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<font style="font-weight: bold; font-family: Times New Roman; font-size: 24px">
UNITED STATES</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 24px">
SECURITIES AND EXCHANGE COMMISSION</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">WASHINGTON,
D.C. 20549</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 24px">
FORM 20-F</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#x2610;&#xA0;
Registration Statement Pursuant to Section 12(b) or (g) of the
Securities Exchange Act of 1934.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">or</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#x2612;&#xA0;
Annual Report Pursuant to Section 13 OR 15(d) of the Securities
Exchange Act of 1934</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">for the
Fiscal Year Ended <font style="font-weight: bold">December 31,
2019</font></font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">or</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x2610;&#xA0;
Transition Report Pursuant to Section 13 OR 15(d) of the Securities
Exchange Act of 1934.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
transition period from _______ to ________.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Commission
file number 000-52145</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 24px">
Digatrade Financial Corp</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Exact
name of Registrant as specified in its charter)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">________________________________________________</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Translation
of Registrant's name into English)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Business Corporations Act (British Columbia)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Jurisdiction
of incorporation or organization)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
1500 West Georgia Street, Suite 1300, Vancouver, British Columbia,
Canada, V6C 2Z6</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Address
of principal executive offices)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Securities
registered or to be registered pursuant to Section 12(b) of the
Act.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Title
of each class</font></div>
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<td style="vertical-align: middle; width: 10%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
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<font style="font-family: Times New Roman; font-size: 13px">Name of
each exchange on which registered</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Securities
registered or to be registered pursuant to Section 12(g) of the
Act.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Common Stock, without par value</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Title
of Class)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman">
&#x2028;</font>Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">__________________________</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Title
of Class)</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
the number of outstanding shares of each of the issuer's classes of
capital or common stock as of the close of the period covered by
the annual report:</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">582,564,926
shares of common stock as at December 31, 2019.</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1,100,000
shares of Class B common stock as at December 31, 2019</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act.&#xA0;&#x2610;
Yes&#xA0;&#xA0;&#x2612; No</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If this
report is an annual or transition report, indicate by check mark if
the registrant is not required to filed reports pursuant to Section
13 or 15(d)&#xA0;&#xA0;of the Securities Exchange Act of
1934&#xA0;&#xA0;&#x2610; Yes&#xA0;&#xA0;&#x2612; No</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
reports)&#xA0;&#xA0;&#xA0;&#x2612; Yes&#xA0;&#xA0;&#x2610; No; and
(2) has been subject to such filing requirements for the past 90
days.&#xA0;&#xA0;&#x2612; Yes&#xA0;&#xA0;&#xA0;&#x2610;
No.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
which financial statement item the registrant elects to
follow:&#xA0;&#xA0;&#xA0;&#x2612; Item 17&#xA0;&#xA0;&#x2610; Item
18.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate
by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer.&#xA0;&#xA0;See
definition of &#x201C;accelerated filer and large accelerated
filer&#x201D; in Rule 12b-2 of the Exchange Act. (Check
one):</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Large
accelerated filer&#xA0;&#xA0;&#x2610;&#xB7;&#xB7;&#xB7;&#xA0;
Accelerated filer&#xA0;&#xA0;&#x2610;&#xB7;&#xB7;&#xB7;&#xA0;
Non-accelerated filer &#x2612;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If this
is an annual report, indicated by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange
Act).&#xA0;&#xA0;&#x2610; Yes&#xA0;&#xA0;&#x2612; No</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Digatrade
Financial Corp</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Table
of Contents</font></div>
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<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
PART I</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
1</font></div>
</td>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 1.&#xA0;&#xA0; Identity of Directors, Senior Management and
Advisors</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
1</font></div>
</td>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 2.&#xA0;&#xA0; Offer Statistics and Expected
Timetable</font></div>
</td>
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<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
2</font></div>
</td>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 3.&#xA0;&#xA0; Key Information</font></div>
</td>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
2</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 4.&#xA0;&#xA0; Information on the Company</font></div>
</td>
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<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
13</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 5.&#xA0;&#xA0; Operating and Financial Review</font></div>
</td>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
15</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 6.&#xA0;&#xA0; Directors, Senior Management and
Employees</font></div>
</td>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
18</font></div>
</td>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 7.&#xA0;&#xA0; Major Shareholders and Related Party
Transactions.</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
21</font></div>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 8.&#xA0;&#xA0; Financial Information</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
23</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 9.&#xA0;&#xA0; The Offer and Listing</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
23</font></div>
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</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 10.&#xA0;&#xA0; Additional Information</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
24</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 11.&#xA0;&#xA0; Quantitative and Qualitative Disclosures about
Market Risk</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
34</font></div>
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</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 12.&#xA0;&#xA0; Description of Securities Other Than Equity
Securities</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
34</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
PART II</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
35</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 13.&#xA0;&#xA0; Defaults, Dividend Arrearages and
Delinquencies</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
35</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 14.&#xA0;&#xA0; Material Modifications to the Rights of
Security Holders and Use of Proceeds</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
35</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 15T.&#xA0;&#xA0; Controls and Procedures</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
35</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 15.&#xA0;&#xA0; Controls and Procedures</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
35</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 16A.&#xA0;&#xA0; Audit Committee Financial
Experts</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
37</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 16B.&#xA0;&#xA0; Code of Ethics</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
37</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 16C.&#xA0;&#xA0; Principal Accountant Fees and
Services</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
37</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 16D.&#xA0;&#xA0; Exemptions from the Listing Standards for
Audit Committees</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
37</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 16E.&#xA0;&#xA0; Purchases of Equity Securities by the Issuer
and Affiliated Purchasers</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
37</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 16F.&#xA0;&#xA0; Change in Registrant&#x2019;s Certifying
Accountant</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
37</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 16G.&#xA0;&#xA0; Corporate Governance</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
37</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 17.&#xA0;&#xA0; Financial Statements</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
38</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 18.&#xA0;&#xA0; Financial Statements</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
38</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Item 19.&#xA0;&#xA0; Exhibits</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
38</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 89%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
SIGNATURES</font></div>
</td>
<td style="vertical-align: bottom; width: 11%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
38</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><a name="_Toc449522911"><!--anchor--></a>PART I</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Introduction</font>.&#xA0; Digatrade Financial Corp (referred to as
&#x201C;Digatrade&#x201D; or &#x201C;the Company&#x201D;), is a British
Columbia corporation, incorporated on December 28,
2000.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company was incorporated under the name Black Diamond Holdings
Corporation. On June 26, 2007, the Company changed its name from
Black Diamond Holdings Corporation to Black Diamond Brands
Corporation. On November 21, 2008 the Company changed its name to
Rainchief Energy Inc. and on February 19, 2015 to Bit-X Financial
Corporation. On October 27, 2015 the Company changed its name to
Digatrade Financial Corporation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is listed as a fully reporting issuer on the FINRA OTC.PK
and trades under the symbol &#x201C;DIGAF&#x201D;.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Digatrade Financial Corp., a British Columbia corporation, is a
financial technology (FinTech) services company. The Company has
been focused on the financial technology industry since 2015.
During that time, the Company has pursued several different areas
of business including blockchain development services, transaction
services for crypto-currencies (e.g. Bitcoin) and other related
financial services technologies.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
In March 2015, the Company entered into an agreement with Mega
Ideas Holdings Limited, dba ANX (&#x201C;ANXPRO and ANX
International&#x201D;), a company incorporated and existing under
the laws of Hong Kong. ANX owns a proprietary trading platform and
provides operational support specializing in blockchain development
services and exchange and transaction services for
crypto-currencies e.g. Bitcoin and other digital assets. Effective
October 17, 2018 the Company closed its online retail trading
platform but will continue to evaluate opportunities and continue
with research in digital-asset trading for prospective
institutional customers while continuing to seek new opportunities
within the blockchain and the financial technology services
(non-trading) sector.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 28, 2019 the Company <font style="color: #000000">executed
a Definitive Agreement with Securter Inc., a private Canadian
Corporation that is developing a proprietary, patent-pending credit
card payment platform to significantly increase the security of
online credit card payment processing. Securter technology reduces
immense losses by financial institutions and merchants that arise
from fraudulent credit card use and protects cardholder privacy by
eliminating the distribution of personal information to third
parties. With the current worldwide surge in online commerce
expected to continue for years to come, the problem of credit card
security is large and growing. The Definitive Agreement with
Securter sets out that Securter&#x2019;s technology will be launched
and commercialized as a Digatrade subsidiary.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
1.&#xA0;&#xA0; Identity of Directors, Senior Management and
Advisors</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
President of the Company is Brad Moynes, and the directors of the
Company are Brad Moynes, Tyrone Docherty and Timothy Delaney of
1500 West Georgia Street, Suite 1300, Vancouver, British Columbia,
Canada, V6C 2Z6.&#xA0;&#xA0;Mr. Moynes also serves as our Chairman,
Chief Executive Officer and Interim Chief Financial Officer. See
Item 6 for further information.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">1</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s registered independent auditors are WDM Chartered
Professional Accountants, Suite 420 &#x2013; 1501 West Broadway,
Vancouver, British Columbia, Canada, V6J 4Z6.&#xA0;&#xA0;For
further information, see Item 16C and the consolidated financial
statements under Item 8.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
2.&#xA0;&#xA0; Offer Statistics and Expected
Timetable&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
3.&#xA0;&#xA0; Key Information</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
A.&#xA0;&#xA0; Selected Financial Data</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following selected information should be read in conjunction with
the Company&#x2019;s consolidated financial statements and notes for
the year ended December 31, 2018, filed with this Form
20-F.&#xA0;&#xA0;This information, and all other financial
information in this Form 20-F, is stated in Canadian dollars unless
otherwise noted.&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
financial information is presented on the basis of International
Financial Reporting Standards.&#xA0;&#xA0;With respect to the
Company&#x2019;s consolidated financial statements, there are no
material differences from applying these principles compared to
applying United States generally accepted accounting
principles.&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Selected Consolidated Financial and Operating Data</font></div>
<div>
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<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align:bottom;width:24%;">
<div><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman;">Year Ended
December 31,</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Operating
Data</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman;">2019</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman;">2018</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; font-weight: bold; vertical-align: bottom; display: inline-block; width: 10%; font-size: 11px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; font-weight: bold; vertical-align: bottom; display: inline-block; width: 5%; font-size: 11px;">&#xA0;</font><font style="text-align: center; font-family: Times New Roman; font-weight: bold; vertical-align: bottom; display: inline-block; width: 75%; font-size: 11px;">$ &#xA0;</font><font style="text-align: left; font-family: Times New Roman; font-weight: bold; vertical-align: bottom; display: inline-block; width: 10%; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; font-weight: bold; vertical-align: bottom; display: inline-block; width: 10%; font-size: 11px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; font-weight: bold; vertical-align: bottom; display: inline-block; width: 5%; font-size: 11px;">&#xA0;</font><font style="text-align: center; font-family: Times New Roman; font-weight: bold; vertical-align: bottom; display: inline-block; width: 75%; font-size: 11px;">$ &#xA0;</font><font style="text-align: left; font-family: Times New Roman; font-weight: bold; vertical-align: bottom; display: inline-block; width: 10%; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Sales</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Gross Profit, Net
of Cost of Sales</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Net
Loss</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(2,094,253</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(522,963</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Loss
per Common Share &#x2013; Basic &amp; Diluted*</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.01</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.01</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Number
of Shares Outstanding*</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">582,564,926</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">226,411,904</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Balance Sheet Data</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2019</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">2018</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Current
Assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">227,662</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,478,985</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Current
Liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">735,326</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,097,913</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Total
Assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Share
Capital</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">7,460,158</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6,080,151</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Reserve</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">60,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Accumulated
Deficit</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(7,793,332</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(5,699,079</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Dividends
per Common Share</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Net
Loss</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(2,094,253</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(522,963</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Loss
per Common Share &#x2013; Basic &amp; Diluted*</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.01</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.01</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">2</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">*
Adjusted to reflect the consolidation of the Company&#x2019;s stock
on (i) March 22, 2010 in the ratio of 1 new common share for 10 old
common shares, (ii) April 3, 2013 in the ratio of 1 new common
share for 50 old common shares and (iii) June 8, 2016 in the ratio
of 1 new common share for 50 old common shares</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Exchange Rates</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In this
FORM 20-F, references to &#x201C;dollars&#x201D;, &#x201C;$&#x201D; or
&#x201C;CAD$&#x201D; are to Canadian dollars, unless otherwise
specified. Reference to &#x201C;US$&#x201D; refers to United States
dollars. Since June 1, 1970, the Government of Canada has permitted
a floating exchange rate to determine the value of the Canadian
dollar as compared to the United States dollar.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s consolidated financial statements are stated in
Canadian dollars.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company realized a gain on foreign exchange of $48,045 for the year
ended December 31, 2019 and a gain of $37,682 for the year ended
December 31, 2018, respectively.&#xA0;&#xA0;These foreign exchange
gains were due to currency exchange rate fluctuations between the
Canadian and United States dollar.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Bank of Canada closing exchange rate on December 31, 2019 was
Cdn$1.2988 per US$1.00. For the past five fiscal years ended
December 31, 2019 and for the period between January 1, 2019 and
December 31, 2019, the following average exchange rates were in
effect for Canadian dollars exchanged for United States dollars,
expressed in terms of United States dollars (based on the nominal
exchange rates provided by the Bank of Canada):</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Year
Ended</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; font-size: 11px;">Average
per US$1</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
2015</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.28</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
2016</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.33</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
2017</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.30</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
2018</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.30</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:88%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.30</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align:bottom;width:24%;">
<div><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; color: rgb(0, 0, 0); font-weight: bold;">
Per US$1</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Month
Ended</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; color: rgb(0, 0, 0); font-weight: bold;">
High</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; color: rgb(0, 0, 0); font-weight: bold;">
Low</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">January 31,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.23</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.33</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">February 28,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.23</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.32</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">March 31,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.28</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.34</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">April 30,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.26</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.34</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">May 31,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.28</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.35</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">June 30,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.29</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.33</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">July 31,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.30</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.31</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">August 31,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.29</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.33</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">September 30,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.29</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.32</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">October 31,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.28</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.32</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">November 30,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.31</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.32</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
2019</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.32</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.32</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">3</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
B.&#xA0;&#xA0; Capitalization and Indebtedness</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets forth our capitalization as of December 31,
2019, using:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">582,564,926</font> common shares outstanding on an
actual basis;&#xA0;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">1,100,000 Class B</font> common shares outstanding
on an actual basis</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-family: Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
As Adjusted</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
December 31, 2019</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
March 31,</font></div>
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
2020</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
(audited)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
(unaudited)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
$<br></font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
$<br></font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cash</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">113,156</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,367</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Long-term
obligations, less current portion</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Shareholders&#x2019; (deficiency) equity</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Share
capital</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">7,460,158</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">8,000,383</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Contributed
Surplus</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">60,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">60,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Accumulated
deficit</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(7,793,332</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(8,048,674</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Shareholders&#x2019;
(deficiency) equity</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(273,174</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">11,709</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: -1px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Effective June 8,
2016 the common shares of the Company were consolidated at the
ratio of one new common share for every 50 old common shares. The
Company issued 12,306 shares to round up fractional entitlements
resulting from the consolidation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On June
12, 2017, the Company settled convertible promissory notes
totalling $32,700 by the issuance of 2,000,000 common shares with a
fair value equal to the value of the underlying debt
settled.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 21, 2017, the Company settled a convertible promissory
note owed to a company controlled by a former Officer and Director
of the Company in the amount of $61,694 (US$50,000) by the issuance
of 1,000,000 common shares with a fair value equal to the value of
the underlying debt settled.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 10, 2018, the Company passed a resolution authorizing the
creation of a new 100,000 Class &#x201C;B&#x201D; common shares with
the following characteristics: non-participating, no par value, and
with the voting right of 1,000 votes per share. On the same day,
the Company issued 100,000 Class &#x201C;B&#x201D; common shares at
$0.001 per share for total proceeds of $100 to a shareholder who is
also a Director and Office of the Company. On January 2, 2019, the
Company passed a resolution to increase the authorized number of
Class &#x201C;B&#x201D; common shares from 100,000 to 1,100,000 and
issued 1,000,000 Class &#x201C;B&#x201D; common shares at $0.0001 per
share for total proceeds of $100 to a shareholder who is also a
Director and Officer of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">4</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 2, 2019, the Company passed a resolution to increase the
authorized number of Class &#x201C;B&#x201D; common shares from
100,000 to 1,100,000. On the same day, the Company issued 1,000,000
Class &#x201C;B&#x201D; common shares at $0.0001 per share for total
proceeds of $100 to a shareholder who is also a Director and
Officer of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, the Company issued 356,153,022
shares of Common Stock with a fair value of $1,379,907, pursuant to
the conversion of certain Convertible Promissory
Notes.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">None of
the capitalization referred to above is secured or guaranteed. All
amounts in respect of capitalization including long term debt are
unsecured and not guaranteed.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
C.&#xA0;&#xA0; Reasons for the Offer and Use of
Proceeds</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
D.&#xA0;&#xA0; Forward Looking-Statements and Risk
Factors</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Forward-looking Statements</font>.&#xA0;&#xA0;In this document, we
are showing you a picture which is part historical (events which
have happened) and part predictive (events which we believe will
happen).&#xA0;&#xA0;Except for the historical information, all of
the information in this document comprises "forward looking"
statements.&#xA0;&#xA0;Specifically, all statements (other than
statements of historical fact) regarding our financial position,
business strategy and plans and objectives are forward-looking
statements.&#xA0;&#xA0;These forward-looking statements are based
on the beliefs of management, as well as assumptions made by, and
information currently available to management.&#xA0;&#xA0;These
statements involve known and unknown risks, including the risks
resulting from economic and market conditions, accurately
forecasting operating and capital expenditures and capital needs,
successful anticipation of competition which may not yet be fully
developed, and other business conditions.&#xA0;&#xA0;Our use of the
words "anticipate", "believe", "estimate", "expect", "may", "will",
"continue" and "intend", and similar words or phrases, are intended
to identify forward-looking statements (also known as "cautionary
statements").&#xA0;&#xA0;These statements reflect our current views
with respect to future events.&#xA0;&#xA0;They are subject to the
realization in fact of assumptions, but what we now believe will
occur may turn out to be inaccurate or incomplete.&#xA0;&#xA0;We
cannot assure you that our expectations will prove to be
correct.&#xA0;&#xA0;Actual operating results and financial
performance may prove to be very different from what we now predict
or anticipate.&#xA0;&#xA0;The "risk factors" below specifically
address all of the factors now identifiable by us that may
influence future operating results and financial
performance.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Risk Factors</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Risks
Related to the Business</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
We have a history of operating losses and need additional capital
to implement our business plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
year ended December 31, 2019, we recorded a net loss of from
operations of $2,094,253 (US$1,610,963) as compared to a net loss
of $522,963 (US$403,832) for the year ended December 31, 2018. The
financial statements have been prepared using IFRS principles
applicable to a going concern. However, as shown in note 1 to the
consolidated financial statements for the year ended December 31,
2019, our ability to continue operations is uncertain.</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">5</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
continue to incur operating losses and have a consolidated deficit
of $7,793,332 (US$5,994,870) as at December 31, 2019. Operations
for the year ended December 31, 2019 have been funded primarily
from the issuance of share capital, debt financing and the
continued support of creditors. Historically, we have met working
capital needs primarily by selling equity to Canadian residents,
raising debt finance and from loans (including loans from relatives
of principal shareholders).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
estimate that we will require at least US$3,000,000 to further fund
the development of a proprietary, patent-pending credit card
payment platform to significantly increase the security of online
credit card payment processing, reducing financial losses being
experienced by financial institutions and merchants from fraudulent
credit card use, while also better protecting cardholder privacy. A
full implementation of our business plan will be delayed until the
necessary capital is raised.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
We cannot predict when or if we will produce revenues.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We have
not generated any revenue to date from operations. In order for us
to continue with our plans and open our business, we must raise
capital. The timing of the completion of the milestones needed to
commence operations and generate revenues is contingent on the
success of this raise. There can be no assurance that we will
generate revenues or that revenues will be sufficient to maintain
our business.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Our entry into the development of a secure mobile application for
card not present &#x201C;CNP&#x201D; transaction business may not be
successful and there are risks attendant on these
activities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;The
Financial Technology &#x201C;FinTech&#x201D; business is extremely
competitive. There are many companies, large and small entering the
market with the capital to develop and create new innovative
applications resulting in a highly competitive and fast-moving
environment. Even with capital and technical expertise, industry,
political and compliance risks are significant. Regulatory
compliance and the overall ecosystem for secure online payments is
extremely complex and not yet fully defined by governments and
financial institutions worldwide. We may not be able to finance our
business plan and marketing plan, there is no assurance that our
entry into this business will be successful.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Cybersecurity risks associated with the FinTech industry are
becoming increasingly challenging and we may be unable to meet
future regulatory requirements related to data protection and
privacy.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Cybersecurity
is becoming increasingly challenging with the growth in the number
of hackers and financial stalkers seeking opportunities to disrupt
operations and/or extort funds from persons or companies whose
cybersecurity measures were unable to prevent malicious data
harvesting and misuse. We cannot guarantee that all such attempts
shall be defeated, nor that our intellectual property shall remain
beyond the reach of parties seeking proprietary insights. Data
protection and privacy is never absolute, regardless of method(s)
used. Independent of any 3rd party malicious intent referred to
above, there is a risk that despite best efforts our data
protection and privacy shall not meet a future regulatory
definition of a reasonable standard, if it is imposed or
&#x201C;expected&#x201D; retroactively. Information at risk may or
may not be financial in nature and may or may not be our own
information. We do not have sufficient resources to evaluate all
possible outcomes, or all possible measures that we could take now,
or could have taken in the past, to attain an even higher level of
diligence and care than we are taking presently.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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</div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Regulatory compliance in the FinTech sector is
evolving.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
unable to guarantee that we will be able to proceed with all
desired plans if the regulatory environment changes in a manner
that undermines existing business plans. Such regulations have an
impact in every country in which we will be deriving revenue from
licensing or by any other commercial mechanism.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
We may be unable to meet growth Open Source technology trends which
could have a detrimental impact on our business.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Open
source software compliance and vulnerability management has become
an area of risk due to the expanding scope of this realm of
software. We cannot ensure that we will at all times fully
understand the state-of-the-art standing of every aspect of our own
development goals until such time that a sufficient expenditure of
time, money and effort has been made to understand all open source
material and trends, and their relevance to our own
interests.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Customers may not adapt to our new technology which may affect our
ability to generate revenues in the future.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Culture
risk emerges when our organization interfaces with financial
institutions as our customers. We do not know in advance whether
all our customers will be willing to make changes, if necessary, to
accommodate protocols that arise from the adoption of our
technology, or incompatibility that may arise from the nature of
our software development methods, including our approach to FinTech
problem solving.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Reliance on systems governance on third party transactions may risk
compliance issues.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Governance
for intelligent automation is of increasing importance in business
activity that is characterized by a large number of
small-dollar-value transactions. Our revenue model requires sharing
of transaction fees for commerce that, in aggregate, may represent
millions or even hundreds of millions of consumer transactions. We
may therefore need to rely upon systems-governance more than
individual situational oversight where third party transactions are
concerned. This may mean that non-compliance of some type may come
to light too late to remedy in the immediate tense and may
therefore only be correctable with systemic adjustment for the
future.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
FinTech is an emerging industry that may be subject to changes in
accounting standards in the future the adoption of which may
require time for our business to adjust.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">New
accounting standards in the category of FinTech sector businesses
may be introduced over time and have a bearing on our planning,
execution and reporting in respect of issues that have hitherto
been satisfactory and understood, but may require a period of
transition to grasp implications at the strategic level and
communicate same to shareholders effectively.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Use of
data and analytics in our internal audit may become more complex as
metadata becomes increasingly important to our analyses. It is not
known whether the effect upon our internal practices of new
analytics will remain permissible from the perspective of
third-party audits occurring after-the-fact.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Our use of Cloud computing, data storage and/or cloud collaboration
may not conform to future operational &#x201C;best
practices.&#x201D;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Transitioning
to and operating &#x201C;in the cloud&#x201D; is a matter whose risks
and rewards are subject to conflicting strategies even amongst
companies who otherwise are considered to have best practices,
operationally. It is not knowable in advance whether our own
policies regarding the use of cloud computing, cloud data storage
or cloud collaboration in our use of information, our sharing of
information and our design of proprietary information assets will
conform to a future interpretation of &#x201C;best practices&#x201D;,
after cloud eco-system techniques and their implications are better
understood.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
We rely on third party service providers which we may not be able
to control. This subjects us to risks for failure of performance in
development of our business plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We will
at all times in the pursuit of our goals rely on at least some
expertise that is external to our company. Despite best efforts to
vet the competency of service providers, it will not be possible to
fully appreciate the quality of their contribution until
after-the-fact, which may in some instances require second
attempts, corrections or new directions. We shall always seek to
mitigate our risk and liability arising from any failures of
performance that may arise; however, it is not possible to quantify
this in financial terms or predict it in operational terms. The
risk in our development work is inherently high and does not
diminish over time as we will continually focus on customer
problems that require new solutions yet to be created.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
The loss of key personnel or the inability of replacements to
quickly and successfully perform in their new roles could adversely
affect our business.</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">8</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
depend on the leadership and experience of our key executive and
chairman, Brad Moynes. Mr. Moynes functions as our chairman and
executive officer, and as such, we are heavily dependent upon him
to conduct our operations. In 2018, the Company added two
additional directors which now brings the board to four directors.
