licenses to such intellectual property on commercially
reasonable terms, if at all, or that we could develop or obtain alternative technology. If we fail to obtain such licenses at a
reasonable cost, such failure may materially disrupt the conduct of our business, and could consume substantial resources and create
significant uncertainties. Any legal action against us or our collaborators could lead to:
·
payment of actual damages, royalties, lost profits, potentially treble damages and attorneys' fees if we are found to
have willfully infringed a third party's patent rights;
·
injunctive or other equitable relief that may effectively block our ability to further develop, commercialize and sell our
products;
·
us or our collaborators having to enter into license arrangements that may not be available on commercially acceptable terms,
if at all; or
·
significant cost and expense, as well as distraction of our management from our business.
20
Table of Contents
The negative outcomes
discussed above could adversely affect our ability to conduct business, financial condition, results of operations and cash flows.
New regulations governing AI, the
Internet and e-commerce may negatively affect our business.
Any new legislation
or regulation, or the application of existing laws and regulations to the Internet or other online services, could have a material
adverse effect on our business, prospects, and financial conditions and results of operations.
In 2013, the FTC issued
a letter reiterating the guidance it issued in 2002, which recommended that all search engine companies ensure that all paid search
results are clearly distinguished from non-paid results, that the use of paid search is clearly and conspicuously explained and
disclosed and that other disclosures are made to avoid misleading users about the possible effects of paid search listings on search
results. The adoption of laws or regulations relating to placement of paid search advertisements or user privacy, defamation or
taxation may inhibit the growth in use of the Internet, which in turn, could decrease the demand for our services and increase
our cost of doing business or otherwise have a material adverse effect on our business, prospects, financial condition and results
of operations.
We face intense competition from
larger, more established companies, and we may not be able to compete effectively, which could reduce demand for our services.
The market for the
services we offer is increasingly and intensely competitive. Nearly all our competitors have longer operating histories, larger
customer bases, greater brand recognition and significantly greater financial, marketing and other resources than we do. Our competitors
may secure more favorable revenue arrangements with advertisers, devote greater resources to marketing and promotional campaigns,
adopt more aggressive growth strategies and devote substantially more resources to website and systems development than we do.
In addition, the Internet media and advertising industries continue to experience consolidation, including the acquisitions of
companies offering travel and finance-related content and services and paid search services. Industry consolidation has resulted
in larger, more established and well-financed competitors with a greater focus. If these industry trends continue, or if we are
unable to compete in the Internet media and paid search markets, our financial results may suffer.
Additionally, larger
companies may implement policies and/or technologies into their search engines or software that make it less likely that consumers
can reach our websites and less likely that consumers will click-through on sponsored listings from our advertisers. The implementation
of such technologies could result in a decrease in our revenues. If we are unable to successfully compete against current and future
competitors, our operating results will be adversely affected.
If we do not effectively manage
our growth, our operating performance will suffer and our financial condition could be adversely affected.
Substantial future
growth will be required for us to realize our business objectives. To the extent we are capable of achieving this growth, it will
place significant demands on our managerial, operational and financial resources. Additionally, this growth will require us to
make significant capital expenditures, hire, train and manage a larger work force, and allocate valuable management resources.
We must manage any such growth through appropriate systems and controls in each of these areas. If we do not manage the growth
of our business effectively, our business, financial condition, results of operations and cash flows could be materially and adversely
affected.
21
Table of Contents
In addition,
as our business grows, our technological and network infrastructure must keep in-line with our traffic and advertiser needs. Future
demand is difficult to forecast and we may not be able to adequately handle large increases unless we spend substantial amounts
to augment our ability to handle increased traffic. Additionally, the implementation of increased network capacity contains some
execution risks and may lead to ineffectiveness or inefficiency. This could lead to a diminished experience for our consumers and
advertisers and damage our reputation and relationship with them, leading to lower marketability and negative effects on our operating
results. Moreover, the pace of innovative change in network technology is fast and if we do not keep up, we may lag behind competitors.
The costs of upgrading and improving technology could be substantial and negatively affect our business, financial condition, results
of operations and cash flows.
Risks
Relating to Our Company
We have a history of operating
losses and we may not generate sufficient revenue to support our operations.
During
the year ended December 31, 2019, and in each fiscal year since our inception, we have incurred net losses and generated negative
cash flow from operations, resulting in an accumulated deficit of $346.8 million.
We
cannot provide assurance that revenue generated from our businesses will be sufficient to sustain our operations in the long term.
We have implemented measures to reduce operating costs, and we continuously evaluate other opportunities to reduce costs further.
Additionally, we are working with our advisors to evaluate strategic alternatives, including the potential sale of certain non-core
assets, investment assets and operating businesses. We may also need to obtain additional capital through equity financing or debt
financing. Should we fail to successfully implement our plans described herein, such failure would have a material adverse effect
on our business, including the possible cessation of operations.
Conditions
in the debt and equity markets, as well as the volatility of investor sentiment regarding macroeconomic and microeconomic conditions
(including developments and volatility arising from COVID-19) will play primary roles in determining whether we can successfully
obtain additional capital. We cannot be certain that we will be successful at raising capital, whether in an equity financing,
debt financing, or by divesting of certain assets or businesses, on commercially reasonable terms, if at all. In addition, if we
obtain capital by issuing equity, such transaction(s) may dilute existing stockholders.
Expanding our international
operations involves additional risks, and our exposure to such risks increases as our business continues to expand outside of the
United States.
We
operate outside of the United States in China. China has different economic conditions, languages, currency, consumer expectations,
levels of consumer acceptance and use of the Internet for commerce, legislation, regulatory environments (including labor laws
and customs), tax laws and levels of political stability. We are subject to associated risks typical of international businesses,
including, but not limited to, the following:
·
Local economic or political instability;
·
Threatened or actual acts of terrorism;
·
Compliance with additional laws applicable
to companies operating internationally as well as local laws and regulations, including the Foreign Corrupt Practices Act, data
privacy requirements, labor and employment law, laws regarding advertisements and promotions and anti-competition regulations;
·
Diminished ability to legally enforce contractual
rights;
22
Table of Contents
·
Increased risk and limits on enforceability
of intellectual property rights;
·
Restrictions on, or adverse consequences
related to, the withdrawal of non-U.S. investment and earnings;
·
Restrictions on repatriation of cash as well
as restrictions on investments in operations;
·
Financial risk arising from transactions
in multiple currencies as well as foreign currency exchange restrictions;
·
Difficulties in managing staff and operations
due to distance, time zones, language and cultural differences; and
·
Uncertainty regarding liability for services,
content and intellectual property rights, including uncertainty as a result of local laws and lack of precedent.
Operating
our business in China exposes us to particular risks and uncertainties relating China's laws and regulations, some of which
restrict foreign investment in businesses including Internet content providers, mobile communication and related businesses. In
addition, compliance with legal, regulatory or tax requirements in multiple jurisdictions places demands on our time and resources,
and we may nonetheless experience unforeseen and potentially adverse legal, regulatory or tax consequences. In China, legal and
other regulatory requirements may prohibit or limit participation by foreign businesses, such as by making foreign ownership or
management of Internet businesses illegal or difficult, or may make direct participation in those markets uneconomic, which could
make our entry into and expansion in those markets difficult or impossible, require that we work with a local partner or result
in higher operating costs. Although we have established effective control of our Chinese business through a series of contractual
arrangements, future developments in the interpretation or enforcement of Chinese laws and regulations or a dispute relating to
these contractual arrangements could restrict our ability to operate or restructure our business or to engage in strategic transactions.
The success of our business in China, and of any future investments in China, is subject to risks and uncertainties regarding the
application, development and interpretation of China's laws and regulations. If we cannot effectively manage our China operations,
our business, results of operations and financial condition could be adversely affected.
Furthermore,
when we accumulate large amounts of cash in China, which we will consider indefinitely reinvested in our China operations, the
repatriation of such funds for use in the United States, including for corporate purposes such as acquisitions, stock repurchases,
dividends or debt refinancing, may result in additional U.S. income tax expense and higher cost for such capital.
We continue to evolve our business
strategy and develop new brands, products and services, and our future prospects are difficult to evaluate.
We are in varying
stages of development with regard to our business, including our artificial intelligence business driven by our AI platform, so
our prospects must be considered in light of the many risks, uncertainties, expenses, delays, and difficulties frequently encountered
by companies in their early stages of development. Some of such risks and difficulties include our ability to, among other things:
·
increase the number of users of our websites and mobile applications;
·
manage and implement new business strategies;
·
successfully commercialize and monetize our assets;
·
successfully attract advertisers for our owned and operated websites;
·
continue to raise additional working capital;
·
manage operating expenses;
·
establish and take advantage of strategic relationships;
·
successfully avoid diversion of management's attention or of other resources from our existing
business;
23
Table of Contents
·
successfully avoid impairment of goodwill or other intangible assets such as trademarks or other
intellectual property arising from acquisitions;
·
prevent, or successfully temper, adverse market reaction to acquisitions;
·
manage and adapt to rapidly changing and expanding operations;
·
respond effectively to competitive developments; and
·
attract, retain and motivate qualified personnel.
Because of the early
stage of development of certain of our business operations, we cannot be certain that our business strategy will be successful
or that it will successfully address the risks described or alluded to above. Any failure by us to successfully implement our new
business plans could have a material adverse effect on our business, financial condition, results of operations and cash flows.
Furthermore, growth into new areas may require changes to our cost structure, modifications to our infrastructure and exposure
to new regulatory, legal and competitive risks.
If we fail to manage
our growth, we may need to improve our operational, financial and management systems and processes which may require significant
capital expenditures and allocation of valuable management and employee resources. As we continue to grow, we must effectively
integrate, develop and motivate new employees, including employees in international markets, while maintaining the beneficial aspects
of our company culture. If we do not manage the growth of our business and operations effectively, the quality of our platform
and efficiency of our operations could suffer, which could harm our brand, results of operations and business.
We cannot assure
you that these investments will be successful or that such endeavors will result in the realization of the full benefits of synergies,
cost savings, innovation and operational efficiencies that may be possible or that we will achieve these benefits within a reasonable
period of time.
If we are not able to attract
and retain key management, we may not successfully integrate acquired assets into our existing business or achieve our other business
objectives.
We will depend upon
the contributions of our senior management, for our future business success. The loss of the service of any of the key members
of our senior management team may significantly delay or prevent the integration of acquired assets and other business objectives.
Our investment in Sharecare's
equity securities involves a substantial degree of risk.
Our investment in
Sharecare's equity securities is illiquid and might fail to appreciate and might decline in value or become worthless. Sharecare
is unlikely to pay current dividends on its equity securities, and our ability to realize a return on our investment, and recover
our investment, will be dependent on Sharecare's continued success.
Our ability to realize
the value of our investment might be limited, because it is a private company. There is no public market for Sharecare's
securities, which are subject to restrictions on resale that might prevent us from selling such securities during periods in which
it would be advantageous to do so. As a result, we might have to wait for a liquidity event, such as a public offering or the sale
of Sharecare, to realize the value of our investment, if any.
Our equity position
in Sharecare may be diluted if Sharecare issues additional equity, options, or warrants. If Sharecare makes a capital call of its
existing equity holders, our position may be diluted if we choose not to contribute additional capital.
24
Table of Contents
We could incur further asset impairment
charges for intangible assets or other long-lived assets.
We have intangible
assets and other long-lived assets, therefore future lower-than-anticipated financial performance or changes in estimates and assumptions,
which in many cases require significant judgment, could result in impairment charges. We test intangible assets that are determined
to have an indefinite life for impairment during the fourth quarter of each fiscal year, and assess whether factors or indicators,
such as unfavorable variances from established business plans, significant changes in forecasted results or volatility inherent
to external markets and industries, become apparent that would require an interim test. Adverse changes in the operating environment
and related key assumptions used to determine the fair value of our indefinite lived intangible assets or declines in the value
of our Common Stock may result in future impairment charges for a portion or all of these assets. Any further impairment charge
could have a material adverse effect on our business, financial position and results of operations, but would not be expected to
have an impact on our cash flows or liquidity.
Risks Relating to Our Common Stock
Our stock price has fluctuated considerably
and is likely to remain volatile, and various factors could negatively affect the market price or market for our Common Stock.
The trading price
of our Common Stock has been and may continue to be volatile. From January 1, 2018 through July 15, 2020, the high and low sales
prices for our Common Stock were $15.10 and $0.25, respectively. The trading price of our Common Stock may fluctuate significantly
in response to numerous factors, many of which are beyond our control, including:
·
general market and economic conditions;
·
the low trading volume and limited public market for our Common Stock;
·
minimal third-party research regarding our company; and
·
the current and anticipated future operating performance and equity valuation of Sharecare, in
which we have a significant equity investment.
In addition, the
stock market in general, and the market prices for Internet-related companies in particular, have experienced volatility that often
has been unrelated to the operating performance of such companies. Such broad market and industry fluctuations may adversely affect
the price of our stock, regardless of our operating performance.
The concentration of our stock ownership
may limit individual stockholder ability to influence corporate matters.
