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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and Exchange Commission
on May 15, 2023.</B></P>

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

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



<P STYLE="font: 6pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 12pt"><B>FORM
S-1<BR>
</B></FONT><B><FONT STYLE="font-size: 10pt">REGISTRATION STATEMENT UNDER<BR>
THE SECURITIES ACT OF 1933</FONT></B></P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 33%; text-align: center"><B>Delaware</B></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 33%; text-align: center"><B>7389</B></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 32%; text-align: center"><B>87-2792157</B></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of<BR>
    incorporation or organization)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Primary Standard Industrial<BR>
    Classification Code Number)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(I.R.S. Employer<BR>
    Identification Number)</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>8355 East Hartford Rd.,
Suite 100</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Scottsdale, AZ 85255</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(602) 481-7440</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Damon Rich, Interim Chief
Financial Officer </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>8355 East Hartford Rd.,
Suite 100</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Scottsdale, AZ 85255</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(602) 481-7440</B></P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD COLSPAN="2" STYLE="text-align: center"><B><I>Copies to:</I></B></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>Louis
                           A. Bevilacqua, Esq.</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>Bevilacqua PLLC</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>1050 Connecticut
    Avenue, NW, Suite 500</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>Washington, DC
    20036</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>(202) 869-0888</B></P></TD>
    <TD STYLE="width: 50%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Laura Anthony, Esq.</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Craig D. Linder, Esq</B>.</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Anthony L.G., PLLC</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>625 N. Flagler Drive, Suite 600</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>West Palm Beach, FL 33401</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(561) 514-0936</B></P></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, check the following box. &#9746;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering. &#9744;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. &#9744;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. &#9744;</FONT></P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.375in; width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated
    filer &#9744;</FONT></TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer &#9744;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.375in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer
    &#9746;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller reporting company &#9746;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company &#9746;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. &#9744;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further a</B></FONT><B>mendment which specifically states that this registration statement shall thereafter become
effective in accordance with Section&nbsp;8(a) of the Securities Act of 1933 or until the registration statement shall become effective
on such date as the Commission, acting pursuant to such Section&nbsp;8(a), may determine.</B></P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">This registration statement
contains two prospectuses, as set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Public Offering Prospectus</I></B>.
                                            A prospectus to be used for the public offering of shares of common stock through the underwriter
                                            named on the cover page of this prospectus, which is referred to in this Explanatory Note
                                            as the Public Offering Prospectus.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>The Resale Prospectus</I></B>.
                                            A prospectus, which is referred to in this Explanatory Note as the Resale Prospectus, to
                                            be used for the resale by selling stockholders of up to 2,346,548 shares of common stock,
                                            consisting of (i) 746,548 shares of common stock issued to the selling stockholders; (ii)
                                            410,000 shares of common stock issuable upon the conversion of 6% convertible unsecured promissory
                                            notes issued to the selling stockholders; (iii) 250,000 shares of common stock issuable upon
                                            the conversion of 8% convertible unsecured promissory notes issued to the selling stockholders;
                                            and (iv) 940,000 shares of common stock issuable upon the exercise of warrants issued to
                                            the selling stockholders.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Resale Prospectus
is substantively identical to the Public Offering Prospectus, except for the following principal points:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">they contain different front covers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">they contain different &ldquo;<I>Offering</I>&rdquo;
                                            sections in the Prospectus Summary;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">they contain different &ldquo;<I>Use
                                            of Proceeds</I>&rdquo; sections;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the &ldquo;<I>Capitalization</I>&rdquo;
                                            and &ldquo;<I>Dilution</I>&rdquo; sections are deleted from the Resale Prospectus;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">a &ldquo;<I>Selling Stockholders</I>&rdquo;
                                            section is included in the Resale Prospectus;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the &ldquo;<I>Underwriting</I>&rdquo;
                                            section from the Public Offering Prospectus is deleted from the&nbsp;Resale Prospectus&nbsp;and
                                            a &ldquo;<I>Plan of Distribution</I>&rdquo; section is inserted in its place; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the &ldquo;<I>Legal Matters</I>&rdquo;
                                            section in the Resale Prospectus deletes the reference to counsel for the underwriters.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The registrant has included
in this registration statement a set of alternate pages after the back cover page of the Public Offering Prospectus, which are referred
to as the Alternate Pages, to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering Prospectus.
The Public Offering Prospectus will exclude the Alternate Pages and will be used for the public offering by the Registrant. The Resale
Prospectus will be substantively identical to the Public Offering Prospectus except for the addition or substitution of the Alternate
Pages and will be used for the resale offering by the selling stockholders.</P>

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


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

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

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 350.35pt"><FONT STYLE="color: Red">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="color: Red"><B>SUBJECT
TO COMPLETION</B></FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="color: Red"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="color: Red"><B>PRELIMINARY
PROSPECTUS DATED MAY 15, 2023</B></FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><IMG SRC="image_001.jpg" ALT=""></B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">3,750,000&nbsp;Shares of Common Stock</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<!-- Field: Rule-Page --><DIV STYLE="margin-left: auto; margin-right: auto; width: 50%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This is an initial public offering of our shares
of common stock, $0.0001 par value per share (the &ldquo;common stock&rdquo;). We are offering&nbsp;3,750,000 of our shares of common
stock.&nbsp;It is currently estimated that the initial public offering price will be between $4.00 and $6.00. We have selected the lowest
point of this range of $4.00 per share for use herein as the assumed sales price for our shares, given recent market volatility, for
purposes of calculation of estimated use of proceeds, estimated dilution and other matters in this prospectus.</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are also seeking to register the issuance
of warrants to purchase 301,875 shares of common stock (the &ldquo;Representative&rsquo;s Warrants&rdquo;) to the underwriters (assuming
the exercise of the over-allotment option by the underwriters in full) as well as the 301,875 shares of common stock issuable upon exercise
by the underwriters of the Representative&rsquo;s Warrants at an exercise price of $4.00 per share, based on the assumed public offering
price of $4.00 per share, which is the low point of the estimated offering range set forth above.</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to this offering, there has been no public
market for our shares.&nbsp; We are in the process of applying to list our shares of common stock on NYSE American under the symbol &ldquo;SDS&rdquo;.
NYSE American may or may not approve such application, and if our application is not approved, this offering cannot be completed.</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless otherwise noted, the share and per share
information in this prospectus have been adjusted to give effect to the one-for-five (1-for-5) reverse stock split (the &ldquo;Reverse
Stock Split&rdquo;) of the outstanding common stock which became effective on April 14, 2023. See &ldquo;<I>Corporate History and Structure
&ndash; Reverse Stock Split</I>&rdquo;.</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are an &ldquo;emerging growth company&rdquo;,
as defined in the Jumpstart Our Business Startups Act of 2012, under applicable U.S. federal securities laws, and are eligible for reduced
public company reporting requirements. See &ldquo;<I>Prospectus Summary &ndash; Implications of Being an Emerging Growth Company</I>&rdquo;
for more information.</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Investing in our securities is highly speculative
and involves a high degree of risk.&nbsp; See &ldquo;<I>Risk Factors</I>&rdquo; beginning on page 15 for a discussion of information
that should be considered in connection with an investment in our securities.</B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Neither the U.S. Securities and Exchange Commission
nor any state or provincial securities commission has approved or disapproved of these securities or determined if this prospectus is
truthful or complete.&nbsp; Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Per Share</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Initial public offering price</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Underwriting discounts and commissions<SUP>(1)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Proceeds to us, before expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">Does not include a non-accountable expense
                                            allowance equal to 1% of the gross proceeds of this offering payable to Boustead Securities,
                                            LLC, the representative of the underwriters (&ldquo;Boustead&rdquo; or &ldquo;the representative&rdquo;),
                                            or the reimbursement of certain expenses of the underwriters. The representative will also
                                            receive other compensation in addition to underwriting discounts and commissions. See &ldquo;<I>Underwriting</I>&rdquo;
                                            for additional disclosure regarding underwriters&rsquo; compensation and offering expenses.</TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">This offering is being
conducted on a firm commitment basis.&nbsp; The underwriters are obligated to take and purchase all of the shares of common stock offered
under this prospectus if any such shares are taken.</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We have granted the
underwriters an option for a period of 45 days from the date of this prospectus to purchase up to 15% of the total number of our shares
to be offered by us pursuant to this offering (excluding shares subject to this option), solely for the purpose of covering over-allotments,
at the initial public offering price less the underwriting discounts, commissions and non-accountable expense allowance. If the underwriters
exercise the option in full, the total estimated underwriting discounts, commissions and non-accountable expense allowance payable will
be $1,380,000, and the total estimated gross proceeds to us, before underwriting discounts, commissions and non-accountable expense allowance
will be $17,250,000, based on the assumed initial public offering price of $4.00 per share, which is the low point of the estimated offering
range set forth above.&nbsp; Net proceeds will be delivered to us on the closing date.</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriters expect to deliver the shares
of common stock to purchasers in the offering on or about , 2023.</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>Boustead Securities,
LLC</B></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

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

<!-- Field: Rule-Page --><DIV STYLE="margin-left: auto; margin-right: auto; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>The date of this prospectus
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2023.</B></P>

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt; width: 90%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 10%; text-align: center"><B>Page</B></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_001">Prospectus Summary</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">1</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_002">Risk Factors</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">15</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_003">Cautionary Statement Regarding Forward-Looking Statements</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">37</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_004">Use of Proceeds</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">38</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_005">Dividend Policy</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">39</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_006">Capitalization</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">40</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_007">Dilution</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">42</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_008">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">44</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_009">Corporate History and Structure</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">58</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_010">Business</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">62</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_011">Management</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">80</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_012">Executive Compensation</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">87</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_013">Certain Relationships and Related Party Transactions</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">98</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_014">Principal Stockholders</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">105</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_015">Description of Securities</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">108</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_016">Shares Eligible for Future Sale</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">116</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_017">Material U.S. Federal Tax Considerations for Non-U.S. Holders of Our Common Stock</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">119</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_018">Underwriting</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">123</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_019">Legal Matters</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">128</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_020">Experts</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">128</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_021">Where You Can Find More Information</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">128</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_022">Financial Statements</A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-1</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Please read this prospectus carefully. It
describes our business, financial condition, results of operations and prospects, among other things. We are responsible for the information
contained in this prospectus and in any free-writing prospectus we have authorized. Neither we nor the underwriter have authorized anyone
to provide you with different information, and neither we nor the underwriter take responsibility for any other information others may
give you. Neither we nor the underwriter are making an offer to sell these securities in any jurisdiction where the offer or sale is
not permitted. The information contained in this prospectus is accurate only as of the date on the front of this prospectus, regardless
of the time of delivery of this prospectus or any sale of shares of common stock. You should not assume that the information contained
in this prospectus is accurate as of any date other than its date. </B></P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We use various trademarks, trade names and service
marks in our business, including &ldquo;Signing Day Sports&trade;&rdquo;, &ldquo;The Hat Before The Hat&trade; and associated marks.
For convenience, we may not include the SM, <SUP>&reg; </SUP>or <SUP>&trade;</SUP> symbols, but such omission is not meant to indicate
that we would not protect our intellectual property rights to the fullest extent allowed by law. Any other trademarks, trade names or
service marks referred to in this prospectus are the property of their respective owners.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are responsible for the information contained
in this prospectus. This prospectus includes industry and market data that we obtained from periodic industry publications, third-party
studies and surveys, filings of public companies in our industry and internal company surveys. These sources generally state that the
information they provide has been obtained from sources believed to be reliable, but that the accuracy and completeness of the information
are not guaranteed. The forecasts and projections are based on historical market data, and there is no assurance that any of the forecasts
or projected amounts will be achieved. Industry and market data could be wrong because of the method by which sources obtained their
data and because information cannot always be verified with complete certainty due to the limits on the availability and reliability
of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. The market and industry data
used in this prospectus involve risks and uncertainties that are subject to change based on various factors, including the COVID-19 pandemic
and those discussed in the section titled &ldquo;<I>Risk Factors</I>.&rdquo; These and other factors could cause results to differ materially
from those expressed in, or implied by, the estimates made by independent parties and by us. Furthermore, we cannot assure you that a
third party using different methods to assemble, analyze or compute industry and market data would obtain the same results.</P>

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


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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_001"></A>PROSPECTUS
SUMMARY</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>This summary highlights selected information
contained elsewhere in this prospectus. This summary is not complete and does not contain all of the information that you should consider
before deciding whether to invest in common stock. You should carefully read the entire prospectus, including the risks associated with
an investment in our company discussed in the &ldquo;Risk Factors&rdquo; section of this prospectus, before making an investment decision.
Some of the statements in this prospectus are forward-looking statements. See the section titled &ldquo;Cautionary Statement Regarding
Forward-Looking Statements.&rdquo;</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>In this prospectus, unless the context indicates
otherwise, &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Signing Day Sports,&rdquo; &ldquo;the Company,&rdquo; &ldquo;our
company&rdquo; and similar references refer to the consolidated operations of Signing Day Sports, Inc., a Delaware corporation.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Unless otherwise noted, the share and per
share information in this prospectus reflects the Reverse&nbsp;Stock&nbsp;Split ratio of 1-for-5 as if it had occurred at the beginning
of the earliest period presented.</I></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are a technology
company developing and operating platforms aiming to give significantly more student-athletes the opportunity to go to college and continue
playing sports. Our platform, Signing Day Sports, is a digital ecosystem to help athletes get discovered and recruited by coaches and
recruiters across the country. We currently fully support football and baseball, and we plan to expand the Signing Day Sports platform
to include additional sports. Each sport is led by former professional athletes and coaches who know what it takes to get to the big
leagues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Signing Day Sports launched
in 2019, and as of March 2023, many high schools, sports clubs, and aspiring high school athletes have subscribed to the Signing Day
Sports platform. Colleges in the National Collegiate Athletic Association (NCAA) Division I, Division II, and Division III, and the National
Association of Intercollegiate Athletics (NAIA), have utilized our platform for recruitment purposes. Signing Day Sports initially supported
football athletes, also now offers a platform for baseball and softball, and is expected to offer a men&rsquo;s and women&rsquo;s soccer
platform in or around May 2023, resulting in even more recruiter and athlete platform participants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We founded Signing Day
Sports to reinvent the high school and college sports recruiting process for the digital era. When we started the Company, recruiting
was still being done largely as it had been done since before the mass availability of Internet-connected devices and was still limited
by that model. We believe that we identified the flaws in the recruiting process and the unique opportunity it presented for us to become
a solution provider in the industry. We developed and operated our platform with the objective of optimizing and enhancing the sports
recruitment process across all sizes of colleges and athletic departments.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our ability to leverage
modern technologies to bring coaches and athletes together in a mutually beneficial ecosystem has shown significant benefits for both
sides of the student-athlete recruitment process. Parents and athletes can use the platform to understand and provide what recruiters
want to see, seek and gain offers of better athletic scholarships or other financial aid packages, and maximize the potential of an athlete&rsquo;s
career. Recruiters now have a comprehensive recruitment application that shows video verification of key attribute data and gives the
recruiter the ability to narrow down their search with a highly optimized search engine and athlete screening process.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In short, we offer a comprehensive solution that
services the needs of all participants in the sports recruitment process. We are aware of no other platform that offers what our platform
does. Our goal is to change the way sports recruitment is done for the betterment of everyone.</P>