We do not have key man insurance. If Mr. Moynes resigns or dies,
there could be a substantial negative impact upon our operations.
If that should occur, until we find other qualified candidates to
become officers and/or directors to conduct our operations, we may
have to suspend our operations or cease operating entirely. In that
event, it is possible you could lose your entire
investment.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Our business may suffer from the severity or longevity of the
COVID-19 Global Outbreak.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
COVID-19 is currently impacting countries, communities, supply
chains and markets, as well as the global financial markets. To
date, COVID-19 has not had a material impact on the Company, other
than as set forth elsewhere in this document. However, the Company
cannot predict whether COVID- 19 will have a material impact on our
financial condition and results of operations due to understaffing,
disruptions in government spending, among other factors. In
addition, at this time we cannot predict the impact of COVID-19 on
our ability to obtain financing necessary for the Company to fund
its working capital requirements. In most respects, it is too early
in the COVID-19 pandemic to be able to quantify or qualify the
longer-term ramifications on our business, our customers and/or our
potential investors.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Risks Relating to Intellectual Property</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
are unable to protect our intellectual property rights, including
those related to Securter technology, our competitive position
could be harmed or we could be required to incur significant
expenses to enforce our rights.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
ability to compete effectively is dependent in part upon our
ability to protect our proprietary technology. We rely on patents,
trademarks, trade secret laws, confidentiality procedures and
licensing arrangements to protect our intellectual property rights.
There can be no assurance these protections will be available in
all cases or will be adequate to prevent our competitors from
copying, reverse engineering or otherwise obtaining and using our
technology, proprietary rights or products. For example, the laws
of certain countries in which our products may be licensed may not
protect our proprietary rights to the same extent as the laws of
Canada or the United States. In addition, third parties may seek to
challenge, invalidate or circumvent our intellectual property, or
applications for same. There can be no assurance that our
competitors will not independently develop technologies that are
substantially equivalent or superior to our technology or design
around our proprietary rights. In each case, our ability to compete
could be significantly impaired. To prevent substantial
unauthorized use of our intellectual property rights, it may be
necessary to prosecute actions for infringement and/or
misappropriation of our proprietary rights against third parties.
Any such action could result in significant costs and diversion of
our resources and management&#x2019;s attention, and there can be no
assurance we will be successful in such action. Furthermore, many
of our current and potential competitors have the ability to
dedicate substantially greater resources to enforce their
intellectual property rights than we do. Accordingly, despite our
efforts, we may not be able to prevent third parties from
infringing upon or misappropriating our intellectual
property.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Claims by others that we infringe their intellectual property
rights could harm our business.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
industry is characterized by vigorous protection and pursuit of
intellectual property rights, which has resulted in protracted and
expensive litigation for many companies. Third parties may in the
future assert claims of infringement of intellectual property
rights against us or against our customers for which we may be
liable. As the number of service providers and competitors in our
market increases and overlaps occur, infringement claims may
increase.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Intellectual
property claims against us, and any resulting lawsuits, may result
in our incurring significant expenses and could subject us to
significant liability for damages and invalidate what we currently
believe are our proprietary rights. Our involvement in any patent
dispute or other intellectual property dispute or action to protect
trade secrets and know-how could have a material adverse effect on
our business. Adverse determinations in any litigation could
subject us to significant liabilities to third parties, require us
to seek licenses from third parties and prevent us from developing
and selling our products. Any of these situations could have a
material adverse effect on our business.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">These
claims, regardless of their merits or outcome, would likely be time
consuming and expensive to resolve and could divert
management&#x2019;s time and attention.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
generally obligated to indemnify our end-customers for certain
expenses and liabilities resulting from intellectual property
infringement claims regarding our software products, which could
force us to incur substantial costs.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We have
agreed, and expect to continue to agree, to indemnify our
end-customers for certain intellectual property infringement claims
regarding our software products. As a result, in the case of
infringement claims against these end-customers, we could be
required to indemnify them for losses resulting from such claims or
to refund amounts they have paid to us. Our end-customers in the
future may seek indemnification from us in connection with
infringement claims brought against them. We will evaluate each
such request on a case-by-case basis and we may not succeed in
refuting all such claims. If an end-customer elects to invest
resources in enforcing a claim for indemnification against us, we
could incur significant costs disputing it. If we do not succeed in
disputing it, we could face substantial liability.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Risks Related to this Offering and Our Stock</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
The market price of our shares may fluctuate
significantly.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
market price and liquidity of the market for shares may be
significantly affected by numerous factors, some of which are
beyond our control and may not be directly related to our operating
performance. Some of the factors that could negatively affect the
market price of our shares include:</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">our actual or
projected operating results, financial condition, cash flows and
liquidity, or changes in business strategy or
prospects;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">equity issuances by
us, or share resales by our stockholders, or the perception that
such issuances or resales may occur;</font></div>
</div>
</div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">loss of a major
funding source;</font></div>
</div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">actual or
anticipated accounting problems;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">changes in market
valuations of similar companies;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">adverse market
reaction to any indebtedness we incur in the future;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">speculation in the
press or investment community;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">price and volume
fluctuations in the overall stock market from time to
time;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">general market and
economic conditions, and trends including inflationary concerns,
the current state of the credit and capital markets;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table">
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<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">significant
volatility in the market price and trading volume of securities of
companies in our sector, which are not necessarily related to the
operating performance of these companies;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">changes in law,
regulatory policies or tax guidelines, or interpretations
thereof;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">operating
performance of companies comparable to us; and</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">short-selling
pressure with respect to shares of our shares
generally.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As
noted above, market factors unrelated to our performance could also
negatively impact the market price of our shares. One of the
factors that investors may consider in deciding whether to buy or
sell our shares is our distribution rate as a percentage of our
share price relative to market interest rates. If market interest
rates increase, prospective investors may demand a higher
distribution rate or seek alternative investments paying higher
dividends or interest. As a result, interest rate fluctuations and
conditions in the capital markets can affect the market value of
our shares. For instance, if interest rates rise, it is likely that
the market price of our shares will decrease as market rates on
interest-bearing securities increase.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
We have broad discretion in the use of the net proceeds from this
offering and may not use them effectively.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
management will have broad discretion in the application of the net
proceeds from this offering and could spend the proceeds in ways
that do not improve our results of operations or enhance the value
of our common stock. The failure by our management to apply these
funds effectively could result in financial losses that could have
a material adverse effect on our business, cause the price of our
common stock to decline and delay the development of our products
and services.</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
If we have to raise capital by selling securities in the future,
your rights and the value of your investment in the Company could
be reduced.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
issue debt securities, the lenders would have a claim to our assets
that would be superior to the stockholder rights. Interest on the
debt would increase costs and negatively impact operating results.
If we issue more common stock or any preferred stock, your
percentage ownership will decrease and your stock may experience
additional dilution, and the holders of preferred stock (called
preference securities in Canada) may have rights, preferences and
privileges which are superior to (more favorable) the rights of
holders of the common stock. It is likely the Company will sell
securities in the future. The terms of such future transactions
presently are not determinable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
If the market for our common stock is illiquid in the future, you
could encounter difficulty if you try to sell your
stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
stock trades on the OTC "Pink" Marketplace but it is not actively
traded. If there is no active trading market, you may not be able
to resell your shares at any price, if at all. It is possible that
the trading market in the future will continue to be "thin" or
"illiquid," which could result in increased price volatility.
Prices may be influenced by investors' perceptions of us and
general economic conditions, as well as the market for energy
generally. Until our financial performance indicates substantial
success in executing our business plan, it is unlikely that there
will be coverage by stock market analysts will be extended. Without
such coverage, institutional investors are not likely to buy the
stock. Until such time, if ever, as such coverage by analysts and
wider market interest develops, the market may have a limited
capacity to absorb significant amounts of trading. As the stock is
a &#x201C;penny stock,&#x201D; there are additional constraints on
the development of an active trading market &#x2013; see the next
risk factor.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
The penny stock rule operates to limit the range of customers to
whom broker-dealers may sell our stock in the market.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
general, "penny stock" (as defined in the SEC&#x2019;s rule 3a51-1
under the Securities Exchange Act of 1934) includes securities of
companies which are not listed on the principal stock exchanges, or
the Nasdaq National Market or the Nasdaq Capital Market, and which
have a bid price in the market of less than US$5.00; and companies
with net tangible assets of less than $2 million ($5 million if the
issuer has been in continuous operation for less than three years),
or which has recorded revenues of less than $6 million in the last
three years.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As a
"penny stock" our stock therefore is subject to the SEC&#x2019;s
rule 15g-9, which imposes additional sales practice requirements on
broker-dealers which sell such securities to persons other than
established customers and "accredited investors" (generally,
individuals with net worth in excess of US$1 million or annual
incomes exceeding US$200,000, or US$300,000 together with their
spouses, or individuals who are the officers or directors of the
issuer of the securities). For transactions covered by rule 15g-9,
a broker-dealer must make a special suitability determination for
the purchaser and have received the purchaser's written consent to
the transaction prior to sale. This rule may adversely affect the
ability of broker-dealers to sell our stock, and therefore may
adversely affect our stockholders' ability to sell the stock in the
public market.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Your legal recourse as a United States investor could be
limited.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is incorporated under the laws of British Columbia. Most of
the assets now are located in Canada. Our directors and officers
and the audit firm are residents of Canada. As a result, if any of
our shareholders were to bring a lawsuit in the United States
against the officers, directors or experts in the United States, it
may be difficult to effect service of legal process on those people
who reside in Canada, based on civil liability under the Securities
Act of 1933 or the Securities Exchange Act of 1934. In addition, we
have been advised that a judgment of a United States court based
solely upon civil liability under these laws would probably be
enforceable in Canada, but only if the U.S. court in which the
judgment were obtained had a basis for jurisdiction in the matter.
We also have been advised that there is substantial doubt whether
an action could be brought successfully in Canada in the first
instance on the basis of liability predicated solely upon the
United States' securities laws.</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Item 4.&#xA0;&#xA0; Information on the Company</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
A.&#xA0;&#xA0; History and Development of the Company</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 1px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is a British Columbia corporation (organized on December
28, 2000, incorporation number BC 0619991, which is the
incorporation number reflecting the transition to the new corporate
statute (the British Columbia Business Corporations Act)).&#xA0;The
registered office is at 1500 West Georgia Street, Suite 1300,
Vancouver, British Columbia, Canada, V6C 2Z6. We do not have an
agent in the United States.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s legal name is Digatrade Financial Corp and business
is carried on in this name at this time. On October 27, 2015 the
Company changed its name from Bit-X Financial Corporation to
Digatrade Financial Corporation. On February 9, 2015 the Company
changed its name from Rainchief Energy Inc to Bit-X Financial
Corporation and on November 21, 2008 the Company changed its name
from Black Diamond Brands Corporation to Rainchief Energy
Inc.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
B.&#xA0;&#xA0; Overview</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is listed as a fully reporting issuer on the FINRA OTC
bulletin board and trades under the symbol
&#x201C;DIGAF&#x201D;.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
March 31, 2015, the Company entered into an agreement with Mega
Ideas Holdings Limited, dba ANX (&#x201C;ANXPRO and ANX
International&#x201D;), a company incorporated and existing under
the laws of Hong Kong. ANX owns a proprietary trading platform and
provides operational support specializing in blockchain development
services and exchange and transaction services for
crypto-currencies e.g. Bitcoin and other digital assets. Effective
October 17, 2018 the Company closed the online retail trading
platform and shared liquidity order book with ANX International
owing to low transaction volumes. The Company will continue to
evaluate opportunities and continue with research and development
related services in the digital-asset industry for prospective
institutional customers while continuing to seek new opportunities
within the blockchain and the financial technology sector unrelated
to facilitating trading activities.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 5, 2019 the company entered into a Letter of Intent
(&#x201C;LOI&#x201D;) with Securter Inc., a private Canadian
Corporation that is developing a proprietary, patent-pending credit
card payment platform to significantly increase the security of
online credit card payment processing. The purpose is to reduce
financial losses being experienced by financial institutions and
merchants from fraudulent credit card use, while also better
protecting cardholder privacy. The LOI sets out that the new
technology will be launched and commercialized through a Digatrade
subsidiary.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 26, 2019, the Company executed a definitive agreement (the
&#x201C;Securter Agreement&#x201D;) with Securter Inc., a private
Canadian Corporation (&#x201C;Securter&#x201D;) that is developing a
proprietary, patent-pending credit card payment platform to
significantly increase the security of online credit card payment
processing. Securter technology reduces immense losses by financial
institutions and merchants that arise from fraudulent credit card
use and protects cardholder privacy by eliminating the distribution
of personal information to third parties. With the current
worldwide surge in online commerce expected to continue for years
to come, the problem of credit card security is large and
growing.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Pursuant
to the terms of the Securter Agreement, the parties agreed to form
a subsidiary of Digatrade, Securter Systems, Inc. (&#x201C;Securter
Systems&#x201D;), and assign all of the assets and intellectual
property of Securter into Securter Systems. Securter Systems has
been created to launch and commercialize the Securter technology
under Digatrade.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Securter Agreement provides for the launch and commercialization of
Securter&#x2019;s technology under Securter Systems as a Digatrade
subsidiary. The consummation of the Securter Agreement is subject
to certain milestone events, including the contribution of capital
by Digatrade to Securter Systems.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
The Company&#x2019;s Organization Structure</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2015 the Company incorporated three
subsidiaries: Digatrade Limited (a British Columbia, Canada
corporation), Digatrade (UK) Limited (a United Kingdom corporation)
and Digatrade Limited (a Nevada corporation).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 30, 2009, we disposed of two subsidiaries, Black Diamond
Importers Inc., a British Columbia, Canada, corporation and Liberty
Valley Wines, LLC., a Delaware, U.S.A., limited liability company.
On December 30, 2009, we disposed of our remaining subsidiary,
Point Grey Energy Inc., an Alberta, Canada,
corporation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Effective
December 22, 2010, we acquired all of the issued and outstanding
common shares of Jaydoc Capital Corp (&#x201C;Jaydoc&#x201D;), a
company incorporated under the Business Corporations Act of the
Province of British Columbia, Canada. Jaydoc was acquired to
facilitate our business venture in solar energy development. The
assets of Jaydoc were its business plan and strategic business
relationship with operational partners that offered experience and
knowledge in the development, engineering and construction of solar
energy projects in Italy and the European Union.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 18, 2010 we incorporated a wholly-owned subsidiary,
Rainchief Renewable-1 S.R.L under the laws of Italy.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2015, we incorporated the following
subsidiaries: Digatrade Limited (a British Columbia, Canada
Corporation), Digatrade (UK) Limited (a United Kingdom
corporation), and Digatrade Limited (a Nevada, USA corporation);
and de-registered Jaydoc Capital Corp. and Rainchief Renewable-1
S.R.L.</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
January 2019 we incorporated Securter Systems Inc. (a Canadian
corporation).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Commitments</font>.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
March 31, 2015, the Company entered into an agreement with Mega
Idea Holdings Limited, dba ANX (&#x201C;ANX&#x201D;), to provide
Crypto-currency deposit and exchange services. Pursuant to the
terms of the agreement, the Company was required to pay monthly
maintenance fees of US$10,000 for maintenance and support of the
exchange platform. The agreement with ANX was for a term of three
years.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
April 7, 2017 (the &#x201C;effective date&#x201D;), the Company
entered into a revised agreement with ANX. Pursuant to the terms of
the agreement, the Company was required to pay monthly maintenance
fees of US$1,500 for the first six months commencing the first
month after the effective date, and US$5,000 thereafter. The
revised agreement with ANX was for a term of two years. Effective
October 15, 2018, the revised agreement was terminated, and the
Company closed the online retail trading platform and shared
liquidity order book with ANX International owing to low
transaction volumes. The Company paid ANX $32,770 (US$25,000) in
full settlement of all outstanding liabilities and realized a gain
of $7,158 on the termination of the agreement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 26, 2019 the Company entered into a Definitive Agreement
with Securter Inc, a Canadian Company. Under the terms of the
Definitive Agreement, Securter&#x2019;s assets and liabilities would
be transferred to a new Canadian Federal corporation, Securter
Systems Inc (SSI). The Company agreed to subscribe for 100% of
SSI&#x2019;s Class B shares, giving it voting control of SSI. The
Company also agreed to fund the development of SSI&#x2019;s
technology and acquire up to 30% of the Class A common shares of
SSI.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Item 5.&#xA0;&#xA0; Operating and Financial Review</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
For the years ended December 31, 2019, 2018, and 2017, the Company
had net losses of $2,094,253, $522,963 (restated) and $674,520
respectively.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Accounting Audit and Legal Expenses amounted to $124,980, $82,485
and $105,652 for the years ended December 31, 2019, 2018 and 2017,
respectively. Accounting and Audit expenses for the year ended
December 31, 2019 amounted to $49,331, an increase of $4,572 from
$44,760 for the year ended December 31, 2018. The expense incurred
in 2018 represented an increase of $2,559 over the expense of
$42,200 incurred for the year ended December 31, 2017. The
increases in expenditure in this category resulted from additional
review work in connection with corporate transactions. Legal
expenses for the year ended December 31, 2019 amounted to $75,649,
an increase of $37,934 over the $37,715 expended in the year ended
December 31, 2018. The increase resulted from additional legal
services required in connection with corporate transactions
including the acquisition of Securter. The decrease in Legal
expenses for the year ended December 31, 2018 as compared with the
amount of $63,452 expended on legal services in the year ended
December 31, 2017 resulted from the reduced corporate activity in
2018 as compared with 2017</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Consulting expense for the year ended December 31, 2019 increased
by $99,798 to $392,300 as compared with $294,502 for the year ended
December 31, 2018, and by $156,310 as compared with $138,192 for
the year ended December 31, 2017, as a result of increased
corporate activity during the respective periods.</font></div>
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</div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
During the year ended December 31, 2018 the Company incurred Filing
and Transfer Agents Expenses in the amount of $19,558 as compared
with $26,331 incurred during the year ended December 31, 2018, an
increase of $6,773, as a result of increased filing activity during
the period. Filing and Transfer Agents Fees for the year ended
December 31, 2018 increased by $18,465 from $7,866 for the year
ended December 31, 2017, as a result of increased corporate
activity during that year.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
During the year ended December 31, 2019, the Company incurred
Investor Relations expenses in the amount of $20,096. The Company
did not incur any Investor Relations expenses during the years
ended December 31, 2018. During the year ended December 31, 2017,
the Company entered into investor relations contracts for a total
cost of $107,103.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Management fees for the year ended December 31, 2019 amount to
$244,120 as compared with $241,950 for the year ended December 31,
2018, an increase of $2,170, primarily as a result of exchange rate
changes. Management fees for the year ended December 31, 2018
increased by $136,950 as compared with $105,000 expended during
2017 as a result of increased corporate activities during that
period.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company incurred Exchange Platform Development Costs in the
amount of $102,683 during the year ending December 31, 2018, as
compared with $104,591 incurred during the year ended December 31,
2017 and $111,734 incurred during the year ended December 31, 2016.