As of July 15, 2020,
our Chairman and Chief Executive Officer, Kai-Shing Tao, may be deemed to beneficially own 10,200,634 shares, or 9.8% of our Common
Stock. As a result of his stock ownership, Mr. Tao may be able to exert significant control over our management and affairs requiring
stockholder approval, including approval of significant corporate actions. Such concentration of ownership may have the effect
of delaying or preventing a change in control and might adversely affect the market price of our Common Stock.
A significant number of additional
shares of our Common Stock may be issued under the terms of existing securities, which issuances would substantially dilute existing
stockholders and may depress the market price of our Common Stock.
As of July 15,
2020, we had outstanding stock options allowing for the purchase of as many as approximately 10.2 million shares of Common
Stock and we had outstanding warrants to purchase approximately 6.6 million shares of Common Stock. The number of outstanding warrants
include certain of the warrants we issued as part of the consideration for our acquisition of assets of China Branding Group Limited
(the "CBG Acquisition" and such warrants, the "CBG Acquisition Warrants" and warrants we issued to affiliates
of our lenders in connection with the financing we obtained for the CBG Acquisition (the "CBG Financing Warrants"),
providing for the right to purchase 40,000 and 6,601,558 shares of Common Stock, respectively, at per-share exercise prices of
$10.00 and $1.93, respectively. We are also obligated to issue additional CBG Acquisition Warrants allowing for the purchase of
5,710,000 shares of Common Stock at a per-share exercise price of $10.00 (we have already accounted for the liability associated
with such unissued CBG Acquisition Warrants in our consolidated balance sheet as part of the line item Warrant liability). On February
21, 2018, we initiated a legal proceeding seeking, among other things, a declaration that we are not required to deliver the unissued
CBG Acquisition Warrants. The parties to the proceeding entered into a Stipulation for Settlement which sets forth terms with respect
to the issuance of such unissued CBG Acquisition Warrants. We describe the Stipulation for Settlement in more detail in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2019 (the "Form 10-K").
25
Table of Contents
The CBG Acquisition
Warrants and the CBG Financing Warrants are exercisable on a cashless basis only. As a result of the cashless exercise requirement,
neither the CBG Acquisition Warrants nor the CBG Financing Warrants can be exercised for the entire amount of shares purchasable
under the warrants, and they effectively cannot be exercised to purchase shares of Common Stock unless the applicable market value
of the Common Stock exceeds the applicable exercise price under the terms thereof.
The issuance of Common
Stock pursuant to the warrants described above would substantially dilute the proportionate ownership and voting power of existing
stockholders, and their issuance, or the possibility of their issuance, may depress the market price of our Common Stock.
We have insufficient
authorized capital stock to issue Common Stock to all of the holders of our outstanding stock options and warrants and will need
to seek stockholder approval to authorize additional shares of Common Stock in connection with the exercise of such outstanding
securities or any future equity financing transactions.
Our
Charter authorizes us to issue up to 100,000,000 shares of our Common Stock, of which 99,408,916 shares were outstanding
as of July 15, 2020
. In addition,
as of July 15, 2020
,
we had outstanding stock options allowing for the purchase of as many as approximately 10.2 million shares of Common
Stock and we had outstanding warrants to purchase approximately 6.6 million shares of Common Stock. If all of our outstanding stock
options and warrants were exercised, the total number of shares of our Common Stock that we would be required to issue would greatly
exceed the number of our remaining authorized but unissued shares of Common Stock.
As a result of such potential shortfall in the number of our authorized shares of Common Stock, we will have insufficient shares
of Common Stock available to issue in connection with the exercise of our outstanding stock options and warrants or any future
equity financing transaction we may seek to undertake. Accordingly, we intend to seek approval of an increase in the number of
our authorized shares of Common Stock at our 2020 annual meeting of stockholders. However, we cannot assure you that our stockholders
would authorize an increase in the number of shares of our Common Stock. Our failure to have a sufficient number of authorized
shares of Common Stock for issuance upon future conversion of our outstanding stock options and warrants could result in a breach
under such securities, which could adversely affect our business, financial condition, results of operations and prospects.
26
Table of Contents
Provisions in our corporate charter
documents and under Delaware law could make an acquisition of Remark more difficult, which acquisition may be beneficial to stockholders.
Provisions in our
Charter and Amended and Restated Bylaws ("Bylaws"), as well as provisions of the Delaware General Corporation Law (the
 "DGCL"), which may discourage, delay or prevent a merger with, acquisition of or other change in control of Remark,
even if such a change in control would be beneficial to our stockholders, include the following:
·
only our Board may call special meetings of our stockholders;
·
our stockholders may take action only at a meeting of our stockholders and not by written consent;
and
·
we have authorized, undesignated preferred stock, the terms of which may be established and shares
of which may be issued without stockholder approval.
Additionally, Section
203 of the DGCL prohibits a person who owns in excess of 15% of our outstanding voting stock from merging or combining with us
for a period of three years after the date of the transaction in which the person acquired in excess of 15% of our outstanding
voting stock, unless the merger or combination is approved in a prescribed manner. We have not opted out of the restriction under
Section 203, as permitted under DGCL.
Use
of Proceeds
We estimate that
the net proceeds to us from the sale of the Units in this offering will be approximately $13.8 million (assuming the over-allotment
option is not exercised), based on the public offering price of $25.00 per Unit, after deducting the total underwriting discounts
and commissions payable, excluding estimated offering expenses. This amount does not include the proceeds that we may receive in
connection with any exercise of the Warrants issued in this offering. Assuming all of the Warrants issued in this offering were
exercised in full at the exercise price of $[•] per share, we estimate that we would receive additional net proceeds of approximately
$[•]. We cannot predict when or if the Warrants will be exercised, however, and it is possible that the Warrants may expire
and never be exercised.
We intend to use the
net proceeds of the offering for general corporate purposes, which may include working capital, acquisitions and capital expenditures.
The precise amount, use and timing of the application of such proceeds will depend on numerous factors, including the cash used
in or generated by our operations, the level of our expected sales and marketing activities and the attractiveness of any additional
acquisitions or investments. Pending these uses, we intend to invest the net proceeds that we receive from this offering in short-term,
investment-grade interest-bearing securities, such as money market accounts, certificates of deposit, commercial paper, and guaranteed
obligations of the U.S. government.
DETERMINATION
OF OFFERING PRICE
Prior to this offering, there was no public market for the Series
A Preferred or the Warrants. The initial public offering price will be determined by negotiation between us and Roth Capital Partners,
LLC and The Benchmark Company, LLC, the representatives of the underwriters. The principal factors to be considered in determining
the initial public offering price include:
·
the information set forth in this preliminary prospectus and otherwise available to the representative;
·
our history and prospects and the history and prospects for the industry in which we compete;
·
our past and present financial performance;
·
our prospects for future earnings and the present state of our development;
·
the general condition of the securities market at the time of this offering;
·
the recent market prices of, and demand for, publicly traded preferred stock of generally comparable
companies; and
·
other factors deemed relevant by the underwriters and us.
27
Table of Contents
The estimated public
offering price range set forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions
and other factors. Neither we nor the underwriters can assure investors that an active trading market will develop for the Series
A Preferred or the Warrants or that the Series A Preferred will trade in the public market at or above the initial public offering
price.
Capitalization
Set forth below
is our cash and capitalization as of March 31, 2020:
·
on an actual basis; and
·
on a pro forma as adjusted basis, reflecting the issuance of 600,000 Units offered by this prospectus,
at $25.00 per Unit, assuming net proceeds of approximately $13,800,000, excluding estimated offering expenses payable by us.
You should read
the information in the below table together with our consolidated financial statements and related notes and "Management's
Discussion and Analysis of Financial Condition and Results of Operations," each included in our Form 10-K.
March
        31, 2020
Actual
As
        Adjusted
(in thousands, except par value data)
Cash and cash equivalents
$
1,617
$
15,417
Note payable
3,000
3,000
Loans payable, current, net of unamortized discount and debt issuance cost
11,931
11,931
Total Debt
14,931
14,931
Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued
—
1
Common stock, $0.001 par value; 100,000,000 shares authorized; 66,133,888 shares issued and outstanding at March 31, 2020
66
66
Additional paid-in capital
323,958
337,158
Accumulated other comprehensive income
(45
)
(45
)
Accumulated deficit
(349,250
)
(349,250
)
Total capitalization
(25,271
)
(12,070
)
The table above assumes no exercise of the underwriters'
option to purchase additional Units, is based on 66,133,888 shares of Common Stock outstanding as of March 31, 2020, and excludes
the following:
·
4,936,313 shares of Common Stock issuable upon exercise of warrants outstanding as of March 31,
2020, at a weighted-average exercise price of $3.06 per share, and 5,710,000 shares of Common Stock issuable upon exercise of warrants
we have agreed to issue, at an exercise price of $10.00 per share;
·
10,290,454 shares of Common Stock issuable upon exercise of stock options outstanding as of March
31, 2020, at a weighted-average exercise price of $4.35 per share;
28
Table of Contents
·
8,894,452 shares of Common Stock reserved and available as of March 31, 2020 for future issuance
under our equity incentive plans; and
·
33,275,028 shares of Common Stock issued since March 31, 2020.
DESCRIPTION
OF CAPITAL STOCK
General
Our
Charter authorizes us to issue up to 101,000,000 shares, including 100,000,000 shares of Common Stock and 1,000,000 shares of preferred
stock, par value $0.001 per share, of which 690,000 shares have been designated as shares of Series A Preferred. As of close of
business on July 15, 2020, there were 99,408,916 shares of Common Stock issued and outstanding, and no shares of preferred stock
issued and outstanding.
The
following descriptions are summaries of the material provisions and terms of our capital stock and are qualified by reference to
our Charter and our Bylaws.
Common Stock
Each
share of Common Stock entitles its holder to one vote on all matters to be voted upon by the stockholders. Common stockholders
are not entitled to cumulative voting with respect to the election of directors. Subject to the preferences of any outstanding
shares of preferred stock, holders of Common Stock may receive ratably any dividends that our Board may declare out of funds legally
available for that purpose. In the event of our liquidation, dissolution or winding up, the holders of Common Stock are entitled
to share ratably in all assets remaining after payment of liabilities and liquidation preferences of any outstanding shares of
preferred stock. The Common Stock has no preemptive rights, conversion rights or other subscription rights or redemption or sinking
fund provisions.
Preferred Stock
Under our Charter, our Board is
authorized generally without stockholder approval to issue shares of preferred stock in one or more series and, in connection with
the creation of each such series, to fix the number of shares of such series and designate the powers, preferences and rights of
such series, including dividend rights, redemption rights, liquidation preferences, sinking fund provisions, conversion rights
and voting rights, any or all of which may be greater than the rights of the Common Stock.
Anti-Takeover Provisions
Provisions in our
Charter and Bylaws, as well as provisions of the DGCL, may discourage, delay or prevent a merger, acquisition or other change in
control of Remark, even if such a change in control would be beneficial to stockholders. These provisions include the following:
·
only our Board may call special meetings of our stockholders;
·
our stockholders may take action only at a meeting of our stockholders and not by written consent;
and
·
we have authorized undesignated preferred stock, the terms of which may be established and shares
of which may be issued without stockholder approval.
Additionally, Section
203 of the DGCL prohibits a person who owns in excess of 15% of our outstanding voting stock from merging or combining with us
for a period of three years after the date of the transaction in which the person acquired in excess of 15% of our outstanding
voting stock, unless the merger or combination is approved in a prescribed manner. We have not opted out of the restriction under
Section 203, as permitted under the DGCL.
29
Table of Contents
Listing
Our Common Stock
is currently quoted on the NASDAQ Capital Market under the symbol MARK.
Transfer Agent and Registrar
The
transfer agent and registrar for the Series A Preferred and for our Common Stock is Computershare.
Description
of Offered Securities
The description
of certain terms of the Units, the Series A Preferred and the Warrant in this summary does not purport to be complete and is in
all respects subject to, and qualified in its entirety by the provisions of our Charter, the Series A Certificate of Designations,
our Bylaws and the form of Warrant, copies of which have been filed as exhibits to the registration statement of which this prospectus
is a part.
Units
Each Unit offered
hereby consists of (i) one share of Series A Preferred and (ii) one Warrant exercisable for [•] shares of Common Stock at
an exercise price of [•] per Warrant Share. The Units will not be issued or certificated. The shares of Series A Preferred
Stock and the Warrants are immediately separable and will be issued separately.
Series A Preferred
General
We are currently
authorized to designate and issue up to 1,000,000 shares of preferred stock, par value $0.001 per share, in one or more series
and, subject to the limitations prescribed by our Charter and the DGCL, with such powers, preferences and rights as our Board may
determine, without any vote or action by our stockholders. As of the date of this prospectus, we have [•] shares of Series
A Preferred authorized and no shares outstanding.
The Series A Preferred
offered hereby, when issued, delivered and paid for in accordance with the terms of the underwriting agreement, will be fully paid
and nonassessable. Our Board may, without the approval of holders of the Series A Preferred or our Common Stock, designate additional
series of authorized preferred stock ranking junior to or on parity with the Series A Preferred or designate additional shares
of Series A Preferred and authorize the issuance of such shares. Designation of preferred stock ranking senior to the Series A
Preferred will require approval of the holders of Series A Preferred, as described below in "Voting Rights."