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

</DIV>

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


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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company&rsquo;s
current and former independent registered public accounting firms have expressed substantial doubt as to the Company&rsquo;s ability
to continue as a going concern. We have incurred losses for each period from our inception and a significant accumulated deficit. For
the fiscal years ended December 31, 2022 and 2021, our net loss was approximately $6.7 million and $8.8 million, respectively, our cash
used in operating activities was approximately $4.9 million and $5.7 million, respectively, and we had cumulative losses of approximately
$18.1 million and $11.5 million<FONT STYLE="font-family: Times New Roman, Times, Serif">, respectively. </FONT>We expect to incur expenses
and operating losses over the next several years. Accordingly, we will need additional financing to support our continuing operations.
We will seek to fund our operations through public or private equity offerings, debt financings, government or other third-party funding,
collaborations and licensing arrangements. Adequate additional financing may not be available to us on acceptable terms, or at all. Our
failure to raise capital as and when needed would impact our going concern status and would have a negative impact on our financial condition
and our ability to pursue our business strategy and continue as a going concern. We will need to generate significant revenues to achieve
profitability, and we may never do so.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">For further discussion,
see &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations &ndash; Liquidity and Capital
Resources &ndash; Going Concern</I>&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The sports recruitment industry has a number
of problems. Frequently, the best athletes in the world get overlooked because of a lack of exposure, promotion, and experience. The
dominance of the top athletic programs reduces opportunities for talented student-athletes. Many student-athletes who do not know how
to effectively promote themselves will get pushed down ranking sheets. Signing Day Sports has built an application to bring equal opportunity
to all student-athletes looking to be recruited at every level.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that our technology can help level
the playing field for both student-athletes and recruiters. Any student-athlete can promote and demonstrate their talent to all of the
recruiters on our platform. On the other side, every recruiter who uses the platform can access the same rich level of data that can
be provided by our platform&rsquo;s student-athletes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe our technology will help move sports
recruitment toward a truly fair experience for all parties involved.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Signing Day Sports is a platform in the form
of an app available on Apple&rsquo;s App Store and Google Play for student-athletes and desktops for coaches and recruiters. We believe
Signing Day Sports is the first comprehensive sports recruitment platform. The platform interface is designed to be optimized for each
participant in the sports recruitment process. The three-tiered technology platform serves student-athletes and their parents, high school
and sports club coaches, and college and professional recruiters and scouts.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Student-athletes can upload key information and
verified data that is critical in the recruitment process. The data fields in our player platform include the following: Video-verified
measurables (such as height, weight, 40-yard dash, wingspan, hand size), academic information (such as official transcripts and SAT/ACT
scores), and technical skill videos (such as drills and mechanics that exemplify player mechanics, coordination, and development).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">College coaches, team managers and other recruiters
can load in all athletes on their respective teams, sports clubs or programs. They can use the platform to communicate directly with
athletes, track their progress in the weight room and training field, and manage other aspects of their athletes. Additionally, the platform
serves as an important tool for recruitment and development. In particular, college coaches can manage their entire recruitment process
through our platform. Our platform provides college coaches an optimized organizational system, communication tools, and verified data
to make informed decisions and save program costs. Athletes and parents can use the platform to communicate with their coaches and managers
as well as track individual performance and key metrics that are valuable to recruiters. The platform was built by athletes and recruiters
for athletes and recruiters, and we believe it truly represents the future of sports recruitment.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe our key competitive strengths include:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Massive
                                            Low-Cost Access to Recruiters</I></B>. Recruiting events, camps, games and showcases such
                                            as those hosted by Next College Student Athlete, Gridiron Elite and Perfect Game strive to
                                            match high-level high school athletes for in-person competition. Attendees sometimes travel
                                            interstate to attend these events and typically pay an attendance fee as well. These events
                                            are typically costly to recruits&rsquo; families and present a number of practical challenges
                                            for recruits.&nbsp; Our app evens the playing field by allowing an athlete to get in front
                                            of numerous recruiters without any travel or significant costs.&nbsp;</FONT></TD></TR></TABLE>

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

</DIV>

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


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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>More
                                            Objective and Fair Player Evaluations</I></B>.&nbsp; Our platform fills a niche in the current
                                            competitive landscape by allowing recruits to put their best foot forward by submitting only
                                            their best interviews, verified athletic/academic measurables, verified drill footage, and
                                            actual game film.&nbsp; Recruiters can then better assess their prospects than in traditional
                                            in-person recruitment events where chance events can throw off even the best athletes&rsquo;
                                            performances.&nbsp;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Better
                                            Athlete Comparison Tools.</I></B> Other digital sports recruitment apps such as Hudl do not
                                            allow coaches to evaluate prospects&rsquo; drill performances frame-by-frame, side-by-side.
                                            Additionally, these platforms do not have verified statistics within individual recruiting
                                            profiles.&nbsp; Our tool offers these and a number of other unique features that recruiters
                                            and their prospects find exceptionally valuable.&nbsp;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Designed
                                            for Coaches and Recruiters.</I></B> Through our verified measurables, &ldquo;Film Room,&rdquo;
                                            &ldquo;Big Board&rdquo;, &ldquo;Interview&rdquo; and recruiter-athlete messaging features,
                                            our app&rsquo;s coach/recruiter platform allows college coaches and recruiters to drive the
                                            recruitment process. At their desktops, recruiters can easily access and request verifiable
                                            information from thousands of athletes across the nation. After players submit their video-verified
                                            uploads, verified academics, and supplemental data like responses to interview questions,
                                            coaches can make well-informed decisions. Our in-app messaging allows coaches to communicate
                                            directly with prospective recruits. All of our app&rsquo;s features are designed to produce
                                            an efficient, comprehensive and intuitive process for accessing, comparing, ranking and recruiting
                                            athletes by user coaches and recruiters.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Designed
                                            for Players and Parents.</I></B> Our app&rsquo;s player-facing mobile platform easily allows
                                            players to submit video-verified information, verified academic information, responses to
                                            interview questions, and other data, and be seen by hundreds of college coaches and recruiters.
                                            In the comfort of their own home or a nearby field, players can upload all the information
                                            coaches need to make a well-informed decision.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>PRO+
                                            Service</I></B>: &nbsp;PRO+, our premium services offering, provides players with all of
                                            the critical features within our platform, and adds direct support and guidance from former
                                            Division I football recruiters and personnel. For this service, our recruitment team provides
                                            players and families with the following: Two film evaluations, access to college recruiting
                                            experts, highlight tape development, custom college scorecard, and more recruiting services.
                                            At a price of $299.99 per year, the combination of our technology platform and recruitment
                                            guidance will ensure the players have the best opportunity to earn a scholarship.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Educational
                                            Tools for Players and Parents</I></B>. Signing Day Sports supports athletes and parents through
                                            the entirety of the recruiting process in three ways. First, our former college coaches,
                                            athletes, and player personnel directors are readily available through the Signing Day Sports
                                            app, website, and personal social media accounts. They support and communicate regularly
                                            with athletes to assist them throughout the recruiting process. The second way is <I>The
                                            Wire</I>, Signing Day Sports&rsquo; official blog. We regularly post educational and informative
                                            blog entries that consist of interviews, player features, in-depth dives into specific recruiting
                                            processes and events, and other relevant subjects. Thousands of visitors read <I>The Wire</I>&rsquo;s
                                            entries every month to stay up to date regarding the most recent recruiting news and updates.
                                            The third way is called &ldquo;Signing Day Sports University&rdquo; or &ldquo;SDS University&rdquo;.
                                            SDS University is a Zendesk-based customer-facing knowledge base and is composed of short,
                                            educational videos. Athletes, parents, and coaches can learn about our app, the collegiate
                                            recruiting process from beginning to end, and more through the SDS University video catalog.
                                            Topics range from NIL, the transfer portal, and eligibility to more specific app tutorials
                                            like uploading videos or sharing the athlete&rsquo;s profile link. SDS University helps leverage
                                            our internal knowledge to communicate more efficiently and with more people.&nbsp;</TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The key elements of our strategy to grow our
business include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Completion
                                            and Development of New Sports Platforms</I></B>. Our app previously offered fully-supported
                                            football and baseball platforms. More recently, our official platform for softball launched
                                            in February 2023, and we expect our men&rsquo;s and women&rsquo;s soccer platform to launch
                                            in May 2023. We plan to continue to develop all of our platforms with additional features.</TD></TR></TABLE>

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

</DIV>

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


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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Investment
                                            in our Platform</I></B>. We will continue to invest in our technology and infrastructure
                                            to improve our product and ability to present best-in-class technology in the recruitment
                                            space, with planned features such as player recommendations for coaches based on their specific
                                            requirements and preferences. We hired key employees and retained an onshore technology and
                                            development agency, Midwestern Interactive, LLC, or Midwestern, for product launches in baseball,
                                            softball, and soccer, in addition to continually improving the features and performance of
                                            our platform. Additionally, we will recruit, hire, and employ a high-quality offshore team
                                            to improve the efficiency and quality of our platform. We will also prioritize internal hires
                                            of engineers and developers to launch new features and sports platforms, while ensuring product
                                            stability and effectiveness.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Launch
                                            New Products and Expand Features</I></B>. Over time, we will continue to launch new products
                                            and features to meet market demand. We will prioritize both the needs of college coaches
                                            and recruiters across the nation and the athletes seeking to be recruited in major sports
                                            verticals. Some of the planned features include:</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Public
                                            Player Profile</I></B>. By allowing athletes and their parents to share a public version
                                            of the athlete&rsquo;s profile, we can ensure that the ultimate power of recruiting is in
                                            the athlete&rsquo;s hands.&nbsp; We expect that the public version may be shared with coaches,
                                            other athletes and on social media and will contain all of the athlete&rsquo;s data, including
                                            videos.&nbsp; The profile will be available to anyone, including recruiters and others that
                                            are not Signing Day Sports users. Additionally, our profile tracking is being designed to
                                            allow players to see who has viewed their profile and may be interested in recruiting them.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Social
                                            Community of Student-Athletes</I></B>. Signing Day Sports plans to introduce social features
                                            on the platform. We expect these features will help athletes share and exchange videos, information,
                                            and bragging rights, and enhance the users&rsquo; sense of community. With a robust integration
                                            of LinkedIn and Facebook, athletes will be able to follow other athletes, see their profiles
                                            and videos in a feed, favorite other athletes, and exchange workout tips on our platform
                                            forums.&nbsp; Athletes will also be able to compete against one another for bragging rights
                                            on the leaderboard, complete tasks for badges, and take part in Signing Day Sports community
                                            challenges.&nbsp; These social features are expected to engage athletes with the Signing
                                            Day Sports app more holistically through these social connections.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Release
                                            of My Invites</I></B>. With the first iterative release of our platform&rsquo;s My Invites
                                            feature, coaches can drive player subscriptions and engagement by uploading unlimited lists
                                            of athletes and inviting them to our platform with as few as two mouse clicks.&nbsp; Our
                                            system analyzes the submitted data and tracks whether an athlete deleted their email, opened
                                            it or signed up for subscription.&nbsp; With this functionality, coaches can play a key role
                                            in the recruitment process by getting prospective athletes to not only join the platform
                                            but encourage them to upload verified information like transcripts, drill videos, and height
                                            and weight.&nbsp; This data upload from the coaches is simple, streamlined and provides them
                                            with key information to make data-informed decisions, communicate with prospects and even
                                            make offers and build their virtual team.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Increase
                                            Profitability through Multiple Revenue Streams</I></B>. Signing Day Sports expects increased
                                            profitability as we launch digital marketing campaigns and sports platforms. We expect that
                                            a growing subscriber base will allow us to increase subscription margin, increase subscriber
                                            lifetime value, and increase monthly and annual renewal profits. An increase in profitability
                                            from a greater subscription base and multiple sports platforms can in turn support our branding,
                                            marketing, and operational spend.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Expand
                                            Sports Club Support<FONT STYLE="font-family: Times New Roman, Times, Serif">.</FONT></I></B>
                                            Prominent youth sports organizations in the United States are involved in many different
                                            sports including soccer, baseball, softball, lacrosse, basketball, and track and field. Sports
                                            clubs are often more competitive than high school athletic programs, and club players often
                                            demonstrate a commitment to continue playing sports at the next level. As we expand our platform
                                            to other sports, we will prioritize support for youth club sports organizations. Our support
                                            will be the expansion of a sales team to directly work with club coaches and organizations.
                                            We expect that club teams and organizations will embed our platform fees into their annual
                                            fees so that they can offer enhanced recruitment support for players and their parents, while
                                            providing their coaches with a tool to streamline the recruitment process.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Grow
                                            and Broaden Brand Awareness</I></B>. Our brand awareness has developed primarily within our
                                            football vertical, particularly in the Southwestern United States and other areas where football
                                            is a dominant sport. With strategic partnerships with football associations and organizations,
                                            digital, social media, event marketing, and organizational partnerships, we expect to grow
                                            our brand throughout the United States. Additionally, as we launch new sports verticals,
                                            we will have many opportunities to increase brand and product awareness through additional
                                            markets. We will broaden our reach through educating players, parents, and coaches through
                                            best-in-class technology and compelling value.</TD></TR></TABLE>

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

</DIV>

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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Pursue
                                            Strategic Geographies for Product Expansion</I></B><FONT STYLE="font-family: Times New Roman, Times, Serif">.
                                            </FONT>With youth sports being played across the world, we will seek to expand our platform
                                            and technology to other countries across the globe. Through disciplined research, we will
                                            seek to expand our product to areas with significant children&rsquo;s sport participation,
                                            technology adoption, and access to recruiters. We expect to prioritize the North America
                                            markets first, then replicate and introduce products suited to the local. For example, our
                                            anticipated soccer platform could provide a significant solution to inefficiencies in the
                                            student-athlete recruitment process in markets like Mexico and Europe.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Digital
                                            Marketing Campaigns</I></B></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Business-to-consumer
                                            (B2C) digital marketing</I></B>. Through our B2C digital marketing campaign, we will promote
                                            and advertise our products and services to thousands of high-school-aged football players
                                            and parents across the nation. With our planned combination of compelling content, brand
                                            influencers, and a marketing website, we expect significant growth in individual subscriber
                                            growth. In particular, we will prioritize parent-friendly social media platforms such as
                                            Facebook, Twitter, and Instagram, and our campaigns will support and educate parents on the
                                            recruitment process while providing our value proposition through our products, services
                                            and technology.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Business-to-business
                                            (B2B) digital marketing</I></B>. Through our B2B digital marketing campaign, we will promote
                                            and advertise our products and services to high school and sports club coaches, athletic
                                            directors, sports club owners, and their business development teams.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Digital
                                            marketing techniques</I></B>. Our digital marketing campaigns will utilize search engine
                                            optimization, pay per click, digital ads, and other effective techniques to increase team
                                            and organizational subscriptions.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Marketing
                                            and Sponsorship Agreements and Collaborations</I></B>. Our focus on key sponsorship and marketing
                                            agreements will serve to both increase overall player subscriptions and marketing.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Louisville
                                            Slugger Hitting Science Center</I></B>: We and Louisville Slugger Hitting Science Center
                                            LLC, or LSHSC, whose mission is to become the gold standard in baseball and fastpitch softball
                                            education and instruction, will collaborate on the joint marketing and promotion of each
                                            other&rsquo;s products and services. LSHSC will offer subscriptions to our platform and subscription
                                            revenues will be shared between us. See &ldquo;<I>Business &ndash; Sales and Marketing &ndash;
                                            Marketing and Sponsorship Agreements</I>&rdquo; for further information regarding the terms
                                            of this agreement.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>The
                                            U.S. Army Bowl</I></B>: Over the course of our three-year agreement, we will be the official
                                            recruitment platform for the Bowl, an annual national all-star game for U.S. high school
                                            football which was last held in December 2022 at Ford Center at The Star in Frisco, Texas.
                                            Aside from having priority on-site access to many of the top players in the game, we may
                                            potentially promote ourselves, advertise to, and onboard more than an estimated 30,000 athletes
                                            as a sponsor through the game&rsquo;s advertising channels. The first Bowl event in December
                                            2022 resulted in more than 600 player subscriptions. Bowl-related events planned for 2023
                                            include, among others, the 2023 U.S. Army Bowl National Combine Series, which are scheduled
                                            from March 2023 to June 2023. Data collected and analyzed by our platform will be part of
                                            the selection process for determining whether athletes participating in the combines may
                                            advance to the Bowl and/or National Combine events in December 2023. Athletes participating
                                            in Bowl combines will receive three months of access to the Signing Day Sports app&rsquo;s
                                            recruiting platform with registration, a Signing Day Sports recruiting profile with personal
                                            guidance from recruiting experts, video highlights from their combine, and tools to put their
                                            game highlights into their profiles on the Signing Day Sports app. See &ldquo;<I>Business
                                            &ndash; Sales and Marketing &ndash; Marketing and Sponsorship Agreements</I>&rdquo; for further
                                            information regarding the terms of this agreement.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>State
                                            Athletic and Coaches Associations</I></B>: We have sponsored a number of state athletic associations
                                            across the U.S., including the Texas High School Coaches Association, or THSCA, the North
                                            Carolina Coaches Association, or NCCA, and the Arizona Football Coaches Association, or AZFCA.
                                            These associations have agreed to designate us as their exclusive recruitment platform for
                                            all coaches in their respective states. In addition, we have marketing rights to their coaches,
                                            athletes, and athletic events and combines throughout the year. Please see the details of
                                            our marketing and sponsorship agreements with these associations in &ldquo;<I>Business &ndash;
                                            Sales and Marketing &ndash; Marketing and Sponsorship Agreements</I>&rdquo;.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Potential
                                            Accretive Acquisitions</I></B>. We are currently evaluating potential acquisition targets
                                            (although no such acquisition target has yet been identified) that could bolster subscriber
                                            growth, branding awareness, and revenue shares. These potential acquisitions range from owners
                                            of specific game events, athlete development programs, and technologies to boost subscriber
                                            growth and revenue.&nbsp;</TD></TR></TABLE>