The reduction in these costs resulted from the renegotiation of the
agreement with the platform provider during 2017 and costs related
to certain development projects in 2015 which were not continued in
2016 and 2017. The Company did not incur further development
expenditures during 2019 as a consequence of the termination of the
exchange trading platform agreement with ANX during
2018.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company incurred $12,409 in Office expenses during the year
ended December 31, 2019, essentially unchanged from $12,282
incurred during the year ended December 31, 2018. Administrative
expenses increased by $5,144 from $7,137 for the year ended
December 31, 2017 to $12,281 for the year ended December 31,
2018.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company incurred Financing Finders Fees in the amounts of
$54,746, $123,101 and $109,033 in connection with the issuance of
convertible promissory notes during the years ended December 31,
2019, 2018 and 2017, respectively.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
During the year ended December 31, 2019, the Company granted stock
options with a fair value of $60,000 to directors and certain
contractors to the Company. The options were valued using the
Black-Scholes model</font> with the assumptions of risk-free rate
of 1.68%, volatility of 268% and option life of 7
years.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company incurred travel expenses in the amount of $13,944
during the year ended December 31, 2019 in connection with the
acquisition of Securter. The Company did not incur any travel
expenses during 2018 and 2017.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company incurred marketing expenses in the amount of $85,377
during the year ended December 31, 2019 in connection with the
promotion of the Company&#x2019;s business. The Company did not
incur any marketing expenses during 2018 and 2017.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company realized a foreign exchange gains of $48,045, $37,682
and $40,723 during the years ended December 31, 2019, 2018 and
2017, respectively. The gains resulted from changes in the foreign
currency exchange rates between the Canadian and US
Dollars.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company incurred Interest expense during the years ended
December 31, 2019, 2018 and 2017 in the amounts of $58,470,
$198,658 and $30,669. This expenditure was incurred in connection
with the Convertible Promissory Notes.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company realized recoveries of Accretion Expenses in the
amounts of $146,624 and $7,039 for the years ended December 31,
2019 and 2018, respectively. During the year ended December 31,
2019, the Company recognized a loss in the fair value of derivative
instruments of $1,067,076 as compared with a gain in the fair value
of derivative instruments of $534,118 during the year ended
December 31, 2018.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
During the year ended December 31, 2018, the Company realized a net
gain on discontinuance of trading platform activities in the amount
of $7,158.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Financial position</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
As at December 31, 2019, the Company had a working capital
deficiency of $457,664 as compared with a working capital surplus
of $381,072 as at December 31, 2018, a decrease of $838,736. The
decrease in working capital deficiency during the year ended
December 31, 2019 is due to decreases in Cash of $380,654, Prepaid
Expenses of $22,211 and Deferred Loss on Derivative Liabilities of
$800,941, and increases in Shareholders&#x2019; Loans of $26,565 and
$25,052 in the Liability Component of Convertible Promissory Notes;
offset by an increase in General Sales Tax Recoverable of $2,483
and decreases in Trade and Other Payables of $7,003 and Derivative
Liability of $363,145 and Promissory Notes of $44,057</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Liquidity and Capital Resources</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As the
Company has historically generated nominal revenues from our
operations, the Company no internal sources of funds and are
reliant upon investors and lenders to fund its operations to
continue to further develop its products. The Company has funded
its operations to date principally from the sale of convertible
promissory notes and, to a lesser extent, sale of equity
securities. Management believes that the Company will continue to
be reliant upon debt and equity financing to fund continuing
operations until the business plan is fully implemented. The
Company has incurred losses since inception and have incurred
negative cash flows from operations from inception through December
31, 2019.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
During the year ended December 31, 2019 the Company raised $572,389
by the issuance of Convertible Promissory Notes (year ended
December 31, 2018 (restated) - $795,047) and re-paid a convertible
Promissory Notes in the amount of $33,596 (year ended December 31,
2018 - $31,762).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Changes in working capital accounts during the year ended December
31, 2019 provided $9,536 (year ended December 31, 2018 consumed
$104,828).</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
During the year ended December 31, 2019, the Company used cash in
the amount of $910,207 to fund the Company's continuing operations
(year ended December 31, 2018 (restated) &#x2013;
$868,745).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
C.&#xA0;&#xA0; Research and Development, Patents and Licenses,
etc.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
D.&#xA0;&#xA0; Trend Information</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Management
is not aware of any trend, commitment, event or uncertainty that is
expected to have a material effect on our business, financial
condition or results of operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
E.&#xA0;&#xA0; Off-Balance Sheet Arrangements</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
F. &#xA0;&#xA0;Contractual Obligations</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
6.&#xA0;&#xA0; Directors, Senior Management and
Employees</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
A.&#xA0;&#xA0; Directors, Senior Management, and
Employees</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets forth the name, positions held and principal
occupation of each of our directors, senior management and
employees upon whose work the Company is
dependent.&#xA0;&#xA0;Information on such persons&#x2019; share
ownership is under Item 7.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 40%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold; font-family: Times New Roman;">Name and
Positions Held</font></font></div>
</td>
<td style="vertical-align: top; width: 60%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold; font-family: Times New Roman;">Experience and
Principal Business Activities</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 40%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 60%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 40%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Bradley
J. Moynes (50)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Chairman,
President, Director and Interim Chief Financial
Officer</font></div>
</td>
<td style="vertical-align: top; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">President
and Director of the Company since December 2000.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 40%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Tyrone
Docherty (60)</font></div>
</td>
<td style="vertical-align: top; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Director
of the Company since July 10, 2016</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 40%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Timothy
Delaney (65)</font></div>
</td>
<td style="vertical-align: top; width: 60%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Director
of the Company since November 20, 2018</font></div>
</td>
</tr></table>
</div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">18</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
B.&#xA0;&#xA0; Compensation</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
SUMMARY COMPENSATION TABLE</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets forth the compensation paid to the executive
officers of the Company in each of the years ended December 31,
2019, 2018 and 2017.&#xA0;&#xA0;The table includes compensation
paid for service by such persons to subsidiaries. All amounts are
stated in US dollars.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; margin: 0px auto 0px 0px; width: 100%; font-size: inherit; font-family: inherit;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 11px; font-weight: bold;">
&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 11%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 11px; font-weight: bold;">
&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align: bottom; width: 33%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 94%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Annual
Compensation</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="4" rowspan="1" style="vertical-align: bottom; width: 44%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; display: inline-block; vertical-align: bottom; width: 10%; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; display: inline-block; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div style="padding-bottom: 2px;"><font style="font-weight: bold;">&#xA0;</font><font style="font-family: Times New Roman; font-weight: bold;">Long Term
Compensation</font> <font style="font-weight: bold;"><br>
</font></div>
</font><font style="text-align: left; display: inline-block; vertical-align: bottom; width: 10%; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 11px; font-weight: bold;">
&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 11px; font-weight: bold;">
&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; padding-bottom: 2px; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; padding-bottom: 2px; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; padding-bottom: 2px; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="2" style="vertical-align: bottom; width: 22%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Awards</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="2" style="vertical-align: bottom; width: 22%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Payouts</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-size: 11px;"><font style="font-family: Times New Roman; font-weight: bold;">(a)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-size: 11px;"><font style="font-family: Times New Roman; font-weight: bold;">(b)</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(c)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(d)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(e)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(f)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(g)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(h)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(i)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; border-bottom: 2px solid rgb(0, 0, 0);"><font style="font-weight: bold; font-size: 11px;"><font style="font-family: Times New Roman; font-weight: bold;">Name and Current
Principal Position</font></font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; display: inline-block; vertical-align: bottom; width: 10%; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; display: inline-block; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-weight: bold;">Year</font></div>
</font><font style="text-align: left; display: inline-block; vertical-align: bottom; width: 10%; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Salary</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Bonus</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Other</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Restricted Stock
Awards</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Options or
SAR's</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">LPIT
Payouts</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">All Other
Compensation</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-weight: bold; font-size: 11px;"><br></font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><br></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(US$)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(US$)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(US$)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(US$)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; font-family: Times New Roman; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: left; vertical-align: bottom; width: 5%; font-family: Times New Roman; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 75%; font-family: Times New Roman; display: inline-block; font-weight: bold;">(#)</font><font style="text-align: left; vertical-align: bottom; width: 10%; font-family: Times New Roman; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(US$)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">(US$)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Bradley
J.</font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">187,784</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,000,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Moynes</font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">186,781</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 12%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Presiden</font><font style="font-family: Times New Roman; font-size: 13px">t</font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">2017</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">80,994</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align: bottom; width: 11%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">19</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Executive Compensation Plans and Employment Agreements</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Management Agreements</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">No
management agreements were entered into for the period commencing
January 1, 2019 to December 31, 2019.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Equity Compensation Plans</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Effective
December 31, 2010, our Board of Directors adopted the 2010 Stock
Option Incentive Plan (&#x201C;the Stock Option Plan&#x201D;). The
purpose of the Stock Option Plan is to enhance the long-term
stockholder value of the Company by offering opportunities to
directors, officers, key employees and eligible consultants of the
Company to acquire and maintain stock ownership in the Company, in
order to give these persons the opportunity to participate in the
Company's growth and success, and to encourage them to remain in
the service of the Company. A maximum of 10% of the issued and
outstanding shares of common stock are available for issuance under
the Stock Option Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
C.&#xA0;&#xA0; Board Practices</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Each
director holds office until the next annual general meeting of the
Company unless his office is earlier vacated in accordance with the
Articles of the Company or the Canada Business Corporations
Act.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the most recently completed fiscal year, there are no arrangements
(standard or otherwise) under which directors of the Company were
compensated by the Company or its subsidiaries for services
rendered in their capacity as directors, nor were any amounts paid
to the directors for committee participation or special
assignments, other than the granting of stock
options.&#xA0;&#xA0;There were no arrangements under which the
directors would receive compensation or benefits in the event of
the termination of that office.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company does not have an audit committee at the present time. The
Company is currently seeking a suitable individual to serve on an
audit committee.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
audit committee is responsible for selecting, evaluating and
recommending the Company&#x2019;s auditors to the Board of Directors
for shareholder approval; evaluating the scope and general extent
of the auditors&#x2019; review; overseeing the work of the auditors;
recommending the auditors&#x2019; compensation to the Board of
Directors; and assisting with the resolution of any disputes
between management and the auditors regarding financial
reporting.&#xA0;&#xA0;The audit committee is also responsible for
reviewing the Company&#x2019;s annual and interim financial
statements and recommending their approval to the Board of
Directors; reviewing the Company&#x2019;s policies and procedures
with respect to internal controls and financial reporting; and
establishing procedures for dealing with complaints regarding
accounting, internal controls or auditing matters.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company does not have a compensation or corporate governance
committee at the present time. The Company is listed for trading on
the OTCBB as a reporting issuer under registration statement Form
20-F (Foreign Private Issuer) and as such it believes that it is
not required to have such committees.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">20</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
D.&#xA0;&#xA0; Employees</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company currently has one officer and no
employees.&#xA0;&#xA0;Employees will be added as
required.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
E.&#xA0;&#xA0; Share Ownership</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
directors and officer own the indicated shares of common stock as
at the date hereof; percentages are based on 1,120,190,080 shares
of common stock and 2,100,000 shares of Class B common stock issued
and outstanding as at April 30, 2020</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; border-bottom: 2px solid rgb(0, 0, 0);"><font style="font-size: 11px"><font style="font-weight: bold; color: rgb(0, 0, 0); font-family: Times New Roman;">
Name</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 11px"><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
No. of shares of Common Stock</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 11px"><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Percentage of Common Shares outstanding at April 30,
2020</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Brad
Moynes</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">21,723,715</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.9392</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Tyrone
Docherty</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">250,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; border-bottom: 2px solid rgb(0, 0, 0);"><font style="font-size: 11px"><font style="font-weight: bold; color: rgb(0, 0, 0); font-family: Times New Roman;">
Name</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 11px"><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
No. of shares of Class B Common Stock</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="font-size: 11px"><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Percentage of Class B Common Stock outstanding at April 30,
2020</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Brad
Moynes</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,100,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">100</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">%</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
7.&#xA0;&#xA0; Major Shareholders and Related Party
Transactions.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
A.&#xA0;&#xA0; Major Shareholders</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">To our
knowledge, only one person beneficially owns, directly or
indirectly, or exercises control or direction over, common shares
carrying more than 5% of the voting rights attached to the
812,551,132 common shares outstanding at <font style="color: #000000">April 30</font>, 2020.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has approximately 210 shareholders of record at
<font style="color: #000000">April 30</font>, 2020.&#xA0;&#xA0;The
number of shareholders holding securities beneficially through
street name nominees, as reflected in the record position of Cede
&amp; Co. and other intermediaries, is approximately
97.1%.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">To the
best of our knowledge, approximately 5% of the Company&#x2019;s
common shares are owned by residents of Canada or residents of
countries other than the United States.&#xA0;&#xA0;The number of
shareholders holding securities beneficially through street name
nominees, as reflected in the record position of Cede &amp; Co. and
other intermediaries, who may be residents of other countries, is
approximately 2%. These assumptions are based on our shareholder
registry issued by Action Stock Transfer as of <font style="color: #000000">April 30</font>, 2020.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">21</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">To our
knowledge, we are not owned or controlled directly or indirectly by
another corporation or by any foreign government, nor are there any
arrangements which may result in a change of control of the
Company. The directors of the Company own approximately 2% of the
Class "A" common voting shares and all of 2,100,000 of the Class
"B" common voting non-participating shares. As a result the
percentage of shares controlled by the directors currently
represents voting control of the Company.&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
B.&#xA0;&#xA0; Related Party Transactions</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Balances
and transactions between the Company and its subsidiaries, which
are related parties of the Company, have been eliminated on
consolidation and are not disclosed. Details of transactions
between the Company and other related parties, in addition to those
transactions disclosed elsewhere in these consolidated financial
statements, are described below. All related party transactions
were in the ordinary course of business and were measured at their
exchange amounts.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Promissory
Notes</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2017, the Company repaid promissory
notes in the amount of $90,529, (including US$31,200) to a company
controlled by a Director (also an officer) of the Company. Included
in convertible promissory notes as at December 31, 2018, was $Nil
(2017 &#x2013; $89,364 including US$31,200) owed to this
company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2017, the Company settled a promissory
note owed to a company controlled by a former officer of the
Company in the amount $69,205 (US$50,000) by the issuance of
1,000,000 common shares. Included in convertible promissory notes
as at December 31, 2018, was $Nil (2017 &#x2013; $67,135 including
US$50,000) owed to this company</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Compensation
of Key Management Personnel</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company incurred management fees for services provided by key
management personnel for the years ended December 31, 2019, 2018
and 2017, as described below.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Management
Fees</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
2019</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
2018</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
2017</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-weight: bold;">$<br></font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-weight: bold;">$<br></font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-weight: bold;">&#xA0;$</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Management
Fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">244,120</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">241,950</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">105,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Share-Based
Payments</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">30,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;padding-bottom:2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">274,120</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">241,950</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">105,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, the Company incurred consulting
fees for services provided by a former director of the Company in
the amount of $19,125 up to the date of his resignation as a
director on May 22, 2019 (2018 - $12,900). The Company paid $16,200
to this former director subsequent to his resignation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">22</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
C.&#xA0;&#xA0; Interest of Experts and Counsel</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">None.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
8.&#xA0;&#xA0; Financial Information</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">See the
consolidated financial statements under Item 18.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
9.&#xA0;&#xA0; The Offer and Listing</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
A.&#xA0;&#xA0; Offer and Listing Details</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's common shares are traded on the &#x201C;OTC.BB&#x201D;
under the symbol BITXF; the shares are not listed on any exchange
or traded on any other medium.&#xA0;&#xA0;Trading commenced in the
first quarter 2004 on the Pink Sheets and then became a reporting
issuer and was listed for trading on the OTC.BB during the second
quarter of 2007.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets forth the high and low closing prices on the
OTC Markets&#xA0;and the OTC.BB for the periods indicated, adjusted
for the consolidations of the Company&#x2019;s stock on March 22,
2010, April 3, 2013 and June 8, 2016. See Item 10A
below.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<br></td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
High Sales Price</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Low Sales Price</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td rowspan="1" style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; border-bottom: 2px solid rgb(0, 0, 0);"><font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
By Quarters in 2019, 2018 &amp; 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
US$</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
US$</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Fourth
Quarter 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.004</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.001</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Third
Quarter 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.009</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.003</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Second
Quarter 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.023</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.007</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">First
Quarter 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.016</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.005</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Fourth
Quarter 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.02</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.003</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Third
Quarter 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.06</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.01</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Second
Quarter 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.16</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.03</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">First
Quarter 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.52</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.10</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Fourth
Quarter 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.75</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.10</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Third
Quarter 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.31</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.06</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Second
Quarter 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.16</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.06</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">First
Quarter 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.23</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.06</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 31, 2019, the closing price was US$0.001 per
share.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
B.&#xA0;&#xA0; Plan of Distribution</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
C.&#xA0;&#xA0; Markets</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">See
"Offer and Listing Details" above.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
D.&#xA0;&#xA0; Selling Shareholders</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">23</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
E.&#xA0;&#xA0; Dilution</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
F.&#xA0;&#xA0; Expenses of the Issue</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
10.&#xA0;&#xA0; Additional Information</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
A.&#xA0;&#xA0; Share Capital Authorized</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Unlimited
number of common shares without par value</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Issued and Outstanding</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Number of Common Shares</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Number of Class B Common Shares</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-size: 11px;">
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
Amount</font></div>
<div><font style="font-weight: bold; font-family: Times New Roman; color: rgb(0, 0, 0);">
$&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Balance, December
31, 2015 (Post-Share Consolidation)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,622,150</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,241,848</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares issued for
Services</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">32,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Fair Value of Share
Rights Expired</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">34,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">85,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">1,661,150</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">3,358,848</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Post-consolidation
shares issued in settlement of debt</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">41,000,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">276,983</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares issued for
Services</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">250,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">15,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares held in
escrow</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(1,500</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(5,374</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Balance, December
31, 2016 (Post-Share Consolidation)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">42,909,650</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,645,457</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares
Issued</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,500,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">334,975</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares Issued
<font style="color: #000000">in Settlement of
Debts</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,000,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">103,779</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares Issued for
Cash</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">100,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">100</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares Issued for
Services</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">250,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">21,896</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; padding-bottom: 2px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares Held in
Trust</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">1,500</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">-</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Balance, December
31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">49,661,150</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">100,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,106,207</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares Issued for
Services</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">600,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">7,373</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; padding-bottom: 2px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares Issued on
Conversion of Convertible Promissory Notes</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">176,150,754</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">1,966,571</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Balance, December
31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">226,411,904</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">100,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">6,080,151</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares
Issued</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,000,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">100</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares Issued on
Conversion of Convertible Promissory Notes</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">356,153,022</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,379,907</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:4px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Balance, December
31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:double 4px #000000;">582,564,926</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,100,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:double 4px #000000;">7,460,158</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">24</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Share consolidation</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Effective April 3,
2013, the common shares of the Company were consolidated at the
ratio of one new common share for every 50 old common shares. The
Company issued 835 shares to round up fractional entitlements
resulting from the consolidation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Effective June 8,
2016, the common shares of the Company were consolidated at the
ratio of one new common share for every 50 old common shares. The
Company issued 12,306 shares to round up fractional entitlements
resulting from the consolidation. The number of common shares and
basic loss per share calculations disclosed in the consolidated
financial statements have been adjusted to reflect the retroactive
application of this share consolidation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 1px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 19, 2014, the Company entered into an escrow agreement
with a creditor. The Company agreed to pay the creditor $2,500 upon
the signing of the agreement and to issue 75,000 shares (1,500 post
consolidation shares) to be held in escrow. The Company is
obligated to pay the creditor a further $6,687 forty five days
after the Company&#x2019;s stock becomes DWAC-eligible. Upon payment
of the final amount owing the shares will be returned to the
Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On June
12, 2017, the Company settled convertible promissory notes
totalling $32,700 by the issuance of 2,000,000 common shares with a
fair value equal to the value of the underlying debt
settled.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 21, 2018, the Company settled a convertible promissory
note owed to a company controlled by a former Officer and Director
of the Company in the amount of $61,694 (US$50,000) by the issuance
of 1,000,000 common shares with a fair value equal to the value of
the underlying debt settled.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2016, the Company issued 250,000 shares
at a fair value of $0.06 per share to a related party for
consulting services rendered. Share-based compensation of $15,000
was recorded.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2017, the Company entered into a