The registrar, transfer
agent and dividend and redemption price disbursing agent in respect of the Series A Preferred is Computershare. Its principal business
address is 150 Royall Street, Canton, MA 02021.
30
Table of Contents
Listing
We expect that the
Series A Preferred will be quoted on the Nasdaq Capital Market under the symbol "MARKP." Our goal is to apply to list
our Series A Preferred on the Nasdaq Capital Market but there can be no assurance that our Series A Preferred will, in fact, qualify
for listing or quotation on Nasdaq.
No Maturity, Sinking Fund or Mandatory Redemption
The Series A Preferred
has no stated maturity and will not be subject to any sinking fund or mandatory redemption. Shares of the Series A Preferred will
remain outstanding indefinitely unless we decide to redeem or otherwise repurchase them. We are not required to set aside funds
to redeem the Series A Preferred.
Ranking
The Series A Preferred
will rank, with respect to rights to the payment of dividends and the distribution of assets upon our liquidation, dissolution
or winding up:
(1)
senior to all classes or series of our Common Stock and to all other equity securities issued by
us other than equity securities referred to in clauses (2) and (3) below;
(2)
on a par with all equity securities issued by us with terms specifically providing that those equity
securities rank on a parity with the Series A Preferred with respect to rights to the payment of dividends and the distribution
of assets upon our liquidation, dissolution or winding up;
(3)
junior to all equity securities issued by us with terms specifically providing that those equity
securities rank senior to the Series A Preferred with respect to rights to the payment of dividends and the distribution of assets
upon our liquidation, dissolution or winding up (See "Voting Rights" below); and
(4)
junior to all of our existing and future indebtedness (including indebtedness convertible to our
Common Stock or preferred stock) and to any indebtedness and other liabilities of our existing subsidiaries.
Dividends
Holders of shares
of the Series A Preferred are entitled to receive, when, as and if declared by the Board, out of funds legally available for the
payment of dividends, cumulative cash dividends at the rate of 9.5% per annum of the $25.00 per share liquidation preference (equivalent
to $2.375 per annum per share). All accrued dividends on the Series A Preferred shall be paid in cash only when, as and if declared
by the Board out of funds legally available therefor or upon a liquidation or redemption of the Series A Preferred.
Dividends on our
Series A Preferred are payable monthly on the 15
th
day of each month (each such date, a "Dividend Payment Date");
provided that if any Dividend Payment Date is not a business day, as defined in the Series A Certificate of Designations, then
the dividend that would otherwise have been payable on that Dividend Payment Date may be paid on the next succeeding business day
and no interest, additional dividends or other sums will accrue on the amount so payable for the period from and after that Dividend
Payment Date to that next succeeding business day. "Business day" shall mean any day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which banking institutions in New York, New York are authorized or required by law,
regulation or executive order to close.
Dividends will be
payable to holders of record as they appear in our stock records for the Series A Preferred at the close of business on the corresponding
record date, which shall be the last day of the calendar month, whether or not a business day, immediately preceding the month
in which the applicable Dividend Payment Date falls (each, a "Dividend Record Date"). As a result, holders of shares
of Series A Preferred will not be entitled to receive dividends on a Dividend Payment Date if such shares were not issued and outstanding
on the applicable Dividend Record Date. The first dividend on our Series A Preferred sold in this offering is payable on [•],
2020 (in the amount of $0.1979 per share, which includes dividends accrued from [•], 2020) to holders of record of the Series
A Preferred as of [•], 2020.
31
Table of Contents
Any dividend payable
on the Series A Preferred, including dividends payable for any partial dividend period, will be computed on the basis of a 360-day
year consisting of twelve 30-day months. However, the shares of Series A Preferred offered hereby will be credited as having accrued
dividends since the first day of the calendar month in which they are issued.
No dividends on
shares of Series A Preferred shall be authorized by our Board or paid or set apart for payment by us at any time when the terms
and provisions of any agreement of ours, including any agreement relating to our indebtedness, prohibit the authorization, payment
or setting apart for payment thereof or provide that the authorization, payment or setting apart for payment thereof would constitute
a breach of the agreement or a default under the agreement, or if the authorization, payment or setting apart for payment shall
be restricted or prohibited by law. You should review the information appearing above under "Risk Factors— We must
adhere to prescribed legal requirements and also have sufficient cash in order to be able to pay dividends" for information
as to, among other things, other circumstances under which we may be unable to pay dividends on the Series A Preferred.
Notwithstanding
the foregoing, dividends on the Series A Preferred will accrue whether or not we have earnings, whether or not there are funds
legally available for the payment of those dividends and whether or not those dividends are declared by our Board. No interest,
or sum in lieu of interest, will be payable in respect of any dividend payment or payments on the Series A Preferred that may be
in arrears, and holders of the Series A Preferred will not be entitled to any dividends in excess of full cumulative dividends
described above. Any dividend payment made on the Series A Preferred shall first be credited against the earliest accumulated but
unpaid dividend due with respect to those shares.
Future dividends
on our Common Stock and preferred stock, including the Series A Preferred, will be at the discretion of our Board and will depend
on, among other things, our results of operations, cash flow from operations, financial condition and capital requirements, any
debt service requirements and any other factors our Board deems relevant. Accordingly, we cannot guarantee that we will be able
to make cash dividends on our preferred stock or what the actual dividends will be for any future period.
Unless full cumulative
dividends on all shares of Series A Preferred have been or contemporaneously are declared and paid or declared and a sum sufficient
for the payment thereof has been or contemporaneously is set apart for payment for all past Dividend Payment Dates, no dividends
(other than in shares of Common Stock or in shares of any series of preferred stock that we may issue ranking junior to the Series
A Preferred as to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up) shall be
declared or paid or set aside for payment upon shares of our Common Stock or preferred stock that we may issue ranking junior to,
or on a parity with, the Series A Preferred as to the payment of dividends or the distribution of assets upon liquidation, dissolution
or winding up. Nor shall any other dividend be declared or made upon shares of our Common Stock or preferred stock that we may
issue ranking junior to, or on a parity with, the Series A Preferred as to the payment of dividends or the distribution of assets
upon liquidation, dissolution or winding up.
When dividends are
not paid in full (or a sum sufficient for such full payment is not so set apart) upon the Series A Preferred and the shares of
any other series of preferred stock that we may issue ranking on a parity as to the payment of dividends with the Series A Preferred,
all dividends declared upon the Series A Preferred and any other series of preferred stock that we may issue ranking on a parity
as to the payment of dividends with the Series A Preferred shall be declared pro rata so that the amount of dividends declared
per share of Series A Preferred and such other series of preferred stock that we may issue shall in all cases bear to each other
the same ratio that accrued dividends per share on the Series A Preferred and such other series of preferred stock that we may
issue (which shall not include any accrual in respect of unpaid dividends for prior dividend periods if such preferred stock does
not have a cumulative dividend) bear to each other. No interest, or sum of money in lieu of interest, shall be payable in respect
of any dividend payment or payments on the Series A Preferred that may be in arrears.
32
Table of Contents
Liquidation Preference
In the event of
our voluntary or involuntary liquidation, dissolution or winding up, the holders of shares of Series A Preferred will be entitled
to be paid out of the assets we have legally available for distribution to our stockholders, subject to the preferential rights
of the holders of any class or series of our capital stock we may issue ranking senior to the Series A Preferred with respect to
the distribution of assets upon liquidation, dissolution or winding up, a liquidation preference of $25.00 per share, plus an amount
equal to any accumulated and unpaid dividends (whether or not declared) to, but not including, the date of payment, before any
distribution of assets is made to holders of our Common Stock or any other class or series of our capital stock we may issue that
ranks junior to the Series A Preferred as to liquidation rights.
In the event that,
upon any such voluntary or involuntary liquidation, dissolution or winding up, our available assets are insufficient to pay the
amount of the liquidating distributions on all outstanding shares of Series A Preferred and the corresponding amounts payable on
all shares of other classes or series of our capital stock that we may issue ranking on a parity with the Series A Preferred in
the distribution of assets, then the holders of the Series A Preferred and all other such classes or series of capital stock shall
share ratably in any such distribution of assets in proportion to the full liquidating distributions to which they would otherwise
be respectively entitled.
Holders of Series
A Preferred will be entitled to written notice of any such liquidation, dissolution or winding up no fewer than 30 days and no
more than 60 days prior to the payment date. After payment of the full amount of the liquidating distributions to which they are
entitled, the holders of Series A Preferred will have no right or claim to any of our remaining assets. The consolidation or merger
of us with or into any other corporation, trust or entity or of any other entity with or into us, or the sale, lease, transfer
or conveyance of all or substantially all of our property or business, shall not be deemed a liquidation, dissolution or winding
up of us (although such events may give rise to the special optional redemption to the extent described below).
Redemption
The Series A Preferred
is not redeemable by us prior to [•], 2023, except as described below under "Optional Redemption" and "Special
Optional Redemption."
Optional Redemption
The Series A Preferred
is not redeemable by us prior to [•], 2023. The Series A Preferred may be redeemed in whole or in part (at our option) any
time on or after [•], 2023, upon not less than 30 days nor more than 60 days' written notice by mail prior to the date
fixed for redemption thereof, for cash at a redemption price equal to per share, plus any accumulated and unpaid dividends to,
but not including, redemption date. If we elect to redeem any shares of Series A Preferred as described in this paragraph, we may
use any available cash to pay the redemption price.
33
Table of Contents
Special Optional Redemption
Upon the occurrence
of a Change of Control, we may, at our option, upon not less than 30 nor more than 60 days' written notice, redeem the Series
A Preferred, in whole or in part, within 120 days after the first date on which such Change of Control occurred, for cash at a
redemption price of $25.00 per share, plus any accumulated and unpaid dividends thereon to, but not including, the redemption date.
A "Change
of Control" is deemed to occur when the following have occurred and are continuing:
·
the acquisition by any person, including any syndicate or group deemed to be a "person"
under Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other
acquisition transaction or series of purchases, mergers or other acquisition transactions of our stock entitling that person to
exercise more than 50% of the total voting power of all our stock entitled to vote generally in the election of our directors (except
that such person will be deemed to have beneficial ownership of all securities that such person has the right to acquire, whether
such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and
·
following the closing of any transaction referred to above, neither we nor the acquiring or surviving
entity has a class of common securities (or American Depositary Receipts representing such securities) listed on the NYSE, the
NYSE American LLC or Nasdaq Stock Market, or listed or quoted on an exchange or quotation system that is a successor to the NYSE,
the NYSE American LLC or Nasdaq Stock Market.
Redemption Procedures
In the event we
elect to redeem Series A Preferred, the notice of redemption will be mailed to each holder of record of the Series A Preferred
called for redemption at such holder's address as it appear on our stock transfer records, not less than 30 nor more than
60 days prior to the redemption date, and will state the following:
·
the redemption date;
·
the number of shares of Series A Preferred to be redeemed;
·
the redemption price;
·
the place or places where certificates (if any) for the Series A Preferred other than through The
Depositary Trust Company ("DTC") are to be surrendered for payment of the redemption price;
·
that dividends on the shares of Series A Preferred to be redeemed will cease to accumulate on the
redemption date;
·
whether such redemption is being made pursuant to the provisions described above under "Optional
Redemption" or "— Special Optional Redemption"; and
·
if applicable, that such redemption is being made in connection with a Change of Control and, in
that case, a brief description of the transaction or transactions constituting such Change of Control.
If less than all
of the Series A Preferred held by any holder are to be redeemed, the notice mailed to such holder shall also specify the number
of shares of Series A Preferred held by such holder to be redeemed. No failure to give such notice or any defect thereto or in
the mailing thereof shall affect the validity of the proceedings for the redemption of any shares of Series A Preferred except
as to the holder to whom notice was defective or not given.
On or after the
date fixed for redemption, each holder of Series A Preferred that holds a certificate other than through DTC book entry described
below, shall surrender the Series A Preferred at the place designated in the notice of redemption and shall be entitled to the
redemption price and any accumulated and unpaid dividends payable upon the redemption following the surrender. If notice of redemption
of any shares of Series A Preferred has been given and if we have irrevocably set aside the funds necessary for redemption in trust
for the benefit of the holders of the shares of Series A Preferred so called for redemption, then from and after the redemption
date (unless default shall be made by us in providing for the payment of the redemption price plus accumulated and unpaid dividends,
if any), dividends will cease to accrue on those shares of Series A Preferred, those shares of Series A Preferred shall no longer
be deemed outstanding and all rights of the holders of those shares will terminate, except the right to receive the redemption
price plus accumulated and unpaid dividends, if any, payable upon redemption. If any redemption date is not a business day, then
the redemption price and accumulated and unpaid dividends, if any, payable upon redemption may be paid on the next business day
and no interest, additional dividends or other sums will accrue on the amount payable for the period from and after that redemption
date to that next business day. If less than all of the outstanding Series A Preferred is to be redeemed, the Series A Preferred
to be redeemed shall be selected pro rata (as nearly as may be practicable without creating fractional shares) or by any other
equitable method we determine.