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

</DIV>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Events
                                            and Marketing</I></B>. Through key partnerships, our events team will conduct on-site Signing
                                            Day Sports app registration with high school-aged athletes and their parents. Specifically,
                                            at these events, athletes will have the opportunity to purchase, download, and upload key
                                            data and information on-site. These events will include football skills camps, soccer tournaments,
                                            7v7 football tournaments, baseball showcases, and state-wide combines. In particular, our
                                            hosted combine events are expected to continue to be an effective means for gaining exposure
                                            to our brand and registering new users on our platform. We plan to increase the number of
                                            our hosted combine events and utilize media to increase attendance and exposure at these
                                            events.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 2pt 0pt 0; text-align: justify"><B>Implications of Being an Emerging
Growth Company and a Smaller Reporting Company</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the completion of the Company&rsquo;s initial
public offering, we will qualify as an &ldquo;emerging growth company&rdquo; under the Jumpstart Our Business Startups Act of 2012, or
the JOBS Act. As a result, we will be permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long
as we are an emerging growth company, we will not be required to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">have
                                            an auditor report on our internal controls over financial reporting pursuant to Section 404(b)
                                            of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">comply
                                            with any requirement that may be adopted by the Public Company Accounting Oversight Board
                                            regarding mandatory audit firm rotation or a supplement to the auditor&rsquo;s report providing
                                            additional information about the audit and the financial statements (i.e., an auditor discussion
                                            and analysis);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">being
                                            permitted to present only two years of audited financial statements, in addition to any required
                                            unaudited interim financial statements, with correspondingly reduced &ldquo;Management&rsquo;s
                                            Discussion and Analysis of Financial Condition and Results of Operations&rdquo; disclosure
                                            in this prospectus;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">submit
                                            certain executive compensation matters to stockholder advisory votes, such as &ldquo;say-on-pay&rdquo;
                                            and &ldquo;say-on-frequency;&rdquo; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">disclose
                                            certain executive compensation related items such as the correlation between executive compensation
                                            and performance and comparisons of the chief executive officer&rsquo;s compensation to median
                                            employee compensation.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. In other words, an emerging growth
company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have
elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable
to those of companies that comply with such new or revised accounting standards.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will remain an emerging growth company for
up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed
$1,235,000,000, (ii) the date that we become a &ldquo;large accelerated filer&rdquo; as defined in Rule 12b-2 under the Securities Exchange
Act of 1934, as amended, or the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates
exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (iii) the date on which we
have issued more than $1 billion in non-convertible debt during the preceding three year period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent that we continue to qualify as
a &ldquo;smaller reporting company,&rdquo; as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended,
(the &ldquo;Exchange Act&rdquo;), after we cease to qualify as an emerging growth company, certain of the exemptions available to us
as an emerging growth company may continue to be available to us as a smaller reporting company, including: (i) not being required to
comply with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (ii) scaled executive compensation disclosures;
and (iii) the requirement to provide only two years of audited financial statements, instead of three years.</P>

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

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Significant Voting Power of Certain Beneficial
Owners, Executive Officers and Directors</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our executive officers and directors collectively
will beneficially own approximately 10.5% of our outstanding common stock following the Company&rsquo;s initial public offering if the
underwriters do not exercise the over-allotment&nbsp;option, or approximately 10.2% if the underwriters exercise the over-allotment&nbsp;option
in full (based on the assumed public offering price of $4.00 per share of common stock being sold in the Company&rsquo;s initial public
offering, which is the low point of the estimated offering range set forth on the cover page of this prospectus), and assuming, at the
time of the initial public offering, the automatic conversion of the Company&rsquo;s 6% convertible unsecured promissory notes into a
total of 3,152,500 shares of common stock, the automatic conversion of the Company&rsquo;s 8% convertible unsecured promissory notes
into a total of 732,500 shares of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares of common
stock. Management will collectively control the same percentage of the voting power following the offering. Dennis Gile, our largest
stockholder and a former officer and director, will beneficially own approximately 13.5% of our outstanding common stock following the
initial public offering, or approximately 13.1% if the underwriters exercise the over-allotment&nbsp;option in full, subject to the other
assumptions described above, and will have the same percentage of the voting power following the offering. As a result, both Mr. Gile
individually, and our executive officers and directors collectively, will be able to exercise significant influence over all matters
requiring stockholder approval following the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Our Corporate History and Structure</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Signing Day Sports, LLC, an Arizona limited liability
company (&ldquo;SDS LLC &ndash; AZ&rdquo;), was formed on January 21, 2019. SDS LLC &ndash; AZ formed two wholly-owned subsidiaries,
Signing Day Sports Football, LLC, an Arizona limited liability company (&ldquo;SDSF LLC&rdquo;), and Signing Day Sports Baseball, LLC,
an Arizona limited liability company (&ldquo;SDSB LLC&rdquo;), on September 29, 2020 and November 25, 2020, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 5, 2020, a process to change SDS LLC
&ndash; AZ into a Delaware corporation was initiated (collectively, the &ldquo;Arizona-to-Delaware Conversion Process&rdquo;). On that
date, a certificate of formation of Signing Day Sports, LLC, a Delaware limited liability company (&ldquo;SDS LLC &ndash; DE&rdquo;),
and a certificate of conversion of SDS LLC &ndash; AZ into SDS LLC &ndash; DE, were filed with the Delaware Secretary of State. On September
9, 2021, a certificate of incorporation (as amended from time to time, the &ldquo;Certificate of Incorporation&rdquo;) of Signing Day
Sports, Inc., a Delaware corporation (&ldquo;SDS Inc. &ndash; DE&rdquo;), and a certificate of conversion of SDS LLC &ndash; DE into
SDS Inc. &ndash; DE were filed with the Delaware Secretary of State. From September 9, 2021 to July 11, 2022, SDS Inc. &ndash; DE operated
as the successor entity to SDS LLC &ndash; AZ, and SDS LLC &ndash; AZ continued to be registered as an active entity with the Arizona
Corporation Commission while its conversion into SDS LLC &ndash; DE pended.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A unanimous written consent of the board of directors
of SDS Inc. &ndash; DE, dated as of March 25, 2022, approved the form of an Agreement and Plan of Merger between SDS LLC &ndash; AZ,
SDSF LLC, SDSB LLC, and SDS Inc. &ndash; DE (the &ldquo;Merger Agreement&rdquo;) and related merger documents, the related merger transactions,
the form of certain Settlement Agreements (as defined below), the form of a Shareholder Agreement among the Company and the stockholders
of the Company (the &ldquo;Shareholder Agreement&rdquo;) (for a description of the terms of the Shareholder Agreement, see &ldquo;<I>Corporate
History and Structure &ndash; Shareholder Agreement</I>&rdquo;), and a proposed capitalization table of SDS Inc. &ndash; DE, approved
and ratified the Certificate of Incorporation and approved amended and restated bylaws of SDS Inc. &ndash; DE, and approved and ratified
related matters. In anticipation of the execution of the Merger Agreement and its consummation, in April 2022 and May 2022, SDS LLC &ndash;
AZ, SDS Inc. &ndash; DE, and each of the members or stockholders of SDS LLC &ndash; AZ, SDSF LLC, SDSB LLC, and SDS Inc. &ndash; DE,
entered into a Settlement Agreement and Release (each individually, the &ldquo;Settlement Agreement,&rdquo; and collectively, the &ldquo;Settlement
Agreements&rdquo;), which provided, among other things, for the mutual general release of all claims by the parties against and relating
to SDS LLC &ndash; AZ, SDSF LLC, SDSB LLC, and SDS Inc. &ndash; DE, and confirmed the owners and related amounts of all outstanding shares
of common stock of SDS Inc. represented by the capitalization table exhibit to the Settlement Agreements. The stockholders of SDS Inc.
&ndash; DE and the members of SDS LLC &ndash; AZ executed unanimous written consents, dated as of May 17, 2022 and July 6, 2022, respectively,
approving the Merger Agreement and related transactions, the form of the Settlement Agreements, the form of the Shareholder Agreement,
an updated capitalization table of SDS Inc., and approved and ratified the Certificate of Incorporation, the amended and restated bylaws,
the prior corporate actions that were taken in connection with the Arizona-to-Delaware Conversion Process, and certain related matters.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 11, 2022, the Merger Agreement was executed.
On the same date, pursuant to the Merger Agreement, a certificate of merger was filed with the Delaware Secretary of State and a statement
of merger was filed with the Arizona Secretary of State effecting the merger of SDS LLC &ndash; AZ, SDSF LLC, and SDSB LLC with and into
SDS Inc. &ndash; DE, and SDS Inc. &ndash; DE succeeded to the rights, property, obligations, and liabilities of each of SDS LLC &ndash;
AZ, SDSF LLC, and SDSB LLC.</P>

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

</DIV>

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


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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The releases of claims under the Settlement Agreements
with each of Dennis Gile, Dorsey Family Holdings, LLC, an Arizona limited liability company (&ldquo;Dorsey LLC&rdquo;), Joshua A. Donaldson
Revocable Trust, and Zone Right, LLC, a California limited liability company (&ldquo;Zone Right&rdquo;) are subject to certain specific
exceptions for claims under certain separate agreements or instruments, including rights under one convertible note held by Zone Right.
For a further description of the Settlement Agreements, including the rights under the convertible note held by Zone Right and other
rights subject to exceptions referenced in the Settlement Agreements, see &ldquo;<I>Certain Relationships and Related Party Transactions
&ndash; Transactions With Related Persons</I>&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 13, 2023, the Reverse Stock Split, in
which each five shares of the outstanding common stock were automatically combined and converted into one share of outstanding common
stock, was approved by the board of directors, and was approved by stockholders holding a majority of the voting power of our issued
and outstanding voting capital stock as of April 4, 2023. On April 14, 2023, we filed a certificate of amendment to the Certificate of
Incorporation, which provided for the Reverse Stock Split, and the Reverse Stock Split became effective on the same date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The&nbsp;Reverse&nbsp;Stock&nbsp;Split combined
each five shares of our outstanding common stock into one share of common stock, without any change in the number of authorized shares
of common stock or the par value per share of common stock. The&nbsp;Reverse&nbsp;Stock&nbsp;Split, correspondingly adjusted, among other
things, the exercise price of our warrants, convertible notes and stock options. No fractional shares were issued in connection with
the&nbsp;Reverse&nbsp;Stock&nbsp;Split, and any fractional shares resulting from the&nbsp;Reverse&nbsp;Stock&nbsp;Split&nbsp;were rounded
up to the nearest whole share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 5, 2023, the amendment and restatement
of the Certificate of Incorporation was approved by stockholders holding a majority of the voting power of our issued and outstanding
voting capital stock, and on May 9, 2023, the amended and restated Certificate of Incorporation was filed with the Delaware Secretary
of State and became effective the same date. Effective the same date, the second amended and restated bylaws of the Company currently
in effect (the &ldquo;Amended and Restated Bylaws&rdquo;) were adopted by unanimous written consent of the board of directors. The Certificate
of Incorporation and Amended and Restated Bylaws contain certain provisions relating to limitations of liability and indemnification
of directors and certain officers, provide advance notice procedures for stockholder proposals at stockholder meetings, and other matters.
See &ldquo;<I>Description of Securities &ndash; Anti-Takeover Provisions</I>&rdquo; and &ldquo;<I>Management &ndash; Limitation on Liability
and Indemnification of Directors and Certain Officers</I>&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See &ldquo;<I>Corporate History and Structure</I>&rdquo;
for a further description of our corporate history and structure.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our principal executive offices are located at
8355 East Hartford Rd., Suite 100, Scottsdale, AZ 85255 and our telephone number is (602) 481-7440. We maintain a website at https://www.signingdaysports.com/.
Information available on our website is not incorporated by reference in and is not deemed a part of this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Retrospective Presentation of Reverse Stock
Split</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as otherwise indicated, all references
to our common stock, share data, per share data and related information has been adjusted for the Reverse Stock Split ratio of 1-for-5
as if it had occurred at the beginning of the earliest period presented.</P>

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

</DIV>

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


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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 27%">Shares being offered:</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 71%; text-align: justify">3,750,000 shares of common stock (or 4,312,500 shares if the underwriters exercise the
    over-allotment option in full), assuming an initial public offering price of $4.00 per share (which is the low point of the estimated
    range of the initial public offering price shown on the cover page of this prospectus).</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Offering price:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">We currently estimate that the initial public offering price will be between $4.00 and $6.00 per
    share.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Shares outstanding after the offering<SUP>(1)</SUP>:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">11,341,152 shares of common stock (or 11,903,652 shares if the underwriters exercise the over-allotment
    option in full), assuming an initial public offering price of $4.00 per share (which is the low point of the estimated range of the
    initial public offering price shown on the cover page of this prospectus).</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Over-allotment option:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">We have granted to the underwriters a 45-day option to purchase from us up to an additional 15% of
    the shares sold in the offering (562,500 additional shares assuming an initial public offering price of $4.00 per share (which is
    the low point of the estimated range of the initial public offering price shown on the cover page of this prospectus)) at the initial
    public offering price, less the underwriting discounts and commissions.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Representative&rsquo;s warrants:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">We have agreed to issue to the representative warrants to purchase a number of shares of common stock
    equal in the aggregate to 7% of the total number of shares issued in the initial public offering. The representative&rsquo;s warrants
    will be exercisable at a per share exercise price equal to 100% of the public offering price per share of common stock sold in the
    initial public offering. The representative&rsquo;s warrants will be exercisable at any time and from time to time, in whole or in
    part, during the five-year period commencing on the commencement date of sales in the initial public offering. The registration statement
    of which this prospectus forms a part also registers the shares of common stock issuable upon exercise of the representative&rsquo;s
    warrants. See &ldquo;<I>Underwriting</I>&rdquo; for more information.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Use of proceeds:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">We expect to receive net proceeds of approximately $12.8 million from the initial public offering
    (or approximately $14.8 million if the underwriters exercise their over-allotment option in full), assuming an initial public offering
    price of $4.00 per share (which is the low point of the estimated range of the initial public offering price shown on the cover page
    of this prospectus), no exercise of the representative&rsquo;s warrants, and after deducting estimated underwriting discounts and
    commissions and estimated offering expenses payable by us. We plan to use the net proceeds of the initial public offering for &nbsp;product
    and technology development, expansion of our sales team and marketing efforts, and general working capital and other corporate purposes.&nbsp;&nbsp;See
    &ldquo;<I>Use of Proceeds</I>&rdquo; for more information on the planned use of proceeds.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Risk factors:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Investing in our common stock involves a high degree of risk. As an investor, you should be able
    to bear a complete loss of your investment. You should carefully consider the information set forth in the &ldquo;<I>Risk Factors</I>&rdquo;
    section beginning on page&nbsp;15 before deciding to invest in our common stock.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Lock-up</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">We, all of our directors and officers and stockholders holding 5% or more of our shares have agreed
    with the underwriters, subject to certain exceptions, not to sell, transfer or dispose of, directly or indirectly, any of our common
    stock or securities convertible into or exercisable or exchangeable for our common stock for a period of 12 months after the closing
    of the initial public offering. The underwriters have agreed to waive the lock-up requirement for shares of common stock being sold
    by the selling stockholders named in the resale prospectus filed contemporaneously with this prospectus.&nbsp; See &ldquo;<I>Underwriting</I>&rdquo;
    for more information.</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