consulting agreement for the provision of business strategy and
compliance services. The Company issued 250,000 common shares
valued at $21,896.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2018, the Company entered into a
consulting agreement for the provision of business strategy and
compliance services. The Company issued 600,000 common shares
valued at $7,373.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 10, 2017, the Company passed a resolution authorizing the
creation of a new 100,000 Class &#x201C;B&#x201D; common shares with
the following characteristics: non-participating, no par value, and
with the voting right of 1,000 votes per share. On the same day,
the Company issued 100,000 Class &#x201C;B&#x201D; common shares at
$0.001 per share for total proceeds of $100 to a shareholder who is
also a Director and Office of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 2, 2019, the Company passed a resolution to increase the
authorized number of Class &#x201C;B&#x201D; common shares from
100,000 to 1,100,000. On the same day, the Company issued 1,000,000
Class &#x201C;B&#x201D; common shares at $0.0001 per share for total
proceeds of $100 to a shareholder who is also a Director and
Officer of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, the Company issued 356,153,022
shares of Common Stock with a fair value of $1,379,907, pursuant to
the conversion of certain Convertible Promissory
Notes.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Share Purchase Warrants</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Share Options</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 14, 2019, the Company granted 5,750,000 options to
directors of the Company and 4,250,000 options to consultants. All
grants of options were made under the Company&#x2019;s Stock Option
Plan.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
B.&#xA0;&#xA0; Memorandum and Articles of Association</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is registered under the Company Act of the Province of
British Columbia, Canada (BC 0619991).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">With
respect to directors, under the by-laws, a director who is a party
to a material contract or proposed material contract with us, or is
a director or officer of or has a material interest in any person
who is a party to a material contract or proposed material contract
with us, must disclose to us in writing the nature and extent of
such interest.&#xA0;&#xA0;An interested director can vote on only a
limited number of such matters (securing a loan from the director
to the Company, his remuneration, indemnity or insurance, or a
contract with an affiliate) provided the interest is
disclosed.&#xA0;&#xA0;Otherwise, even with disclosure of the
interest, such a director cannot vote on a material contract or
proposed material contract.&#xA0;&#xA0;A contract approved by the
board of directors is not voidable because one or more directors
has a conflict of interest, if the conflict is disclosed and the
interested director(s) do not vote on the
matter.&#xA0;&#xA0;Subject to the conflict of interest provisions
summarized above, there is no restriction in the by-laws on the
power of the board of directors to have the Company borrow money,
issue debt obligations, or secure debt or other obligations of the
Company.&#xA0;&#xA0;The by-laws contain no provision for the
retirement or non-retirement of directors under an age limit
requirement.&#xA0;&#xA0;A director is not required to hold any
shares of the Company in order to be a director.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">26</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Articles of the Company provide for the issuance of unlimited
number of shares of common stock, without par value.&#xA0;&#xA0;All
holders of common stock have equal voting rights, equal rights to
dividends when and if declared, and equal rights to share in assets
upon liquidation of the corporation.&#xA0;&#xA0;The common shares
are not subject to any redemption or sinking fund
provisions.&#xA0;&#xA0;Directors serve from year to year, there
being no provision for a staggered board; cumulative voting for
directors is not allowed.&#xA0;&#xA0;Between annual general
meetings, the existing board can appoint one or more additional
directors to serve until the next annual general meeting, but the
number of additional directors shall not at any time exceed
one-third of the number of directors who held office at the
expiration of the last annual meeting.&#xA0;&#xA0;All issued and
outstanding shares are fully paid and non-assessable
securities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
order to change the rights of the holders of common stock, the
passing of a special resolution by such shareholders is required,
being the affirmative vote of not less than 2/3 of the votes cast
in person or by proxy at a duly called meeting of
shareholders.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">An
annual meeting of shareholders must be called by the board of
directors not later than 15 months after the last annual
meeting.&#xA0;&#xA0;The board at any time may call a special
meeting of shareholders.&#xA0;&#xA0;Notice of any meeting must be
sent not less than 21 and not more than 50 days before the meeting,
to every shareholder entitled to vote at the
meeting.&#xA0;&#xA0;All shareholders entitled to vote are entitled
to be present at a shareholders meeting.&#xA0;&#xA0;A quorum is the
presence in person or by proxy of the holders of at least 5% of the
issued and outstanding shares of common stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Except
under the Investment Canada Act, there are no limitations specific
to the rights of non-Canadians to hold or vote our shares under the
laws of Canada or our charter documents.&#xA0;&#xA0;The Investment
Canada Act ("ICA") requires a non-Canadian making an investment
which would result in the acquisition of control of a Canadian
business, the gross value of the assets of which exceed certain
threshold levels or the business activity of which is related to
Canada's cultural heritage or national identity, to either notify,
or file an application for review with, Investment Canada, the
federal agency created by the&#xA0;ICA.&#xA0;&#xA0;The notification
procedure involves a brief statement of information about the
investment on a prescribed form which is required to be filed with
Investment Canada by the investor at any time up to 30 days after
implementation of the investment.&#xA0;&#xA0;It is intended that
investments requiring only notification will proceed without
intervention by government unless the investment is in a specific
type of business related to the scope of the ICA.&#xA0;&#xA0;If an
investment is reviewable under the ICA, an application for review
in the prescribed form normally is required to be filed with
Investment Canada before the investment is made and it cannot be
implemented until completion of review and Investment Canada has
determined that the investment is likely to be of net benefit to
Canada.&#xA0;&#xA0;If the agency is not so satisfied, the
investment cannot be implemented if not made, or if made, it must
be unwound.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
C.&#xA0;&#xA0; Material Contracts</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Except
as otherwise disclosed in this Form 20-F, we have no material
contracts.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
D.&#xA0;&#xA0; Exchange Controls</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
are no laws, decrees or regulations in Canada relating to
restrictions on the export or import of capital, or affecting the
remittance of interest, dividends or other payments to non-resident
holders of our shares of common stock.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
E.&#xA0;&#xA0; Taxation</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Canada</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Canadian Federal Income Tax Information for United States
Residents</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">27</font></div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following is a discussion of material Canadian federal income tax
considerations generally applicable to holders of our common shares
who acquire such shares in this offering and who, for purposes of
the Income Tax Act (Canada) and the regulations thereunder, or the
Canadian Tax Act:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">deal at arm&#x2019;s
length and are not affiliated with us;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">hold such shares as
capital property;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">do not use or hold
(and will not use or hold) and are not deemed to use or hold our
common shares, in or in the course of carrying on business in
Canada;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">have not been at
any time residents of Canada; and</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">are, at all
relevant times, residents of the United States, or U.S. Residents,
under the Canada-United States Income Tax Convention (1980), (the
Convention).</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
TAX MATTERS ARE VERY COMPLICATED AND THE CANADIAN FEDERAL INCOME
TAX CONSEQUENCES OF PURCHASING, OWNING AND DISPOSING OF OUR COMMON
SHARES WILL DEPEND UPON THE STOCKHOLDER&#x2019;S PARTICULAR
SITUATION. THE SUMMARY OF MATERIAL CANADIAN FEDERAL INCOME TAX
CONSEQUENCES SET FORTH BELOW IS INTENDED TO PROVIDE ONLY A GENERAL
SUMMARY AND IS NOT INTENDED TO BE A COMPLETE ANALYSIS OR
DESCRIPTION OF ALL POTENTIAL CANADIAN FEDERAL INCOME TAX
CONSEQUENCES.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
THIS DISCUSSION DOES NOT INCLUDE A DESCRIPTION OF THE TAX LAWS OF
ANY PROVINCE OR TERRITORY WITHIN CANADA. ACCORDINGLY, HOLDERS AND
PROSPECTIVE HOLDERS OF OUR COMMON SHARES ARE ENCOURAGED TO CONSULT
WITH THEIR OWN TAX ADVISERS ABOUT THE TAX CONSEQUENCES TO THEM
HAVING REGARD TO THEIR OWN PARTICULAR CIRCUMSTANCES, INCLUDING ANY
CONSEQUENCES OF PURCHASING, OWNING OR DISPOSING OF OUR COMMON
SHARES ARISING UNDER CANADIAN FEDERAL, CANADIAN PROVINCIAL OR
TERRITORIAL, U.S.&#xA0;FEDERAL, U.S.&#xA0;STATE OR LOCAL TAX LAWS
OR TAX LAWS OF JURISDICTIONS OUTSIDE THE UNITED STATES OR
CANADA.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary is based on the current provisions of the Canadian Income
Tax Act, proposed amendments to the Canadian Income Tax Act
publicly announced by the Minister of Finance (Canada) prior to the
date hereof (the &#x201C;Proposed Amendments&#x201D;), and the
provisions of the Convention as in effect on the date
hereof.&#xA0;&#xA0;No assurance can be given that the Proposed
Amendments will be entered into law in the manner proposed, or at
all. No advance income tax ruling has been requested or obtained
from the Canada Revenue Agency to confirm the tax consequences of
any of the transactions described herein.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary is not exhaustive of all possible Canadian federal income
tax consequences for U.S.&#xA0;Residents, and other than the
Proposed Amendments, does not take into account or anticipate any
changes in law, whether by legislative, administrative,
governmental or judicial decision or action, nor does it take into
account&#xA0;Canadian provincial, U.S.&#xA0;or foreign tax
considerations which may differ significantly from those discussed
herein.&#xA0;&#xA0;No assurances can be given that subsequent
changes in law or administrative policy will not affect or modify
the opinions expressed herein.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A
U.S.&#xA0;Resident will not be subject to tax under the Canadian
Tax Act in respect of any capital gain on a disposition of our
common shares unless such shares constitute &#x201C;taxable Canadian
property&#x201D;, as defined in the Canadian Tax Act, of the
U.S.&#xA0;Resident and the U.S.&#xA0;Resident is not eligible for
relief pursuant to the Convention.&#xA0;&#xA0;Our common shares
will not constitute &#x201C;taxable Canadian property&#x201D; if, at
any time during the 60-month period immediately preceding the
disposition of the common shares, the U.S.&#xA0;Resident, persons
with whom the U.S.&#xA0;Resident did not deal at arm&#x2019;s
length, or the U.S.&#xA0;Resident together with all such persons,
did not own 25% or more of the issued shares of any class or series
of shares of our capital stock. In addition, the Convention
generally will exempt a U.S.&#xA0;Resident who would otherwise be
liable to pay Canadian income tax in respect of any capital gain
realized by the U.S.&#xA0;Resident on the disposition of our common
shares, from such liability provided that the value of our common
shares is not derived principally from real property situated in
Canada. The Convention may not be available to a U.S.&#xA0;Resident
that is a U.S.&#xA0;LLC which is not subject to tax in the
U.S.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Amounts
in respect of our common shares paid or credited or deemed to be
paid or credited as, on account or in lieu of payment of, or in
satisfaction of, dividends to a U.S.&#xA0;Resident will generally
be subject to Canadian non-resident withholding tax at the rate of
25%. Currently, under the Convention the rate of Canadian
non-resident withholding tax will generally be reduced
to:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">5% of the gross
amount of dividends if the beneficial owner is a company that is
resident in the U.S. and that owns at least 10% of our voting
shares; or</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">15% of the gross
amount of dividends if the beneficial owner is some other resident
of the U.S.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
United States Federal Income Tax Information for United States
Holders.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following is a general discussion of material U.S.&#xA0;federal
income tax consequences of the ownership and disposition of our
common shares by U.S.&#xA0;Holders (as defined below). This
discussion is based on the United States Internal Revenue Code of
1986, as amended, Treasury regulations promulgated thereunder, and
judicial and administrative interpretations thereof, all as in
effect at the date hereof and all of which are subject to change,
possibly with retroactive effect. This discussion only addresses
the tax consequences for U.S.&#xA0;Holders that will hold their
common shares as a &#x201C;capital asset&#x201D; and does not address
U.S.&#xA0;federal income tax consequences that may be relevant to
particular U.S.&#xA0;Holders in light of their individual
circumstances or U.S.&#xA0;Holders that are subject to special
treatment under certain U.S.&#xA0;federal income tax laws, such
as:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">tax-exempt
organizations and pension plans;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">persons subject to
alternative minimum tax;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">banks and other
financial institutions;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">insurance
companies;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">partnerships and
other pass-through entities (as determined for United States
federal income tax purposes);</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">broker-dealers;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">persons who hold
their common shares as a hedge or as part of a straddle,
constructive sale, conversion transaction, and other risk
management transaction;&#xA0;and</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">persons who
acquired their common shares through the exercise of employee stock
options or otherwise as compensation.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">29</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As used
herein, the term &#x201C;U.S.&#xA0;Holder&#x201D; means a beneficial
owner of our common shares that is:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">an individual
citizen or resident of the United States;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">a corporation, a
partnership or entity treated as a corporation or partnership for
U.S.&#xA0;federal income tax purposes, that is created or organized
in or under the laws of the United States or any political
subdivision thereof;</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">an estate the
income of which is subject to U.S.&#xA0;federal income taxation
regardless of its source; and</font></div>
</div>
</div>
<div style="margin-left: 24px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">a trust if both a
United&#xA0;States Court is able to exercise primary supervision
over the administration of the trust; and one or more United States
persons have the authority to control all substantial decisions of
the trust.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
TAX MATTERS ARE VERY COMPLICATED AND THE UNITED STATES FEDERAL
INCOME TAX CONSEQUENCES OF PURCHASING, OWNING AND DISPOSING OF OUR
COMMON SHARES WILL DEPEND UPON THE STOCKHOLDER&#x2019;S PARTICULAR
SITUATION. THE SUMMARY OF MATERIAL UNITED STATES FEDERAL INCOME TAX
CONSEQUENCES SET FORTH BELOW IS INTENDED TO PROVIDE ONLY A GENERAL
SUMMARY AND IS NOT INTENDED TO BE A COMPLETE ANALYSIS OR
DESCRIPTION OF ALL POTENTIAL UNITED STATES FEDERAL INCOME TAX
CONSEQUENCES.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
NOTE THAT THIS DISCUSSION DOES NOT INCLUDE A DESCRIPTION OF THE TAX
LAWS OF ANY STATE OR LOCAL GOVERNMENT WITHIN THE UNITED STATES.
ACCORDINGLY, HOLDERS AND PROSPECTIVE HOLDERS OF OUR COMMON SHARES
ARE ENCOURAGED TO CONSULT THEIR TAX ADVISORS ABOUT THE
U.S.&#xA0;FEDERAL, STATE, LOCAL, AND FOREIGN TAX CONSEQUENCES OF
PURCHASING, OWNING AND DISPOSING OF OUR COMMON SHARES.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Ownership of Shares.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
gross amount of any distribution received by a U.S.&#xA0;Holder
with respect to our common shares generally will be included in the
U.S.&#xA0;Holder&#x2019;s gross income as a dividend to the extent
attributable to our current and accumulated earnings and profits
(as determined under U.S.&#xA0;federal income tax principles). To
the extent a distribution received by a U.S.&#xA0;Holder is not a
dividend because it exceeds the U.S.&#xA0;Holder&#x2019;s pro rata
share of our current and accumulated earnings and profits, it will
be treated first as a tax-free return of capital and reduce (but
not below zero) the adjusted tax basis of the
U.S.&#xA0;Holder&#x2019;s shares. To the extent the distribution
exceeds the adjusted tax basis of the U.S.&#xA0;Holder&#x2019;s
shares, the remainder will be taxed as capital gain (the taxation
of capital gain is discussed under the heading &#x201C;Sale of
Shares&#x201D; below).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">30</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
taxable years beginning before January&#xA0;1, 2009, dividends
received by non-corporate U.S.&#xA0;Holders from a qualified
foreign corporation are taxed at the same preferential rates that
apply to long-term capital gains. A foreign corporation is a
&#x201C;qualified foreign corporation&#x201D; if it is eligible for
the benefits of a comprehensive income tax treaty with the United
States (the income tax treaty between Canada and the United States
is such a treaty) or the shares with respect to which such dividend
is paid is readily tradable on an established securities market in
the United States (such as the Nasdaq Capital
Market).&#xA0;&#xA0;Notwithstanding satisfaction of one or both of
these conditions, a foreign corporation is not a qualified foreign
corporation if it is a passive foreign investment company
(&#x201C;PFIC&#x201D;) for the taxable year of the corporation in
which the dividend is paid or the preceding taxable year. (Whether
a foreign corporation is a PFIC is discussed below under the
heading &#x201C;Passive Foreign Investment Companies&#x201D;). A
foreign corporation that is a PFIC for any taxable year within a
U.S.&#xA0;person&#x2019;s holding period generally is treated as a
PFIC for all subsequent years in the U.S.&#xA0;person&#x2019;s
holding period.&#xA0;&#xA0;Although we have not been, are not now,
and do not expect to be a PFIC, and we don&#x2019;t expect to pay
dividends, you should be aware of the following matters in the
event that we do become a PFIC and do pay dividends.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
were to become a PFIC, then U.S.&#xA0;Holders who acquire our
common shares may be treated as holding shares of a PFIC throughout
their holding period for the purpose of determining whether
dividends received from us are dividends from a qualified foreign
corporation. As a consequence, dividends received by
U.S.&#xA0;Holders may not be eligible for taxation at the
preferential rates applicable to long-term capital
gains.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If a
distribution is paid in Canadian dollars, the U.S.&#xA0;dollar
value of such distribution on the date of receipt is used to
determine the amount of the distribution received by a
U.S.&#xA0;Holder. A U.S.&#xA0;Holder who continues to hold such
Canadian dollars after the date on which they are received, may
recognize gain or loss upon their disposition due to exchange rate
fluctuations. Generally, such gains and losses will be ordinary
income or loss from U.S. sources.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.&#xA0;Holders
may deduct Canadian tax withheld from distributions they receive
for the purpose of computing their U.S.&#xA0;federal taxable income
(or alternatively a credit may be claimed against the
U.S.&#xA0;Holder&#x2019;s U.S.&#xA0;federal income tax liability as
discussed below under the heading &#x201C;Foreign Tax
Credit&#x201D;). Corporate U.S.&#xA0;Holders generally will not be
allowed a dividend received deduction with respect to dividends
they receive from us.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Foreign Tax Credit</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Generally,
the dividend portion of a distribution received by a
U.S.&#xA0;Holder will be treated as income in the passive income
category for foreign tax credit purposes. Subject to a number of
limitations, a U.S.&#xA0;Holder may elect to claim a credit against
its U.S.&#xA0;federal income tax liability (in lieu of a deduction)
for Canadian withholding tax deducted from its distributions. The
credit may be claimed only against U.S.&#xA0;federal income tax
attributable to a U.S.&#xA0;Holder&#x2019;s passive income that is
from foreign sources.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
were to become a qualified foreign corporation with respect to a
non-corporate U.S.&#xA0;Holder, dividends received by such
U.S.&#xA0;Holder will qualify for taxation at the same preferential
rates that apply to long-term capital gains. In such case, the
dividend amount that would otherwise be from foreign sources is
reduce by multiplying the dividend amount by a fraction, the
numerator of which is the U.S.&#xA0;Holder&#x2019;s preferential
capital gains tax rate and the denominator of which is the
U.S.&#xA0;Holder&#x2019;s ordinary income tax rate. The effect is to
reduce the dividend amount from foreign sources, thereby reducing
the U.S.&#xA0;federal income tax attributable to foreign source
income against which the credit may be claimed. Canadian
withholding taxes that cannot be claimed as a credit in the year
paid may be carried back to the preceding year and then forward
10&#xA0;years and claimed as a credit in those years, subject to
the same limitations referred to above.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">31</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
rules relating to the determination of the foreign tax credit are
very complex. U.S.&#xA0;Holders and prospective U.S.&#xA0;Holders
should consult their own tax advisors to determine whether and to
what extent they would be entitled to claim a foreign tax
credit.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Sale of Shares</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Subject
to the discussion of the &#x201C;passive foreign investment
company&#x201D; rules below, a U.S.&#xA0;Holder generally will
recognize capital gain or loss upon the sale of our shares equal to
the difference between: (a)&#xA0;the amount of cash plus the fair
market value of any property received; and (b)&#xA0;the
U.S.&#xA0;Holder&#x2019;s adjusted tax basis in such shares. This
gain or loss generally will be capital gain or loss from
U.S.&#xA0;sources, and will be long-term capital gain or loss if
the U.S.&#xA0;Holder held its shares for more than 12&#xA0;months.
Generally, the net long-term capital gain of a non-corporate
U.S.&#xA0;Holder from the sale of shares is subject to taxation at
a top marginal rate of 15%. A Capital gain that is not long-term
capital gain is taxed at ordinary income rates. The deductibility
of capital losses is subject to certain limitations.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Passive Foreign Investment Companies</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We will
be a PFIC if, in any taxable year either: (a)&#xA0;75% or more of
our gross income consists of passive income; or (b)&#xA0;50% or
more of the value of our assets is attributable to assets that
produce, or are held for the production of, passive
income.&#xA0;&#xA0;Subject to certain limited exceptions, if we
meet the gross income test or the asset test for a particular
taxable year, our shares held by a U.S.&#xA0;Holder in that year
will be treated as shares of a PFIC for that year and all
subsequent years in the U.S.&#xA0;Holder&#x2019;s holding period,
even if we fail to meet either test in a subsequent
year.&#xA0;&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If we
were a PFIC in the future, gain realized by a U.S. Holder from the
sale of PFIC Shares and certain dividends received on such shares
would be subject to tax under the excess distribution regime,
unless the U.S.&#xA0;Holder made one of the elections discussed
below. Under the excess distribution regime, federal income tax on
a U.S.&#xA0;Holder&#x2019;s gain from the sale of PFIC Shares would
be calculated by allocating the gain rateably to each day the
U.S.&#xA0;Holder held its shares. Gain allocated to years preceding
the first year in which we were a PFIC in the
U.S.&#xA0;Holder&#x2019;s holding period, if any, and gain allocated
to the year of disposition would be treated as gain arising in the
year of disposition and taxed as ordinary income.&#xA0;&#xA0;Gain
allocated to all other years would be taxed at the highest tax rate
in effect for each of those years. Interest for the late payment of
tax would be calculated and added to the tax due for each of the
PFIC Years, as if the tax was due and payable with the tax return
filed for that year. A distribution that exceeds 125% of the
average distributions received on PFIC Shares by a U.S.&#xA0;Holder
during the 3 preceding taxable years (or, if shorter, the portion
of the U.S.&#xA0;Holder&#x2019;s holding period before the taxable
year) would be taxed in a similar manner.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A
U.S.&#xA0;Holder may avoid taxation under the excess distribution
regime by making a qualified electing fund (&#x201C;QEF&#x201D;)
election. For each year that we would meet the PFIC gross income
test or asset test, an electing U.S.&#xA0;Holder would be required
to include in gross income, its pro rata share of our net ordinary
income and net capital gains, if any.&#xA0;&#xA0;The
U.S.&#xA0;Holder&#x2019;s adjusted tax basis in our shares would be
increased by the amount of such income inclusions.&#xA0;&#xA0;An
actual distribution to the U.S.&#xA0;Holder out of such income
generally would not be treated as a dividend and would decrease the
U.S.&#xA0;Holder&#x2019;s adjusted tax basis in our shares. Gain
realized from the sale of our shares covered by a QEF election
would be taxed as a capital gain. U.S.&#xA0;Holders will be
eligible to make QEF elections, only if we agree to provide to the
U.S.&#xA0;Holders, which we do, the information they will need to
comply with the QEF rules.&#xA0;&#xA0;Generally, a QEF election
should be made by the due date of the U.S.&#xA0;Holder&#x2019;s tax
return for the first taxable year in which the U.S.&#xA0;Holder
held our shares that includes the close of our taxable year for
which we met the PFIC gross income test or asset test. A QEF
election is made on IRS Form&#xA0;8621.</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">32</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A
U.S.&#xA0;Holder may also avoid taxation under the excess
distribution regime by timely making a mark-to-market
election.&#xA0;&#xA0;An electing U.S.&#xA0;Holder would include in
gross income the increase in the value of its PFIC Shares during
each of its taxable years and deduct from gross income the decrease
in the value of its PFIC Shares during each of its taxable
years.&#xA0;&#xA0;Amounts included in gross income or deducted from
gross income by an electing U.S.&#xA0;Holder are treated as
ordinary income and ordinary deductions from
U.S.&#xA0;sources.&#xA0;&#xA0;Deductions for any year are limited
to the amount by which the income inclusions of prior years&#x2019;
exceed the income deductions of prior years. Gain from the sale of
PFIC Shares covered by an election is treated as ordinary income
from U.S.&#xA0;sources while a loss is treated as an ordinary
deduction from U.S.&#xA0;sources only to the extent of prior income
inclusions. Losses in excess of such prior income inclusions are
treated as capital losses from U.S.&#xA0;sources.&#xA0;&#xA0;A
mark-to-market election is timely if it is made by the due date of
the U.S.&#xA0;Holder&#x2019;s tax return for the first taxable year
in which the U.S.&#xA0;Holder held our shares that includes the
close of our taxable year for which we met the PFIC gross income
test or asset test. A mark-to-market election is also made on IRS
Form&#xA0;8621.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As
noted above, a PFIC is not a qualified foreign corporation and
hence dividends received from a PFIC are not eligible for taxation
at preferential long-term capital gain tax
rates.&#xA0;&#xA0;Similarly, ordinary income included in the gross
income of a U.S.&#xA0;Holder who has made a QEF election or a
market-to-market election, and dividends received from corporations
subject to such election, are not eligible for taxation at
preferential long-term capital gain rates. The PFIC rules are
extremely complex and could, if they apply, have significant,
adverse effects on the taxation of dividends received and gains
realized by a U.S.&#xA0;Holder.&#xA0;&#xA0;Accordingly, prospective
U.S.&#xA0;Holders are strongly urged to consult their tax adviser
concerning the potential application of these rules to their
particular circumstances.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Controlled Foreign Corporation</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Special
rules apply to certain U.S.&#xA0;Holders that own stock in a
foreign corporation that is classified as a &#x201C;controlled
foreign corporation&#x201D; (&#x201C;CFC&#x201D;).&#xA0;&#xA0;We do
not expect to be classified as a CFC. However, future ownership
changes could cause us to become a CFC.&#xA0;&#xA0;Prospective
U.S.&#xA0;Holders are urged to consult their tax advisor concerning
the potential application of the CFC rules to their particular
circumstances.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Information Reporting and Backup Withholding</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">United
States information reporting and backup withholding requirements
may apply with respect to distributions to U.S.&#xA0;Holders, or
the payment of proceeds from the sale of shares, unless the
U.S.&#xA0;Holder: (a)&#xA0;is an exempt recipient (including a
corporation); (b)&#xA0;complies with certain requirements,
including applicable certification requirements; or (c)&#xA0;is
described in certain other categories of persons. The backup
withholding tax rate is currently 28%.&#xA0;&#xA0;Any amounts
withheld from a payment to a U.S.&#xA0;Holder under the backup
withholding rules may be credited against any U.S.&#xA0;federal
income tax liability of the U.S.&#xA0;Holder and may entitle the
U.S.&#xA0;Holder to a refund.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
F.&#xA0;&#xA0; Dividends and Paying Agents</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">33</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
G.&#xA0;&#xA0; Statements by Experts</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
H.&#xA0;&#xA0; Documents on Display</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
I.&#xA0;&#xA0; Subsidiary Information</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">See the
notes to the financial statements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
11.&#xA0;&#xA0; Quantitative and Qualitative Disclosures about
Market Risk</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
12.&#xA0;&#xA0; Description of Securities Other Than Equity
Securities</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">34</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">PART
II</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
13.&#xA0;&#xA0; Defaults, Dividend Arrearages and
Delinquencies</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
14.&#xA0;&#xA0; Material Modifications to the Rights of Security
Holders and Use of Proceeds</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
15T.&#xA0;&#xA0; Controls and Procedures</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
15.&#xA0;&#xA0; Controls and Procedures</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Disclosure Controls and Procedures</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Chief Executive and Interim Chief Financial Officer, has evaluated
the effectiveness of our disclosure controls and procedures (as
defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act)
as of the end of the period covered by this report. Based on that
evaluation, the Chief Executive and Interim Chief Financial Officer
has concluded that, as of December 31, 2019, these disclosure
controls and procedures were not effective to ensure that all
information required to be disclosed by us in the reports that we
file or submit under the Exchange Act is: (i) recorded, processed,
summarized and reported, within the time periods specified in the
Commission&#x2019;s rule and forms; and (ii) accumulated and
communicated to our management, including our Chief Executive and
Interim Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure, primarily due to the
Company&#x2019;s minimal financial staff which prevents us from
segregating duties, which management believes is a material
weakness in our internal controls and procedures. We intend to
address such weakness and work with outside advisors to improve our
controls and procedures as and when the circumstances of the
Company permit this.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Management&#x2019;s Annual Report on Internal Control over Financial
Reporting</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Management
is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in
Exchange Act Rules 13a-15(f) and 15d-15(f). Internal control over
financial reporting is a process designed by, or under the
supervision of, our Chief Executive and Interim Chief Financial
Officer, and effected by our Board, management and other personnel,
to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Internal
control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the Company; (2) provide
reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with
generally accepted accounting principles, and that our receipts and
expenditures are being made only in accordance with authorizations
of management and directors; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of our assets that could have a
material effect on our financial statements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">35</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Because
of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Forward looking
statements regarding the effectiveness of internal controls during
future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of
compliance with the policies and procedures may
deteriorate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Management
completed an assessment of the effectiveness of the Company&#x2019;s
internal control over financial reporting (&#x201C;ICFR&#x201D;) as
of December 31, 2019, using the Committee of Sponsoring
Organizations of the Treadaway Commission (&#x201C;COSO&#x201D;)
framework as contemplated by Rule 13a-15(c). Based on this
assessment, the Company concluded that it did not have effective
internal controls over financial reporting as of December 31,
2019.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s assessment of the effectiveness of the ICFR as at
December 31, 2019 identified certain material weaknesses as of that
date:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline">
Weakness</font>: It is not possible to adequately segregate
incompatible duties among the officers of the Company, because the
Company has only one officer and one accounting consultant.