34
Table of Contents
In connection with
any redemption of Series A Preferred, we shall pay, in cash, any accumulated and unpaid dividends to, but not including, the redemption
date, unless a redemption date falls after a Dividend Record Date and prior to the corresponding Dividend Payment Date, in which
case each holder of Series A Preferred at the close of business on such Dividend Record Date shall be entitled to the dividend
payable on such shares on the corresponding Dividend Payment Date notwithstanding the redemption of such shares before such Dividend
Payment Date. Except as provided above, we will make no payment or allowance for unpaid dividends, whether or not in arrears, on
shares of the Series A Preferred to be redeemed.
Voting Rights
Holders of the Series
A Preferred do not have any voting rights, except as set forth below or as otherwise required by the DGCL.
So long as any shares
of Series A Preferred remain outstanding, we will not, without the affirmative vote or consent of the holders of at least two-thirds
of the votes entitled to be cast by the holders of the Series A Preferred outstanding at the time, given in person or by proxy,
either in writing or at a meeting (voting together as a class with all other series of parity preferred stock that we may issue
upon which like voting rights have been conferred and are exercisable), (a) authorize or create, or increase the authorized or
issued amount of, any class or series of capital stock ranking senior to the Series A Preferred with respect to payment of dividends
or the distribution of assets upon liquidation, dissolution or winding up or reclassify any of our authorized capital stock into
such shares, or create, authorize or issue any obligation or security convertible into or evidencing the right to purchase any
such shares; or (b) amend, alter, repeal or replace our Charter, including by way of a merger, consolidation or otherwise in which
we may or may not be the surviving entity, so as to materially and adversely affect and deprive holders of Series A Preferred of
any right, preference, privilege or voting power of the Series A Preferred (each, an "Event"). An increase in the amount
of the authorized preferred stock, including the Series A Preferred, or the creation or issuance of any additional Series A Preferred
or other series of preferred stock that we may issue, or any increase in the amount of authorized shares of such series, in each
case ranking on a parity with or junior to the Series A Preferred with respect to payment of dividends or the distribution of assets
upon liquidation, dissolution or winding up, shall not be deemed an Event and will not require us to obtain two-thirds of the votes
entitled to be cast by the holders of the Series A Preferred and all such other similarly affected series, outstanding at the time
(voting together as a class).
The foregoing voting
provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required
is effected, such outstanding shares of Series A Preferred are subject to a notice of redemption pursuant to the provisions described
above under "—Redemption—Optional Redemption" or "—Redemption—Special Optional Redemption"
above and funds sufficient to pay the applicable redemption price, including accumulated and unpaid dividends, for all of such
shares of Series A Preferred or called for redemption have been set aside for payment.
35
Table of Contents
When the Series
A Preferred is entitled to vote, such shares are entitled to one vote per share. In any matter in which the Series A Preferred
may vote as a single class with any other series of our preferred stock (as described in this prospectus or as may be required
by law), each share of Series A Preferred shall be entitled to one vote per $25.00 of stated liquidation preference.
Except as expressly
stated in the Series A Certificate of Designations, or as may be required by applicable law, the Series A Preferred does not bestow
any relative, participating, optional or other special voting rights or powers and the consent of the holders thereof shall not
be required for the taking of any corporate action.
Information Rights
During any period
in which we are not subject to Section 13 or 15(d) of the Exchange Act and any shares of Series A Preferred are outstanding, we
will use our best efforts to (i) transmit by mail (or other permissible means under the Exchange Act) to all holders of Series
A Preferred, as their names and addresses appear on our record books and without cost to such holders, copies of the Annual Reports
on Form 10-K and Quarterly Reports on Form 10-Q that we would have been required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act if we were subject thereto (other than any exhibits that would have been required) and (ii) promptly,
upon request, supply copies of such reports to any holders or prospective holder of Series A Preferred. We will use our best effort
to mail (or otherwise provide) the information to the holders of the Series A Preferred within 30 days after the respective dates
by which a periodic report on Form 10-K or Form 10-Q, as the case may be, in respect of such information would have been required
to be filed with the SEC, if we were subject to Section 13 or 15(d) of the Exchange Act, in each case, based on the dates on which
we would be required to file such periodic reports if we were a "non-accelerated filer" within the meaning of the Exchange
Act.
Preemptive Rights
No holders of the
Series A Preferred will, as holders of Series A Preferred, have any preemptive rights to purchase or subscribe for our Common Stock
or any other security.
Book-Entry Procedures
DTC acts as securities
depository for our outstanding Series A Preferred. With respect to the Series A Preferred offered hereunder, we will issue one
or more fully registered global securities certificates in the name of DTC's nominee, Cede & Co. These certificates will
represent the total aggregate number of shares of Series A Preferred. We will deposit these certificates with DTC or a custodian
appointed by DTC. We will not issue certificates to you for the shares of Series A Preferred that you purchase, unless DTC's
services are discontinued as described below.
Title to book-entry
interests in the Series A Preferred will pass by book-entry registration of the transfer within the records of DTC in accordance
with its procedures. Book-entry interests in the securities may be transferred within DTC in accordance with procedures established
for these purposes by DTC. Each person owning a beneficial interest in shares of the Series A Preferred must rely on the procedures
of DTC and the participant through which such person owns its interest to exercise its rights as a holder of the Series A Preferred.
36
Table of Contents
DTC has advised
us that it is a limited-purpose trust company organized under the New York Banking Law, a member of the Federal Reserve System,
a "clearing corporation" within the meaning of the New York Uniform Commercial Code and a "clearing agency"
registered under the provisions of Section 17A of the Exchange Act. DTC holds securities that its participants ("Direct Participants")
deposit with DTC. DTC also facilitates the settlement among Direct Participants of securities transactions, such as transfers and
pledges in deposited securities through electronic computerized book-entry changes in Direct Participants' accounts, thereby
eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other organizations. Access to the DTC system is also available to others
such as securities brokers and dealers, including the placement agent, banks and trust companies that clear through or maintain
a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The rules
applicable to DTC and its Direct and Indirect Participants are on file with the SEC.
When you purchase
shares of Series A Preferred within the DTC system, the purchase must be by or through a Direct Participant. The Direct Participant
will receive a credit for the Series A Preferred on DTC's records. You will be considered to be the "beneficial owner"
of the Series A Preferred. Your beneficial ownership interest will be recorded on the Direct and Indirect Participants' records,
but DTC will have no knowledge of your individual ownership. DTC's records reflect only the identity of the Direct Participants
to whose accounts shares of Series A Preferred are credited.
You will not receive
written confirmation from DTC of your purchase. The Direct or Indirect Participants through whom you purchased the Series A Preferred
should send you written confirmations providing details of your transactions, as well as periodic statements of your holdings.
The Direct and Indirect Participants are responsible for keeping an accurate account of the holdings of their customers like you.
Transfers of ownership
interests held through Direct and Indirect Participants will be accomplished by entries on the books of Direct and Indirect Participants
acting on behalf of the beneficial owners.
The laws of some
states may require that specified purchasers of securities take physical delivery of shares of Series A Preferred in definitive
form. These laws may impair the ability to transfer beneficial interests in the global certificates representing the Series A Preferred.
Conveyance of notices
and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants
and Indirect Participants to beneficial owners will be governed by arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time.
We understand that,
under DTC's existing practices, in the event that we request any action of the holders, or an owner of a beneficial interest
in a global security, such as you, desires to take any action that a holder is entitled to take under our amended and restated
certificate of incorporation (including the Series A Certificate of Designations), DTC would authorize the Direct Participants
holding the relevant shares to take such action, and those Direct Participants and any Indirect Participants would authorize beneficial
owners owning through those Direct and Indirect Participants to take such action or would otherwise act upon the instructions of
beneficial owners owning through them.
Any redemption notices
with respect to the Series A Preferred will be sent to Cede & Co. If less than all of the outstanding shares of Series A Preferred
are being redeemed, DTC will reduce each Direct Participant's holdings of shares of Series A Preferred in accordance with
its procedures.
37
Table of Contents
In those instances
where a vote is required, neither DTC nor Cede & Co. itself will consent or vote with respect to the shares of Series A Preferred.
Under its usual procedures, DTC would mail an omnibus proxy to us as soon as possible after the record date. The omnibus proxy
assigns Cede & Co.'s consenting or voting rights to those Direct Participants whose accounts the shares of Series A Preferred
are credited to on the record date, which are identified in a listing attached to the omnibus proxy.
Dividends on the
Series A Preferred are made directly to DTC (or its successor, if applicable). DTC's practice is to credit participants'
accounts on the relevant payment date in accordance with their respective holdings shown on DTC's records unless DTC has
reason to believe that it will not receive payment on that payment date.
Payments by Direct
and Indirect Participants to beneficial owners will be governed by standing instructions and customary practices, as is the case
with securities held for the accounts of customers in bearer form or registered in "street name." These payments will
be the responsibility of the participant and not of DTC, us or any agent of ours.
DTC may discontinue
providing its services as securities depositary with respect to the Series A Preferred at any time by giving reasonable notice
to us. Additionally, we may decide to discontinue the book-entry only system of transfers with respect to the Series A Preferred.
In that event, we will print and deliver certificates in fully registered form for the Series A Preferred. If DTC notifies us that
it is unwilling to continue as securities depositary, or it is unable to continue or ceases to be a clearing agency registered
under the Exchange Act and a successor depositary is not appointed by us within 90 days after receiving such notice or becoming
aware that DTC is no longer so registered, we will issue the Series A Preferred in definitive form, at our expense, upon registration
of transfer of, or in exchange for, such global security.
According to DTC,
the foregoing information with respect to DTC has been provided to the financial community for informational purposes only and
is not intended to serve as a representation, warranty or contract modification of any kind.
Global Clearance and Settlement Procedures
Initial settlement
for the Series A Preferred will be made in immediately available funds. Secondary market trading among DTC's participants
occurs in the ordinary way in accordance with DTC's rules and will be settled in immediately available funds using DTC's
Same-Day Funds Settlement System.
Direct Registration System
The Series A Preferred will be registered
in book-entry form through the Direct Registration System (the "DRS"). The DRS is a system administered by DTC pursuant
to which the depositary may register the ownership of uncertificated shares, which ownership shall be evidenced by periodic statements
issued by the depositary to the holders of shares of Series A Preferred entitled thereto. This direct registration form of ownership
allows investors to have securities registered in their names without requiring the issuance of a physical stock certificate,
eliminates the need for you to safeguard and store certificates and permits the electronic transfer of securities to effect transactions
without transferring physical certificates.
38
Table of Contents
Warrants to Purchase Common Stock
Each Warrant will
be exercisable for [•] shares of our Common Stock at an exercise price of $[•] per share. Each Warrant will be exercisable
from its date of issuance and at any time up to the date that is five years after its original date of issuance. A holder shall
have no right to exercise any portion of a Warrant, to the extent that, after giving effect to such exercise, such holder, together
with such holder's affiliates, and any persons acting as a group together with such holder or any such affiliate, would beneficially
own in excess of 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of the
shares of Common Stock upon such exercise (subject to the right of the holder to increase or decrease such beneficial ownership
limitation upon not less than 61 days prior notice provided that such limitation can never exceed 9.99% and such 61 day period
cannot be waived). Beneficial ownership of the holder and its affiliates will be determined in accordance with Section 13(d) of
the Exchange Act, and the rules and regulations promulgated thereunder. Holders of Warrants who are subject to such beneficial
ownership limitation are and will remain responsible for ensuring their own compliance with Regulation 13D-G promulgated under
the Exchange Act, consistent with their individual facts and circumstances. In addition, pursuant to Rule 13d-3(d)(1)(i) of the
Exchange Act, any person who acquires such Warrants with the purpose or effect of changing or influencing the control of our company,
or in connection with or as a participant in any transaction having such purpose or effect, immediately upon such acquisition will
be deemed to be the beneficial owner of the underlying Common Stock.
The Warrants are
exercisable for cash or, solely in the absence of an effective registration statement or prospectus, by cashless exercise, in which
case the holder would receive upon such exercise the net number of shares of Common Stock determined according to the formula set
forth in the Warrant. No fractional shares will be issued upon the exercise of a Warrant. As to any fraction of a share which the
holder would otherwise be entitled to purchase upon such exercise, we will, at our election, either pay a cash adjustment in respect
of such final fraction in an amount equal to such fraction multiplied by the exercise price or round up to the next whole share.
The exercise price
of the Warrants is subject to adjustment (but not below the par value of our Common Stock) in the case of stock splits, stock combinations,
reclassifications or similar events affecting our Common Stock.
In addition, in
the event we consummate a merger or consolidation with or into another person or other reorganization event in which shares of
our Common Stock are converted or exchange for securities, cash or other property, or we sell, lease, license, assign, transfer,
convey or otherwise dispose of all or substantially all of our assets or we or another person acquire 50% or more of our outstanding
Common Stock, then following such event, the holders of the Warrants will be entitled to receive upon exercise of the Warrants
the same kind and amount of securities, cash or property which the holders would have received had they exercised the Warrants
immediately prior to such fundamental transaction. Any successor to us or surviving entity shall assume the obligations under the
Warrants.
Prior to the exercise
of any Warrants, holders of the Warrants will not have any of the rights of holders of the Common Stock purchasable upon exercise,
including voting rights, however, the holders of the Warrants will have certain rights to participate in distributions or dividends
paid on our Common Stock to the extent set forth in the Warrants.