</DIV>

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


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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 27%">Proposed trading market and symbol</TD>
    <TD STYLE="width: 2%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 71%; text-align: justify">We are in the process of applying to list our common stock on NYSE American under the
    symbol &ldquo;SDS&rdquo;. We believe that upon the completion of the initial public offering, we will meet the standards for listing
    on NYSE American.&nbsp;&nbsp;The closing of the initial public offering is contingent upon the successful listing of our common stock
    on NYSE American.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>Reverse Stock Split</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">The Reverse Stock Split, in which each five shares of the outstanding common stock were automatically
    combined and converted into one share of outstanding common stock, became effective on April 14, 2023.&nbsp;Except as otherwise indicated,
    all references to the common stock, share data, per share data and related information has been adjusted for the Reverse Stock Split
    ratio of 1-for-5 as if it had occurred at the beginning of the earliest period presented.</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(1) The number of shares of common stock outstanding
immediately following the initial public offering is based on 7,591,152 shares outstanding as of the date of this prospectus, after giving
effect to the Reverse Stock Split at a ratio of 1-for-5, and excludes the following securities or rights to securities that were outstanding
as of the date of this prospectus or that may be outstanding before the commencement of the initial public offering:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">3,152,500
                                            shares of common stock issuable upon conversion of 6% convertible unsecured promissory notes
                                            at a conversion price of $2.00 per share assuming that all are converted at the mandatory
                                            conversion price at the time of the initial public offering, based on the assumed initial
                                            public offering price of $4.00 per share, which is the low point of the price range set forth
                                            on the cover page of this prospectus, or up to 2,522,000 shares of common stock issuable
                                            upon the optional conversion of 6% convertible unsecured promissory notes at their optional
                                            conversion price of $2.50 per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">732,500
                                            shares of common stock issuable upon conversion of 8% convertible unsecured promissory notes
                                            at a conversion price of $2.00 per share assuming that all are converted at the mandatory
                                            conversion price at the time of the initial public offering, based on the assumed initial
                                            public offering price of $4.00 per share, which is the low point of the price range set forth
                                            on the cover page of this prospectus, or up to 444,842 shares of common stock issuable upon
                                            the optional conversion of 8% convertible unsecured promissory notes at their optional conversion
                                            price of approximately $3.29 per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">732,500
                                            shares of common stock issuable upon exercise of warrants at an exercise price of $2.00 per
                                            share, based on the assumed initial public offering price of $4.00 per share, which is the
                                            low point of the price range set forth on the cover page of this prospectus;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">940,000
                                            shares of common stock issuable upon exercise of warrants at an exercise price of $2.50 per
                                            share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">220,675
                                            shares of common stock issuable to Boustead as placement agent upon exercise of placement
                                            agent&rsquo;s warrants issued to Boustead at an exercise price of $2.00 per share with respect
                                            to outstanding 6% convertible unsecured promissory notes issued to private placement investors
                                            assuming that all such private placement securities are converted at the 6% convertible unsecured
                                            promissory notes&rsquo; mandatory conversion price at the time of the initial public offering,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of this prospectus, or 176,540 shares of common
                                            stock issuable upon exercise of such placement agent&rsquo;s warrants at an exercise price
                                            of $2.50 per share upon the optional conversion of outstanding 6% convertible unsecured promissory
                                            notes at their optional conversion price of $2.50 per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Up
                                            to 77,200 shares of common stock issuable to Boustead as placement agent in consideration
                                            for the waiver of its success fee and expense allowance for Company-introduced investors
                                            in the private placement of the Company&rsquo;s 8% convertible unsecured promissory notes
                                            and accompanying warrants equal to 8% of the number of shares of common stock issuable to
                                            the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of this prospectus;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">65,800
                                            shares of common stock issuable to Boustead as placement agent upon exercise of placement
                                            agent&rsquo;s warrants issued to Boustead at an exercise price of $2.50 per share with respect
                                            to warrants issued or that may be issued to private placement investors in our 8% unsecured
                                            promissory notes;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">13,375
                                            shares of common stock upon the completion of the initial public offering assuming the offering
                                            is completed by November 15, 2023, based on the assumed initial public offering price of
                                            $4.00 per share, which is the low point of the price range set forth on the cover page of
                                            this prospectus, otherwise the number of shares of common stock equal to the number of shares
                                            derived by dividing $53,500 by the Fair Market Value, as defined by certain service provider
                                            agreements, of the common stock of the Company on November 15, 2023, pursuant to such service
                                            provider agreements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">277,450
                                            total shares of common stock issuable upon the exercise of stock options at an exercise price
                                            per share equal to $3.10 per share and 243,000 total shares of common stock issuable upon
                                            the exercise of stock options at an exercise price per share equal to $2.50 per share which
                                            were granted to certain employees, consultants, officers, and directors under the Signing
                                            Day Sports, Inc. 2022 Equity Incentive Plan, or the Equity Incentive Plan, or the Plan;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">750,000
                                            shares of common stock that are reserved for issuance under the Plan, which is inclusive
                                            of the 520,450 shares issuable upon the exercise of stock options that are granted under
                                            the Plan; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">301,875
                                            shares of common stock issuable upon exercise of representative&rsquo;s warrants to be issued
                                            to the underwriters in connection with the initial public offering, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus, and assuming full exercise by the underwriters
                                            of the over-allotment option.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>


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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>Summary
Financial Information</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following tables summarize certain financial
data regarding our business and should be read in conjunction with our financial statements and related notes contained elsewhere in
this prospectus and the information under &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of
Operations</I>.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our summary financial data as of December 31,
2022 and 2021 are derived from our audited financial statements included elsewhere in this prospectus. All financial statements included
in this prospectus are prepared and presented in accordance with generally accepted accounting principles in the United States (&ldquo;GAAP&rdquo;).
The summary financial information is only a summary and should be read in conjunction with the historical financial statements and related
notes contained elsewhere herein. The financial statements contained elsewhere fully represent our financial condition and operations;
however, they are not indicative of our future performance.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Years
                                            Ended</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December
                                            31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">2021</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-weight: bold; text-align: left">Statements of Operations Data</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="white-space: nowrap; font-weight: bold; text-align: center">(restated)</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="white-space: nowrap; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">78,336</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">340,984</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,688,840</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,408,918</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total other income (expense)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(280,246</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(231,951</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net earnings (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(6,673,814</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(8,804,227</TD><TD STYLE="text-align: left">)</TD></TR>
  </TABLE>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>As
                                            of </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December
                                            31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">2021</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-weight: bold; text-align: left">Balance Sheet Data</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="white-space: nowrap; font-weight: bold; text-align: center">(restated)</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="white-space: nowrap; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">254,409</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,687,550</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">301,332</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,855,223</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">454,163</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,916,195</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,639,631</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">532,552</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,556,711</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,477,180</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total stockholders&rsquo; (deficit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,102,548</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,560,985</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total liabilities and stockholders&rsquo; (deficit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">454,163</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,916,195</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

</DIV>

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


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

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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>Summary
of Risk Factors</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An investment in our common stock involves a
high degree of risk. You should carefully consider the risks summarized below. These risks are discussed more fully in the &ldquo;<I>Risk
Factors</I>&rdquo; section immediately following this Prospectus Summary. These risks include, but are not limited to, the following:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Risks Related to the Company&rsquo;s Business,
Operations and Industry</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">The
                                            currently evolving situation related to the&nbsp;COVID-19&nbsp;pandemic could adversely affect
                                            our business, financial condition and results of operations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            have a limited operating history. There can be no assurance that we will be successful in
                                            growing our business.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            have a history of losses since our inception and may continue to incur losses for the foreseeable
                                            future.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Our
                                            management has concluded that factors raise substantial doubt about our ability to continue
                                            as a going concern and our auditor has included an explanatory paragraph relating to our
                                            ability to continue as a going concern in its audit report for the fiscal years ended December
                                            31, 2022 and 2021.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            will need to obtain additional funding to continue operations. If we fail to obtain the necessary
                                            financing or fail to become profitable or are unable to sustain profitability on a continuing
                                            basis, then we may be unable to continue our operations and we may be forced to significantly
                                            delay, scale back or discontinue our operations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Our
                                            ability to use our net operating loss carryforwards and certain other tax attributes may
                                            be limited.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            operate in the highly competitive sports recruitment industry which is subject to rapid and
                                            significant technological changes.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">If
                                            we fail to acquire new customers, we may not be able to increase net sales or achieve profitability.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Our
                                            software or services may not operate properly, which could damage our reputation, give rise
                                            to claims against us, or divert application of our resources from other purposes, any of
                                            which could harm our business and operating results.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">If
                                            our security measures are breached or fail and unauthorized access is obtained to a customer&rsquo;s
                                            data, our service may be perceived as insecure, the attractiveness of our services to current
                                            or potential customers may be reduced, and we may incur significant liabilities.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            depend on sophisticated information technology systems and data processing to operate our
                                            business. If we experience security or data privacy breaches or other unauthorized or improper
                                            access to, use of, or destruction of our proprietary or confidential data, customer data
                                            or personal data, we may face costs, significant liabilities, harm to our brand and business
                                            disruption.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Claims
                                            by others that we infringe their intellectual property could force us to incur significant
                                            costs or revise the way we conduct our business.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">There
                                            may be challenges to our patents and proprietary technology.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">If
                                            we fail to renew and/or expand our existing licenses, we may be required to discontinue or
                                            limit our use of the products that include or incorporate the licensed intellectual property.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Changes
                                            in government policy, legislation or regulatory or judicial interpretations could hinder
                                            or prevent our ability to conduct our business operations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            are dependent on our management team, and the loss of any key member of this team may prevent
                                            us from implementing our business plan in a timely manner, or at all.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

</DIV>

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

<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">If
                                            we fail to effectively manage our growth, our business, financial condition and operating
                                            results could be harmed.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            are subject to governmental regulation, which can change, and any failure to comply with
                                            these regulations may have a material negative effect on our business and results of operations.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Climate
                                            change and increased focus by governmental organizations on sustainability issues, including
                                            those related to climate change, may have a material adverse effect on our business and operations.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Risks Related to Our Common Stock and Initial
Public Offering</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">There
                                            has been no public market for our common stock prior to the Company&rsquo;s initial public
                                            offering, and an active market in which investors can resell their shares of our common stock
                                            may not develop.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">The
                                            market price of our common stock may fluctuate, and you could lose all or part of your investment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Certain
                                            recent initial public offerings of companies with relatively small public floats comparable
                                            to our anticipated public float have experienced extreme volatility that was seemingly unrelated
                                            to the underlying performance of the respective company. Our common stock may potentially
                                            experience rapid and substantial price volatility, which may make it difficult for prospective
                                            investors to assess the value of our common stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            may not be able to satisfy listing requirements of NYSE American or maintain a listing of
                                            our common stock on NYSE American.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            have considerable discretion as to the use of the net proceeds from the Company&rsquo;s initial
                                            public offering and we may use these proceeds in ways with which you may not agree.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Investors
                                            in the Company&rsquo;s initial public offering will experience immediate and substantial
                                            dilution.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Substantial
                                            future sales or issuances of our common stock or securities convertible into, or exercisable
                                            or exchangeable for, our common stock, or the perception in the public markets that these
                                            sales or issuances may occur, may depress our stock price. Also, future issuances of our
                                            common stock or rights to purchase common stock could result in additional dilution of the
                                            percentage ownership of our stockholders and could cause our share price to fall. The expiration
                                            of lock-up agreements that restrict the issuance of new common stock or the trading of outstanding
                                            common stock could also cause the market price of our common stock to decline.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            do not expect to declare or pay dividends in the foreseeable future.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">If
                                            securities industry analysts do not publish research reports on us, or publish unfavorable
                                            reports on us, then the market price and market trading volume of our common stock could
                                            be negatively affected.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Future
                                            issuances of debt securities, which would rank senior to our common stock upon our bankruptcy
                                            or liquidation, and future issuances of preferred stock, which could rank senior to our common
                                            stock for the purposes of dividends and liquidating distributions, may adversely affect the
                                            level of return you may be able to achieve from an investment in our common stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">We
                                            will be subject to ongoing public reporting requirements that are less rigorous than Exchange
                                            Act rules for companies that are not emerging growth companies and our stockholders could
                                            receive less information than they might expect to receive from more mature public companies.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Upon
                                            becoming a public company, we will incur significant increased costs as a result of operating
                                            as a public company, and our management will be required to devote substantial time to new
                                            compliance initiatives.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Our
                                            principal stockholder, executive officers and directors will beneficially own a significant
                                            percentage of the outstanding voting power of the Company following the Company&rsquo;s initial
                                            public offering. As a result, they will be able to exercise significant influence over all
                                            matters requiring stockholder approval.</TD></TR></TABLE>