Remediation: Appoint a new Chief Financial Officer, in addition to
the current officer, to formally segregate the duties of
maintaining accounting records and preparing financial statements,
from the executive duties of the current officer. Brad Moynes, who
has served as Interim Chief Financial Officer from July 2009, will
cease to serve in that position upon appointment of a new
individual as Chief Financial Officer.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2.&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline">
Weakness</font>: The Company is small, with only one officer,
thereby creating a risk of override of existing controls by
management. Remediation: Require the new Chief Financial
Officer&#x2019;s approval of all expenditures and other dispositions
of assets.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 3%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">3.&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 97%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline">
Weakness</font>: The Company maintains limited audit evidence in
documentary form which is used to test the operating effectiveness
of control activities. Remediation: Improve the documentation of
expenditures and receipts, under the joint supervision of the new
Chief Financial Officer and the Chief Executive Officer, to ensure
received goods and third-party services conform to contract
terms.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company intends to appoint additional levels of executive
management and personnel to remediate the weaknesses, in the
specific manners described in paragraphs 1 through 3 above, as and
when the Company has sufficient financial resources to effect the
remediations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
Annual Report does not include an attestation report of the
Company&#x2019;s registered public accounting firm regarding
internal control over financial reporting. Management&#x2019;s
report was not subject to attestation by the Company&#x2019;s
registered public accounting firm pursuant to temporary rules of
the Securities and Exchange Commission that permit the Company to
provide only management&#x2019;s report in this Annual
Report.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Changes in Internal Control over Financial Reporting</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As
disclosed above, the Company completed its assessment of its ICFR
in place for the year ended December 31, 2019, using the COSO
framework. There were no changes in ICFR during the 2019 fiscal
year that have materially affected, or are reasonably likely to
materially affect, the Company&#x2019;s ICFR.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">36</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
16A.&#xA0;&#xA0; Audit Committee Financial Experts</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
16B.&#xA0;&#xA0; Code of Ethics</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
16C.&#xA0;&#xA0; Principal Accountant Fees and
Services</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
16D.&#xA0;&#xA0; Exemptions from the Listing Standards for Audit
Committees</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
16E.&#xA0;&#xA0; Purchases of Equity Securities by the Issuer and
Affiliated Purchasers</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">None.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
16F.&#xA0;&#xA0; Change in Registrant&#x2019;s Certifying
Accountant</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
16G.&#xA0;&#xA0; Corporate Governance</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">37</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
PART III</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
17.&#xA0;&#xA0; Financial Statements</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
18.&#xA0;&#xA0; Financial Statements</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">See the
consolidated financial statements of the Company, the notes
thereto, and the auditors&#x2019; reports thereon, which are filed
as Exhibit 99.1 with this FORM 20-F.&#xA0;&#xA0;All of the
financial information is presented in accordance with International
Financial Reporting Standards.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Item
19.&#xA0;&#xA0; Exhibits</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 9%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold; font-family: Times New Roman;">Exhibit
No.</font></font></div>
</td>
<td style="vertical-align: top; width: 91%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold; font-family: Times New Roman;">Description of
Exhibit</font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 9%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">3.(i)</font></div>
</td>
<td style="vertical-align: top; width: 91%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Articles
of Incorporation (Notice of Articles and Transition
Application)</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">3.(ii)</font></div>
</td>
<td style="vertical-align: top; width: 91%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">By-laws
(Schedule &#x201C;A&#x201D;)</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 9%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">4.(1)</font></div>
</td>
<td style="vertical-align: top; width: 91%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Management
Agreement of January 1, 2008 (Bradley James Moynes)</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">4.(2)</font></div>
</td>
<td style="vertical-align: top; width: 91%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Management
Agreement of January 1, 2008 (James Robert Moynes)</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 9%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><a href="digaf_ex43.htm"><font style="font-family: Times New Roman; font-size: 13px">4.(3)</font></a></div>
</td>
<td style="vertical-align: top; width: 91%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certifications
(Brad J. Moynes)*</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><a href="digaf_ex44.htm"><font style="font-family: Times New Roman; font-size: 13px">4.(4)</font></a></div>
</td>
<td style="vertical-align: top; width: 91%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certification
Pursuant 18 USC Section (Brad J. Moynes)*</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 9%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">4.(6)</font></div>
</td>
<td style="vertical-align: top; width: 91%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Form of
Warrant dated May 23, 2007</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><a href="digaf_ex231.htm"><font style="font-family: Times New Roman; font-size: 13px">23.(1)</font></a></div>
</td>
<td style="vertical-align: top; width: 91%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Consent
of Independent Auditors*</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 9%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><a href="digaf_ex991.htm"><font style="font-family: Times New Roman; font-size: 13px">99.(1)</font></a></div>
</td>
<td style="vertical-align: top; width: 91%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Consolidated
Financial Statements for the years ended December 31, 2018 and
2017.*</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">*&#xA0;&#xA0;&#xA0;Filed
herewith</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">SIGNATURES</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
registrant hereby certifies that it meets all of the requirements
for filing on FORM 20-F and that it has duly caused and authorized
the undersigned to sign this Annual Report.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 51%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Digatrade Financial Corp.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 51%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 49%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Date:
June 10, 2020</font></div>
</td>
<td style="vertical-align: top; width: 51%; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
/s/ Brad J. Moynes</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 51%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Brad J.
Moynes</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 51%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Chairman,
President and Chief Executive Officer</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 49%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 51%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr></table>
</div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">38</font></div>
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{"company-data": {"conformed-name": "Digatrade Financial Corp", "cik": "0001369128", "assigned-sic": "5180", "irs-number": "000000000", "state-of-incorporation": "A1", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "20-F", "act": "34", "file-number": "000-52145", "film-number": "20956856"}, "business-address": {"street1": "1500 WEST GEORGIA STREET", "street2": "SUITE 1300", "city": "VANCOUVER", "state": "A1", "zip": "V6C-2Z6", "phone": "604-200-0071"}, "mail-address": {"street1": "1500 WEST GEORGIA STREET", "street2": "SUITE 1300", "city": "VANCOUVER", "state": "A1", "zip": "V6C-2Z6"}, "former-company": [{"former-conformed-name": "Bit-X Financial Corp.", "date-changed": "20150302"}, {"former-conformed-name": "RAINCHIEF ENERGY INC.", "date-changed": "20090512"}, {"former-conformed-name": "RAINCHIEF ENERGY INC", "date-changed": "20090212"}]}
digaf_20f
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 20-F
☐ 
Registration Statement Pursuant to Section 12(b) or (g) of the
Securities Exchange Act of 1934.
or
☒ 
Annual Report Pursuant to Section 13 OR 15(d) of the Securities
Exchange Act of 1934
for the
Fiscal Year Ended
December 31,
2019
or
☐ 
Transition Report Pursuant to Section 13 OR 15(d) of the Securities
Exchange Act of 1934.
For the
transition period from _______ to ________.
Commission
file number 000-52145
Digatrade Financial Corp
(Exact
name of Registrant as specified in its charter)
________________________________________________
(Translation
of Registrant's name into English)
Business Corporations Act (British Columbia)
(Jurisdiction
of incorporation or organization)
1500 West Georgia Street, Suite 1300, Vancouver, British Columbia,
Canada, V6C 2Z6
(Address
of principal executive offices)
Securities
registered or to be registered pursuant to Section 12(b) of the
Act.
Title
of each class
Name of
each exchange on which registered
Securities
registered or to be registered pursuant to Section 12(g) of the
Act.
Common Stock, without par value
(Title
of Class)
Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act.
__________________________
(Title
of Class)
Indicate
the number of outstanding shares of each of the issuer's classes of
capital or common stock as of the close of the period covered by
the annual report:
582,564,926
shares of common stock as at December 31, 2019.
1,100,000
shares of Class B common stock as at December 31, 2019
Indicate
by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act. ☐
Yes  ☒ No
If this
report is an annual or transition report, indicate by check mark if
the registrant is not required to filed reports pursuant to Section
13 or 15(d)  of the Securities Exchange Act of
1934  ☐ Yes  ☒ No
Indicate
by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
reports)   ☒ Yes  ☐ No; and
(2) has been subject to such filing requirements for the past 90
days.  ☒ Yes   ☐
No.
Indicate
which financial statement item the registrant elects to
follow:   ☒ Item 17  ☐ Item
18.
Indicate
by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer.  See
definition of "accelerated filer and large accelerated
filer" in Rule 12b-2 of the Exchange Act. (Check
one):
Large
accelerated filer  ☐··· 
Accelerated filer  ☐··· 
Non-accelerated filer ☒
If this
is an annual report, indicated by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange
Act).  ☐ Yes  ☒ No
Digatrade
Financial Corp
Table
of Contents
PART I
1
Item 1.   Identity of Directors, Senior Management and
Advisors
1
Item 2.   Offer Statistics and Expected
Timetable
2
Item 3.   Key Information
2
Item 4.   Information on the Company
13
Item 5.   Operating and Financial Review
15
Item 6.   Directors, Senior Management and
Employees
18
Item 7.   Major Shareholders and Related Party
Transactions.
21
Item 8.   Financial Information
23
Item 9.   The Offer and Listing
23
Item 10.   Additional Information
24
Item 11.   Quantitative and Qualitative Disclosures about
Market Risk
34
Item 12.   Description of Securities Other Than Equity
Securities
34
PART II
35
Item 13.   Defaults, Dividend Arrearages and
Delinquencies
35
Item 14.   Material Modifications to the Rights of
Security Holders and Use of Proceeds
35
Item 15T.   Controls and Procedures
35
Item 15.   Controls and Procedures
35
Item 16A.   Audit Committee Financial
Experts
37
Item 16B.   Code of Ethics
37
Item 16C.   Principal Accountant Fees and
Services
37
Item 16D.   Exemptions from the Listing Standards for
Audit Committees
37
Item 16E.   Purchases of Equity Securities by the Issuer
and Affiliated Purchasers
37
Item 16F.   Change in Registrant's Certifying
Accountant
37
Item 16G.   Corporate Governance
37
Item 17.   Financial Statements
38
Item 18.   Financial Statements
38
Item 19.   Exhibits
38
SIGNATURES
38
PART I
Introduction
.  Digatrade Financial Corp (referred to as
"Digatrade" or "the Company"), is a British
Columbia corporation, incorporated on December 28,
2000.
The
Company was incorporated under the name Black Diamond Holdings
Corporation. On June 26, 2007, the Company changed its name from
Black Diamond Holdings Corporation to Black Diamond Brands
Corporation. On November 21, 2008 the Company changed its name to
Rainchief Energy Inc. and on February 19, 2015 to Bit-X Financial
Corporation. On October 27, 2015 the Company changed its name to
Digatrade Financial Corporation.
The
Company is listed as a fully reporting issuer on the FINRA OTC.PK
and trades under the symbol "DIGAF".
Digatrade Financial Corp., a British Columbia corporation, is a
financial technology (FinTech) services company. The Company has
been focused on the financial technology industry since 2015.
During that time, the Company has pursued several different areas
of business including blockchain development services, transaction
services for crypto-currencies (e.g. Bitcoin) and other related
financial services technologies.
In March 2015, the Company entered into an agreement with Mega
Ideas Holdings Limited, dba ANX ("ANXPRO and ANX
International"), a company incorporated and existing under
the laws of Hong Kong. ANX owns a proprietary trading platform and
provides operational support specializing in blockchain development
services and exchange and transaction services for
crypto-currencies e.g. Bitcoin and other digital assets. Effective
October 17, 2018 the Company closed its online retail trading
platform but will continue to evaluate opportunities and continue
with research in digital-asset trading for prospective
institutional customers while continuing to seek new opportunities
within the blockchain and the financial technology services
(non-trading) sector.
On
February 28, 2019 the Company
executed
a Definitive Agreement with Securter Inc., a private Canadian
Corporation that is developing a proprietary, patent-pending credit
card payment platform to significantly increase the security of
online credit card payment processing. Securter technology reduces
immense losses by financial institutions and merchants that arise
from fraudulent credit card use and protects cardholder privacy by
eliminating the distribution of personal information to third
parties. With the current worldwide surge in online commerce
expected to continue for years to come, the problem of credit card
security is large and growing. The Definitive Agreement with
Securter sets out that Securter's technology will be launched
and commercialized as a Digatrade subsidiary.
Item
1.   Identity of Directors, Senior Management and
Advisors
The
President of the Company is Brad Moynes, and the directors of the
Company are Brad Moynes, Tyrone Docherty and Timothy Delaney of
1500 West Georgia Street, Suite 1300, Vancouver, British Columbia,
Canada, V6C 2Z6.  Mr. Moynes also serves as our Chairman,
Chief Executive Officer and Interim Chief Financial Officer. See
Item 6 for further information.
1
The
Company's registered independent auditors are WDM Chartered
Professional Accountants, Suite 420 – 1501 West Broadway,
Vancouver, British Columbia, Canada, V6J 4Z6.  For
further information, see Item 16C and the consolidated financial
statements under Item 8.
Item
2.   Offer Statistics and Expected
Timetable
Not
applicable.
Item
3.   Key Information
A.   Selected Financial Data
The
following selected information should be read in conjunction with
the Company's consolidated financial statements and notes for
the year ended December 31, 2018, filed with this Form
20-F.  This information, and all other financial
information in this Form 20-F, is stated in Canadian dollars unless
otherwise noted.
The
financial information is presented on the basis of International
Financial Reporting Standards.  With respect to the
Company's consolidated financial statements, there are no
material differences from applying these principles compared to
applying United States generally accepted accounting
principles.
Selected Consolidated Financial and Operating Data
Year Ended
December 31,
Operating
Data
2019
2018
$
$
Sales
-
-
Gross Profit, Net
of Cost of Sales
-
-
Net
Loss
$
(2,094,253
)
$
(522,963
)
Loss
per Common Share – Basic & Diluted*
$
(0.01
)
$
(0.01
)
Number
of Shares Outstanding*
582,564,926
226,411,904
Balance Sheet Data
2019
2018
$
$
Current
Assets
$
227,662
$
1,478,985
Current
Liabilities
$
735,326
$
1,097,913
Total
Assets
Share
Capital
$
7,460,158
$
6,080,151
Reserve
60,000
Accumulated
Deficit
$
(7,793,332
)
$
(5,699,079
)
Dividends
per Common Share
Net
Loss
$
(2,094,253
)
$
(522,963
)
Loss
per Common Share – Basic & Diluted*
$
(0.01
)
$
(0.01
)
2
*
Adjusted to reflect the consolidation of the Company's stock
on (i) March 22, 2010 in the ratio of 1 new common share for 10 old
common shares, (ii) April 3, 2013 in the ratio of 1 new common
share for 50 old common shares and (iii) June 8, 2016 in the ratio
of 1 new common share for 50 old common shares
Exchange Rates
In this
FORM 20-F, references to "dollars", "$" or
"CAD$" are to Canadian dollars, unless otherwise
specified. Reference to "US$" refers to United States
dollars. Since June 1, 1970, the Government of Canada has permitted
a floating exchange rate to determine the value of the Canadian
dollar as compared to the United States dollar.
The
Company's consolidated financial statements are stated in
Canadian dollars.
The
Company realized a gain on foreign exchange of $48,045 for the year
ended December 31, 2019 and a gain of $37,682 for the year ended
December 31, 2018, respectively.  These foreign exchange
gains were due to currency exchange rate fluctuations between the
Canadian and United States dollar.
The
Bank of Canada closing exchange rate on December 31, 2019 was
Cdn$1.2988 per US$1.00. For the past five fiscal years ended
December 31, 2019 and for the period between January 1, 2019 and
December 31, 2019, the following average exchange rates were in
effect for Canadian dollars exchanged for United States dollars,
expressed in terms of United States dollars (based on the nominal
exchange rates provided by the Bank of Canada):
Year
Ended
Average
per US$1
December 31,
2015
$
1.28
December 31,
2016
$
1.33
December 31,
2017
$
1.30
December 31,
2018
$
1.30
December 31,
2019
$
1.30
Per US$1
Month
Ended
High
Low
January 31,
2019
$
1.23
$
1.33
February 28,
2019
$
1.23
$
1.32
March 31,
2019
$
1.28
$
1.34
April 30,
2019
$
1.26
$
1.34
May 31,
2019
$
1.28
$
1.35
June 30,
2019
$
1.29
$
1.33
July 31,
2019
$
1.30
$
1.31
August 31,
2019
$
1.29
$
1.33
September 30,
2019
$
1.29
$
1.32
October 31,
2019
$
1.28
$
1.32
November 30,
2019
$
1.31
$
1.32
December 31,
2019
$
1.32
$
1.32
3
B.   Capitalization and Indebtedness
The
following table sets forth our capitalization as of December 31,
2019, using:
●
582,564,926
common shares outstanding on an
actual basis;
●
1,100,000 Class B
common shares outstanding
on an actual basis
As Adjusted
December 31, 2019
March 31,
2020
(audited)
(unaudited)
$
$
Cash
113,156
5,367
Long-term
obligations, less current portion
-
-
Shareholders' (deficiency) equity
Share
capital
7,460,158
8,000,383
Contributed
Surplus
60,000
60,000
Accumulated
deficit
(7,793,332
)
(8,048,674
)
Shareholders'
(deficiency) equity
(273,174
)
11,709
Effective June 8,
2016 the common shares of the Company were consolidated at the
ratio of one new common share for every 50 old common shares. The
Company issued 12,306 shares to round up fractional entitlements
resulting from the consolidation.
On June
12, 2017, the Company settled convertible promissory notes
totalling $32,700 by the issuance of 2,000,000 common shares with a
fair value equal to the value of the underlying debt
settled.
On
September 21, 2017, the Company settled a convertible promissory
note owed to a company controlled by a former Officer and Director
of the Company in the amount of $61,694 (US$50,000) by the issuance
of 1,000,000 common shares with a fair value equal to the value of
the underlying debt settled.
On
October 10, 2018, the Company passed a resolution authorizing the
creation of a new 100,000 Class "B" common shares with
the following characteristics: non-participating, no par value, and
with the voting right of 1,000 votes per share. On the same day,
the Company issued 100,000 Class "B" common shares at
$0.001 per share for total proceeds of $100 to a shareholder who is
also a Director and Office of the Company. On January 2, 2019, the
Company passed a resolution to increase the authorized number of
Class "B" common shares from 100,000 to 1,100,000 and
issued 1,000,000 Class "B" common shares at $0.0001 per
share for total proceeds of $100 to a shareholder who is also a
Director and Officer of the Company.
4
On
January 2, 2019, the Company passed a resolution to increase the
authorized number of Class "B" common shares from
100,000 to 1,100,000. On the same day, the Company issued 1,000,000
Class "B" common shares at $0.0001 per share for total
proceeds of $100 to a shareholder who is also a Director and
Officer of the Company.
During
the year ended December 31, 2019, the Company issued 356,153,022
shares of Common Stock with a fair value of $1,379,907, pursuant to
the conversion of certain Convertible Promissory
Notes.
None of
the capitalization referred to above is secured or guaranteed. All
amounts in respect of capitalization including long term debt are
unsecured and not guaranteed.
C.   Reasons for the Offer and Use of
Proceeds
Not
applicable.
D.   Forward Looking-Statements and Risk
Factors
Forward-looking Statements
.  In this document, we
are showing you a picture which is part historical (events which
have happened) and part predictive (events which we believe will
happen).  Except for the historical information, all of
the information in this document comprises "forward looking"
statements.  Specifically, all statements (other than
statements of historical fact) regarding our financial position,
business strategy and plans and objectives are forward-looking
statements.  These forward-looking statements are based
on the beliefs of management, as well as assumptions made by, and
information currently available to management.  These
statements involve known and unknown risks, including the risks
resulting from economic and market conditions, accurately
forecasting operating and capital expenditures and capital needs,
successful anticipation of competition which may not yet be fully
developed, and other business conditions.  Our use of the
words "anticipate", "believe", "estimate", "expect", "may", "will",
"continue" and "intend", and similar words or phrases, are intended
to identify forward-looking statements (also known as "cautionary
statements").  These statements reflect our current views
with respect to future events.  They are subject to the
realization in fact of assumptions, but what we now believe will
occur may turn out to be inaccurate or incomplete.  We
cannot assure you that our expectations will prove to be
correct.  Actual operating results and financial
performance may prove to be very different from what we now predict
or anticipate.  The "risk factors" below specifically
address all of the factors now identifiable by us that may
influence future operating results and financial
performance.
Risk Factors
Risks
Related to the Business
We have a history of operating losses and need additional capital
to implement our business plan.
For the
year ended December 31, 2019, we recorded a net loss of from
operations of $2,094,253 (US$1,610,963) as compared to a net loss
of $522,963 (US$403,832) for the year ended December 31, 2018. The
financial statements have been prepared using IFRS principles
applicable to a going concern. However, as shown in note 1 to the
consolidated financial statements for the year ended December 31,
2019, our ability to continue operations is uncertain.
5
We
continue to incur operating losses and have a consolidated deficit
of $7,793,332 (US$5,994,870) as at December 31, 2019. Operations
for the year ended December 31, 2019 have been funded primarily
from the issuance of share capital, debt financing and the
continued support of creditors. Historically, we have met working
capital needs primarily by selling equity to Canadian residents,
raising debt finance and from loans (including loans from relatives
of principal shareholders).
We
estimate that we will require at least US$3,000,000 to further fund
the development of a proprietary, patent-pending credit card
payment platform to significantly increase the security of online
credit card payment processing, reducing financial losses being
experienced by financial institutions and merchants from fraudulent
credit card use, while also better protecting cardholder privacy. A
full implementation of our business plan will be delayed until the
necessary capital is raised.
We cannot predict when or if we will produce revenues.
We have
not generated any revenue to date from operations. In order for us
to continue with our plans and open our business, we must raise
capital. The timing of the completion of the milestones needed to
commence operations and generate revenues is contingent on the
success of this raise. There can be no assurance that we will
generate revenues or that revenues will be sufficient to maintain
our business.