The provisions of
the Warrants may be amended as a single class if we have obtained the written consent of holders representing not less than a majority
of shares of our Common Stock then exercisable under the Warrants collectively (in which case such amendments shall be binding
on all holders of Warrants). However, the number of shares of our Common Stock exercisable, the exercise price or the exercise
period may not be amended without the written consent of the holder of each such Warrant. The Warrants are governed by New York
law and if either party commences an action, suit or proceeding to enforce any provisions of the Warrants, other than pursuant
to federal securities laws, then the prevailing party in such action, suit or proceeding shall be reimbursed by the other party
for its reasonable attorneys' fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such action or proceeding.
39
Table of Contents
The Warrants will
be issued in book-entry form under a warrant agent agreement between Computershare, as warrant agent, and us, and shall initially
be represented by one or more book-entry certificates deposited with DTC, and registered in the name of Cede & Co., a nominee
of DTC, or as otherwise directed by DTC. We do not plan on applying to list any of the warrants on any national securities exchange
or any other nationally recognized trading system.
CERTAIN
U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following discussion
summarizes certain U.S. federal income tax considerations that may be applicable to "U.S. Holders" and "Non-U.S.
Holders" (each as defined below and together, a "Holder") with respect to the initial purchase, ownership and
disposition of the Series A Preferred or Warrants (together, the "Securities") offered by this prospectus. This discussion
only applies to persons purchasing the Securities in this offering and holding the Securities as capital assets within the meaning
of Section 1221 of the Code. This discussion does not describe all of the tax consequences that may be relevant to a specific purchaser
in light of circumstances particular to such purchaser.
This discussion
does not address any alternative minimum tax consequences or any tax considerations arising under the laws of any U.S. state or
local or any non-U.S. jurisdiction. In addition, this discussion does not address all tax considerations applicable to an investor's
particular circumstances and, this discussion does not address any tax considerations to any person that may be subject to special
tax rules, including, without limitation:
·
an insurance company;
·
a tax-exempt organization;
·
a dealer in securities or currencies;
·
a trader in securities that make mark-to-market elections with respect to their securities holdings;
·
certain financial institutions, banks, brokers and other financial institutions;
·
a "S" corporation, a grantor trust, a partnership and any other entity treated as a
pass-through for U.S. federal income tax purposes;
·
a commodity broker;
·
a real estate investment trust and a regulated investment company;
·
a "controlled foreign corporation," a "passive foreign investment company,"
and a corporation that accumulates earnings to avoid U.S. federal income tax;
·
a tax qualified retirement plan, including but not limited to a "qualified foreign pension
fund" as defined in Section 897(l)(2) of the Code and any entity all of the interests of which are held by any qualified
foreign pension fund;
·
a person whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;
·
a U.S. expatriate and a former U.S. citizen or former long-term U.S. resident;
·
a personal holdings company;
·
a person that holds shares as part of a hedge, straddle, conversion, constructive sale or other
integrated transaction;
·
a person who owns shares pursuant to the exercise of any employee stock options or otherwise as
compensation;
·
a person subject to special tax accounting rules as a result of any item of gross income with respect
to shares being taken into account in an applicable financial statement; and
·
a person who, directly, indirectly or constructively (under attribution rules applicable for U.S.
federal income tax purposes), owns greater than 5% of our shares.
40
Table of Contents
This discussion
does not address the U.S. federal income tax treatment of any entity treated as a pass-through that holds any Securities for U.S.
federal income tax purposes (such as a partnership) or of any equity owner (such as a partner) of a pass-through entity that holds
any Securities. Accordingly, if you are a pass-through entity or an equity owner of a pass-through entity holding any Security,
you should consult your tax advisors as to the particular U.S. federal income tax consequences of acquiring, holding and disposing
of any Security.
You should consult
your own tax advisor concerning the U.S. federal income tax consequences to you of acquiring, owning, and disposing of any Security,
as well as any tax consequences arising under the laws of any state, local, foreign, or other tax jurisdiction and the possible
effects of changes in U.S. federal or other tax laws.
U.S. Holders
You are a "U.S.
Holder" if you are a beneficial owner (other than a partnership or any other entity or arrangement that is treated as a pass-through
entity for U.S. federal income tax purposes) of any Security and you are for U.S. federal income tax purposes:
·
an individual citizen or resident of the United States;
·
a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created
or organized in or under the laws of the United States, any state thereof or the District of Columbia;
·
an estate the income of which is subject to U.S. federal income taxation regardless of its source;
or
·
a trust if it (i) is subject to the primary supervision of a court within the United States and
one or more United States persons have the authority to control all substantial decisions of the trust or (ii) has a valid election
in effect under applicable United States Treasury Regulations to be treated as a United States person.
Non-U.S. Holders
You are a "Non-U.S. Holder" if you
are a beneficial owner (other than a partnership or any other entity or arrangement that is treated as a pass-through entity for
U.S. federal income tax purposes) of any Security and you are not a U.S. Holder.
Allocation of Purchase Price
for All Holders
For
U.S. federal income tax purposes, the purchase of a Unit will be treated as the purchase of two components: a component consisting
of one share of our Series A Preferred and a component consisting of one Warrant to purchase [•] shares of our Common Stock.
The purchase price for each Unit will be allocated between its components in proportion to the relative fair market value of each
at the time the Unit is purchased by the Holder. This allocation of the purchase price for each Unit will establish a Holder's
initial tax basis for U.S. federal income tax purposes in the Securities that compose each Unit.
Tax Consequences to U.S. Holders
Exercise of Warrants
A
U.S. Holder generally will not recognize gain or loss on the exercise of a Warrant and related receipt of shares of our Common
Stock (unless cash is received in lieu of the issuance of a fractional share of our Common Stock). A U.S. Holder's initial
tax basis in the shares of our Common Stock received upon the exercise of a Warrant will be equal to the sum of (i) such U.S. Holder's
tax basis in such Warrant plus (ii) the exercise price paid by such U.S. Holder on the exercise of such Warrant. A U.S. Holder's
holding period for the shares of our Common Stock received upon the exercise of a Warrant will begin on the day after the date
that the Warrant is exercised.
41
Table of Contents
In
certain limited circumstances, a U.S. Holder may be permitted to undertake a cashless exercise of Warrants into shares of our Common
Stock. The U.S. federal income tax treatment of a cashless exercise of Warrants into shares of Common Stock is unclear, and the
tax consequences of a cashless exercise could differ from the consequences upon the exercise of a Warrant described in the preceding
paragraph. U.S. Holders should consult their own tax advisors regarding the U.S. federal income tax consequences of a cashless
exercise of Warrants.
Expiration of Warrants
Upon
the lapse or expiration of a Warrant, a U.S. Holder will recognize a loss in an amount equal to such U.S. Holder's tax basis
in the Warrant. Any such loss generally will be a capital loss and will be long-term capital loss if the Warrant is held for more
than one year. Deductions for capital losses are subject to certain limitations.
Distributions
on Series A Preferred
If distributions
are made with respect to the Series A Preferred, such distributions will be treated as dividends to the extent of our current or
accumulated earnings and profits as determined under the Code. Any portion of a distribution that exceeds such earnings and profits
will first be applied to reduce a U.S. Holder's tax basis in the Series A Preferred on a share-by-share basis, and the excess
will be treated as gain from the disposition of the Series A Preferred, the tax treatment of which is discussed below under "Certain
U.S. Federal Income Tax Considerations—Tax Consequences to U.S. Holders—Disposition of Our Securities, Including Redemptions."
Under current law,
dividends received by an individual U.S. Holder of the Series A Preferred will be subject to a reduced maximum tax rate of 20%
if such dividends are treated as "qualified dividend income" for U.S. federal income tax purposes. The rate reduction
does not apply to dividends received to the extent that the individual U.S. Holder elects to treat the dividends as "investment
income," which may be taken into account as an offset against investment expenses in determining the individual U.S. Holder's
investment interest expense deduction. Furthermore, the rate reduction does not apply to dividends that are paid to an individual
U.S. Holder with respect to Series A Preferred that is held for 60 days or less during the 121 day period beginning on the date
which is 60 days before the date on which the Series A Preferred becomes ex-dividend (or where the dividend is attributable to
a period or periods in excess of 366 days, Series A Preferred that is held for 90 days or less during the 181 day period beginning
on the date which is 90 days before the date on which the Series A Preferred becomes ex-dividend). Also, if a dividend received
by an individual U.S. Holder that qualifies for the rate reduction is an "extraordinary dividend" within the meaning
of Section 1059 of the Code, any loss recognized by such individual U.S. Holder on a subsequent disposition of the stock will be
treated as long-term capital loss to the extent of such "extraordinary dividend," irrespective of such individual U.S.
Holder's holding period for the stock. An individual U.S. Holder should consult its own tax advisors regarding the implications
of these rules in light of their particular circumstances.
Dividends received by a corporate
U.S. Holder generally will be eligible for the dividends received deduction. Each domestic corporate U.S. Holder of the
Series A Preferred is urged to consult with its tax advisors with respect to the eligibility for and the amount of any
dividends received deduction and the application of Section 1059 of the Code to any dividends it may receive on the Series A
Preferred.
42
Table of Contents
Constructive Distributions on Series
A Preferred
A U.S. Holder may
have to include the excess of the redemption price over the issue price (the "Redemption Premium") in income as a constructive
distribution on the Series A Preferred, unless the Redemption Premium is
de minimis
(as discussed below) or it is determined
that the Company is not likely to exercise the Call Option (as defined below). If the Redemption Premium is treated as a constructive
distribution, a U.S. Holder would be required to treat the Redemption Premium as a distribution on the Series A Preferred. The
constructive distribution of the Redemption Premium would accrue without regard to the U.S. Holder's method of accounting
for U.S. federal income tax purposes at a constant yield determined under principles similar to the determination of original issue
discount ("OID") pursuant to Treasury Regulations under Sections 1271 through 1275 of the Code (the "OID Rules"),
although the application of principles, similar to those applicable to debt instruments with OID, to the Redemption Premium is
uncertain. The constructive distribution of the Redemption Premium would be treated as an actual distribution for U.S. federal
income tax purposes that would constitute a dividend, return of capital or capital gain to the U.S. Holder of the Series A Preferred
in the same manner as cash distributions described under "Certain U.S. Federal Income Tax Considerations—Tax Consequences
to U.S. Holders—Distributions on Series A Preferred."
If the issue price
of the Series A Preferred is determined under principles similar to the OID Rules, the issue price for the Series A Preferred should
be the initial offering price to the public (excluding bond houses and brokers) at which a substantial amount of the Series A Preferred
is sold minus the amount allocated to the Warrants as discussed above under "Certain U.S. Federal Income Tax Considerations—Allocation
of Purchase Price for All Holders." However, the Redemption Premium for the Series A Preferred may be treated as
de minimis,
as determined under principles similar to the OID Rules. Under the OID Rules, the Redemption Premium will be considered
de
minimis
if the Redemption Premium is less than 0.0025 of the Series A Preferred's liquidation value of $25.00 at
maturity, multiplied by the number of complete years to maturity. Because the determination under the OID Rules of a maturity date
for the Series A Preferred is unclear, the remainder of this discussion assumes that the Series A Preferred is issued with a Redemption
Premium greater than a
de minimis
amount.
We have the right
to call the Series A Preferred for redemption on or after [•], 2023, and have the option to redeem the Series A Preferred
upon any Change of Control (collectively the "Call Option"). The stated redemption price of the Series A Preferred
upon any redemption pursuant to our Call Option is equal to $25.00 per share, plus any accrued and unpaid dividends and is payable
in cash.
The Call Option
should not require constructive distributions of the Redemption Premium, if based on all of the facts and circumstances as of the
issue date, a redemption pursuant to the Call Option is not likely to occur. The Treasury Regulations provide that an issuer's
right to redeem will not be treated as more likely than not to occur if: (i) the issuer and the holder of the stock are not related
within the meaning of Section 267(b) or Section 707(b) of the Code (substituting "20%" for the phrase "50%");
(ii) there are no plans, arrangements, or agreements that effectively require or are intended to compel the issuer to redeem the
stock; and (iii) exercise of the right to redeem would not reduce the yield on the stock determined using principles applicable
to the determination of OID under the OID Rules. The fact that a redemption right is not within the safe harbor described in the
preceding sentence does not mean that an issuer's right to redeem is more likely than not to occur and the issuer's
right to redeem must still be tested under all the facts and circumstances to determine if it is more likely than not to occur.
We do not believe that a redemption pursuant to the Call Option should be treated as more likely than not to occur under the foregoing
test. Accordingly, no U.S. holder of the Series A Preferred should be required to recognize constructive distributions of the Redemption
Premium because of our Call Option.
Prospective U.S.
Holders of the Series A Preferred should consult their own tax advisors regarding the potential implications of the constructive
distribution rules.
43
Table of Contents
Disposition of Our Securities, Including
Redemptions
Upon any sale, exchange,
redemption (except as discussed below) or other disposition of any Security, a U.S. Holder will recognize capital gain or loss
equal to the difference between the amount realized by the U.S. Holder and the U.S. Holder's adjusted tax basis in the Security.