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

</DIV>

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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_002"></A>RISK
FACTORS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>An investment in our common stock involves
a high degree of risk. You should carefully consider the following risk factors, together with the other information contained in this
prospectus, before purchasing our common stock. We have listed below (not necessarily in order of importance or probability of occurrence)
what we believe to be the most significant risk factors applicable to us, but they do not constitute all of the risks that may be applicable
to us. Any of the following factors could harm our business, financial condition, results of operations or prospects, and could result
in a partial or complete loss of your investment. Some statements in this prospectus, including statements in the following risk factors,
constitute forward-looking statements. Please refer to the section titled &ldquo;Cautionary Statement Regarding Forward-Looking Statements&rdquo;.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risks Related to the Company&rsquo;s Business,
Operations and Industry</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>The currently
evolving situation related to the&nbsp;COVID-19&nbsp;pandemic could adversely affect our business, financial condition and results of
operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In January 2020, the
World Health Organization declared the COVID-19 outbreak to be a public health emergency and, in March 2020, it declared the outbreak
to be a pandemic. The COVID-19 pandemic has caused severe global economic and societal disruptions and uncertainties. In response to
the virus, countries and local governments instituted policies and measures to curtail the spread of the virus, including &ldquo;stay
at home&rdquo; orders, travel restrictions and restrictions on the operation of non-essential businesses and services. Companies have
also taken precautions, such as requiring employees to work remotely and temporarily closing or minimizing operations. Although some
initial restrictions have been relaxed, some restrictions have also been re-imposed and the current restrictions and future prevention
and mitigation measures imposed by governments and private companies are likely to continue to have a severe adverse impact on global
economic conditions and consumer confidence and spending. The COVID-19 pandemic may negatively affect our business by causing or contributing
to, among other things, the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Cessation
                                            or significant reductions in the operations of, or the inability, or significant disruptions
                                            in the ability, to meet obligations to us, of significant third-party suppliers, vendors,
                                            external manufacturers and other business or commercial partners, which may be caused by
                                            their business, operational or financial difficulties, among other reasons.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Significant
                                            decreases in sales of or demand for, or significant volatility in sales of or demand for,
                                            one or more of our significant products or service offerings due to, among other things,
                                            closure or reduction in occupancy of sporting events which could affect our key customers;
                                            changes in customer behavior or preference; any negative impact to our reputation resulting
                                            from an adverse perception of our response to the pandemic; or the worldwide, regional and
                                            local adverse economic and financial market conditions.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Significant
                                            disruptions to our business operations due to, among other things, unavailability of key
                                            employees, including our senior management team, as a result of illness to themselves or
                                            their families; cancellation or other disruptions of sales and marketing events; disruptions
                                            to trade promotion initiatives; and any delays or modifications to any significant strategic
                                            initiatives.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Additional
                                            or renewed significant governmental actions, including closures, quarantines or other restrictions
                                            on the ability of our employees to travel or perform necessary business functions or our
                                            ability to market or sell our products; changes in costs associated with governmental actions
                                            or general economic trends; or other limitations or restrictions on our ability to market
                                            or sell our products or the ability of our suppliers, customers or third-party partners to
                                            effectively run their operations, which may negatively impact demand and our ability to market
                                            and sell our products.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in; background-color: white">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company does not
believe that the COVID-19 pandemic has had a significant adverse impact on the Company&rsquo;s business to date. As described under &ldquo;<I>Business
&ndash; Market for Recruiting Services</I>&rdquo;, the ongoing COVID-19 global pandemic has increased both the need for, and familiarity
with, remote interactions. As a result of the COVID-19 pandemic, the Company believes that its business can generate more revenues, at
little or no additional cost, from more customers as a result of their search for alternatives to in-person recruiting events. Therefore,
we do not believe that the COVID-19 pandemic has had an adverse impact on the Company&rsquo;s business to date, or on the Company&rsquo;s
revenues or expenses. However, the ultimate extent of the COVID-19 pandemic&rsquo;s effect on our operational and financial performance
will depend on future developments, including the duration, spread and intensity of the pandemic and our continued ability to manufacture
and distribute our products, as well as any future government actions affecting consumers and the economy generally, all of which are
uncertain and difficult to predict, especially in light of the rapidly evolving social and political situations in response to the pandemic.
We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required
by local, state or federal authorities or that we determine are in the best interests of our employees, consumers, customers or business
partners. Although the potential effects that COVID-19 may have on us are not clear, such impacts could materially adversely affect our
business, financial condition and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>We have a limited
operating history. There can be no assurance that we will be successful in growing our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have a limited history of operations. As a
result, there can be no assurance that we will be successful in providing our sports recruitment technology services. Any potential for
future growth will place additional demands on our executive officers, and any increased scope of our operations will present challenges
due to our current limited management resources. There can be no assurance that we will be successful in our efforts. Our inability to
locate additional opportunities, to hire additional management and other personnel, or to enhance our management systems, could have
a material adverse effect on our results of operations. There can be no assurance that our operations will be profitable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have a history of losses since our inception
and may continue to incur losses for the foreseeable future. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To date, we have been unable to sell its services
in quantities sufficient to be operationally profitable. Consequently, we have sustained substantial losses. There can be no assurances
that the Company will ever achieve the level of revenues needed to be operationally profitable in the future and if profitability is
achieved, that it will be sustained. Our revenues have fluctuated and may likely continue to fluctuate significantly from quarter to
quarter and from year to year. We will need to obtain additional capital and increase sales to become profitable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our management has concluded that factors
raise substantial doubt about our ability to continue as a going concern and our auditor has included an explanatory paragraph relating
to our ability to continue as a going concern in its audit report for the fiscal years ended December 31, 2022 and 2021.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management has concluded that our historical
recurring losses from operations and negative cash flows from operations as well as our dependence on private equity and other financings
raise substantial doubt about our ability to continue as a going concern and our current and former auditors have included an explanatory
paragraph relating to our ability to continue as a going concern in their audit reports for the fiscal years ended December 31, 2022
and 2021.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our financial statements do not include any adjustments
that might result from the outcome of this uncertainty. These adjustments would likely include substantial impairment of the carrying
amount of our assets and potential contingent liabilities that may arise if we are unable to fulfill various operational commitments.
In addition, the value of our securities, including common stock issued in the Company&rsquo;s initial public offering, would be greatly
impaired. Our ability to continue as a going concern is dependent upon generating sufficient cash flow from operations and obtaining
additional capital and financing, including funds to be raised in the initial public offering. If our ability to generate cash flow from
operations is delayed or reduced and we are unable to raise additional funding from other sources, we may be unable to continue in business
even if the initial public offering is successful. For further discussion about our ability to continue as a going concern and our plan
for future liquidity, see &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations &ndash;
Liquidity and Capital Resources &ndash; Going Concern</I>.&rdquo;</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We will need to obtain additional funding
to continue operations. If we fail to obtain the necessary financing or fail to become profitable or are unable to sustain profitability
on a continuing basis, then we may be unable to continue our operations and we may be forced to significantly delay, scale back or discontinue
our operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will require additional capital to fund our
operations, and if we fail to obtain necessary financing, our business plan may not be successful.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our operations have consumed substantial amounts
of cash since inception, and we expect they will continue to consume substantial amounts of cash as we aggressively build our platform
and our internal marketing, compliance and other administrative functions. Although we believe the net proceeds from the Company&rsquo;s
initial public offering together with existing cash and cash equivalents will be sufficient to fund our projected operating expenses
for some period of time, we will require additional capital to maintain our business operations, and we may also need to raise additional
funds sooner if our operating and other expenses are higher than we expect.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our forecast of the period of time through which
our financial resources will be adequate to support our operations is a forward-looking statement and involves risks and uncertainties,
and actual results could vary as a result of a number of factors. We have based this estimate on assumptions that may prove to be wrong,
and we could exhaust our available capital resources sooner than we currently expect.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a lack of available capital means that we
are unable to expand our operations or otherwise capitalize on our business opportunities, our business, financial condition and results
of operations could be materially adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Adverse developments affecting the financial
services industry, such as actual events or concerns involving liquidity, defaults, or&nbsp;non-performance&nbsp;by financial institutions
or transactional counterparties, could adversely affect our current and projected business operations and our financial condition and
results of operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Actual events involving limited liquidity, defaults,&nbsp;non-performance&nbsp;or
other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services
industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks,
have in the past and may in the future lead to market-wide liquidity problems. For example, on March 10, 2023, Silicon Valley Bank (&ldquo;SVB&rdquo;),
was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. Similarly, on March
12, 2023, Signature Bank Corp. (&ldquo;Signature&rdquo;), and Silvergate Capital Corp. were each swept into receivership. Although a
statement by the Department of the Treasury, the Federal Reserve and the&nbsp;FDIC&nbsp;indicated that all depositors of SVB would have
access to all of their money after only one business day of closure, including funds held in uninsured deposit accounts, borrowers under
credit agreements, letters of credit and certain other financial instruments with SVB, Signature or any other financial institution that
is placed into receivership by the&nbsp;FDIC&nbsp;may be unable to access undrawn amounts thereunder. In addition, on May 1, the FDIC
announced that First Republic had been closed by the&nbsp;California Department of Financial Protection and Innovation&nbsp;and its assets
seized by the FDIC. JPMorgan Chase eventually won the auction, paying the FDIC $10.6 billion for nearly all of First Republic&rsquo;s
assets. Although we are not a borrower under or party to any material letter of credit or any other such instruments with SVB, Signature
or any other financial institution currently in receivership, if we enter into any such instruments and any of our lenders or counterparties
to such instruments were to be placed into receivership, we may be unable to access such funds. In addition, if any of our customers,
suppliers or other parties with whom we conduct business are unable to access funds pursuant to such instruments or lending arrangements
with such a financial institution, such parties&rsquo; ability to pay their obligations to us or to enter into new commercial arrangements
requiring additional payments to us could be adversely affected. In this regard, counterparties to credit agreements and arrangements
with these financial institutions, and third parties such as beneficiaries of letters of credit (among others), may experience direct
impacts from the closure of these financial institutions and uncertainty remains over liquidity concerns in the broader financial services
industry. Similar impacts have occurred in the past, such as during the 2007-2008 financial crisis.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Inflation and rapid increases in interest rates
have led to a decline in the trading value of previously-issued government securities with interest rates below current market interest
rates. Although the U.S. Department of Treasury,&nbsp;FDIC&nbsp;and Federal Reserve Board have announced a program to provide up to $25
billion of loans to financial institutions secured by certain of such government securities held by financial institutions to mitigate
the risk of potential losses on the sale of such instruments, widespread demands for customer withdrawals or other liquidity needs of
financial institutions for immediately liquidity may exceed the capacity of such program.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our access to funding sources and other credit
arrangements in amounts adequate to finance or capitalize our current and projected future business operations could be significantly
impaired by factors that affect us, any financial institutions with which we enter into credit agreements or arrangements directly, or
the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints
or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions
or instability in the financial services industry or financial markets, or concerns or negative expectations about the prospects for
companies in the financial services industry. These factors could involve financial institutions or financial services industry companies
with which we have financial or business relationships, but could also include factors involving financial markets or the financial services
industry generally.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The results of events or concerns that involve
one or more of these factors could include a variety of material and adverse impacts on our current and projected business operations
and our financial condition and results of operations. These risks include, but may not be limited to, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">delayed
                                            access to deposits or other financial assets or the uninsured loss of deposits or other financial
                                            assets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">inability
                                            to enter into credit facilities or other working capital resources;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">potential
                                            or actual breach of contractual obligations that require us to maintain letters of credit
                                            or other credit support arrangements; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">termination
                                            of cash management arrangements and/or delays in accessing or actual loss of funds subject
                                            to cash management arrangements.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, investor concerns regarding the
U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or
costs and tighter financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making
it more difficult for us to acquire financing on acceptable terms or at all. Any decline in available funding or access to our cash and
liquidity resources could, among other risks, adversely impact our ability to meet our operating expenses or other obligations, financial
or otherwise, result in breaches of our financial and/or contractual obligations, or result in violations of federal or state wage and
hour laws. Any of these impacts, or any other impacts resulting from the factors described above or other related or similar factors,
could have material adverse impacts on our liquidity and our current and/or projected business operations and financial condition and
results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, any further deterioration in the
economy or financial services industry could lead to losses or defaults by our customers, service providers, vendors, or suppliers, which
in turn, could have a material adverse effect on our current and/or projected business operations and results of operations and financial
condition. For example, a customer may fail to make payments when due, default under their agreements with us, become insolvent or declare
bankruptcy, or a service provider, vendor, or supplier may determine that it will no longer deal with us as a customer. In addition,
a service provider, vendor or supplier could be adversely affected by any of the liquidity or other risks that are described above as
factors that could result in material adverse impacts on us, including but not limited to delayed access or loss of access to uninsured
deposits or loss of the ability to draw on existing credit facilities involving a troubled or failed financial institution. The bankruptcy
or insolvency of any customers, service providers, vendors, or suppliers, or the failure of any customer to make payments when due, or
any breach or default by a customer, service provider, vendor, or supplier, or the loss of any significant supplier relationships, could
cause us to suffer material losses and may have a material adverse impact on our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B><I>Our ability to use our
net operating loss carryforwards and certain other tax attributes may be limited.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We have incurred net
losses since our inception in 2019, and we may never achieve or sustain profitability. Federal net operating loss, or NOL, carryforwards
we generated since our incorporation may be carried forward indefinitely but may only be used to offset 80% of our taxable income annually.
Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an &ldquo;ownership change,&rdquo;
generally defined as a greater than 50 percentage point change (by value) in its equity ownership by certain stockholders over a three-year
period, the corporation&rsquo;s ability to use its pre-change NOL carryforwards and other pre-change tax attributes (such as research
tax credits) to offset its post-change income or taxes may be limited. We have not completed a study to assess whether an ownership change
for purposes of Section 382 or 383 has occurred, or whether there have been multiple ownership changes since our inception. For purposes
of Section 382 or 383, we may have experienced ownership changes in the past and may experience ownership changes in the future as a
result of shifts in our stock ownership (some of which shifts are outside our control). As a result, if we earn net taxable income, our
ability to use our pre-change NOL carryforwards to offset such taxable income will be subject to limitations. Similar provisions of state
tax law may also apply to limit our use of accumulated state tax attributes. Therefore, if we attain profitability, we may be unable
to use a material portion of our NOL carryforwards and other tax attributes, which could adversely affect our future cash flows.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We operate in the highly competitive sports
recruitment industry which is subject to rapid and significant technological changes.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The sports recruitment industry in which the
Company is engaged is intensely competitive and characterized by rapid changes in technology, customer requirements, and industry standards,
and by frequent new product and service offerings and improvements. We compete with an array of established and emerging recruiting solution
providers. Conditions in our market could change rapidly and significantly as a result of technological advancements, partnerships, or
acquisitions by our competitors or continuing market consolidation. With the introduction of new technologies and market entrants, we
expect the competitive environment to remain intense. There can be no assurance that Company&rsquo;s systems can be upgraded to meet
future innovations in the industry or that new technologies will not emerge, or existing technologies will not be improved, which would
render the Company&rsquo;s offerings obsolete or non-competitive. Many of the companies we compete with enjoy significant competitive
advantages over us, including but not limited to greater name recognition; greater financial, technical and service resources; established
networks; additional product offerings; and greater resources for product development and sales and marketing. In addition, there can
be no assurance that other established sports recruiting companies, any of which would likely have greater resources than the Company,
will not enter the market. There can be no assurance that the Company will be able to compete successfully against any of its competitors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we fail to acquire new customers, we
may not be able to increase net sales or achieve profitability.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have invested in marketing and branding related
to customer acquisition and expect to continue to do so. We must continue to acquire subscription customers in order to increase net
sales and achieve profitability. In order to expand our customer base, we must appeal to and acquire customers who have historically
used other means to recruit athletes and may prefer alternatives to do so. We cannot assure you that the net sales from new customers
we acquire will ultimately exceed the cost of acquiring those customers. If consumers do not perceive the platform we offer to be of
high value and quality, we may not be able to acquire new customers. If we are unable to acquire new customers, the net sales we generate
may decrease, and our business, financial condition and operating results may be materially and adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We use social networking sites, such as Facebook,
Instagram and YouTube, online services, search engines, affiliate marketing websites, directories and other social media websites and
ecommerce businesses to advertise, market and direct potential customers to use our platform. As social networking continues to rapidly
evolve, we must continue to use social media channels that are used by our current and prospective customers and cost-effectively drive
traffic to our platform. We believe that failure to utilize these channels as sources of traffic to our site to generate new customers
would adversely affect our financial condition.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our software or services may not operate
properly, which could damage our reputation, give rise to claims against us, or divert application of our resources from other purposes,
any of which could harm our business and operating results.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We may encounter human or technical obstacles
that prevent our website and apps from operating properly. If our offerings do not function reliably or fail to achieve customer expectations
in terms of performance, customers could assert liability claims against us or cancel their contracts with us. This could damage our
reputation and impair our ability to attract or maintain customers. We cannot assure you that material performance problems or defects
in our service offerings will not arise in the future. Errors may result from receipt, entry, or interpretation of customer information
or from interface of our services. These defects and errors and any failure by us to identify and address them could result in loss of
revenue or market share, liability to customers or others, failure to achieve market acceptance or expansion, diversion of development
resources, injury to our reputation, and increased service and maintenance costs. The costs incurred in correcting any defects or errors
or in responding to resulting claims or liability may be substantial and could adversely affect our operating results.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If our security measures are breached or
fail and unauthorized access is obtained to a customer&rsquo;s data, our service may be perceived as insecure, the attractiveness of
our services to current or potential customers may be reduced, and we may incur significant liabilities.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our services involve the Internet-based storage
and transmission of customers&rsquo; information. We rely on proprietary and commercially available systems, software, tools and monitoring,
as well as other processes, to provide security for processing, transmission and storage of such information. Because of the sensitivity
of this information and due to requirements under applicable laws and regulations, the effectiveness of our security efforts is very
important. If our security measures are breached or fail as a result of third-party action, acts of terror, social unrest, employee error,
malfeasance or for any other reasons, someone may be able to obtain unauthorized access to customer data. Improper activities by third-parties,
advances in computer and software capabilities and encryption technology, new tools and discoveries and other events or developments
may facilitate or result in a compromise or breach of our security systems. Our security measures may not be effective in preventing
unauthorized access to the customer data stored on our servers. If a breach of our security occurs, we could face damages for contract
breach, penalties for violation of applicable laws or regulations, possible lawsuits by individuals affected by the breach and significant
remediation costs and efforts to prevent future occurrences. In addition, whether there is an actual or a perceived breach of our security,
the market perception of the effectiveness of our security measures could be harmed and we could lose current or potential customers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We depend on sophisticated information
technology systems and data processing to operate our business. If we experience security or data privacy breaches or other unauthorized
or improper access to, use of, or destruction of our proprietary or confidential data, customer data or personal data, we may face costs,
significant liabilities, harm to our brand and business disruption.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We rely on information technology systems and
data processing that we or our service providers, collaborators, consultants, contractors or partners operate to collect, process, transmit
and store electronic information in&nbsp;our day-to-day operations,&nbsp;including a variety of personal data, such as name, mailing
address, email addresses, academic records, phone numbers and potentially other sensitive user information. Additionally, we, and our
service providers, collaborators, consultants, contractors or partners, do or will collect, receive, store, process, generate, use, transfer,
disclose, make accessible, protect and share personal information and other information to operate our business, for legal and marketing
purposes, and for other business-related purposes. Our internal computer systems and data processing and those of our third-party vendors,
consultants, collaborators, contractors or partners, may be vulnerable to a cyber-attack, malicious intrusion, breakdown, destruction,
loss of data privacy, actions or inactions by our employees or contractors that expose security vulnerabilities, theft or destruction
of intellectual property or other confidential or proprietary information, business interruption or other significant security incidents.
As the cyber-threat landscape evolves, these attacks are growing in frequency, level of persistence, sophistication and intensity, and
are becoming increasingly difficult to detect. In addition to traditional computer &ldquo;hackers,&rdquo; threat actors, software bugs,
malicious code (such as viruses and worms), employee theft or&nbsp;misuse, denial-of-service attacks&nbsp;(such as credential stuffing),
phishing and ransomware attacks, sophisticated nation-state and nation-state supported actors now engage in attacks (including advanced
persistent threat intrusions). These risks may be increased as a result&nbsp;of COVID-19, owing&nbsp;to an increase in personnel working
remotely and higher reliance on internet technology. Furthermore, because the techniques used to obtain unauthorized access to, or to
sabotage, systems change frequently and often are not recognized until launched against a target, we may be unable to anticipate these
techniques or implement adequate preventative measures. We may also experience security breaches that may remain undetected for an extended
period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">There can be no assurance
that we, our service providers, collaborators, consultants, contractors or partners will be successful in efforts to detect, prevent
or fully recover systems or data from all breakdowns, service interruptions, attacks or breaches of systems that could adversely affect
our business and operations and/or result in the loss of critical or sensitive data. Any failure by us or our service providers, collaborators,
consultants, contractors or partners to detect, prevent, respond to or mitigate security breaches or improper access to, use of, or inappropriate
disclosure of any of this information or other confidential or sensitive information, including customers&rsquo; personal data, or the
perception that any such failure has occurred, could result in claims, litigation, regulatory investigations and other proceedings, significant
liability under state, federal and international law, and other financial, legal or reputational harm to us. Further, such failures or
perceived failures could result in liability and a material disruption of our development programs and our business operations, which
could lead to significant delays, lost revenues or other adverse consequences, any of which could have a material adverse effect on our
business, results of operations, financial condition, prospects and cashflow.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Additionally, applicable
laws and regulations relating to privacy,&nbsp;data&nbsp;protection&nbsp;or cybersecurity, external contractual commitments and internal
privacy and security policies may require us to notify relevant stakeholders if there has been a security breach, including affected
individuals, business partners and regulators. Such disclosures are costly, and the disclosures or any actual or alleged failure to comply
with such requirements could lead to a materially adverse impact on the business, including negative publicity, a loss of confidence
in our services or security measures by our business partners or breach of contract claims. There can be no assurance that the limitations
of liability in our contracts would be enforceable or adequate or would otherwise protect us from liabilities or damages if we fail to
comply with applicable&nbsp;data&nbsp;protection&nbsp;laws, privacy policies or other data protection obligations related information
security or security breaches.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Claims by others that we infringe their
intellectual property could force us to incur significant costs or revise the way we conduct our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our competitors protect their proprietary rights
by means of patents, trade secrets, copyrights, trademarks and other intellectual property. We have not conducted an independent review
of patents and other intellectual property issued to third-parties, who may have patents or patent applications relating to our proprietary
technology. We have not received notice of any claims alleging infringement of third parties&rsquo; intellectual property. However, we
may in the future receive letters from third parties alleging, or inquiring about, possible infringement, misappropriation or violation
of their intellectual property rights. Any party asserting that we infringe, misappropriate or violate proprietary rights may force us
to defend ourselves, and potentially our customers, against the alleged claim. These claims and any resulting lawsuit, if successful,
could subject us to significant liability for damages and/or invalidation of our proprietary rights or interruption or cessation of our
operations. Any such claims or lawsuit could:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">be time-consuming
                                            and expensive to defend, whether meritorious or not;</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">require us to stop providing products or services that use the technology that