Our entry into the development of a secure mobile application for
card not present "CNP" transaction business may not be
successful and there are risks attendant on these
activities.
The
Financial Technology "FinTech" business is extremely
competitive. There are many companies, large and small entering the
market with the capital to develop and create new innovative
applications resulting in a highly competitive and fast-moving
environment. Even with capital and technical expertise, industry,
political and compliance risks are significant. Regulatory
compliance and the overall ecosystem for secure online payments is
extremely complex and not yet fully defined by governments and
financial institutions worldwide. We may not be able to finance our
business plan and marketing plan, there is no assurance that our
entry into this business will be successful.
Cybersecurity risks associated with the FinTech industry are
becoming increasingly challenging and we may be unable to meet
future regulatory requirements related to data protection and
privacy.
Cybersecurity
is becoming increasingly challenging with the growth in the number
of hackers and financial stalkers seeking opportunities to disrupt
operations and/or extort funds from persons or companies whose
cybersecurity measures were unable to prevent malicious data
harvesting and misuse. We cannot guarantee that all such attempts
shall be defeated, nor that our intellectual property shall remain
beyond the reach of parties seeking proprietary insights. Data
protection and privacy is never absolute, regardless of method(s)
used. Independent of any 3rd party malicious intent referred to
above, there is a risk that despite best efforts our data
protection and privacy shall not meet a future regulatory
definition of a reasonable standard, if it is imposed or
"expected" retroactively. Information at risk may or
may not be financial in nature and may or may not be our own
information. We do not have sufficient resources to evaluate all
possible outcomes, or all possible measures that we could take now,
or could have taken in the past, to attain an even higher level of
diligence and care than we are taking presently.
6
Regulatory compliance in the FinTech sector is
evolving.
We are
unable to guarantee that we will be able to proceed with all
desired plans if the regulatory environment changes in a manner
that undermines existing business plans. Such regulations have an
impact in every country in which we will be deriving revenue from
licensing or by any other commercial mechanism.
We may be unable to meet growth Open Source technology trends which
could have a detrimental impact on our business.
Open
source software compliance and vulnerability management has become
an area of risk due to the expanding scope of this realm of
software. We cannot ensure that we will at all times fully
understand the state-of-the-art standing of every aspect of our own
development goals until such time that a sufficient expenditure of
time, money and effort has been made to understand all open source
material and trends, and their relevance to our own
interests.
Customers may not adapt to our new technology which may affect our
ability to generate revenues in the future.
Culture
risk emerges when our organization interfaces with financial
institutions as our customers. We do not know in advance whether
all our customers will be willing to make changes, if necessary, to
accommodate protocols that arise from the adoption of our
technology, or incompatibility that may arise from the nature of
our software development methods, including our approach to FinTech
problem solving.
Reliance on systems governance on third party transactions may risk
compliance issues.
Governance
for intelligent automation is of increasing importance in business
activity that is characterized by a large number of
small-dollar-value transactions. Our revenue model requires sharing
of transaction fees for commerce that, in aggregate, may represent
millions or even hundreds of millions of consumer transactions. We
may therefore need to rely upon systems-governance more than
individual situational oversight where third party transactions are
concerned. This may mean that non-compliance of some type may come
to light too late to remedy in the immediate tense and may
therefore only be correctable with systemic adjustment for the
future.
7
FinTech is an emerging industry that may be subject to changes in
accounting standards in the future the adoption of which may
require time for our business to adjust.
New
accounting standards in the category of FinTech sector businesses
may be introduced over time and have a bearing on our planning,
execution and reporting in respect of issues that have hitherto
been satisfactory and understood, but may require a period of
transition to grasp implications at the strategic level and
communicate same to shareholders effectively.
Use of
data and analytics in our internal audit may become more complex as
metadata becomes increasingly important to our analyses. It is not
known whether the effect upon our internal practices of new
analytics will remain permissible from the perspective of
third-party audits occurring after-the-fact.
Our use of Cloud computing, data storage and/or cloud collaboration
may not conform to future operational "best
practices."
Transitioning
to and operating "in the cloud" is a matter whose risks
and rewards are subject to conflicting strategies even amongst
companies who otherwise are considered to have best practices,
operationally. It is not knowable in advance whether our own
policies regarding the use of cloud computing, cloud data storage
or cloud collaboration in our use of information, our sharing of
information and our design of proprietary information assets will
conform to a future interpretation of "best practices",
after cloud eco-system techniques and their implications are better
understood.
We rely on third party service providers which we may not be able
to control. This subjects us to risks for failure of performance in
development of our business plan.
We will
at all times in the pursuit of our goals rely on at least some
expertise that is external to our company. Despite best efforts to
vet the competency of service providers, it will not be possible to
fully appreciate the quality of their contribution until
after-the-fact, which may in some instances require second
attempts, corrections or new directions. We shall always seek to
mitigate our risk and liability arising from any failures of
performance that may arise; however, it is not possible to quantify
this in financial terms or predict it in operational terms. The
risk in our development work is inherently high and does not
diminish over time as we will continually focus on customer
problems that require new solutions yet to be created.
The loss of key personnel or the inability of replacements to
quickly and successfully perform in their new roles could adversely
affect our business.
8
We
depend on the leadership and experience of our key executive and
chairman, Brad Moynes. Mr. Moynes functions as our chairman and
executive officer, and as such, we are heavily dependent upon him
to conduct our operations. In 2018, the Company added two
additional directors which now brings the board to four directors.
We do not have key man insurance. If Mr. Moynes resigns or dies,
there could be a substantial negative impact upon our operations.
If that should occur, until we find other qualified candidates to
become officers and/or directors to conduct our operations, we may
have to suspend our operations or cease operating entirely. In that
event, it is possible you could lose your entire
investment.
Our business may suffer from the severity or longevity of the
COVID-19 Global Outbreak.
The
COVID-19 is currently impacting countries, communities, supply
chains and markets, as well as the global financial markets. To
date, COVID-19 has not had a material impact on the Company, other
than as set forth elsewhere in this document. However, the Company
cannot predict whether COVID- 19 will have a material impact on our
financial condition and results of operations due to understaffing,
disruptions in government spending, among other factors. In
addition, at this time we cannot predict the impact of COVID-19 on
our ability to obtain financing necessary for the Company to fund
its working capital requirements. In most respects, it is too early
in the COVID-19 pandemic to be able to quantify or qualify the
longer-term ramifications on our business, our customers and/or our
potential investors.
Risks Relating to Intellectual Property
If we
are unable to protect our intellectual property rights, including
those related to Securter technology, our competitive position
could be harmed or we could be required to incur significant
expenses to enforce our rights.
Our
ability to compete effectively is dependent in part upon our
ability to protect our proprietary technology. We rely on patents,
trademarks, trade secret laws, confidentiality procedures and
licensing arrangements to protect our intellectual property rights.
There can be no assurance these protections will be available in
all cases or will be adequate to prevent our competitors from
copying, reverse engineering or otherwise obtaining and using our
technology, proprietary rights or products. For example, the laws
of certain countries in which our products may be licensed may not
protect our proprietary rights to the same extent as the laws of
Canada or the United States. In addition, third parties may seek to
challenge, invalidate or circumvent our intellectual property, or
applications for same. There can be no assurance that our
competitors will not independently develop technologies that are
substantially equivalent or superior to our technology or design
around our proprietary rights. In each case, our ability to compete
could be significantly impaired. To prevent substantial
unauthorized use of our intellectual property rights, it may be
necessary to prosecute actions for infringement and/or
misappropriation of our proprietary rights against third parties.
Any such action could result in significant costs and diversion of
our resources and management's attention, and there can be no
assurance we will be successful in such action. Furthermore, many
of our current and potential competitors have the ability to
dedicate substantially greater resources to enforce their
intellectual property rights than we do. Accordingly, despite our
efforts, we may not be able to prevent third parties from
infringing upon or misappropriating our intellectual
property.
9
Claims by others that we infringe their intellectual property
rights could harm our business.
Our
industry is characterized by vigorous protection and pursuit of
intellectual property rights, which has resulted in protracted and
expensive litigation for many companies. Third parties may in the
future assert claims of infringement of intellectual property
rights against us or against our customers for which we may be
liable. As the number of service providers and competitors in our
market increases and overlaps occur, infringement claims may
increase.
Intellectual
property claims against us, and any resulting lawsuits, may result
in our incurring significant expenses and could subject us to
significant liability for damages and invalidate what we currently
believe are our proprietary rights. Our involvement in any patent
dispute or other intellectual property dispute or action to protect
trade secrets and know-how could have a material adverse effect on
our business. Adverse determinations in any litigation could
subject us to significant liabilities to third parties, require us
to seek licenses from third parties and prevent us from developing
and selling our products. Any of these situations could have a
material adverse effect on our business.
These
claims, regardless of their merits or outcome, would likely be time
consuming and expensive to resolve and could divert
management's time and attention.
We are
generally obligated to indemnify our end-customers for certain
expenses and liabilities resulting from intellectual property
infringement claims regarding our software products, which could
force us to incur substantial costs.
We have
agreed, and expect to continue to agree, to indemnify our
end-customers for certain intellectual property infringement claims
regarding our software products. As a result, in the case of
infringement claims against these end-customers, we could be
required to indemnify them for losses resulting from such claims or
to refund amounts they have paid to us. Our end-customers in the
future may seek indemnification from us in connection with
infringement claims brought against them. We will evaluate each
such request on a case-by-case basis and we may not succeed in
refuting all such claims. If an end-customer elects to invest
resources in enforcing a claim for indemnification against us, we
could incur significant costs disputing it. If we do not succeed in
disputing it, we could face substantial liability.
Risks Related to this Offering and Our Stock
The market price of our shares may fluctuate
significantly.
The
market price and liquidity of the market for shares may be
significantly affected by numerous factors, some of which are
beyond our control and may not be directly related to our operating
performance. Some of the factors that could negatively affect the
market price of our shares include:
●
our actual or
projected operating results, financial condition, cash flows and
liquidity, or changes in business strategy or
prospects;
●
equity issuances by
us, or share resales by our stockholders, or the perception that
such issuances or resales may occur;
10
●
loss of a major
funding source;
●
actual or
anticipated accounting problems;
●
changes in market
valuations of similar companies;
●
adverse market
reaction to any indebtedness we incur in the future;
●
speculation in the
press or investment community;
●
price and volume
fluctuations in the overall stock market from time to
time;
●
general market and
economic conditions, and trends including inflationary concerns,
the current state of the credit and capital markets;
●
significant
volatility in the market price and trading volume of securities of
companies in our sector, which are not necessarily related to the
operating performance of these companies;
●
changes in law,
regulatory policies or tax guidelines, or interpretations
thereof;
●
operating
performance of companies comparable to us; and
●
short-selling
pressure with respect to shares of our shares
generally.
As
noted above, market factors unrelated to our performance could also
negatively impact the market price of our shares. One of the
factors that investors may consider in deciding whether to buy or
sell our shares is our distribution rate as a percentage of our
share price relative to market interest rates. If market interest
rates increase, prospective investors may demand a higher
distribution rate or seek alternative investments paying higher
dividends or interest. As a result, interest rate fluctuations and
conditions in the capital markets can affect the market value of
our shares. For instance, if interest rates rise, it is likely that
the market price of our shares will decrease as market rates on
interest-bearing securities increase.
We have broad discretion in the use of the net proceeds from this
offering and may not use them effectively.
Our
management will have broad discretion in the application of the net
proceeds from this offering and could spend the proceeds in ways
that do not improve our results of operations or enhance the value
of our common stock. The failure by our management to apply these
funds effectively could result in financial losses that could have
a material adverse effect on our business, cause the price of our
common stock to decline and delay the development of our products
and services.
11
If we have to raise capital by selling securities in the future,
your rights and the value of your investment in the Company could
be reduced.
If we
issue debt securities, the lenders would have a claim to our assets
that would be superior to the stockholder rights. Interest on the
debt would increase costs and negatively impact operating results.
If we issue more common stock or any preferred stock, your
percentage ownership will decrease and your stock may experience
additional dilution, and the holders of preferred stock (called
preference securities in Canada) may have rights, preferences and
privileges which are superior to (more favorable) the rights of
holders of the common stock. It is likely the Company will sell
securities in the future. The terms of such future transactions
presently are not determinable.
If the market for our common stock is illiquid in the future, you
could encounter difficulty if you try to sell your
stock.
Our
stock trades on the OTC "Pink" Marketplace but it is not actively
traded. If there is no active trading market, you may not be able
to resell your shares at any price, if at all. It is possible that
the trading market in the future will continue to be "thin" or
"illiquid," which could result in increased price volatility.
Prices may be influenced by investors' perceptions of us and
general economic conditions, as well as the market for energy
generally. Until our financial performance indicates substantial
success in executing our business plan, it is unlikely that there
will be coverage by stock market analysts will be extended. Without
such coverage, institutional investors are not likely to buy the
stock. Until such time, if ever, as such coverage by analysts and
wider market interest develops, the market may have a limited
capacity to absorb significant amounts of trading. As the stock is
a "penny stock," there are additional constraints on
the development of an active trading market – see the next
risk factor.
The penny stock rule operates to limit the range of customers to
whom broker-dealers may sell our stock in the market.
In
general, "penny stock" (as defined in the SEC's rule 3a51-1
under the Securities Exchange Act of 1934) includes securities of
companies which are not listed on the principal stock exchanges, or
the Nasdaq National Market or the Nasdaq Capital Market, and which
have a bid price in the market of less than US$5.00; and companies
with net tangible assets of less than $2 million ($5 million if the
issuer has been in continuous operation for less than three years),
or which has recorded revenues of less than $6 million in the last
three years.
As a
"penny stock" our stock therefore is subject to the SEC's
rule 15g-9, which imposes additional sales practice requirements on
broker-dealers which sell such securities to persons other than
established customers and "accredited investors" (generally,
individuals with net worth in excess of US$1 million or annual
incomes exceeding US$200,000, or US$300,000 together with their
spouses, or individuals who are the officers or directors of the
issuer of the securities). For transactions covered by rule 15g-9,
a broker-dealer must make a special suitability determination for
the purchaser and have received the purchaser's written consent to
the transaction prior to sale. This rule may adversely affect the
ability of broker-dealers to sell our stock, and therefore may
adversely affect our stockholders' ability to sell the stock in the
public market.
12
Your legal recourse as a United States investor could be
limited.
The
Company is incorporated under the laws of British Columbia. Most of
the assets now are located in Canada. Our directors and officers
and the audit firm are residents of Canada. As a result, if any of
our shareholders were to bring a lawsuit in the United States
against the officers, directors or experts in the United States, it
may be difficult to effect service of legal process on those people
who reside in Canada, based on civil liability under the Securities
Act of 1933 or the Securities Exchange Act of 1934. In addition, we
have been advised that a judgment of a United States court based
solely upon civil liability under these laws would probably be
enforceable in Canada, but only if the U.S. court in which the
judgment were obtained had a basis for jurisdiction in the matter.
We also have been advised that there is substantial doubt whether
an action could be brought successfully in Canada in the first
instance on the basis of liability predicated solely upon the
United States' securities laws.
Item 4.   Information on the Company
A.   History and Development of the Company
The
Company is a British Columbia corporation (organized on December
28, 2000, incorporation number BC 0619991, which is the
incorporation number reflecting the transition to the new corporate
statute (the British Columbia Business Corporations Act)). The
registered office is at 1500 West Georgia Street, Suite 1300,
Vancouver, British Columbia, Canada, V6C 2Z6. We do not have an
agent in the United States.
The
Company's legal name is Digatrade Financial Corp and business
is carried on in this name at this time. On October 27, 2015 the
Company changed its name from Bit-X Financial Corporation to
Digatrade Financial Corporation. On February 9, 2015 the Company
changed its name from Rainchief Energy Inc to Bit-X Financial
Corporation and on November 21, 2008 the Company changed its name
from Black Diamond Brands Corporation to Rainchief Energy
Inc.
B.   Overview
The
Company is listed as a fully reporting issuer on the FINRA OTC
bulletin board and trades under the symbol
"DIGAF".
On
March 31, 2015, the Company entered into an agreement with Mega
Ideas Holdings Limited, dba ANX ("ANXPRO and ANX
International"), a company incorporated and existing under
the laws of Hong Kong. ANX owns a proprietary trading platform and
provides operational support specializing in blockchain development
services and exchange and transaction services for
crypto-currencies e.g. Bitcoin and other digital assets. Effective
October 17, 2018 the Company closed the online retail trading
platform and shared liquidity order book with ANX International
owing to low transaction volumes. The Company will continue to
evaluate opportunities and continue with research and development
related services in the digital-asset industry for prospective
institutional customers while continuing to seek new opportunities
within the blockchain and the financial technology sector unrelated
to facilitating trading activities.
13
On
February 5, 2019 the company entered into a Letter of Intent
("LOI") with Securter Inc., a private Canadian
Corporation that is developing a proprietary, patent-pending credit
card payment platform to significantly increase the security of
online credit card payment processing. The purpose is to reduce
financial losses being experienced by financial institutions and
merchants from fraudulent credit card use, while also better
protecting cardholder privacy. The LOI sets out that the new
technology will be launched and commercialized through a Digatrade
subsidiary.
On
February 26, 2019, the Company executed a definitive agreement (the
"Securter Agreement") with Securter Inc., a private
Canadian Corporation ("Securter") that is developing a
proprietary, patent-pending credit card payment platform to
significantly increase the security of online credit card payment
processing. Securter technology reduces immense losses by financial
institutions and merchants that arise from fraudulent credit card
use and protects cardholder privacy by eliminating the distribution
of personal information to third parties. With the current
worldwide surge in online commerce expected to continue for years
to come, the problem of credit card security is large and
growing.
Pursuant
to the terms of the Securter Agreement, the parties agreed to form
a subsidiary of Digatrade, Securter Systems, Inc. ("Securter
Systems"), and assign all of the assets and intellectual
property of Securter into Securter Systems. Securter Systems has
been created to launch and commercialize the Securter technology
under Digatrade.
The
Securter Agreement provides for the launch and commercialization of
Securter's technology under Securter Systems as a Digatrade
subsidiary. The consummation of the Securter Agreement is subject
to certain milestone events, including the contribution of capital
by Digatrade to Securter Systems.
The Company's Organization Structure
During
the year ended December 31, 2015 the Company incorporated three
subsidiaries: Digatrade Limited (a British Columbia, Canada
corporation), Digatrade (UK) Limited (a United Kingdom corporation)
and Digatrade Limited (a Nevada corporation).
On
September 30, 2009, we disposed of two subsidiaries, Black Diamond
Importers Inc., a British Columbia, Canada, corporation and Liberty
Valley Wines, LLC., a Delaware, U.S.A., limited liability company.
On December 30, 2009, we disposed of our remaining subsidiary,
Point Grey Energy Inc., an Alberta, Canada,
corporation.
Effective
December 22, 2010, we acquired all of the issued and outstanding
common shares of Jaydoc Capital Corp ("Jaydoc"), a
company incorporated under the Business Corporations Act of the
Province of British Columbia, Canada. Jaydoc was acquired to
facilitate our business venture in solar energy development. The
assets of Jaydoc were its business plan and strategic business
relationship with operational partners that offered experience and
knowledge in the development, engineering and construction of solar
energy projects in Italy and the European Union.
On
December 18, 2010 we incorporated a wholly-owned subsidiary,
Rainchief Renewable-1 S.R.L under the laws of Italy.
During
the year ended December 31, 2015, we incorporated the following
subsidiaries: Digatrade Limited (a British Columbia, Canada
Corporation), Digatrade (UK) Limited (a United Kingdom
corporation), and Digatrade Limited (a Nevada, USA corporation);
and de-registered Jaydoc Capital Corp. and Rainchief Renewable-1
S.R.L.
14
During
January 2019 we incorporated Securter Systems Inc. (a Canadian
corporation).
Commitments
.
On
March 31, 2015, the Company entered into an agreement with Mega
Idea Holdings Limited, dba ANX ("ANX"), to provide
Crypto-currency deposit and exchange services. Pursuant to the
terms of the agreement, the Company was required to pay monthly
maintenance fees of US$10,000 for maintenance and support of the
exchange platform. The agreement with ANX was for a term of three
years.
On
April 7, 2017 (the "effective date"), the Company
entered into a revised agreement with ANX. Pursuant to the terms of
the agreement, the Company was required to pay monthly maintenance
fees of US$1,500 for the first six months commencing the first
month after the effective date, and US$5,000 thereafter. The
revised agreement with ANX was for a term of two years. Effective
October 15, 2018, the revised agreement was terminated, and the
Company closed the online retail trading platform and shared
liquidity order book with ANX International owing to low
transaction volumes. The Company paid ANX $32,770 (US$25,000) in
full settlement of all outstanding liabilities and realized a gain
of $7,158 on the termination of the agreement.
On
February 26, 2019 the Company entered into a Definitive Agreement
with Securter Inc, a Canadian Company. Under the terms of the
Definitive Agreement, Securter's assets and liabilities would
be transferred to a new Canadian Federal corporation, Securter
Systems Inc (SSI). The Company agreed to subscribe for 100% of
SSI's Class B shares, giving it voting control of SSI. The
Company also agreed to fund the development of SSI's
technology and acquire up to 30% of the Class A common shares of
SSI.
Item 5.   Operating and Financial Review
For the years ended December 31, 2019, 2018, and 2017, the Company
had net losses of $2,094,253, $522,963 (restated) and $674,520
respectively.
Accounting Audit and Legal Expenses amounted to $124,980, $82,485
and $105,652 for the years ended December 31, 2019, 2018 and 2017,
respectively. Accounting and Audit expenses for the year ended
December 31, 2019 amounted to $49,331, an increase of $4,572 from
$44,760 for the year ended December 31, 2018. The expense incurred
in 2018 represented an increase of $2,559 over the expense of
$42,200 incurred for the year ended December 31, 2017. The
increases in expenditure in this category resulted from additional
review work in connection with corporate transactions. Legal
expenses for the year ended December 31, 2019 amounted to $75,649,
an increase of $37,934 over the $37,715 expended in the year ended
December 31, 2018. The increase resulted from additional legal
services required in connection with corporate transactions
including the acquisition of Securter. The decrease in Legal
expenses for the year ended December 31, 2018 as compared with the
amount of $63,452 expended on legal services in the year ended
December 31, 2017 resulted from the reduced corporate activity in
2018 as compared with 2017
Consulting expense for the year ended December 31, 2019 increased
by $99,798 to $392,300 as compared with $294,502 for the year ended
December 31, 2018, and by $156,310 as compared with $138,192 for
the year ended December 31, 2017, as a result of increased
corporate activity during the respective periods.
15
During the year ended December 31, 2018 the Company incurred Filing
and Transfer Agents Expenses in the amount of $19,558 as compared
with $26,331 incurred during the year ended December 31, 2018, an
increase of $6,773, as a result of increased filing activity during
the period. Filing and Transfer Agents Fees for the year ended
December 31, 2018 increased by $18,465 from $7,866 for the year
ended December 31, 2017, as a result of increased corporate
activity during that year.
During the year ended December 31, 2019, the Company incurred
Investor Relations expenses in the amount of $20,096. The Company
did not incur any Investor Relations expenses during the years
ended December 31, 2018. During the year ended December 31, 2017,
the Company entered into investor relations contracts for a total
cost of $107,103.