Such capital gain or loss will be long-term capital gain or loss if the U.S. Holder's holding period for the Security is
longer than one year. A U.S. Holder should consult its own tax advisors with respect to applicable tax rates and netting rules
for capital gains and losses. Certain limitations exist on the deduction of capital losses by both corporate and non-corporate
taxpayers.
A redemption of
your Series A Preferred for cash will be treated as a sale or exchange if it (1) results in a "complete termination"
of your interest in our stock, (2) is not "essentially equivalent to a dividend" with respect to you, or (3) is
 "substantially disproportionate" with respect to you, each within the meaning of Section 302(b) of the Code. In
determining whether any of these tests have been met, stock considered to be owned by you by reason of certain constructive ownership
rules, as well as shares actually owned by you, must generally be taken into account. If you do not own (actually or constructively)
any additional Securities or our Common Stock, or own only an insubstantial percentage of our stock, and do not participate in
our control or management, a redemption of your Series A Preferred will generally qualify for sale or exchange treatment.
Otherwise, the redemption may be taxable as a dividend to the extent of our current or accumulated earnings and profits as discussed
above with respect to distributions generally. Because the determination as to whether any of the alternative tests of Section 302(b)
of the Code will be satisfied with respect to any particular U.S. Holder depends upon the facts and circumstances at the time that
the determination must be made, prospective U.S. Holders are advised to consult their own tax advisors regarding the tax treatment
of a redemption. If a redemption of Series A Preferred is treated as an exchange, it will be taxable as described in the preceding
paragraph. If a redemption is treated as a distribution, the entire amount received will be treated as a distribution and will
be taxable as described under the caption "Certain U.S. Federal Income Tax Considerations—Tax Consequences to U.S.
Holders—Distributions on Series A Preferred" above.
Additional Medicare Contribution
Tax
An additional tax
of 3.8% generally will be imposed on the "net investment income" of U.S. Holders who meet certain requirements and
are individuals, estates or certain trusts. Among other items, "net investment income" generally includes gross income
from dividends and net gain attributable to the disposition of certain property, such as any Security. In the case of individuals,
this tax will only apply to the lesser of (i) the individual's "net investment income" or (ii) the excess of
such individual's modified adjusted gross income over $200,000 ($250,000 for married couples filing a joint return and surviving
spouses, and $125,000 for married individuals filing a separate return). U.S. Holders should consult their tax advisors regarding
the possible applicability of this additional tax in their particular circumstances.
Information Reporting and Backup
Withholding
Information reporting
and backup withholding may apply with respect to payments of dividends, constructive or actual, on any Security and to certain
payments of proceeds on the sale or other disposition of any Security. Certain non-corporate U.S. Holders may be subject to U.S.
backup withholding (currently at a rate of 24%) on payments of dividends, constructive or actual, on any Security and certain payments
of proceeds on the sale or other disposition of any Security unless the beneficial owner thereof furnishes the payor or its agent
with a taxpayer identification number, certified under penalties of perjury, and certain other information, or otherwise establishes,
in the manner prescribed by law, an exemption from backup withholding. U.S. backup withholding tax is not an additional tax. Any
amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a U.S. Holder's U.S. federal
income tax liability, which may entitle the U.S. Holder to a refund, provided the U.S. Holder timely furnishes the required information
to the Internal Revenue Service ("IRS").
44
Table of Contents
Tax Consequences to Non-U.S. Holders
Exercise of Warrants
See discussion of
the rules applicable to the exercise of a Warrant and related receipt of shares of our Common Stock under "Certain U.S. Federal
Income Tax Considerations—Tax Consequences to U.S. Holders—Exercise of Warrants."
Expiration of Warrants
If a Warrant expires
without being exercised, a Non-U.S. Holder that is engaged in a U.S. trade or business to which any income from the Warrant would
be effectively connected or who is present in the United States for a period or periods aggregating 183 days or more during the
calendar year in which the expiration occurs (and certain other conditions are met) will recognize a capital loss as described
under "Certain U.S. Federal Income Tax Considerations—Tax Consequences to U.S. Holders—Expiration of Warrants."
Distributions on the Series A Preferred
If distributions
are made with respect to the Series A Preferred, such distributions will be treated as dividends to the extent of our current and
accumulated earnings and profits as determined under the Code and may be subject to withholding as discussed below. Any portion
of a distribution that exceeds our current and accumulated earnings and profits will first be applied to reduce the Non-U.S. Holder's
basis in the Series A Preferred and, to the extent such portion exceeds the Non-U.S. Holder's basis, the excess will be treated
as gain from the disposition of the Series A Preferred, the tax treatment of which is discussed below under "Certain U.S.
Federal Income Tax Considerations—Tax Consequences to Non-U.S. Holders—Disposition of Our Securities, Including Redemptions."
In addition, if we are a U.S. real property holding corporation, i.e. a "USRPHC," and any distribution exceeds
our current and accumulated earnings and profits, we will need to choose to satisfy our withholding requirements either by treating
the entire distribution as a dividend, subject to the withholding rules in the following paragraph (and withhold at a minimum rate
of 30% or such lower rate as may be specified by an applicable income tax treaty for distributions from a USRPHC), or by treating
only the amount of the distribution equal to our reasonable estimate of our current and accumulated earnings and profits as a dividend,
subject to the withholding rules in the following paragraph, with the excess portion of the distribution subject to withholding
at a rate of 15% or such lower rate as may be specified by an applicable income tax treaty as if such excess were the result of
a sale of shares in a USRPHC (discussed below under "Certain U.S. Federal Income Tax Considerations—Tax Consequences
to Non-U.S. Holders—Disposition of Our Securities, Including Redemptions"), with a credit generally allowed against
the Non-U.S. Holder's U.S. federal income tax liability in an amount equal to the amount withheld from such excess.
Dividends paid to
a Non-U.S. Holder of the Series A Preferred will be subject to withholding of U.S. federal income tax at a 30% rate or such lower
rate as may be specified by an applicable income tax treaty. However, dividends that are effectively connected with the conduct
of a trade or business by the Non-U.S. Holder within the United States (and, where a tax treaty applies, are attributable to a
permanent establishment maintained by the Non-U.S. Holder in the United States) are not subject to the withholding tax, provided
that certain certification and disclosure requirements are satisfied including completing IRS Form W-8ECI (or other applicable
form). Instead, such dividends are subject to U.S. federal income tax on a net income basis in the same manner as if the Non-U.S.
Holder were a United States person as defined under the Code, unless an applicable income tax treaty provides otherwise. Any such
effectively connected dividends received by a foreign corporation may be subject to an additional "branch profits tax"
at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. A Non-U.S. Holder of the Series A Preferred
who wishes to claim the benefit of an applicable treaty rate and avoid backup withholding, as discussed below, for dividends will
be required to (i) complete IRS Form W-8BEN or Form W-8BEN-E (or other applicable form) and certify under penalty of perjury that
such Non-U.S. Holder is not a United States person as defined under the Code and is eligible for treaty benefits, or (ii) if the
Series A Preferred is held through certain foreign intermediaries, satisfy the relevant certification requirements of applicable
Treasury Regulations. A Non-U.S. Holder of the Series A Preferred eligible for a reduced rate of U.S. withholding tax pursuant
to an income tax treaty may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with
the IRS.
45
Table of Contents
Constructive Distributions on Series
A Preferred
A Non-U.S. Holder
may have to include the Redemption Premium in income as a constructive distribution on the Series A Preferred, unless the Redemption
Premium is
de minimis
or it is determined that the Company is not likely to exercise the Call Option, in the same manner
as discussed under "Certain U.S. Federal Income Tax Considerations—Tax Consequences to U.S. Holders—Constructive
Distributions on Series A Preferred."
Disposition of Our Securities, Including
Redemptions
Any gain realized
by a Non-U.S. Holder on the disposition of any Security will not be subject to U.S. federal income or withholding tax unless:
·
the gain is effectively connected with a trade or business of the Non-U.S. Holder in the United
States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment maintained by the Non-U.S.
Holder in the United States);
·
the Non-U.S. Holder is an individual who is present in the United States for 183 days or more in
the taxable year of disposition, and certain other conditions are met; or
·
we are a USRPHC for U.S. federal income tax purposes, at any time within the shorter of the five-year
period preceding the disposition or the Non-U.S. Holder's holding period for any Security.
A Non-U.S. Holder
described in the first bullet point immediately above will generally be subject to tax on the net gain derived from the sale under
regular U.S. federal income tax rates in the same manner as if the Non-U.S. Holder were a United States person as defined under
the Code, and if it is a corporation, may also be subject to the branch profits tax equal to 30% of its effectively connected earnings
and profits or at such lower rate as may be specified by an applicable income tax treaty. An individual Non-U.S. Holder described
in the second bullet point immediately above will be subject to a flat 30% tax (or at such reduced rate as may be provided by an
applicable treaty) on the gain derived from the sale, which may be offset by U.S. source capital losses, even though the individual
is not considered a resident of the United States. For a Non-U.S. Holder described in the third bullet point above, we believe
we are not currently and do not anticipate becoming a USRPHC. However, because the determination of whether we are a USRPHC depends
on the fair market value of our United States real property interests relative to the fair market value of our other business assets,
there can be no assurance that we will not become a USRPHC in the future. Even if we become a USRPHC, a Non-U.S. Holder may qualify
for an exemption from U.S federal income tax based on our status as a USRPHC.  If no exemption is available and we are
a USRPHC, a Non-U.S. Holder's proceeds received on the disposition of any Security will generally be subject to withholding
at a rate of 15% and such Non-U.S. Holder will generally be taxed on any gain in the same manner as gain that is effectively connected
with the conduct of a U.S. trade or business, except that the branch profits tax generally will not apply.  Non-U.S.
Holders should consult with their tax advisors on the availability of any such exemption in the event of we become a USRPHC.
46
Table of Contents
If a Non-U.S. Holder
is subject to U.S. federal income tax on any sale, exchange, redemption (except as discussed below), or other disposition of any
Security, such a Non-U.S. Holder will recognize capital gain or loss equal to the difference between the amount realized by the
Non-U.S. Holder and the Non-U.S. Holder's adjusted tax basis in the Security. Such capital gain or loss will be long-term
capital gain or loss if the Non-U.S. Holder's holding period for the Security is longer than one year. A Non-U.S. Holder
should consult its own tax advisors with respect to applicable tax rates and netting rules for capital gains and losses. Certain
limitations exist on the deduction of capital losses by both corporate and non-corporate taxpayers. The receipt of any redemption
proceeds attributable to any accrued but unpaid dividends on the Series A Preferred generally will be subject to the rules discussed
above in "Certain U.S. Federal Income Tax Considerations—Tax Consequences to Non-U.S. Holders—Distributions on
the Series A Preferred." A payment made in redemption of the Series A Preferred may be treated as a dividend, rather than
as payment in exchange for the Series A Preferred, in the same circumstances discussed above under "Certain U.S. Federal
Income Tax Considerations—Tax Consequences to U.S. Holders—Disposition of Our Securities, Including Redemptions."
Each Non-U.S. Holder of the Series A Preferred should consult its own tax advisors to determine whether a payment made in redemption
of the Series A Preferred will be treated as a dividend or as payment in exchange for the Series A Preferred.
Information Reporting and Backup
Withholding
We must report annually
to the IRS and to each Non-U.S. Holder the amount of dividends, constructive or actual, paid to such Non-U.S. Holder and the tax
withheld with respect to such dividends, regardless of whether withholding was required. Copies of the information returns reporting
such dividends and withholding may also be made available to the tax authorities in the country in which the Non-U.S. Holder resides
under the provisions of an applicable income tax treaty. A Non-U.S. Holder will not be subject to backup withholding on dividends,
constructive or actual, paid to such Non-U.S. Holder as long as such Non-U.S. Holder certifies under penalty of perjury that it
is a Non-U.S. Holder (and the payor does not have actual knowledge or reason to know that such Non-U.S. Holder is a United States
person as defined under the Code), or such Non-U.S. Holder otherwise establishes an exemption. Depending on the circumstances,
information reporting and backup withholding may apply to the proceeds received from a sale or other disposition of any Security
unless the beneficial owner certifies under penalty of perjury that it is a Non-U.S. Holder (and the payor does not have actual
knowledge or reason to know that the beneficial owner is a United States person as defined under the Code), or such owner otherwise
establishes an exemption. U.S. backup withholding tax is not an additional tax. Any amounts withheld under the backup withholding
rules may be allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability provided the required
information is timely furnished to the IRS.
Foreign Account Tax Compliance Act
Sections 1471 through
1474 of the Code (provisions which are commonly referred to as "FATCA"), generally impose a 30% withholding tax on
dividends, on any Security paid on or after July 1, 2014, and the gross proceeds of a sale or other disposition of any Security
paid on or after January 1, 2019, to: (i) a foreign financial institution (as that term is defined in Section 1471(d)(4) of the
Code) unless that foreign financial institution enters into an agreement with the U.S. Treasury Department to collect and disclose
information regarding U.S. account holders of that foreign financial institution (including certain account holders that are foreign
entities that have U.S. owners) and satisfies other requirements; and (ii) specified other foreign entities unless such an entity
certifies that it does not have any substantial U.S. owners or provides the name, address and taxpayer identification number of
each substantial U.S. owner and such entity satisfies other specified requirements. Non-U.S. Holders should consult their own tax
advisors regarding the application of FATCA to them and whether it may be relevant to their purchase, ownership and disposition
of any Security.