    allegedly infringes the other party&rsquo;s intellectual property;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">divert the attention of our technical and managerial resources;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">require us to enter into royalty or licensing agreements with third-parties,
    which may not be available on terms that we deem acceptable;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">prevent us from operating all or a portion of our business or force us to redesign
    our products, services or technology platforms, which could be difficult and expensive and may make the performance or value of our
    product or service offerings less attractive;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">subject us to significant liability for damages or result in significant settlement
    payments; or</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">require us to indemnify our customers.</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, during the course of litigation,
confidential information may be disclosed in the form of documents or testimony in connection with discovery requests, depositions or
trial testimony. Disclosure of our confidential information and our involvement in intellectual property litigation could materially
adversely affect our business. Some of our competitors may be able to sustain the costs of intellectual property litigation more effectively
than we can because they have substantially greater resources. In addition, any litigation could significantly harm our relationships
with current and prospective customers. Any of the foregoing could disrupt our business and have a material adverse effect on our business,
operating results and financial condition.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>There may be challenges to our patents
and proprietary technology.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company holds a provisional patent and trade
secret rights relating to various aspects of its technologies, which are of material importance to the Company and its future prospects.
Any patent we have obtained or do obtain may be challenged by re-examination or otherwise invalidated or eventually found unenforceable.
Both the patent application process and the process of managing patent disputes can be time consuming and expensive. Competitors may
attempt to challenge or invalidate our patents, or may be able to design alternative techniques or devices that avoid infringement of
our patents, or develop products with functionalities that are comparable to ours. In the event a competitor infringes upon our patent
or other intellectual property rights, litigation to enforce our intellectual property rights or to defend our patents against challenge,
even if successful, could be expensive and time consuming and could require significant time and attention from our management. Furthermore,
there can be no assurance that the Company&rsquo;s products and services will not infringe on any patents of others. We may not have
sufficient resources to enforce our intellectual property rights or to defend our patents against challenges from others.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we fail to renew and/or expand our existing
licenses, we may be required to discontinue or limit our use of the products that include or incorporate the licensed intellectual property.
</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our third-party licenses, or support for such
licensed products and technologies, may not continue to be available to us on commercially reasonable terms, if at all. In the event
that we cannot renew and/or expand existing licenses, we may be required to discontinue or limit our use of the products that include
or incorporate the licensed intellectual property. Although to date we have not encountered such issues, licensing requirements may preclude
us from using technologies owned or developed by third parties if those parties are unwilling to allow us to comply with related disclosure
requirements or other regulatory requirements. In any such event, we may be unable to operate on a profitable basis.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Changes in government policy, legislation
or regulatory or judicial interpretations could hinder or prevent our ability to conduct our business operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Changes in government policy, legislation or
regulatory or judicial interpretations could hinder or prevent our ability to conduct our business operations. For example, we could
be deemed to be subject to insurance and other regulations, which in some circumstances may be applied retrospectively. Any other changes
in or interpretations of current laws and regulations could also require us to increase our compliance expenditures, inhibit our ability
to enter into new contracts or conduct our business operations. In addition, our failure to comply with applicable laws and regulations
could lead to significant penalties, fines or other sanctions. If we are unable to effectively respond to any such changes or comply
with existing and future laws and regulations, our competitive position, results of operations, financial condition and cash flows could
be materially adversely impacted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are dependent on our management team,
and the loss of any key member of this team may prevent us from implementing our business plan in a timely manner, or at all. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our success depends largely upon the continued
services of our executive officers and other key personnel, particularly Daniel D. Nelson, our Chief Executive Officer, Chairman and
director; Damon Rich, our Interim Chief Financial Officer; Richard Symington, our President, Chief Marketing Officer and director; and
David O&rsquo;Hara, our Chief Operating Officer. Our executive officers or key employees could terminate their employment with us at
any time without penalty. In addition, we do not maintain key person life insurance policies on any of our employees or any of our contract
parties. The loss of one or more of these executive officers or key employees could seriously harm our business and may prevent us from
implementing our business plan in a timely manner, or at all.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The failure to attract and retain additional
qualified personnel could harm our business and culture and prevent us from executing our business strategy.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To execute our business strategy, we must attract
and retain highly qualified personnel. Competition for executives, software developers, sales personnel, and other key personnel in our
industry is intense. In particular, we compete with many other companies for software developers with high levels of experience in designing,
developing, and managing software for college sports recruitment technologies, as well as for skilled sales and operations professionals
with connections and experience in the intensely competitive college sports recruitment system. Recently we have experienced, and we
may continue to experience, employee turnover, and we may not be able to fill positions in a timely manner or at all. These risks may
be exacerbated by perceptions of our recent restructuring actions in preparation for our initial public offering, including potential
confusion or misgivings regarding the intent and effect of the Reverse Stock Split, changes in executive management, efforts to rapidly
expand the utility of our platform, multiple capital raises through private placements of debt and equity at valuations of our common
stock that are or may be the same or less than the implied valuations of our common stock upon which their equity awards were granted,
and any similar future actions. In addition, our recruiting personnel, methodology, and approach may need to be altered to address a
changing candidate pool and profile. We may not be able to identify or implement such changes in a timely manner. New hires and other
personnel require training and take time before they achieve full productivity. New employees and other personnel may not become as productive
as we expect, and we may be unable to hire or retain sufficient numbers of qualified individuals. If we fail to attract new personnel
or fail to retain and motivate our current personnel, our business could be harmed.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Many of the companies with which we compete for
experienced personnel have greater resources than we have, and some of these companies may offer more attractive compensation packages.
In particular, job candidates and existing employees and other personnel carefully consider the value of the equity awards they receive
in connection with their employment or engagement. If the perceived value of our equity awards declines, or if the mix of equity and
cash compensation that we offer is unattractive, it may adversely affect our ability to recruit and retain highly skilled employees and
other personnel. Job candidates may also be threatened with legal action under agreements with their existing employers if we attempt
to hire them, which could impact hiring and result in a diversion of our time and resources. Additionally, laws and regulations, such
as restrictive immigration laws, may limit our ability to recruit internationally. We must also continue to retain and motivate existing
employees and other personnel through our compensation practices, company culture, and career development opportunities. If we fail to
attract new personnel or to retain our current personnel, our business would be harmed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt 0pt 0; text-align: justify"><B><I>If we fail to effectively manage
our growth, our business, financial condition and operating results could be harmed.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt 0pt 0; text-align: justify">To effectively manage our growth,
we must continue to implement our operational plans and strategies, improve and expand our infrastructure of people and information systems
and expand, train and manage our employee and contractor base. We have increased employee and contractor headcount since our inception
to support the growth in our business, and we intend for this growth to continue for the foreseeable future. To support continued growth,
we must effectively integrate, develop and motivate new employees, while maintaining our corporate culture. We face competition for qualified
personnel. Additionally, we may not be able to hire new employees quickly enough to meet our needs. If we fail to effectively manage
our hiring needs or successfully integrate our new hires, our efficiency and ability to meet our forecasts and our employee morale, productivity
and retention could suffer, which may have a material adverse effect on our business, financial condition and operating results.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt 0pt 0; text-align: justify">Additionally, the growth and expansion
of our business and our product offerings in the future will place significant demands on our management. The growth of our business
may require significant additional resources, which may not scale in a cost-effective manner or may negatively affect the quality of
our customer experience. We are also required to manage multiple relationships with various vendors, customers and other third parties.
Further growth of our operations, our vendor base, our fulfillment process, information technology systems or our internal controls and
procedures may not be adequate to support our operations. If we are unable to manage the growth of our organization effectively, our
business, financial condition and operating results may be materially and adversely affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are subject to governmental regulation,
which can change, and any failure to comply with these regulations may have a material negative effect on our business and results of
operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to substantial governmental regulations
affecting our business. These include, but are not limited to, data privacy and protection laws, regulations, policies and contractual
obligations that apply to the collection, transmission, storage, processing and use of personal information or personal data, which among
other things, impose certain requirements relating to the privacy and security of personal information. The variety of laws and regulations
governing data privacy and protection, and the use of the internet as a commercial medium are rapidly evolving, extensive, and complex,
and may include provisions and obligations that are inconsistent with one another or uncertain in their scope or application.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our user agreements and certain sponsorship
agreements, we collect certain information about student-athletes that have been submitted by the student-athletes and, if applicable,
their coaches, recruiters, or other teaching professionals or institutions. This data includes age, date of birth, name, email address,
athletic and educational data, and payment information. We intend to use such data for purposes of providing platform services to the
submitting student-athletes and, if applicable, their coaches, recruiters, and other teaching professionals and institutions. In order
to provide such services, we may need to share certain data with certain third-party services providers. We do not intend to share such
data for any other purposes. All such data collection is subject to our prior receipt of electronically- or physically-signed written
consents or acceptance of terms of use and terms and conditions of our platform app software by student-athletes and, if applicable,
their coaches, recruiters, or other teaching professionals or institutions, granting us rights to share such information for posting
on our platform. Such consents or acceptances of terms and use and terms of conditions of our app software explicitly includes the student-athlete&rsquo;s
and, if applicable, their coach, recruiter, or other teaching professional or institution&rsquo;s grant of a license to each coach, recruiter,
or other teaching professional or institution on our platform to view, compare, analyze and store platform player data. Each coach, recruiter,
or other teaching professional or institution on our platform is in turn required to agree to such terms and use and terms of conditions
to access and use such player data only as permitted under all applicable international, national, state, and local law, including laws
applicable to the use of data of minors. Regardless of these agreements and consents, however, we are subject to a number of data protection
requirements relating to the management and safeguarding of information of users, including minors, including those described below.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The data protection landscape is rapidly evolving
in the United States and the European Union. As our operations and business grow, we may become subject to or affected by new or additional
data protection laws and regulations and face increased scrutiny or attention from regulatory authorities. For example, the European
Union and California have passed comprehensive data privacy laws, the EU General Data Protection Regulation (GDPR) and the California
Consumer Privacy Act (CCPA), respectively, which impose data protection obligations on enterprises, including limitations on data uses
and constraints on certain uses of sensitive data. Of particular importance, the CCPA, which became effective on January 1, 2020, limits
how we may collect and use personal information, including by requiring companies that process information relating to California residents
to make disclosures to consumers about their data collection, use and sharing practices, provide consumers with rights to know and delete
personal information and allow consumers to opt out of certain data sharing with third parties. The CCPA also creates an expanded definition
of personal information, imposes special rules on the collection of consumer&nbsp;data&nbsp;from&nbsp;minors, and provides for civil
penalties for violations, as well as a private right of action for data breaches that is expected to increase the likelihood and cost
of data breach litigation. The potential effects of this legislation are far-reaching and may require us to modify our data processing
practices and policies and incur substantial costs and expenses in compliance and potential ligation efforts.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective January 1, 2023, we also became subject
to the CPRA, which expands upon the consumer data use restrictions, penalties and enforcement provisions under the CCPA, and Virginia&rsquo;s
Consumer Data Protection Act, another comprehensive data privacy law. Effective July 1, 2023, we may also become subject to the Colorado
Privacy Act and Connecticut&rsquo;s An Act Concerning Personal Data Privacy and Online Monitoring, which are also comprehensive consumer
privacy laws. Effective December 31, 2023, we may also become subject to the Utah Consumer Privacy Act, regarding business handling of
consumers&rsquo; personal data. Effective January 1, 2025, we may also become subject to the Iowa Consumer Privacy Act, a similar consumer
data privacy law. Further, there are several legislative proposals in the United States, at both the federal and state level, that could
impose new privacy and security obligations. We cannot yet determine the impact that these future laws and regulations may have on our
business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, our business is, and may in the
future be, subject to a variety of other laws and regulations, including working conditions, labor, immigration and employment laws,
and health, safety and sanitation requirements. We are unable to predict the outcome or effects of any potential legislative or regulatory
proposals on our business. Any changes to the legal and regulatory framework applicable to our business could have an adverse impact
on our business and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our failure to comply with applicable governmental
laws and regulations, or to maintain necessary permits or licenses, could result in liability that could have a material negative effect
on our business and results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Climate change and increased focus by governmental
organizations on sustainability issues, including those related to climate change, may have a material adverse effect on our business
and operations.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Federal, state and local governments are beginning
to respond to climate change issues. This increased focus on sustainability may result in new legislation or regulations and vendor and
customer requirements that could negatively affect us as we may incur additional costs or be required to make changes to our operations
in order to comply with any new regulations. Legislation or regulations that potentially impose restrictions, caps, taxes, or other controls
on emissions of greenhouse gases such as carbon dioxide, a by-product of burning fossil fuels could force us to incur additional costs
and we may fail to pass such additional costs on to our customers, which could also have a material adverse effect on our business.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, on&nbsp;March&nbsp;21,&nbsp;2022,
the SEC&nbsp;proposed&nbsp;new rules requiring a range of climate-related disclosure that would be applicable to all companies that file
annual reports or registration statements with the SEC, including the Company. The proposed climate-related disclosure framework is modeled
in part on the Task Force on Climate Related Financial Disclosures&rsquo; recommendations, and also draws upon the Greenhouse Gas (&ldquo;GHG&rdquo;)
Protocol (&ldquo;GHG Protocol&rdquo;). In particular, the proposed rules would require a registrant to disclose information about: The
oversight and governance of climate-related risks by the registrant&rsquo;s board and management; how any climate-related risks identified
by the registrant have had or are likely to have a material impact on its business and consolidated financial statements, which may manifest
over the short-, medium-, or long-term; how any identified climate-related risks have affected or are likely to affect the registrant&rsquo;s
strategy, business model, and outlook; the registrant&rsquo;s processes for identifying, assessing, and managing climate-related risks
and whether any such processes are integrated into the registrant&rsquo;s overall risk management system or processes; the impact of
climate-related events (severe weather events and other natural conditions as well as physical risks identified by the registrant) and
transition activities (including transition risks identified by the registrant) on the line items of a registrant&rsquo;s consolidated
financial statements and related expenditures, and disclosure of financial estimates and assumptions impacted by such climate-related
events and transition activities; &ldquo;Scope 1&rdquo; and &ldquo;Scope 2&rdquo; (as defined by the SEC&rsquo;s proposed rule) GHG emissions
metrics, separately disclosed, expressed both by disaggregated constituent greenhouse gases and in the aggregate, and in absolute and
intensity terms; &ldquo;Scope 3&rdquo; (as defined by the SEC&rsquo;s proposed rule) GHG emissions and intensity, if material, or if
the registrant has set a GHG emissions reduction target or goal that includes its Scope 3 emissions; and the registrant&rsquo;s climate-related
targets or goals, and transition plan, if any. The proposed rules would be subject to certain accommodations and phase-in periods. For
example, companies meeting the definition of &ldquo;smaller reporting company&rdquo; in Rule 12b-2 of the Exchange Act, which currently
includes the Company (see below, &ldquo;&mdash;<I>We believe we will be considered a smaller reporting company and will be exempt from
certain disclosure requirements, which could make our common stock less attractive to potential investors.</I>&rdquo; and &ldquo;<I>As
a &lsquo;smaller reporting company,&rsquo; we may choose to exempt our company from certain corporate governance requirements that could
have an adverse effect on our public stockholders.&rdquo;</I>), would be exempt from the Scope 3 emissions disclosure requirement. The
proposed rules would also require an attestation report provided by a third-party attestation service provider that satisfies a minimum
level of attestation services for a company that meets the definition of &ldquo;accelerated filer&rdquo; or &ldquo;large accelerated
filer&rdquo; in Rule 12b-2 of the Exchange Act, including: (1) limited assurance for Scopes 1 and 2 emissions disclosure that scales
up to reasonable assurance after a specified transition period; (2) minimum qualifications and independence requirements for the attestation
service provider; and (3) minimum requirements for the accompanying attestation report. A company that is not an &ldquo;accelerated filer&rdquo;
or &ldquo;large accelerated filer&rdquo;, which currently includes the Company, would not be subject to this attestation requirement
(see also &ldquo;<I>&mdash;As a non-accelerated filer, we will not be required to comply with the auditor attestation requirements of
the Sarbanes-Oxley Act.</I>&rdquo; and &ldquo;&mdash;<I>We will be subject to ongoing public reporting requirements that are less rigorous
than Exchange Act rules for companies that are not emerging growth companies and our stockholders could receive less information than
they might expect to receive from more mature public companies.</I>&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Although we cannot predict
the costs of implementation or any potential adverse impacts resulting from the proposed rule, the SEC estimated that compliance costs
for a &ldquo;smaller reporting company&rdquo; in the first year of compliance would be $490,000 ($140,000 for internal costs and $350,000
for outside professional costs), while annual costs in the subsequent five years were estimated to be $420,000 ($120,000 for internal
costs and $300,000 for outside professional costs). For non-&ldquo;smaller reporting company&rdquo; registrants, the costs in the first
year of compliance were estimated to be $640,000 ($180,000 for internal costs and $460,000 for outside professional costs), while annual
costs in the subsequent five years were estimated to be $530,000 ($150,000 for internal costs and $380,000 for outside professional costs).
To the extent that this rule is finalized as proposed, we could therefore incur significant increased costs relating to the assessment
and disclosure of climate-related matters.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These potential additional costs, forced changes
in operations, or loss of revenues may have a material adverse effect on our business and operations.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risks Related to Our Common Stock and Initial
Public Offering</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>There has been no public market for our
common stock prior to the Company&rsquo;s initial public offering, and an active market in which investors can resell their shares of
our common stock may not develop.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the Company&rsquo;s initial public offering,
there has been no public market for our common stock. We are in the process of applying to list our common stock on NYSE American under
the symbol &ldquo;SDS&rdquo;. The closing of the initial public offering is contingent upon the successful listing of our common stock
on NYSE American. There is no guarantee that NYSE American, or any other exchange or quotation system, will permit our common stock to
be listed and traded.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even if our common stock is approved for listing
on NYSE American, a liquid public market for our common stock may not develop. The initial public offering price for our common stock
has been determined by negotiation between us and the underwriters based upon several factors, including prevailing market conditions,
our historical performance, estimates of our business potential and earnings prospects, and the market valuations of similar companies.
The price at which the common stock is traded after the initial public offering may decline below the initial public offering price,
meaning that you may experience a decrease in the value of your common stock regardless of our operating performance or prospects.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The market price of our common stock may
fluctuate, and you could lose all or part of your investment.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After the Company&rsquo;s initial public offering,
the market price for our common stock is likely to be volatile, in part because our shares have not been traded publicly. In addition,
the market price of our common stock may fluctuate significantly in response to several factors, most of which we cannot control, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">actual
                                            or anticipated variations in our periodic operating results;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">increases
                                            in market interest rates that lead investors of our common stock to demand a higher investment
                                            return;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">changes
                                            in earnings estimates;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">changes
                                            in market valuations of similar companies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">actions
                                            or announcements by our competitors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">adverse
                                            market reaction to any increased indebtedness we may incur in the future;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">additions
                                            or departures of key personnel;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">actions
                                            by stockholders;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">speculation
                                            in the media, online forums, or investment community; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">our
                                            intentions and ability to list our common stock on NYSE American and our subsequent ability
                                            to maintain such listing.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The public offering price of our common stock
has been determined by negotiations between us and the underwriters based upon many factors and may not be indicative of prices that
will prevail following the closing of the initial public offering. Volatility in the market price of our common stock may prevent investors
from being able to sell their common stock at or above the initial public offering price. As a result, you may suffer a loss on your
investment.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Certain recent initial public offerings
of companies with relatively small public floats comparable to our anticipated public float have experienced extreme volatility that
was seemingly unrelated to the underlying performance of the respective company. Our common stock may potentially experience rapid and
substantial price volatility, which may make it difficult for prospective investors to assess the value of our common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to the risks addressed above under
&ldquo;&mdash;&nbsp;<I>The market price of our common stock may fluctuate, and you could lose all or part of your investment</I>,&rdquo;
our common stock may be subject to rapid and substantial price volatility. Recently, companies with comparably small public floats and
initial public offering sizes have experienced instances of extreme&nbsp;stock&nbsp;price&nbsp;run-ups&nbsp;followed by rapid price declines,
and such stock price volatility was seemingly unrelated to the respective company&rsquo;s underlying performance. Although the specific
cause of such volatility is unclear, our anticipated public float may amplify the impact the actions taken by a few stockholders have
on the price of our stock, which may cause our stock price to deviate, potentially significantly, from a price that better reflects the
underlying performance of our business. Our common stock may experience run-ups and declines that are seemingly unrelated to our actual
or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly
changing value of our common stock. In addition, investors in shares of our common stock may experience losses, which may be material,
if the price of our common stock declines after the Company&rsquo;s initial public offering or if such investors purchase shares of our
common stock prior to any price decline. For example, if the trading volumes of our common stock are low, persons buying or selling in
relatively small quantities may easily influence prices of our common stock. This low volume of trades could also cause the price of
our common stock to fluctuate greatly, with large percentage changes in price occurring in any trading day session. Holders of our common
stock may also not be able to readily liquidate their investment or may be forced to sell at depressed prices due to low volume trading.
Broad market fluctuations and general economic and political conditions may also adversely affect the market price of our common stock.
As a result of this volatility, investors may experience losses on their investment in our common stock. A decline in the market price
of our common stock also could adversely affect our ability to sell additional shares of common stock or other securities and our ability
to obtain additional financing in the future. No assurance can be given that an active market in our common stock will develop or be
sustained. If an active market does not develop, holders of our common stock may be unable to readily sell the common stock they hold
or may not be able to sell their common stock at all.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may not be able to satisfy listing requirements
of NYSE American or maintain a listing of our common stock on NYSE American.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If our common stock is listed on NYSE American
we must meet certain financial and liquidity criteria to maintain such listing. If we violate NYSE American&rsquo;s listing requirements,
or if we fail to meet any of NYSE American&rsquo;s listing standards, our common stock may be delisted. In addition, our board of directors
may determine that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting
of our common stock from NYSE American may materially impair our stockholders&rsquo; ability to buy and sell our common stock and could
have an adverse effect on the market price of, and the efficiency of the trading market for, our common stock. The delisting of our common
stock could significantly impair our ability to raise capital and the value of your investment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have considerable discretion as to the
use of the net proceeds from the Company&rsquo;s initial public offering and we may use these proceeds in ways with which you may not
agree. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We intend to use the proceeds from the Company&rsquo;s
initial public offering for product and technology development, expansion of our sales team and marketing efforts, and general working
capital and other corporate purposes. However, we have considerable discretion in the application of the proceeds. Because of the number
and variability of factors that will determine our use of our net proceeds from the initial public offering, their ultimate use may vary
substantially from their currently intended use. You will not have the opportunity, as part of your investment decision, to assess whether
the proceeds are being used appropriately. You must rely on the judgment of our management regarding the application of the net proceeds
of the initial public offering. The net proceeds may be used for corporate or other purposes with which you do not agree or that do not
improve our profitability or increase our share price. The net proceeds from the initial public offering may also be placed in investments
that do not produce income or that lose value. Please see &ldquo;<I>Use of Proceeds</I>&rdquo; below for more information.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Investors in the Company&rsquo;s initial
public offering will experience immediate and substantial dilution.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">As of December 31, 2022, our net tangible book
value was $(8,237,077), or approximately $(1.02) per share. Since the effective price per share of our common stock being
offered in the Company&rsquo;s initial public offering is substantially higher than the net tangible book value per share of our common
stock, you will suffer substantial dilution with respect to the net tangible book value of the common stock you purchase in the initial
public offering. Based on the assumed public offering price of $4.00 per share of common stock being sold in the initial public offering,
which is the low point of the estimated offering range set forth on the cover page of this prospectus, our net tangible book value per
share as of December 31, 2022, and certain other events that have occurred or that we have assumed will occur prior to or at the time
of the initial public offering, if you purchase shares of common stock in the initial public offering, you will suffer immediate and
substantial dilution of approximately $3.18 per share (or approximately $3.09 per share if the underwriters exercise the over-allotment
option in full) with respect to the net tangible book value of the common stock. See the section titled &ldquo;<I>Dilution</I>&rdquo;
for a more detailed discussion of the dilution you will incur if you purchase securities in the initial public offering.</P>