Management fees for the year ended December 31, 2019 amount to
$244,120 as compared with $241,950 for the year ended December 31,
2018, an increase of $2,170, primarily as a result of exchange rate
changes. Management fees for the year ended December 31, 2018
increased by $136,950 as compared with $105,000 expended during
2017 as a result of increased corporate activities during that
period.
The Company incurred Exchange Platform Development Costs in the
amount of $102,683 during the year ending December 31, 2018, as
compared with $104,591 incurred during the year ended December 31,
2017 and $111,734 incurred during the year ended December 31, 2016.
The reduction in these costs resulted from the renegotiation of the
agreement with the platform provider during 2017 and costs related
to certain development projects in 2015 which were not continued in
2016 and 2017. The Company did not incur further development
expenditures during 2019 as a consequence of the termination of the
exchange trading platform agreement with ANX during
2018.
The Company incurred $12,409 in Office expenses during the year
ended December 31, 2019, essentially unchanged from $12,282
incurred during the year ended December 31, 2018. Administrative
expenses increased by $5,144 from $7,137 for the year ended
December 31, 2017 to $12,281 for the year ended December 31,
2018.
The Company incurred Financing Finders Fees in the amounts of
$54,746, $123,101 and $109,033 in connection with the issuance of
convertible promissory notes during the years ended December 31,
2019, 2018 and 2017, respectively.
During the year ended December 31, 2019, the Company granted stock
options with a fair value of $60,000 to directors and certain
contractors to the Company. The options were valued using the
Black-Scholes model
with the assumptions of risk-free rate
of 1.68%, volatility of 268% and option life of 7
years.
The Company incurred travel expenses in the amount of $13,944
during the year ended December 31, 2019 in connection with the
acquisition of Securter. The Company did not incur any travel
expenses during 2018 and 2017.
16
The Company incurred marketing expenses in the amount of $85,377
during the year ended December 31, 2019 in connection with the
promotion of the Company's business. The Company did not
incur any marketing expenses during 2018 and 2017.
The Company realized a foreign exchange gains of $48,045, $37,682
and $40,723 during the years ended December 31, 2019, 2018 and
2017, respectively. The gains resulted from changes in the foreign
currency exchange rates between the Canadian and US
Dollars.
The Company incurred Interest expense during the years ended
December 31, 2019, 2018 and 2017 in the amounts of $58,470,
$198,658 and $30,669. This expenditure was incurred in connection
with the Convertible Promissory Notes.
The Company realized recoveries of Accretion Expenses in the
amounts of $146,624 and $7,039 for the years ended December 31,
2019 and 2018, respectively. During the year ended December 31,
2019, the Company recognized a loss in the fair value of derivative
instruments of $1,067,076 as compared with a gain in the fair value
of derivative instruments of $534,118 during the year ended
December 31, 2018.
During the year ended December 31, 2018, the Company realized a net
gain on discontinuance of trading platform activities in the amount
of $7,158.
Financial position
As at December 31, 2019, the Company had a working capital
deficiency of $457,664 as compared with a working capital surplus
of $381,072 as at December 31, 2018, a decrease of $838,736. The
decrease in working capital deficiency during the year ended
December 31, 2019 is due to decreases in Cash of $380,654, Prepaid
Expenses of $22,211 and Deferred Loss on Derivative Liabilities of
$800,941, and increases in Shareholders' Loans of $26,565 and
$25,052 in the Liability Component of Convertible Promissory Notes;
offset by an increase in General Sales Tax Recoverable of $2,483
and decreases in Trade and Other Payables of $7,003 and Derivative
Liability of $363,145 and Promissory Notes of $44,057
Liquidity and Capital Resources
As the
Company has historically generated nominal revenues from our
operations, the Company no internal sources of funds and are
reliant upon investors and lenders to fund its operations to
continue to further develop its products. The Company has funded
its operations to date principally from the sale of convertible
promissory notes and, to a lesser extent, sale of equity
securities. Management believes that the Company will continue to
be reliant upon debt and equity financing to fund continuing
operations until the business plan is fully implemented. The
Company has incurred losses since inception and have incurred
negative cash flows from operations from inception through December
31, 2019.
During the year ended December 31, 2019 the Company raised $572,389
by the issuance of Convertible Promissory Notes (year ended
December 31, 2018 (restated) - $795,047) and re-paid a convertible
Promissory Notes in the amount of $33,596 (year ended December 31,
2018 - $31,762).
Changes in working capital accounts during the year ended December
31, 2019 provided $9,536 (year ended December 31, 2018 consumed
$104,828).
17
During the year ended December 31, 2019, the Company used cash in
the amount of $910,207 to fund the Company's continuing operations
(year ended December 31, 2018 (restated) –
$868,745).
C.   Research and Development, Patents and Licenses,
etc.
Not
applicable
D.   Trend Information
Management
is not aware of any trend, commitment, event or uncertainty that is
expected to have a material effect on our business, financial
condition or results of operations.
E.   Off-Balance Sheet Arrangements
Not
applicable.
F.   Contractual Obligations
Not
applicable.
Item
6.   Directors, Senior Management and
Employees
A.   Directors, Senior Management, and
Employees
The
following table sets forth the name, positions held and principal
occupation of each of our directors, senior management and
employees upon whose work the Company is
dependent.  Information on such persons' share
ownership is under Item 7.
Name and
Positions Held
Experience and
Principal Business Activities
Bradley
J. Moynes (50)
Chairman,
President, Director and Interim Chief Financial
Officer
President
and Director of the Company since December 2000.
Tyrone
Docherty (60)
Director
of the Company since July 10, 2016
Timothy
Delaney (65)
Director
of the Company since November 20, 2018
18
B.   Compensation
SUMMARY COMPENSATION TABLE
The
following table sets forth the compensation paid to the executive
officers of the Company in each of the years ended December 31,
2019, 2018 and 2017.  The table includes compensation
paid for service by such persons to subsidiaries. All amounts are
stated in US dollars.
Annual
Compensation
Long Term
Compensation
Awards
Payouts
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
Name and Current
Principal Position
Year
Salary
Bonus
Other
Restricted Stock
Awards
Options or
SAR's
LPIT
Payouts
All Other
Compensation
(US$)
(US$)
(US$)
(US$)
(#)
(US$)
(US$)
Bradley
J.
2019
$
187,784
$
-
$
-
$
-
5,000,000
$
-
$
-
Moynes
2018
$
186,781
$
-
$
-
$
-
-
$
-
$
-
Presiden
t
2017
$
80,994
$
-
$
-
$
-
-
$
-
$
-
19
Executive Compensation Plans and Employment Agreements
Management Agreements
No
management agreements were entered into for the period commencing
January 1, 2019 to December 31, 2019.
Equity Compensation Plans
Effective
December 31, 2010, our Board of Directors adopted the 2010 Stock
Option Incentive Plan ("the Stock Option Plan"). The
purpose of the Stock Option Plan is to enhance the long-term
stockholder value of the Company by offering opportunities to
directors, officers, key employees and eligible consultants of the
Company to acquire and maintain stock ownership in the Company, in
order to give these persons the opportunity to participate in the
Company's growth and success, and to encourage them to remain in
the service of the Company. A maximum of 10% of the issued and
outstanding shares of common stock are available for issuance under
the Stock Option Plan.
C.   Board Practices
Each
director holds office until the next annual general meeting of the
Company unless his office is earlier vacated in accordance with the
Articles of the Company or the Canada Business Corporations
Act.
During
the most recently completed fiscal year, there are no arrangements
(standard or otherwise) under which directors of the Company were
compensated by the Company or its subsidiaries for services
rendered in their capacity as directors, nor were any amounts paid
to the directors for committee participation or special
assignments, other than the granting of stock
options.  There were no arrangements under which the
directors would receive compensation or benefits in the event of
the termination of that office.
The
Company does not have an audit committee at the present time. The
Company is currently seeking a suitable individual to serve on an
audit committee.
The
audit committee is responsible for selecting, evaluating and
recommending the Company's auditors to the Board of Directors
for shareholder approval; evaluating the scope and general extent
of the auditors' review; overseeing the work of the auditors;
recommending the auditors' compensation to the Board of
Directors; and assisting with the resolution of any disputes
between management and the auditors regarding financial
reporting.  The audit committee is also responsible for
reviewing the Company's annual and interim financial
statements and recommending their approval to the Board of
Directors; reviewing the Company's policies and procedures
with respect to internal controls and financial reporting; and
establishing procedures for dealing with complaints regarding
accounting, internal controls or auditing matters.
The
Company does not have a compensation or corporate governance
committee at the present time. The Company is listed for trading on
the OTCBB as a reporting issuer under registration statement Form
20-F (Foreign Private Issuer) and as such it believes that it is
not required to have such committees.
20
D.   Employees
The
Company currently has one officer and no
employees.  Employees will be added as
required.
E.   Share Ownership
Our
directors and officer own the indicated shares of common stock as
at the date hereof; percentages are based on 1,120,190,080 shares
of common stock and 2,100,000 shares of Class B common stock issued
and outstanding as at April 30, 2020
Name
No. of shares of Common Stock
Percentage of Common Shares outstanding at April 30,
2020
Brad
Moynes
21,723,715
1.9392
%
Tyrone
Docherty
250,000
0
%
Name
No. of shares of Class B Common Stock
Percentage of Class B Common Stock outstanding at April 30,
2020
Brad
Moynes
2,100,000
100
%
Item
7.   Major Shareholders and Related Party
Transactions.
A.   Major Shareholders
To our
knowledge, only one person beneficially owns, directly or
indirectly, or exercises control or direction over, common shares
carrying more than 5% of the voting rights attached to the
812,551,132 common shares outstanding at
April 30
, 2020.
The
Company has approximately 210 shareholders of record at
April 30
, 2020.  The
number of shareholders holding securities beneficially through
street name nominees, as reflected in the record position of Cede
& Co. and other intermediaries, is approximately
97.1%.
To the
best of our knowledge, approximately 5% of the Company's
common shares are owned by residents of Canada or residents of
countries other than the United States.  The number of
shareholders holding securities beneficially through street name
nominees, as reflected in the record position of Cede & Co. and
other intermediaries, who may be residents of other countries, is
approximately 2%. These assumptions are based on our shareholder
registry issued by Action Stock Transfer as of
April 30
, 2020.
21
To our
knowledge, we are not owned or controlled directly or indirectly by
another corporation or by any foreign government, nor are there any
arrangements which may result in a change of control of the
Company. The directors of the Company own approximately 2% of the
Class "A" common voting shares and all of 2,100,000 of the Class
"B" common voting non-participating shares. As a result the
percentage of shares controlled by the directors currently
represents voting control of the Company.
B.   Related Party Transactions
Balances
and transactions between the Company and its subsidiaries, which
are related parties of the Company, have been eliminated on
consolidation and are not disclosed. Details of transactions
between the Company and other related parties, in addition to those
transactions disclosed elsewhere in these consolidated financial
statements, are described below. All related party transactions
were in the ordinary course of business and were measured at their
exchange amounts.
Promissory
Notes
During
the year ended December 31, 2017, the Company repaid promissory
notes in the amount of $90,529, (including US$31,200) to a company
controlled by a Director (also an officer) of the Company. Included
in convertible promissory notes as at December 31, 2018, was $Nil
(2017 – $89,364 including US$31,200) owed to this
company.
During
the year ended December 31, 2017, the Company settled a promissory
note owed to a company controlled by a former officer of the
Company in the amount $69,205 (US$50,000) by the issuance of
1,000,000 common shares. Included in convertible promissory notes
as at December 31, 2018, was $Nil (2017 – $67,135 including
US$50,000) owed to this company
Compensation
of Key Management Personnel
The
Company incurred management fees for services provided by key
management personnel for the years ended December 31, 2019, 2018
and 2017, as described below.
Management
Fees
2019
2018
2017
$
$
$
Management
Fees
244,120
241,950
105,000
Share-Based
Payments
30,000
-
-
274,120
241,950
105,000
During
the year ended December 31, 2019, the Company incurred consulting
fees for services provided by a former director of the Company in
the amount of $19,125 up to the date of his resignation as a
director on May 22, 2019 (2018 - $12,900). The Company paid $16,200
to this former director subsequent to his resignation.
22
C.   Interest of Experts and Counsel
None.
Item
8.   Financial Information
See the
consolidated financial statements under Item 18.
Item
9.   The Offer and Listing
A.   Offer and Listing Details
The
Company's common shares are traded on the "OTC.BB"
under the symbol BITXF; the shares are not listed on any exchange
or traded on any other medium.  Trading commenced in the
first quarter 2004 on the Pink Sheets and then became a reporting
issuer and was listed for trading on the OTC.BB during the second
quarter of 2007.
The
following table sets forth the high and low closing prices on the
OTC Markets and the OTC.BB for the periods indicated, adjusted
for the consolidations of the Company's stock on March 22,
2010, April 3, 2013 and June 8, 2016. See Item 10A
below.
High Sales Price
Low Sales Price
By Quarters in 2019, 2018 & 2017
US$
US$
Fourth
Quarter 2019
$
0.004
$
0.001
Third
Quarter 2019
$
0.009
$
0.003
Second
Quarter 2019
$
0.023
$
0.007
First
Quarter 2019
$
0.016
$
0.005
Fourth
Quarter 2018
$
0.02
$
0.003
Third
Quarter 2018
$
0.06
$
0.01
Second
Quarter 2018
$
0.16
$
0.03
First
Quarter 2018
$
0.52
$
0.10
Fourth
Quarter 2017
$
0.75
$
0.10
Third
Quarter 2017
$
0.31
$
0.06
Second
Quarter 2017
$
0.16
$
0.06
First
Quarter 2017
$
0.23
$
0.06
On
December 31, 2019, the closing price was US$0.001 per
share.
B.   Plan of Distribution
Not
applicable.
C.   Markets
See
"Offer and Listing Details" above.
D.   Selling Shareholders
23
Not
applicable.
E.   Dilution
Not
applicable.
F.   Expenses of the Issue
Not
applicable.
Item
10.   Additional Information
A.   Share Capital Authorized
Unlimited
number of common shares without par value
Issued and Outstanding
Number of Common Shares
Number of Class B Common Shares
Amount
$
Balance, December
31, 2015 (Post-Share Consolidation)
1,622,150
3,241,848
Shares issued for
Services
5,000
-
32,000
Fair Value of Share
Rights Expired
34,000
-
85,000
1,661,150
-
3,358,848
Post-consolidation
shares issued in settlement of debt
41,000,000
-
276,983
Shares issued for
Services
250,000
-
15,000
Shares held in
escrow
(1,500
)
-
(5,374
)
Balance, December
31, 2016 (Post-Share Consolidation)
42,909,650
-
3,645,457
Shares
Issued
2,500,000
-
334,975
Shares Issued
in Settlement of
Debts
4,000,000
-
103,779
Shares Issued for
Cash
-
100,000
100
Shares Issued for
Services
250,000
-
21,896
Shares Held in
Trust
1,500
-
-
Balance, December
31, 2017
49,661,150
100,000
4,106,207
Shares Issued for
Services
600,000
-
7,373
Shares Issued on
Conversion of Convertible Promissory Notes
176,150,754
-
1,966,571
Balance, December
31, 2018
226,411,904
100,000
6,080,151
Shares
Issued
-
1,000,000
100
Shares Issued on
Conversion of Convertible Promissory Notes
356,153,022
-
1,379,907
Balance, December
31, 2019
582,564,926
1,100,000
7,460,158
24
Share consolidation
Effective April 3,
2013, the common shares of the Company were consolidated at the
ratio of one new common share for every 50 old common shares. The
Company issued 835 shares to round up fractional entitlements
resulting from the consolidation.
Effective June 8,
2016, the common shares of the Company were consolidated at the
ratio of one new common share for every 50 old common shares. The
Company issued 12,306 shares to round up fractional entitlements
resulting from the consolidation. The number of common shares and
basic loss per share calculations disclosed in the consolidated
financial statements have been adjusted to reflect the retroactive
application of this share consolidation.
On
September 19, 2014, the Company entered into an escrow agreement
with a creditor. The Company agreed to pay the creditor $2,500 upon
the signing of the agreement and to issue 75,000 shares (1,500 post
consolidation shares) to be held in escrow. The Company is
obligated to pay the creditor a further $6,687 forty five days
after the Company's stock becomes DWAC-eligible. Upon payment
of the final amount owing the shares will be returned to the
Company.
On June
12, 2017, the Company settled convertible promissory notes
totalling $32,700 by the issuance of 2,000,000 common shares with a
fair value equal to the value of the underlying debt
settled.
On
September 21, 2018, the Company settled a convertible promissory
note owed to a company controlled by a former Officer and Director
of the Company in the amount of $61,694 (US$50,000) by the issuance
of 1,000,000 common shares with a fair value equal to the value of
the underlying debt settled.
During
the year ended December 31, 2016, the Company issued 250,000 shares
at a fair value of $0.06 per share to a related party for
consulting services rendered. Share-based compensation of $15,000
was recorded.
During
the year ended December 31, 2017, the Company entered into a
consulting agreement for the provision of business strategy and
compliance services. The Company issued 250,000 common shares
valued at $21,896.
During
the year ended December 31, 2018, the Company entered into a
consulting agreement for the provision of business strategy and
compliance services. The Company issued 600,000 common shares
valued at $7,373.
25
On
October 10, 2017, the Company passed a resolution authorizing the
creation of a new 100,000 Class "B" common shares with
the following characteristics: non-participating, no par value, and
with the voting right of 1,000 votes per share. On the same day,
the Company issued 100,000 Class "B" common shares at
$0.001 per share for total proceeds of $100 to a shareholder who is
also a Director and Office of the Company.
On
January 2, 2019, the Company passed a resolution to increase the
authorized number of Class "B" common shares from
100,000 to 1,100,000. On the same day, the Company issued 1,000,000
Class "B" common shares at $0.0001 per share for total
proceeds of $100 to a shareholder who is also a Director and
Officer of the Company.
During
the year ended December 31, 2019, the Company issued 356,153,022
shares of Common Stock with a fair value of $1,379,907, pursuant to
the conversion of certain Convertible Promissory
Notes.
Share Purchase Warrants
Not
applicable
Share Options
On
February 14, 2019, the Company granted 5,750,000 options to
directors of the Company and 4,250,000 options to consultants. All
grants of options were made under the Company's Stock Option
Plan.
B.   Memorandum and Articles of Association
The
Company is registered under the Company Act of the Province of
British Columbia, Canada (BC 0619991).
With
respect to directors, under the by-laws, a director who is a party
to a material contract or proposed material contract with us, or is
a director or officer of or has a material interest in any person
who is a party to a material contract or proposed material contract
with us, must disclose to us in writing the nature and extent of
such interest.  An interested director can vote on only a
limited number of such matters (securing a loan from the director
to the Company, his remuneration, indemnity or insurance, or a
contract with an affiliate) provided the interest is
disclosed.  Otherwise, even with disclosure of the
interest, such a director cannot vote on a material contract or
proposed material contract.  A contract approved by the
board of directors is not voidable because one or more directors
has a conflict of interest, if the conflict is disclosed and the
interested director(s) do not vote on the
matter.  Subject to the conflict of interest provisions
summarized above, there is no restriction in the by-laws on the
power of the board of directors to have the Company borrow money,
issue debt obligations, or secure debt or other obligations of the
Company.  The by-laws contain no provision for the
retirement or non-retirement of directors under an age limit
requirement.  A director is not required to hold any
shares of the Company in order to be a director.
26
The
Articles of the Company provide for the issuance of unlimited
number of shares of common stock, without par value.  All
holders of common stock have equal voting rights, equal rights to
dividends when and if declared, and equal rights to share in assets
upon liquidation of the corporation.  The common shares
are not subject to any redemption or sinking fund
provisions.  Directors serve from year to year, there
being no provision for a staggered board; cumulative voting for
directors is not allowed.  Between annual general
meetings, the existing board can appoint one or more additional
directors to serve until the next annual general meeting, but the
number of additional directors shall not at any time exceed
one-third of the number of directors who held office at the
expiration of the last annual meeting.  All issued and
outstanding shares are fully paid and non-assessable
securities.
In
order to change the rights of the holders of common stock, the
passing of a special resolution by such shareholders is required,
being the affirmative vote of not less than 2/3 of the votes cast
in person or by proxy at a duly called meeting of
shareholders.
An
annual meeting of shareholders must be called by the board of
directors not later than 15 months after the last annual
meeting.  The board at any time may call a special
meeting of shareholders.  Notice of any meeting must be
sent not less than 21 and not more than 50 days before the meeting,
to every shareholder entitled to vote at the
meeting.  All shareholders entitled to vote are entitled
to be present at a shareholders meeting.  A quorum is the
presence in person or by proxy of the holders of at least 5% of the
issued and outstanding shares of common stock.
Except
under the Investment Canada Act, there are no limitations specific
to the rights of non-Canadians to hold or vote our shares under the
laws of Canada or our charter documents.  The Investment
Canada Act ("ICA") requires a non-Canadian making an investment
which would result in the acquisition of control of a Canadian
business, the gross value of the assets of which exceed certain
threshold levels or the business activity of which is related to
Canada's cultural heritage or national identity, to either notify,
or file an application for review with, Investment Canada, the
federal agency created by the ICA.  The notification
procedure involves a brief statement of information about the
investment on a prescribed form which is required to be filed with
Investment Canada by the investor at any time up to 30 days after
implementation of the investment.  It is intended that
investments requiring only notification will proceed without
intervention by government unless the investment is in a specific
type of business related to the scope of the ICA.  If an
investment is reviewable under the ICA, an application for review
in the prescribed form normally is required to be filed with
Investment Canada before the investment is made and it cannot be
implemented until completion of review and Investment Canada has
determined that the investment is likely to be of net benefit to
Canada.  If the agency is not so satisfied, the
investment cannot be implemented if not made, or if made, it must
be unwound.
C.   Material Contracts
Except
as otherwise disclosed in this Form 20-F, we have no material
contracts.
D.   Exchange Controls
There
are no laws, decrees or regulations in Canada relating to
restrictions on the export or import of capital, or affecting the
remittance of interest, dividends or other payments to non-resident
holders of our shares of common stock.
E.   Taxation
Canada
Canadian Federal Income Tax Information for United States
Residents
27
The
following is a discussion of material Canadian federal income tax
considerations generally applicable to holders of our common shares
who acquire such shares in this offering and who, for purposes of
the Income Tax Act (Canada) and the regulations thereunder, or the
Canadian Tax Act:
●
deal at arm's
length and are not affiliated with us;
●
hold such shares as
capital property;
●
do not use or hold
(and will not use or hold) and are not deemed to use or hold our
common shares, in or in the course of carrying on business in
Canada;
●
have not been at
any time residents of Canada; and
●
are, at all
relevant times, residents of the United States, or U.S. Residents,
under the Canada-United States Income Tax Convention (1980), (the
Convention).
TAX MATTERS ARE VERY COMPLICATED AND THE CANADIAN FEDERAL INCOME
TAX CONSEQUENCES OF PURCHASING, OWNING AND DISPOSING OF OUR COMMON
SHARES WILL DEPEND UPON THE STOCKHOLDER'S PARTICULAR
SITUATION. THE SUMMARY OF MATERIAL CANADIAN FEDERAL INCOME TAX
CONSEQUENCES SET FORTH BELOW IS INTENDED TO PROVIDE ONLY A GENERAL
SUMMARY AND IS NOT INTENDED TO BE A COMPLETE ANALYSIS OR
DESCRIPTION OF ALL POTENTIAL CANADIAN FEDERAL INCOME TAX
CONSEQUENCES.