47
Table of Contents
UNDERWRITING
Roth Capital Partners,
LLC and The Benchmark Company, LLC are joint bookrunning managers of the offering, and are acting as representatives of the underwriters
named below. Subject to the terms and conditions stated in the underwriting agreement dated the date of this prospectus, each underwriter
named below has agreed to purchase severally and not jointly, and we have agreed to sell to that underwriter, the respective number
of Units set forth opposite the underwriter's name.
Underwriters
Number of Units
Roth Capital Partners, LLC
[•]
The Benchmark Company, LLC
[•]
Total
600,000
The underwriting agreement
provides that the obligations of the underwriters to purchase the aggregate number of Units included in this offering are subject
to approval of legal matters by counsel and to other conditions. The underwriters are obligated to purchase all of the Units offered
hereby (other than those covered by the underwriters' option to purchase additional Units described below) if they purchase
any Units.
Option to Purchase Additional Securities
We have granted to
the underwriters an option, exercisable for up to 45 days from the date of this prospectus, to purchase up to 90,000 additional
Series A Preferred and/or [•] additional Warrants, at the public offering price less the underwriting discount. To the extent
the option is exercised, each underwriter must purchase the number of additional Series A Preferred and/or Warrants approximately
proportionate to that underwriter's initial purchase commitment.
Underwriting Discount and Expenses
The underwriters are
purchasing the Units from us at $[•] per Unit (representing approximately $[•] aggregate gross proceeds to us, before
we deduct our out-of-pocket expenses of approximately $[•]). The underwriters propose to offer the Units to the public at
the public offering price set forth on the cover page of this prospectus. The underwriters may effect such transactions by selling
Units to or through dealers, at that price less a concession not in excess of $[•] per Unit. Such dealers may receive
compensation in the form of discounts, concessions or commissions from the underwriters and/or purchasers of Units for whom they
may act as agents or to whom they may sell as principal.
The following table
shows the public offering price, the underwriting discounts and commissions that we are to pay the underwriters and the proceeds,
before expenses, to us in connection with this offering. Such amounts are shown assuming both no exercise and full exercise of
the underwriters' option to purchase additional shares.
48
Table of Contents
​
Per Unit
Total
​
​
Without
Option to
Purchase
Additional
Units
With Option
to Purchase
Additional
Units
Without
Option to
Purchase
Additional
Units
With Option
to Purchase
Additional
Units
​
Public offering price
​
​
​
​
​
​
​
​
​
Underwriting discounts and commissions
​
​
​
​
​
​
​
​
​
Proceeds to us, before expenses
​
​
​
​
​
​
​
​
​
We estimate that the
total expenses of this offering, including registration, filing and listing fees, printing fees and legal and accounting expenses,
but excluding underwriting discounts and reimbursements, will be approximately $[•]. We have also agreed to reimburse the
Underwriters for certain expenses incurred in connection with this offering pursuant to the underwriting agreement, including certain
legal fees, in an amount not to exceed $[•].
Lock-Up Agreement
We have agreed with
the underwriters, subject to certain limited exceptions, not to sell or transfer any Units or securities that are substantially
similar to the Units (collectively, the "Lock-up Securities"), for 90 days after the date of this prospectus without
first obtaining the written consent of Roth Capital Partners, LLC, on behalf of the underwriters. Specifically, we have agreed,
subject to certain limited exceptions, not to (i) sell, offer, contract to sell, pledge, grant any option to purchase or otherwise
dispose of, directly or indirectly, any Lock-up Securities, or any securities convertible into or exercisable or exchangeable for
Lock-Up Securities, or (ii) enter into any swap or other arrangement that transfer to another, in whole or in part, any of the
economic consequences of ownership of the Lock-Up Securities, whether any such transaction described in clause (i) or (ii)
above is to be settled by delivery of Units or such other securities, in cash or otherwise, or (3) file any registration statement
with the Commission relating to the offering of any Lock-Up Securities or any securities convertible into or exercisable or exchangeable
for Lock-Up Securities, except for the offering of the Units pursuant to the underwriting agreement and this prospectus.
The representatives,
in their sole discretion, may release any of the Lock-up Securities in whole or in part at any time with or without notice. The
representatives have no present intent or arrangement to release any of the Lock-up Securities. The release of any lock-up is considered
on a case-by-case basis. Factors that will be considered in deciding whether to release Units may include the length of time before
the lock-up period expires, the number of Units involved, the reason for the requested release, market conditions, the trading
price of the Series A Preferred and the Common Stock and the historical trading volume of the Common Stock.
Listing
We expect that the
Series A Preferred will be quoted on the Nasdaq Capital Market under the symbol "MARKP". Our goal is to apply to list
our Series A Preferred on the Nasdaq Capital Market but there can be no assurance that our Series A Preferred will, in fact, qualify
for listing or quotation on Nasdaq. However, our plan is to have the initial closing of our Series A Preferred after the sale of
[•] Series A Preferred, resulting in proceeds of $[•] million which will qualify for quotation on Nasdaq, provided that
we have the minimum number of holders of the Series A Preferred. See "Risk Factors." We do not plan on applying to
list any of the Warrants on any national securities exchange or any other nationally recognized trading system.
Passive Market Making
In connection with
the offering, the underwriters may engage in passive market making transactions in shares of Series A Preferred or our Common Stock
on the Nasdaq Capital Market in accordance with Rule 103 of Regulation M under the Exchange Act during the period before
the commencement of offers or sales of securities in this offering and extending through the completion of distribution. A passive
market maker must display its bids at a price not in excess of the highest independent bid of the security. However, if all independent
bids are lowered below the passive market maker's bid, that bid must be lowered when specified purchase limits are exceeded.
49
Table of Contents
Price Stabilization, Short Positions
and Penalty Bids
In connection with
the offering, the representatives, on behalf of the underwriters, may purchase and sell the securities offered hereby in the open
market. These transactions may include short sales, syndicate covering transactions and stabilizing transactions. Short sales involve
syndicate sales of securities in excess of the number of securities to be purchased by the underwriters in the offering, which
creates a syndicate short position. "Covered" short sales are sales of securities made in an amount up to the number
of Units represented by the underwriters' over-allotment option. In determining the source of securities to close out the
covered syndicate short position, the underwriters will consider, among other things, the price securities available for purchase
in the open market as compared to the price at which they may purchase our securities through the over-allotment option. Transactions
to close out the covered syndicate short position involve either purchases of securities in the open market after the distribution
has been completed or the exercise of the over-allotment option. The underwriters may also make "naked" short sales
of our securities in excess of the over-allotment option. The underwriters must close out any naked short position by purchasing
our securities in the open market. A naked short position is more likely to be created if the underwriters are concerned that there
may be downward pressure on the price of our securities in the open market after pricing that could adversely affect investors
who purchase in the offering. Stabilizing transactions consist of bids for or purchases of securities in the open market while
the offering is in progress.
The underwriters also
may impose a penalty bid. Penalty bids permit the underwriters to reclaim a selling concession from a syndicate member when a representative
repurchases securities originally sold by that syndicate member in order to cover syndicate short positions or make stabilizing
purchases.
Any of these activities
may have the effect of preventing or retarding a decline in the market price of our stock. They may also cause the price of shares
of Series A Preferred or our Common Stock to be higher than the price that would otherwise exist in the open market in the absence
of these transactions. The underwriters may conduct these transactions on the NASDAQ Global Select Market or in the over- the-counter
market, or otherwise. If the underwriters commence any of these transactions, they may discontinue them at any time.
Additional Relationships and Conflict
of Interest
The underwriters and
their affiliates may, from time to time in the future, engage in transactions with and perform services for us in the ordinary
course of their business. In the ordinary course of their various business activities, the underwriters and their respective affiliates
may make or hold a broad array of investments in us and actively trade in our debt and equity securities (or related derivative
and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time
hold long and short positions in such securities and instruments.
Electronic Distribution
This prospectus and
the accompanying prospectus in electronic format may be made available on the websites maintained by one or more of the underwriters.
The underwriters may agree to allocate a number of Units for sale to their online brokerage account holders. Unit will be allocated
to underwriters that may make Internet distributions on the same basis as other allocations. In addition, Units may be sold by
the underwriters to securities dealers who resell such Units to online brokerage account holders.
50
Table of Contents
Other than this prospectus
and the accompanying prospectus in electronic format, information contained in any website maintained by an underwriter is not
part of this prospectus or the accompanying prospectus or registration statement of which the accompanying prospectus forms a part,
has not been endorsed by us and should not be relied on by investors in deciding whether to purchase our securities. The underwriters
are not responsible for information contained in websites that they do not maintain.
Indemnification
We have agreed to
indemnify the underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the
 "Securities Act"), or to contribute to payments the underwriters may be required to make because of any of those liabilities.
Offer 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.
Selling Restrictions
European Economic Area
This prospectus
does not constitute an approved prospectus under Directive 2003/71/EC and no such prospectus is intended to be prepared and approved
in connection with this offering. Accordingly, in relation to each Member State of the European Economic Area which has implemented
Directive 2003/71/EC (each, a "Relevant Member State") an offer to the public of any securities which are the subject
of the offering contemplated by this prospectus may not be made in that Relevant Member State except that an offer to the public
in that Relevant Member State of any securities may be made at any time under the following exemptions under the Prospectus Directive,
if and to the extent that they have been implemented in that Relevant Member State:
(a)
to any legal entity which is a qualified investor as defined in the Prospectus Directive;
(b)
to fewer than 100 or, if the Relevant Member State has implemented the relevant provision of the 2010 PD Amending Directive,
150, natural or legal persons (other than qualified investors as defined in the Prospectus Directive), subject to obtaining the
prior consent of the representatives of the underwriters for any such offer; or
(c)
in any other circumstances which do not require any person to publish a prospectus pursuant to
Article 3 of the Prospectus Directive.
For the purposes of this
provision, the expression an "offer to the public" in relation to any 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 any securities to be offered
so as to enable an investor to decide to purchase any securities, as the expression may be varied in that Member State by any measure
implementing the Prospectus Directive in that Member State and the expression "Prospectus Directive" means Directive
2003/71/EC (and any amendments thereto including the 2010 PD Amending Directive to the extent implemented in each Relevant Member
State) and includes any relevant implementing measure in each Relevant Member State and the expression "2010 PD Amending
Directive" means Directive 2010/73/EU.
51
Table of Contents
United Kingdom
This prospectus is not
an approved prospectus for purposes of the UK Prospectus Rules, as implemented under the EU Prospectus Directive (2003/71/EC),
and have not been approved under section 21 of the Financial Services and Markets Act 2000 (as amended) (the "FSMA")
by a person authorized under FSMA. The financial promotions contained in this prospectus are directed at, and this prospectus is
only being distributed to, (1) persons who receive this prospectus outside of the United Kingdom, and (2) persons in
the United Kingdom who fall within the exemptions under articles 19 (investment professionals) and 49(2)(a) to (d) (high net worth
companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (all
such persons together being referred to as "Relevant Persons"). This prospectus must not be acted upon or relied upon
by any person who is not a Relevant Person. Any investment or investment activity to which this prospectus relates is available
only to Relevant Persons and will be engaged in only with Relevant Persons. This prospectus and its contents are confidential and
should not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person that is
not a Relevant Person.
The underwriter
has represented, warranted and agreed that:
(a)
it has only communicated or caused to be communicated and will only communicate or cause to be
communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) in connection
with the issue or sale of any of the shares of common stock in circumstances in which section 21(1) of the FSMA does not apply
to the issuer; and
(b)
it has complied with and will comply with all applicable provisions of the FSMA with respect to
anything done by it in relation to the shares of common stock in, from or otherwise involving the United Kingdom.
Legal
Matters
The validity of
the securities offered hereby will be passed upon by Olshan Frome Wolosky LLP, New York, New York. Pryor Cashman LLP, New York,
New York, is counsel for the Underwriters in connection with this offering.
Experts
Cherry Bekaert LLP,
our independent registered public accounting firm, has audited our consolidated financial statements as of December 31, 2019 and
2018, and for the years then ended, contained in our Annual Report on Form 10-K for the year ended December 31, 2019. These financial
statements are incorporated by reference in this prospectus and elsewhere in this registration statement. Such financial statements
are incorporated by reference in reliance on their reports given upon their authority as experts in auditing and accounting.
Where
You Can Find More Information
We have filed with
the SEC a registration statement on Form S-1, including exhibits and schedules, under the Securities Act with respect to the securities
to be sold pursuant to this prospectus. This prospectus does not contain all the information contained in the registration statement.
For additional information with respect to the Company and the securities that may be sold pursuant to this prospectus, we refer
you to the registration statement and the exhibits and schedules attached to the registration statement. Statements contained in
this prospectus as to the contents of any contract, agreement or other document referred to are not necessarily complete. When
we make such statements, we refer you to the copies of the contracts or documents that are filed as exhibits to the registration
statement because those statements are qualified in all respects by reference to those exhibits.