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



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Substantial future sales or issuances of
our common stock or securities convertible into, or exercisable or exchangeable for, our common stock, or the perception in the public
markets that these sales or issuances may occur, may depress our stock price. Also, future issuances of our common stock or rights to
purchase common stock could result in additional dilution of the percentage ownership of our stockholders and could cause our share price
to fall. The expiration of lock-up agreements that restrict the issuance of new common stock or the trading of outstanding common stock
could also cause the market price of our common stock to decline.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Future issuances of our common stock or securities
convertible into, or exercisable or exchangeable for, our common stock, or the expiration of lock-up agreements that restrict the issuance
of new common stock or the trading of outstanding common stock, could cause the market price of our common stock to decline. We cannot
predict the effect, if any, of future issuances of our securities, or the future expirations of lock-up agreements, on the price of our
common stock. In all events, future issuances of our common stock would result in the dilution of your holdings. In addition, the perception
that new issuances of our securities could occur, or the perception that locked-up parties will sell their securities when the lock-ups
expire, could adversely affect the market price of our common stock. In connection with the Company&rsquo;s initial public offering,
we, our executive officers, directors and current stockholders will enter into a lock-up agreement that prevents us and the other locked-up
parties, subject to certain exceptions, from offering or selling shares of capital stock for up to 12 months after the closing of the
initial public offering, as further described in the section titled &ldquo;<I>Underwriting</I>.&rdquo; In addition to any adverse effects
that may arise upon the expiration of these lock-up agreements, the lock-up provisions in these agreements may be waived, at any time
and without notice. If the restrictions under the lock-up agreements are waived, our common stock may become available for resale, subject
to applicable law, including without notice, which could reduce the market price for our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the number of shares of common stock
that will be issued upon conversion of outstanding 6% convertible unsecured notes with a total principal amount of $6,305,000 plus accrued
interest are issuable at the option of the holders at the price per share equal to $2.50 if converted prior to the initial public offering
is 2,522,000 shares of common stock, or 3,152,500 shares of common stock (assuming an initial public offering price of $4.00 per share,
the low point of the price range set forth on the cover page of this prospectus), based on an automatic conversion price equal to 50%
of the offering price per share in the initial public offering pursuant to the applicable convertible note terms, if such notes convert
automatically pursuant to mandatory conversion upon the initial public offering, in either case without further payments by such notes&rsquo;
holders. In addition, the number of shares of common stock that will be issued upon conversion of outstanding 8% convertible unsecured
notes with a total principal amount of $1,465,000 plus accrued interest are issuable at the option of the holders at the price per share
determined by dividing $25 million by the total number of outstanding shares of the Company if converted prior to the initial public
offering is 444,842 shares of common stock, or 732,500 shares of common stock (assuming an initial public offering price of $4.00 per
share, the low point of the price range set forth on the cover page of this prospectus), based on an automatic conversion price equal
to 50% of the offering price per share in the initial public offering pursuant to the applicable convertible note terms, if such notes
convert automatically pursuant to mandatory conversion upon the initial public offering, in either case without further payments by such
notes&rsquo; holders. In addition, the number of shares of common stock that will be issued upon exercise of certain outstanding investor
warrants that were issued to the initial holders of the outstanding 8% convertible unsecured promissory notes representing the right
to purchase shares of up a value equal to $1,465,000 in shares of common stock at an exercise price equal to 50% of the offering price
per share in the initial public offering is 732,500 shares of common stock (assuming an initial public offering price of $4.00 per share,
the low point of the price range set forth on the cover page of this prospectus). In addition, the number of shares of common stock that
will be issued upon exercise of certain investor warrants that were issued to the initial holders of the outstanding 8% unsecured promissory
notes is 940,000 shares of common stock at an exercise price $2.50 per share, which may be voluntarily exercised for cash, or, upon the
occurrence of certain events, including this initial public offering, automatically exercised as to the unexercised portion for the deemed
repayment in the amount of the exercise price of the balance under related outstanding 8% unsecured promissory notes. Additionally, Boustead,
as the placement agent in the private placements of these securities, has been issued warrants to purchase an amount equal to 7% of the
shares issuable under the above securities other than the 8% convertible unsecured promissory notes and related warrants, including 220,675
shares upon the automatic conversion of the 6% convertible unsecured promissory notes or 176,540 shares at the 6% convertible unsecured
promissory convertible notes&rsquo; optional conversion, plus 65,800 shares upon exercise of the warrants issued to the initial holders
of the 8% unsecured promissory notes, at the exercise price equal to the conversion or exercise price of the investor securities in connection
with which each placement agent warrant will be issued. All of these shares will be issuable at a lower price per share than the initial
public offering price, which may cause further dilution of the shares issued in the initial public offering.</P>