THIS DISCUSSION DOES NOT INCLUDE A DESCRIPTION OF THE TAX LAWS OF
ANY PROVINCE OR TERRITORY WITHIN CANADA. ACCORDINGLY, HOLDERS AND
PROSPECTIVE HOLDERS OF OUR COMMON SHARES ARE ENCOURAGED TO CONSULT
WITH THEIR OWN TAX ADVISERS ABOUT THE TAX CONSEQUENCES TO THEM
HAVING REGARD TO THEIR OWN PARTICULAR CIRCUMSTANCES, INCLUDING ANY
CONSEQUENCES OF PURCHASING, OWNING OR DISPOSING OF OUR COMMON
SHARES ARISING UNDER CANADIAN FEDERAL, CANADIAN PROVINCIAL OR
TERRITORIAL, U.S. FEDERAL, U.S. STATE OR LOCAL TAX LAWS
OR TAX LAWS OF JURISDICTIONS OUTSIDE THE UNITED STATES OR
CANADA.
This
summary is based on the current provisions of the Canadian Income
Tax Act, proposed amendments to the Canadian Income Tax Act
publicly announced by the Minister of Finance (Canada) prior to the
date hereof (the "Proposed Amendments"), and the
provisions of the Convention as in effect on the date
hereof.  No assurance can be given that the Proposed
Amendments will be entered into law in the manner proposed, or at
all. No advance income tax ruling has been requested or obtained
from the Canada Revenue Agency to confirm the tax consequences of
any of the transactions described herein.
This
summary is not exhaustive of all possible Canadian federal income
tax consequences for U.S. Residents, and other than the
Proposed Amendments, does not take into account or anticipate any
changes in law, whether by legislative, administrative,
governmental or judicial decision or action, nor does it take into
account Canadian provincial, U.S. or foreign tax
considerations which may differ significantly from those discussed
herein.  No assurances can be given that subsequent
changes in law or administrative policy will not affect or modify
the opinions expressed herein.
28
A
U.S. Resident will not be subject to tax under the Canadian
Tax Act in respect of any capital gain on a disposition of our
common shares unless such shares constitute "taxable Canadian
property", as defined in the Canadian Tax Act, of the
U.S. Resident and the U.S. Resident is not eligible for
relief pursuant to the Convention.  Our common shares
will not constitute "taxable Canadian property" if, at
any time during the 60-month period immediately preceding the
disposition of the common shares, the U.S. Resident, persons
with whom the U.S. Resident did not deal at arm's
length, or the U.S. Resident together with all such persons,
did not own 25% or more of the issued shares of any class or series
of shares of our capital stock. In addition, the Convention
generally will exempt a U.S. Resident who would otherwise be
liable to pay Canadian income tax in respect of any capital gain
realized by the U.S. Resident on the disposition of our common
shares, from such liability provided that the value of our common
shares is not derived principally from real property situated in
Canada. The Convention may not be available to a U.S. Resident
that is a U.S. LLC which is not subject to tax in the
U.S.
Amounts
in respect of our common shares paid or credited or deemed to be
paid or credited as, on account or in lieu of payment of, or in
satisfaction of, dividends to a U.S. Resident will generally
be subject to Canadian non-resident withholding tax at the rate of
25%. Currently, under the Convention the rate of Canadian
non-resident withholding tax will generally be reduced
to:
●
5% of the gross
amount of dividends if the beneficial owner is a company that is
resident in the U.S. and that owns at least 10% of our voting
shares; or
●
15% of the gross
amount of dividends if the beneficial owner is some other resident
of the U.S.
United States Federal Income Tax Information for United States
Holders.
The
following is a general discussion of material U.S. federal
income tax consequences of the ownership and disposition of our
common shares by U.S. Holders (as defined below). This
discussion is based on the United States Internal Revenue Code of
1986, as amended, Treasury regulations promulgated thereunder, and
judicial and administrative interpretations thereof, all as in
effect at the date hereof and all of which are subject to change,
possibly with retroactive effect. This discussion only addresses
the tax consequences for U.S. Holders that will hold their
common shares as a "capital asset" and does not address
U.S. federal income tax consequences that may be relevant to
particular U.S. Holders in light of their individual
circumstances or U.S. Holders that are subject to special
treatment under certain U.S. federal income tax laws, such
as:
●
tax-exempt
organizations and pension plans;
●
persons subject to
alternative minimum tax;
●
banks and other
financial institutions;
●
insurance
companies;
●
partnerships and
other pass-through entities (as determined for United States
federal income tax purposes);
●
broker-dealers;
●
persons who hold
their common shares as a hedge or as part of a straddle,
constructive sale, conversion transaction, and other risk
management transaction; and
●
persons who
acquired their common shares through the exercise of employee stock
options or otherwise as compensation.
29
As used
herein, the term "U.S. Holder" means a beneficial
owner of our common shares that is:
●
an individual
citizen or resident of the United States;
●
a corporation, a
partnership or entity treated as a corporation or partnership for
U.S. federal income tax purposes, that is created or organized
in or under the laws of the United States or any political
subdivision thereof;
●
an estate the
income of which is subject to U.S. federal income taxation
regardless of its source; and
●
a trust if both a
United States Court is able to exercise primary supervision
over the administration of the trust; and one or more United States
persons have the authority to control all substantial decisions of
the trust.
TAX MATTERS ARE VERY COMPLICATED AND THE UNITED STATES FEDERAL
INCOME TAX CONSEQUENCES OF PURCHASING, OWNING AND DISPOSING OF OUR
COMMON SHARES WILL DEPEND UPON THE STOCKHOLDER'S PARTICULAR
SITUATION. THE SUMMARY OF MATERIAL UNITED STATES FEDERAL INCOME TAX
CONSEQUENCES SET FORTH BELOW IS INTENDED TO PROVIDE ONLY A GENERAL
SUMMARY AND IS NOT INTENDED TO BE A COMPLETE ANALYSIS OR
DESCRIPTION OF ALL POTENTIAL UNITED STATES FEDERAL INCOME TAX
CONSEQUENCES.
NOTE THAT THIS DISCUSSION DOES NOT INCLUDE A DESCRIPTION OF THE TAX
LAWS OF ANY STATE OR LOCAL GOVERNMENT WITHIN THE UNITED STATES.
ACCORDINGLY, HOLDERS AND PROSPECTIVE HOLDERS OF OUR COMMON SHARES
ARE ENCOURAGED TO CONSULT THEIR TAX ADVISORS ABOUT THE
U.S. FEDERAL, STATE, LOCAL, AND FOREIGN TAX CONSEQUENCES OF
PURCHASING, OWNING AND DISPOSING OF OUR COMMON SHARES.
Ownership of Shares.
The
gross amount of any distribution received by a U.S. Holder
with respect to our common shares generally will be included in the
U.S. Holder's gross income as a dividend to the extent
attributable to our current and accumulated earnings and profits
(as determined under U.S. federal income tax principles). To
the extent a distribution received by a U.S. Holder is not a
dividend because it exceeds the U.S. Holder's pro rata
share of our current and accumulated earnings and profits, it will
be treated first as a tax-free return of capital and reduce (but
not below zero) the adjusted tax basis of the
U.S. Holder's shares. To the extent the distribution
exceeds the adjusted tax basis of the U.S. Holder's
shares, the remainder will be taxed as capital gain (the taxation
of capital gain is discussed under the heading "Sale of
Shares" below).
30
For
taxable years beginning before January 1, 2009, dividends
received by non-corporate U.S. Holders from a qualified
foreign corporation are taxed at the same preferential rates that
apply to long-term capital gains. A foreign corporation is a
"qualified foreign corporation" if it is eligible for
the benefits of a comprehensive income tax treaty with the United
States (the income tax treaty between Canada and the United States
is such a treaty) or the shares with respect to which such dividend
is paid is readily tradable on an established securities market in
the United States (such as the Nasdaq Capital
Market).  Notwithstanding satisfaction of one or both of
these conditions, a foreign corporation is not a qualified foreign
corporation if it is a passive foreign investment company
("PFIC") for the taxable year of the corporation in
which the dividend is paid or the preceding taxable year. (Whether
a foreign corporation is a PFIC is discussed below under the
heading "Passive Foreign Investment Companies"). A
foreign corporation that is a PFIC for any taxable year within a
U.S. person's holding period generally is treated as a
PFIC for all subsequent years in the U.S. person's
holding period.  Although we have not been, are not now,
and do not expect to be a PFIC, and we don't expect to pay
dividends, you should be aware of the following matters in the
event that we do become a PFIC and do pay dividends.
If we
were to become a PFIC, then U.S. Holders who acquire our
common shares may be treated as holding shares of a PFIC throughout
their holding period for the purpose of determining whether
dividends received from us are dividends from a qualified foreign
corporation. As a consequence, dividends received by
U.S. Holders may not be eligible for taxation at the
preferential rates applicable to long-term capital
gains.
If a
distribution is paid in Canadian dollars, the U.S. dollar
value of such distribution on the date of receipt is used to
determine the amount of the distribution received by a
U.S. Holder. A U.S. Holder who continues to hold such
Canadian dollars after the date on which they are received, may
recognize gain or loss upon their disposition due to exchange rate
fluctuations. Generally, such gains and losses will be ordinary
income or loss from U.S. sources.
U.S. Holders
may deduct Canadian tax withheld from distributions they receive
for the purpose of computing their U.S. federal taxable income
(or alternatively a credit may be claimed against the
U.S. Holder's U.S. federal income tax liability as
discussed below under the heading "Foreign Tax
Credit"). Corporate U.S. Holders generally will not be
allowed a dividend received deduction with respect to dividends
they receive from us.
Foreign Tax Credit
Generally,
the dividend portion of a distribution received by a
U.S. Holder will be treated as income in the passive income
category for foreign tax credit purposes. Subject to a number of
limitations, a U.S. Holder may elect to claim a credit against
its U.S. federal income tax liability (in lieu of a deduction)
for Canadian withholding tax deducted from its distributions. The
credit may be claimed only against U.S. federal income tax
attributable to a U.S. Holder's passive income that is
from foreign sources.
If we
were to become a qualified foreign corporation with respect to a
non-corporate U.S. Holder, dividends received by such
U.S. Holder will qualify for taxation at the same preferential
rates that apply to long-term capital gains. In such case, the
dividend amount that would otherwise be from foreign sources is
reduce by multiplying the dividend amount by a fraction, the
numerator of which is the U.S. Holder's preferential
capital gains tax rate and the denominator of which is the
U.S. Holder's ordinary income tax rate. The effect is to
reduce the dividend amount from foreign sources, thereby reducing
the U.S. federal income tax attributable to foreign source
income against which the credit may be claimed. Canadian
withholding taxes that cannot be claimed as a credit in the year
paid may be carried back to the preceding year and then forward
10 years and claimed as a credit in those years, subject to
the same limitations referred to above.
31
The
rules relating to the determination of the foreign tax credit are
very complex. U.S. Holders and prospective U.S. Holders
should consult their own tax advisors to determine whether and to
what extent they would be entitled to claim a foreign tax
credit.
Sale of Shares
Subject
to the discussion of the "passive foreign investment
company" rules below, a U.S. Holder generally will
recognize capital gain or loss upon the sale of our shares equal to
the difference between: (a) the amount of cash plus the fair
market value of any property received; and (b) the
U.S. Holder's adjusted tax basis in such shares. This
gain or loss generally will be capital gain or loss from
U.S. sources, and will be long-term capital gain or loss if
the U.S. Holder held its shares for more than 12 months.
Generally, the net long-term capital gain of a non-corporate
U.S. Holder from the sale of shares is subject to taxation at
a top marginal rate of 15%. A Capital gain that is not long-term
capital gain is taxed at ordinary income rates. The deductibility
of capital losses is subject to certain limitations.
Passive Foreign Investment Companies
We will
be a PFIC if, in any taxable year either: (a) 75% or more of
our gross income consists of passive income; or (b) 50% or
more of the value of our assets is attributable to assets that
produce, or are held for the production of, passive
income.  Subject to certain limited exceptions, if we
meet the gross income test or the asset test for a particular
taxable year, our shares held by a U.S. Holder in that year
will be treated as shares of a PFIC for that year and all
subsequent years in the U.S. Holder's holding period,
even if we fail to meet either test in a subsequent
year.
If we
were a PFIC in the future, gain realized by a U.S. Holder from the
sale of PFIC Shares and certain dividends received on such shares
would be subject to tax under the excess distribution regime,
unless the U.S. Holder made one of the elections discussed
below. Under the excess distribution regime, federal income tax on
a U.S. Holder's gain from the sale of PFIC Shares would
be calculated by allocating the gain rateably to each day the
U.S. Holder held its shares. Gain allocated to years preceding
the first year in which we were a PFIC in the
U.S. Holder's holding period, if any, and gain allocated
to the year of disposition would be treated as gain arising in the
year of disposition and taxed as ordinary income.  Gain
allocated to all other years would be taxed at the highest tax rate
in effect for each of those years. Interest for the late payment of
tax would be calculated and added to the tax due for each of the
PFIC Years, as if the tax was due and payable with the tax return
filed for that year. A distribution that exceeds 125% of the
average distributions received on PFIC Shares by a U.S. Holder
during the 3 preceding taxable years (or, if shorter, the portion
of the U.S. Holder's holding period before the taxable
year) would be taxed in a similar manner.
A
U.S. Holder may avoid taxation under the excess distribution
regime by making a qualified electing fund ("QEF")
election. For each year that we would meet the PFIC gross income
test or asset test, an electing U.S. Holder would be required
to include in gross income, its pro rata share of our net ordinary
income and net capital gains, if any.  The
U.S. Holder's adjusted tax basis in our shares would be
increased by the amount of such income inclusions.  An
actual distribution to the U.S. Holder out of such income
generally would not be treated as a dividend and would decrease the
U.S. Holder's adjusted tax basis in our shares. Gain
realized from the sale of our shares covered by a QEF election
would be taxed as a capital gain. U.S. Holders will be
eligible to make QEF elections, only if we agree to provide to the
U.S. Holders, which we do, the information they will need to
comply with the QEF rules.  Generally, a QEF election
should be made by the due date of the U.S. Holder's tax
return for the first taxable year in which the U.S. Holder
held our shares that includes the close of our taxable year for
which we met the PFIC gross income test or asset test. A QEF
election is made on IRS Form 8621.
32
A
U.S. Holder may also avoid taxation under the excess
distribution regime by timely making a mark-to-market
election.  An electing U.S. Holder would include in
gross income the increase in the value of its PFIC Shares during
each of its taxable years and deduct from gross income the decrease
in the value of its PFIC Shares during each of its taxable
years.  Amounts included in gross income or deducted from
gross income by an electing U.S. Holder are treated as
ordinary income and ordinary deductions from
U.S. sources.  Deductions for any year are limited
to the amount by which the income inclusions of prior years'
exceed the income deductions of prior years. Gain from the sale of
PFIC Shares covered by an election is treated as ordinary income
from U.S. sources while a loss is treated as an ordinary
deduction from U.S. sources only to the extent of prior income
inclusions. Losses in excess of such prior income inclusions are
treated as capital losses from U.S. sources.  A
mark-to-market election is timely if it is made by the due date of
the U.S. Holder's tax return for the first taxable year
in which the U.S. Holder held our shares that includes the
close of our taxable year for which we met the PFIC gross income
test or asset test. A mark-to-market election is also made on IRS
Form 8621.
As
noted above, a PFIC is not a qualified foreign corporation and
hence dividends received from a PFIC are not eligible for taxation
at preferential long-term capital gain tax
rates.  Similarly, ordinary income included in the gross
income of a U.S. Holder who has made a QEF election or a
market-to-market election, and dividends received from corporations
subject to such election, are not eligible for taxation at
preferential long-term capital gain rates. The PFIC rules are
extremely complex and could, if they apply, have significant,
adverse effects on the taxation of dividends received and gains
realized by a U.S. Holder.  Accordingly, prospective
U.S. Holders are strongly urged to consult their tax adviser
concerning the potential application of these rules to their
particular circumstances.
Controlled Foreign Corporation
Special
rules apply to certain U.S. Holders that own stock in a
foreign corporation that is classified as a "controlled
foreign corporation" ("CFC").  We do
not expect to be classified as a CFC. However, future ownership
changes could cause us to become a CFC.  Prospective
U.S. Holders are urged to consult their tax advisor concerning
the potential application of the CFC rules to their particular
circumstances.
Information Reporting and Backup Withholding
United
States information reporting and backup withholding requirements
may apply with respect to distributions to U.S. Holders, or
the payment of proceeds from the sale of shares, unless the
U.S. Holder: (a) is an exempt recipient (including a
corporation); (b) complies with certain requirements,
including applicable certification requirements; or (c) is
described in certain other categories of persons. The backup
withholding tax rate is currently 28%.  Any amounts
withheld from a payment to a U.S. Holder under the backup
withholding rules may be credited against any U.S. federal
income tax liability of the U.S. Holder and may entitle the
U.S. Holder to a refund.
F.   Dividends and Paying Agents
Not
applicable.
33
G.   Statements by Experts
Not
applicable.
H.   Documents on Display
Not
applicable.
I.   Subsidiary Information
See the
notes to the financial statements.
Item
11.   Quantitative and Qualitative Disclosures about
Market Risk
Not
applicable.
Item
12.   Description of Securities Other Than Equity
Securities
Not
applicable
34
PART
II
Item
13.   Defaults, Dividend Arrearages and
Delinquencies
Not
applicable.
Item
14.   Material Modifications to the Rights of Security
Holders and Use of Proceeds
Not
applicable.
Item
15T.   Controls and Procedures
Item
15.   Controls and Procedures
Disclosure Controls and Procedures
The
Chief Executive and Interim Chief Financial Officer, has evaluated
the effectiveness of our disclosure controls and procedures (as
defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act)
as of the end of the period covered by this report. Based on that
evaluation, the Chief Executive and Interim Chief Financial Officer
has concluded that, as of December 31, 2019, these disclosure
controls and procedures were not effective to ensure that all
information required to be disclosed by us in the reports that we
file or submit under the Exchange Act is: (i) recorded, processed,
summarized and reported, within the time periods specified in the
Commission's rule and forms; and (ii) accumulated and
communicated to our management, including our Chief Executive and
Interim Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure, primarily due to the
Company's minimal financial staff which prevents us from
segregating duties, which management believes is a material
weakness in our internal controls and procedures. We intend to
address such weakness and work with outside advisors to improve our
controls and procedures as and when the circumstances of the
Company permit this.
Management's Annual Report on Internal Control over Financial
Reporting
Management
is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in
Exchange Act Rules 13a-15(f) and 15d-15(f). Internal control over
financial reporting is a process designed by, or under the
supervision of, our Chief Executive and Interim Chief Financial
Officer, and effected by our Board, management and other personnel,
to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles.
Internal
control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the Company; (2) provide
reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with
generally accepted accounting principles, and that our receipts and
expenditures are being made only in accordance with authorizations
of management and directors; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of our assets that could have a
material effect on our financial statements.
35
Because
of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Forward looking
statements regarding the effectiveness of internal controls during
future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of
compliance with the policies and procedures may
deteriorate.
Management
completed an assessment of the effectiveness of the Company's
internal control over financial reporting ("ICFR") as
of December 31, 2019, using the Committee of Sponsoring
Organizations of the Treadaway Commission ("COSO")
framework as contemplated by Rule 13a-15(c). Based on this
assessment, the Company concluded that it did not have effective
internal controls over financial reporting as of December 31,
2019.
The
Company's assessment of the effectiveness of the ICFR as at
December 31, 2019 identified certain material weaknesses as of that
date:
1.
Weakness
: It is not possible to adequately segregate
incompatible duties among the officers of the Company, because the
Company has only one officer and one accounting consultant.
Remediation: Appoint a new Chief Financial Officer, in addition to
the current officer, to formally segregate the duties of
maintaining accounting records and preparing financial statements,
from the executive duties of the current officer. Brad Moynes, who
has served as Interim Chief Financial Officer from July 2009, will
cease to serve in that position upon appointment of a new
individual as Chief Financial Officer.
2.
Weakness
: The Company is small, with only one officer,
thereby creating a risk of override of existing controls by
management. Remediation: Require the new Chief Financial
Officer's approval of all expenditures and other dispositions
of assets.
3.
Weakness
: The Company maintains limited audit evidence in
documentary form which is used to test the operating effectiveness
of control activities. Remediation: Improve the documentation of
expenditures and receipts, under the joint supervision of the new
Chief Financial Officer and the Chief Executive Officer, to ensure
received goods and third-party services conform to contract
terms.
The
Company intends to appoint additional levels of executive
management and personnel to remediate the weaknesses, in the
specific manners described in paragraphs 1 through 3 above, as and
when the Company has sufficient financial resources to effect the
remediations.
This
Annual Report does not include an attestation report of the
Company's registered public accounting firm regarding
internal control over financial reporting. Management's
report was not subject to attestation by the Company's
registered public accounting firm pursuant to temporary rules of
the Securities and Exchange Commission that permit the Company to
provide only management's report in this Annual
Report.
Changes in Internal Control over Financial Reporting
As
disclosed above, the Company completed its assessment of its ICFR
in place for the year ended December 31, 2019, using the COSO
framework. There were no changes in ICFR during the 2019 fiscal
year that have materially affected, or are reasonably likely to
materially affect, the Company's ICFR.
36
Item
16A.   Audit Committee Financial Experts
Not
applicable.
Item
16B.   Code of Ethics
Not
applicable.
Item
16C.   Principal Accountant Fees and
Services
Not
applicable.
Item
16D.   Exemptions from the Listing Standards for Audit
Committees
Not
applicable.
Item
16E.   Purchases of Equity Securities by the Issuer and
Affiliated Purchasers
None.
Item
16F.   Change in Registrant's Certifying
Accountant
Not
applicable.
Item
16G.   Corporate Governance
Not
applicable.
37
PART III
Item
17.   Financial Statements
Not
applicable.
Item
18.   Financial Statements
See the
consolidated financial statements of the Company, the notes
thereto, and the auditors' reports thereon, which are filed
as Exhibit 99.1 with this FORM 20-F.  All of the
financial information is presented in accordance with International
Financial Reporting Standards.
Item
19.   Exhibits
Exhibit
No.
Description of
Exhibit
3.(i)
Articles
of Incorporation (Notice of Articles and Transition
Application)
3.(ii)
By-laws
(Schedule "A")
4.(1)
Management
Agreement of January 1, 2008 (Bradley James Moynes)
4.(2)
Management
Agreement of January 1, 2008 (James Robert Moynes)
4.(3)
Certifications
(Brad J. Moynes)*
4.(4)
Certification
Pursuant 18 USC Section (Brad J. Moynes)*
4.(6)
Form of
Warrant dated May 23, 2007
23.(1)
Consent
of Independent Auditors*
99.(1)
Consolidated
Financial Statements for the years ended December 31, 2018 and
2017.*
*   Filed
herewith
SIGNATURES
The
registrant hereby certifies that it meets all of the requirements
for filing on FORM 20-F and that it has duly caused and authorized
the undersigned to sign this Annual Report.
Digatrade Financial Corp.
Date:
June 10, 2020
/s/ Brad J. Moynes
Brad J.
Moynes
Chairman,
President and Chief Executive Officer
38