52
Table of Contents
We are also subject
to the informational requirements of the Exchange Act. In accordance with the Exchange Act, we file periodic reports, proxy and
information statements and other information with the SEC. Our filings with the SEC are available to the public over the Internet
at the SEC's website at www.sec.gov. You may also request copies of such documents, upon payment of a duplicating fee, by
writing to the SEC at 100 F Street, N.E., Washington, D.C. 20549. You may also find documents we filed on our website at www.remarkholdings.com.
Information contained in or accessible through our website does not constitute a part of this prospectus.
INFORMATION
INCORPORATED BY REFERENCE
The SEC allows us
to incorporate by reference information contained in documents we file with it, which means that we can disclose important information
to you by referring you to those documents already on file with the SEC that contain that information. The information incorporated
by reference is considered to be part of this prospectus, and later information that we file with the SEC will automatically update
and supersede this information. We incorporate by reference the documents listed below and any future information filed (rather
than furnished) with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act between the date of this prospectus and
the termination of the offering of the securities covered by this prospectus, provided, however, that we are not incorporating
any information furnished under any of Item 2.02 or Item 7.01 of any Current Report on Form 8-K (and exhibits filed on such form
that are related to such items):
1.
Our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC
on
May 29, 2020
;
2.
Our Quarterly Report on Form 10-Q for the fiscal period ended March 31, 2020, filed with the SEC
on
July 6, 2020
; and
3.
Our Current Reports on Form 8-K filed with the SEC on
January 6, 2020
,
March 4, 2020
,
March 6, 2020
,
March 20, 2020
,
March 27, 2020
,
April 14, 2020
,
May 13, 2020
,
May 26, 2020
and
May 28, 2020
.
Upon written or oral request,
we will provide at no cost to the requester a copy of all of the information that has been incorporated by reference in this prospectus
but not delivered with this prospectus. You may obtain copies of these documents from us, excluding the exhibits to such filings
which we have not specifically incorporated by reference in such filings, at no cost, by requesting them in writing or by telephone
at the following address:
Remark Holdings, Inc.
800 S. Commerce Street
Las Vegas, NV 89106
Attention: Chief Executive Officer
(702) 701-9514
53
Table of Contents
600,000 Shares of 9.5% Series A Cumulative Redeemable Perpetual Preferred Stock
[•] Warrants to Purchase up to
[•] Shares of Common Stock
(and [•] Shares of Common Stock
Issuable Upon Exercise of Warrants)
REMARK HOLDINGS, INC.
PROSPECTUS
[•], 2020
54
Table of Contents
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution.
The following table
sets forth the fees and expenses payable by the registrant in connection with the issuance and distribution of the securities
being registered. All of the amounts shown are estimates, except for the SEC registration fee:
SEC registration fee
$
3,358.58
FINRA filing fee
*
Legal fees and expenses
*
Accounting fees and expenses
*
Transfer agent fees and expenses
*
Printing expenses
*
Miscellaneous fees and expenses
*
Total
$
3,358.58
Item 14. Indemnification of Directors
and Officers.
Our
Charter provides that, to the fullest extent permitted by the DGCL, our directors shall not be personally liable to us or our stockholders
for monetary damages for breach of fiduciary duty as a director. Each of our Charter and Bylaws also provide as follows:
(a)
The Company shall indemnify any person who was or is a party
or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the Company) by reason of the fact that the person
is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection
with such action, suit or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in,
or not opposed to, the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable
cause to believe the person's conduct was unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the
person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests
of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that the person's
conduct was unlawful.
(b)
The Company shall indemnify any person who was or is a party
or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company to
procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee or agent of the Company,
or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise against expenses (including attorneys' fees) actually and reasonably incurred by
the person in connection with the defense or settlement of such action or suit if the person acted in good faith and in a manner
the person reasonably believed to be in or not opposed to the best interests of the Company and except that no indemnification
shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the Company
unless and only to the extent that the Court of Chancery of the State of Delaware or the court in which such action or suit was
brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the
case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court
shall deem proper.
55
Table of Contents
(c)
To the extent that a present or former director or officer of
the Company has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in sections
(a) and (b) above, or in defense of any claim, issue or matter therein, such person shall be indemnified against expenses (including
attorneys' fees) actually and reasonably incurred by such person in connection therewith.
(d)
Any indemnification under sections (a) and (b) above (unless
ordered by a court) shall be made by the Company only as authorized in the specific case upon a determination that indemnification
of the present or former director, officer, employee or agent is proper in the circumstances because the person has met the applicable
standard of conduct set forth in sections (a) and (b) above. Such determination shall be made, with respect to a person who is
a director or officer at the time of such determination, (i) by a majority vote of the directors who are not parties to such action,
suit or proceeding, even though less than a quorum, or (ii) by a committee of such directors designated by majority vote of such
directors, even though less than a quorum, or (iii) if there are no such directors, or if such directors so direct, by independent
legal counsel in a written opinion, or (iv) by the stockholders of the Company.
We
have obtained liability insurance covering our directors and executive officers for claims asserted against them or incurred by
them in such capacity.
Item 15. Recent Sales of Unregistered
Securities.
During
the past three years, we sold the following securities without registration under the Securities Act:
·
On January 23, 2017 and March 16, 2017, we issued a total of
290,000 and 92,308 shares, respectively, of our Common Stock to accredited investors in private placements in exchange for $1.0
million and $0.3 million, respectively.
·
On September 5, 2017, we issued a total of 751,880 shares of our Common Stock to an accredited
investor in a private placement in exchange for $2.0 million.
·
On November 13, 2017, we sold 142,857 shares to an accredited
investor in a private placement for $0.5 million. On December 20, 2017, we sold 833,334 shares to Charoen Pokphand Group in a private
placement for $10.0 million.
·
On November 2, 2018, we sold 200,000 shares to an accredited investor in a private placement for
$0.5 million. On December 4, 2018, we sold an aggregate of 2,384,616 shares to accredited investors in private placements for an
aggregate of $3.1 million.
·
On June 19, 2019, we issued 1,250,000 shares of our Common Stock
to an accredited investor in a private placement in exchange for $1.0 million.
·
On September 13, 2019, we issued 2,300,000 shares of our Common Stock to an accredited investor
in a private placement in exchange for $1.8 million.
·
On December 23, 2019, we issued 1,000,000 shares of our Common Stock to an accredited investor
in a private placement in exchange for $0.5 million.
56
Table of Contents
We
made the offers and sales of securities in the above-described private placements in reliance upon an exemption from registration
requirements pursuant to Section 4(a)(2) under the Securities Act, as amended, based upon representations made to us by the investors
in purchase agreements we entered into with the investors.
Item 16. Exhibits and Financial Statement Schedules
Incorporated Herein
By Reference To
Exhibit Number
Description
Document
Filed On
Exhibit Number
1.1
*
Underwriting Agreement
2.1
1
Unit Purchase Agreement, dated August 18, 2015, by and among Remark Media, Inc. (n/k/a Remark Holdings, Inc.), Vegas.com, LLC and the sellers listed on the signature page thereto
8-K
08/20/2015
2.1
2.2
1
Second Amended and Restated Asset and Securities Purchase Agreement, dated as September 20, 2016, by and among China Branding Group Limited (in official liquidation), certain of its managers and subsidiaries listed on the signature page thereto, the joint official liquidators, KanKan Limited and Remark Media, Inc. (n/k/a Remark Holdings, Inc.)
8-K
09/26/2016
2.1
2.3
1
Membership Interest Purchase Agreement, dated as of March 15, 2019, by and between VDC-MGG Holdings LLC and Remark Holdings, Inc.
8-K
03/19/2019
2.1
3.1
Amended and Restated Certificate of Incorporation
8-K
12/30/2014
3.1
3.2
Certificate of Amendment to the Amended and Restated Certificate of Incorporation
8-K
01/12/2016
3.1
3.3
Certificate of Amendment to the Amended and Restated Certificate of Incorporation
8-K
06/08/2016
3.1
3.4
Certificate of Amendment to the Amended and Restated Certificate of Incorporation
8-K
04/11/2017
3.1
3.6
Amended and Restated Bylaws
8-K
02/13/2015
3.1
4.1
Specimen certificate of common stock of Remark Media, Inc. (n/k/a Remark Holdings, Inc.)
10-K
03/23/2012
4.1
4.2
Registration Rights Agreement dated as of September 24, 2015 by and between Remark Media, Inc. (n/k/a Remark Holdings, Inc.) and the Subscribers listed on the signature page thereto
8-K
09/28/2015
10.4
4.3
Form of CBG Acquisition Warrant
8-K
09/26/2016
4.1
4.4
Form of CBG Financing Warrant
8-K
09/26/2016
4.2
4.5
Registration Rights Agreement, dated as of March 3, 2020, by and between Remark Holdings, Inc. and Aspire Capital Fund, LLC
8-K
03/04/2020
4.1
4.6
Description of Registrant's Securities
10-K
05/29/2020
4.6
4.7
*
Certificate of Designations of 9.5% Series A Cumulative
    Redeemable Perpetual Preferred Stock
4.8
*
Form of Warrant to Purchase Common Stock
5.1
*
Opinion of Olshan Frome Wolosky LLP
10.1
2
2010 Equity Incentive Plan
8-K
06/21/2010
10.34
10.2
2
2014 Incentive Plan, as amended January 11, 2016
8-K
01/12/2016
10.1
10.3
2
2017 Incentive Plan
8-K
01/24/2018
10.1
57
Table of Contents
10.4
Letter Agreement dated September 24, 2015 by and among Remark Media, Inc. (n/k/a Remark Holdings, Inc.), Vegas.com, LLC, and James B. Gibson in his capacity as Seller Representative
8-K
09/28/2015
10.1
10.5
Registration Rights Agreement dated as of September 20, 2016, by and between Remark Media, Inc. (n/k/a Remark Holdings, Inc.) and the Subscribers listed on the signature page thereto
8-K
09/26/2016
10.2
21.1
List of Subsidiaries
10-K
05/29/2020
21.1
23.1
Consent of Cherry Bekaert LLP
23.2*
Consent of Olshan Frome Wolosky LLP (included in Exhibit 5.1)
24.1
Power of Attorney (included on signature page)
_____________
* To be filed by amendment.
1
We have omitted certain schedules and exhibits
to these agreements in accordance with item 601(b)(2) of Regulation S-K. We will furnish a copy of any omitted schedule and/or
exhibit to the SEC upon request.
2
Management contract or compensation plan
or arrangement.
Item 17. Undertakings.
The undersigned registrant hereby undertakes:
(a)
The undersigned registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii)
to reflect in the prospectus any facts or events arising after the effective date of the registration
statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume
of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation
from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;
and
(iii)
to include any material information with respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such information in the registration statement.
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
58
Table of Contents
(3)
To remove from registration by means of a post-effective amendment any of the securities being
registered which remain unsold at the termination of the offering.
(5)
That, for the purpose of determining liability of the registrant under the Securities Act of 1933
to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other
than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to
be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that
no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated
or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will,
as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement or made in any such document immediately prior
to such date of first use.
(6)
That, for the purpose of determining liability of the registrant under the Securities Act of 1933
to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes
that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the
underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means
of any of the following communications, the undersigned registrant shall be a seller to the purchaser and shall be considered to
offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering
required to be filed pursuant to Rule 424;
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned
registrant or used or referred to by the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information
about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to
the purchaser.
(b)
The undersigned registrant hereby undertakes that, for purposes of determining any liability under
the Securities Act of 1933, each filing of the registrant's annual report pursuant to section 13(a) or section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant
to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall
be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at
that time shall be deemed to be the initial bona fide offering thereof.
(h)
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted
to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the 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.
59
Table of Contents
SIGNATURES
Pursuant to the requirements of Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Las Vegas, State of Nevada, on the 20
th
day of July, 2020.
REMARK HOLDINGS, INC.
By:
/s/ Kai-Shing Tao
Name:
Kai-Shing Tao
Title:
Chairman and Chief Executive Officer
(principal executive, financial and accounting officer)
POWER OF ATTORNEY
Each of the undersigned officers and
directors of Remark Holdings, Inc. hereby constitutes and appoints Kai-Shing Tao, and each of them any of whom may act without
joinder of the other, the individual's true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution,
for the person and in his or her name, place and stead, in any and all capacities, to sign this registration statement on Form
S-1, and any other registration statement relating to the same offering (including any registration statement, or amendment thereto,
that is to become effective upon filing pursuant to Rule 462(b) under the Securities Act of 1933, as amended), and any and all
amendments thereto (including post-effective amendments to the registration statement), and to file the same, with all exhibits
thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact
and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to
be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming all that said attorneys-in-fact and agents or any of them, or their substitute or substitutes, may lawfully do or
cause to be done by virtue hereof.
Pursuant to the requirements of the
Securities Act of 1933, this registration statement has been signed below by the following persons in the capacities and on the
dates indicated.
Name and
        Signature
Title
Date
/s/ Kai-Shing Tao
Chief Executive Officer and Chairman
July 20, 2020
Kai-Shing Tao
(principal executive, financial and accounting officer)
/s/ Theodore Botts
Director
July 20, 2020
Theodore Botts
/s/ Brett Ratner
Director
July 20, 2020
Brett Ratner
/s/ Daniel Stein
Director
July 20, 2020
Daniel Stein
/s/ Elizabeth Xu
Director
July 20, 2020
Elizabeth Xu
60