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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will also issue 13,375 shares of common stock
upon the completion of the initial public offering to certain vendors, assuming the offering is completed by November 15, 2023, based
on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover page
of this prospectus, otherwise the number of shares of common stock equal to the number of shares derived by dividing $53,500 by the Fair
Market Value, as defined by certain service provider agreements, of the common stock of the Company on November 15, 2023, pursuant to
such service provider agreements. These shares will be issued in exchange for legal services and no cash payments, which may cause further
dilution of your shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have also granted options to certain employees,
consultants, officers and directors that may be exercised to purchase up to 277,450 shares of common stock at an exercise price per share
equal to $3.10 per share and 243,000 shares of common stock at an exercise price per share equal to $2.50 per share, not including stock
options or portions of stock options that subsequently terminated due to employee and director departures. The dilutive effect of these
grants on the value of your shares may therefore be substantial.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following the initial public offering, we will
have 16,256,727 shares of common stock outstanding (at the assumed public offering price of $4.00 per share, the low point of the price
range set forth on the cover page of this prospectus), assuming no exercise of the underwriters&rsquo; over-allotment option, and further
assuming, at the time of the initial public offering, the automatic conversion of the Company&rsquo;s 6% convertible unsecured promissory
notes into a total of 3,152,500 shares of common stock, the automatic conversion of the Company&rsquo;s 8% convertible unsecured promissory
notes into a total of 732,500 shares of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares
of common stock, or 16,819,227 shares of common stock outstanding assuming the over-allotment amount is exercised in full and subject
to the other assumptions described above. Upon the closing of the initial public offering, all of the shares of common stock to be sold
in the initial public offering or by the selling stockholders named in the resale prospectus filed contemporaneously with this prospectus
will be freely tradable without restriction or further registration under the federal securities laws. All of the shares of common stock
outstanding prior to the initial public offering are believed to be subject to restrictions on resale under U.S. securities laws, including
Securities Act Rule 144, or will be subject to lock-up agreements. Following the initial public offering, including both the shares of
common stock offered by the Company and the shares of common stock offered by the selling stockholders named in the Company&rsquo;s resale
prospectus, 6,096,548 shares, or 37.5%, if the underwriters&rsquo; over-allotment option is not exercised (or 6,659,048 shares, or 39.6%
assuming the underwriters&rsquo; over-allotment amount is exercised in full), subject to the other assumptions described above, of our
outstanding common stock may not be subject to restrictions on resale under U.S. securities laws or lock-up agreements. After these lock-up
periods have expired, and the holding periods of restricted shares have elapsed, additional shares will be eligible for sale in the public
market. The market price of shares of our common stock may drop significantly when the lock-up agreements and other restrictions on resale
by our existing stockholders and beneficial owners lapse.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Moreover, in addition to the shares issuable
upon exercise of the warrants related to the 8% unsecured promissory notes, which are being registered for resale contemporaneously with
this initial public offering as required by such warrants, any shares issuable upon conversion of the 6% convertible unsecured promissory
notes not being registered contemporaneously with the initial public offering must be registered by a resale registration statement within
the period required by such notes, and any shares issuable upon conversion of the 8% convertible unsecured promissory notes not being
registered contemporaneously with the initial public offering and shares issuable upon exercise of the placement agent&rsquo;s warrants
are required to be registered for resale with such shares pursuant to the piggyback registration rights of the holders of such warrants.
Upon the registration of the resale of such shares, up to 4,243,975 additional shares of common stock will be registered for resale without
restrictions, or 26.1%, of our outstanding common stock, if the underwriters&rsquo; over-allotment option is not exercised (or 25.2%
assuming the underwriters&rsquo; over-allotment amount is exercised in full), subject to the other assumptions described above with respect
to shares outstanding following the initial public offering.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, if we file a registration statement
after the initial public offering, certain beneficial owners of our common stock may be entitled to require us to register, for public
sale in the United States, the shares of common stock beneficially owned by them, including shares issuable upon conversion of our 8%
convertible unsecured promissory notes and accompanying warrants. We may also file a registration statement on Form S-8 to register shares,
including shares under stock options or other equity compensation previously granted to our officers, directors, employees and service
providers or reserved for future issuance under our Stock Incentive Plan after the completion of the initial public offering. Subject
to the satisfaction of vesting conditions and the expiration of lock-up agreements, shares registered under the registration statement
on Form S-8 will be available for resale immediately in the public market without restriction other than those restrictions imposed on
sales by affiliates pursuant to Rule 144. Resales of our common stock as restrictions end or pursuant to registration rights may make
it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate. These sales could
also cause the trading price of our common stock to decline and make it more difficult for you to sell shares of our common stock. See
&ldquo;<I>Shares Eligible for Future Sale &ndash; Registration Rights</I>&rdquo; for a description of our obligations to file registration
statements following the initial public offering.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, certain of our employees, executive
officers, and directors may enter into Rule 10b5-1 trading plans providing for sales of shares of our common stock from time to time.
Under a Rule 10b5-1 trading plan, a broker executes trades pursuant to parameters established by the employee, director, or officer when
entering into the plan, without further direction from the employee, officer, or director. A Rule 10b5-1 trading plan may be amended
or terminated in some circumstances. Our employees, executive officers, and directors also may buy or sell additional shares outside
of a Rule 10b5-1 trading plan when they are not in possession of material, non-public information, subject to the expiration of the lock-up
agreements and Rule 144 requirements referred to above.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect that significant additional capital
will be needed in the future to continue our planned operations, including expanding research and development, funding clinical trials,
purchasing of capital equipment, hiring new personnel, commercializing our products, and continuing activities as an operating public
company. To the extent we raise additional capital by issuing equity securities, our stockholders may experience substantial dilution.
We may sell common stock, convertible securities or other equity securities in one or more transactions at prices and in a manner we
determine from time to time. If we sell common stock, convertible securities, or other equity securities in more than one transaction,
investors may be materially diluted by subsequent sales. Such sales may also result in material dilution to our existing stockholders,
and new investors could gain rights superior to our existing stockholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the event that the market price of shares
of our common stock drops significantly when the restrictions on resale by our existing stockholders lapse, existing stockholders&rsquo;
dilution might be reduced to the extent that the decline in the price of shares of our common stock impedes our ability to raise capital
through the issuance of additional shares of our common stock or other equity securities. However, in the event that our capital-raising
ability is weakened as a result of a lower stock price, we may be unable to continue to fund our operations, which may further harm the
value of our stock price.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We do not expect to declare or pay dividends
in the foreseeable future.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not expect to declare or pay dividends
in the foreseeable future, as we anticipate that we will invest future earnings in the development and growth of our business. Therefore,
holders of our common stock will not receive any return on their investment unless they sell their securities, and holders may be unable
to sell their securities on favorable terms or at all.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If securities industry analysts do not
publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our common stock
could be negatively affected.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any trading market for our common stock may be
influenced in part by any research reports that securities industry analysts publish about us. We do not currently have and may never
obtain research coverage by securities industry analysts. If no securities industry analysts commence coverage of us, the market price
and market trading volume of our common stock could be negatively affected. In the event we are covered by analysts, and one or more
of such analysts downgrade our securities, or otherwise reports on us unfavorably, or discontinues coverage of us, the market price and
market trading volume of our common stock could be negatively affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future issuances of debt securities, which
would rank senior to our common stock upon our bankruptcy or liquidation, and future issuances of preferred stock, which could rank senior
to our common stock for the purposes of dividends and liquidating distributions, may adversely affect the level of return you may be
able to achieve from an investment in our common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the future, we may attempt to increase our
capital resources by offering debt securities. Upon bankruptcy or liquidation, holders of our debt securities, and lenders with respect
to other borrowings we may make, would receive distributions of our available assets prior to any distributions being made to holders
of our common stock. Moreover, if we authorize and issue preferred stock, the holders of such preferred stock could be entitled to preferences
over holders of common stock in respect of the payment of dividends and the payment of liquidating distributions. Because our decision
to issue debt or preferred stock in any future offering, or borrow money from lenders, will depend in part on market conditions and other
factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings or borrowings. Holders
of our common stock must bear the risk that any future offerings we conduct or borrowings we make may adversely affect the level of return,
if any, they may be able to achieve from an investment in our common stock.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If our shares of common stock become subject
to the penny stock rules, it would become more difficult to trade our shares.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SEC has adopted rules that regulate broker-dealer
practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00,
other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation
systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange
or system. If we do not retain a listing on NYSE American or another national securities exchange and if the price of our common stock
is less than $5.00, our common stock could be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction
in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information.
In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules,
a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive
(i) the purchaser&rsquo;s written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions
involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have
the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty
selling their shares.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The offering price of the Company&rsquo;s
initial public offering and resale offering could differ.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The offering price of the common stock in the
Company&rsquo;s initial public offering has been determined by negotiations between the Company and the underwriters based upon several
factors, including our prospects and the history and prospects for the industry in which we compete; an assessment of our management;
our prospects for future revenue and earnings; the recent prices of, and demand for, shares sold by us prior to the initial public offering;
the general condition of the securities markets at the time of the initial public offering; the recent market prices of, and demand for,
publicly traded securities of generally comparable companies; and other factors deemed relevant by us and the underwriters. The offering
price in the initial public offering bears no relationship to our assets, earnings or book value, or any other objective standard of
value. Additionally, the assumed offering price in the initial public offering of $4.00 per share (which is the low point of the estimated
range of the initial public offering price shown on the cover page of this prospectus) is substantially higher than the prices at which
the selling stockholders named in the resale prospectus filed contemporaneously with this prospectus acquired their shares (at a weighted-average
price per share of approximately $1.56), and we recently sold securities that may convert into or be exercised to purchase shares of
common stock at a per-share conversion or exercise price ($2.00 per share) substantially less than the initial public offering price.
Our recent share issuances at prices substantially less than the initial public offering price occurred while we were a non-public company,
and the shares we issued were subject to transfer restrictions imposed by the Securities Act, and by lock-up restrictions, whereas shares
issued in the initial public offering will be issued after we are a public company and will be issued without restriction.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders may sell the resale
shares at prevailing market prices or privately negotiated prices after close of the initial public offering and listing of our common
stock on the Nasdaq Capital Market. Therefore, the offering prices of our common stock in the initial public offering and the Company&rsquo;s
contemporaneous resale offering could differ. As a result, purchasers in the resale offering could pay more or less than the offering
price in the initial public offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The resale by the selling stockholders
may cause the market price of our common stock to decline.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The resale of shares of our common stock by the
selling stockholders named in the resale prospectus filed contemporaneously with this prospectus for the Company&rsquo;s contemporaneous
resale offering could result in resales of our common stock by our other stockholders concerned about selling volume. In addition, the
resale by the selling stockholders could have the effect of depressing the market price for our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We will be subject to ongoing public reporting
requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies and our stockholders
could receive less information than they might expect to receive from more mature public companies. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the completion of the Company&rsquo;s initial
public offering, we will be required to publicly report on an ongoing basis as an &ldquo;emerging growth company&rdquo; (as defined in
the JOBS Act) under the reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company, we may
take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies
that are not emerging growth companies, including but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">not
                                            being required to comply with the auditor attestation requirements of Section 404 of the
                                            Sarbanes-Oxley Act;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>


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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">being
                                            permitted to comply with reduced disclosure obligations regarding executive compensation
                                            in our periodic reports and proxy statements; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">being
                                            exempt from the requirement to hold a non-binding advisory vote on executive compensation
                                            and stockholder approval of any golden parachute payments not previously approved.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits
of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect to take advantage of these reporting
exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years, although
if the market value of our common stock that is held by non-affiliates exceeds $700 million as of any June 30 before that time, we would
cease to be an emerging growth company as of the following December 31.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because we will be subject to ongoing public
reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies, our stockholders
could receive less information than they might expect to receive from more mature public companies. We cannot predict if investors will
find our common stock less attractive if we elect to rely on these exemptions, or if taking advantage of these exemptions would result
in less active trading or more volatility in the price of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We believe we will be considered a smaller
reporting company and will be exempt from certain disclosure requirements, which could make our common stock less attractive to potential
investors.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Rule 12b-2 of the Exchange Act defines a &ldquo;smaller
reporting company&rdquo; as an issuer that is not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a
parent that is not a smaller reporting company and that:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">had
                                            a public float of less than $250 million as of the last business day of its most recently
                                            completed second fiscal quarter, computed by multiplying the aggregate worldwide number of
                                            shares of its voting and non-voting common equity held by non-affiliates by the price at
                                            which the common equity was last sold, or the average of the bid and asked prices of common
                                            equity, in the principal market for the common equity; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">in
                                            the case of an initial registration statement under the Securities Act or the Exchange Act
                                            for shares of its common equity, had a public float of less than $250 million as of a date
                                            within 30 days of the date of the filing of the registration statement, computed by multiplying
                                            the aggregate worldwide number of such shares held by non-affiliates before the registration
                                            plus, in the case of a Securities Act registration statement, the number of such shares included
                                            in the registration statement by the estimated public offering price of the shares; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">in
                                            the case of an issuer whose public float as calculated under paragraph (1) or (2) of this
                                            definition was zero or whose public float was less than $700 million, had annual revenues
                                            of less than $100 million during the most recently completed fiscal year for which audited
                                            financial statements are available.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">If a company determines
that it does not qualify for smaller reporting company status because it exceeded one or more of the above thresholds, it will remain
unqualified unless when making its annual determination it meets certain alternative threshold requirements which will be lower than
the above thresholds if its prior public float or prior annual revenues exceed certain thresholds.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a smaller reporting company, we will not be
required and may not include a Compensation Discussion and Analysis section in our proxy statements; we will provide only two years of
financial statements; and we need not provide the table of selected financial data. We also will have other &ldquo;scaled&rdquo; disclosure
requirements that are less comprehensive than issuers that are not smaller reporting companies which could make our common stock less
attractive to potential investors, which could make it more difficult for our stockholders to sell their shares.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>As a &ldquo;smaller reporting company,&rdquo;
we may choose to exempt our company from certain corporate governance requirements that could have an adverse effect on our public stockholders</I></B><I>.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under Nasdaq rules, a &ldquo;smaller reporting
company,&rdquo; as defined in Rule 12b-2 under the Exchange Act, is not subject to certain corporate governance requirements otherwise
applicable to companies listed on Nasdaq. For example, a smaller reporting company is exempt from the requirement of having a compensation
committee composed solely of directors meeting certain enhanced independence standards, as long as the compensation committee has at
least two members who do meet such standards. Although we have not yet determined to avail ourselves of this or other exemptions from
Nasdaq requirements that are or may be afforded to smaller reporting companies, while we will seek to maintain our shares on Nasdaq in
the future we may elect to rely on any or all of them. By electing to utilize any such exemptions, our company may be subject to greater
risks of poor corporate governance, poorer management decision-making processes, and reduced results of operations from problems in our
corporate organization. Consequently, our stock price may suffer, and there is no assurance that we will be able to continue to meet
all continuing listing requirements of Nasdaq from which we will not be exempt, including minimum stock price requirements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>As a non-accelerated filer, we will not
be required to comply with the auditor attestation requirements of the Sarbanes-Oxley Act.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will not be an &ldquo;accelerated filer&rdquo;
or a &ldquo;large accelerated filer&rdquo; under the Exchange Act. Rule 12b-2 under the Exchange Act defines an &ldquo;accelerated filer&rdquo;
to mean any company that first meets the following conditions at the end of each fiscal year: The company had a public float of $75 million
or more, but less than $700 million, as of the last business day of the company&rsquo;s most recently completed second fiscal quarter;
the company has been subject to the reporting requirements of the Exchange Act for at least twelve calendar months; the company has filed
at least one annual report under the Exchange Act; and the company is not eligible to use the requirements for a &ldquo;smaller reporting
company&rdquo; under the revenue test in paragraph (2) or (3)(iii)(B), as applicable, of the &ldquo;smaller reporting company&rdquo;
definition in Rule 12b-2 of the Exchange Act. Rule 12b-2 under the Exchange Act defines a &ldquo;large accelerated filer&rdquo; in the
same way except that the company meeting the definition must have a public float of $700 million or more as of the last business day
of the company&rsquo;s most recently completed second fiscal quarter.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A non-accelerated filer is not required to file
an auditor attestation report on internal control over financial reporting that is otherwise required under Section 404(b) of the Sarbanes-Oxley
Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Therefore, our internal control over financial
reporting will not receive the level of review provided by the process relating to the auditor attestation included in annual reports
of issuers that are subject to the auditor attestation requirements. In addition, we cannot predict if investors will find our common
stock less attractive because we are not required to comply with the auditor attestation requirements. If some investors find our common
stock less attractive as a result, there may be a less active trading market for our common stock and trading price for our common stock
may be negatively affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Upon becoming a public company, we will
incur significant increased costs as a result of operating as a public company, and our management will be required to devote substantial
time to new compliance initiatives.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon becoming a public company, we will incur
significant legal, accounting and other expenses that we did not incur as a private company. In addition, the Sarbanes-Oxley Act has
imposed various requirements on public companies including requiring establishment and maintenance of effective disclosure and financial
controls. Our management and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover,
these rules and regulations have increased and will continue to increase our legal and financial compliance costs and will make some
activities more time-consuming and costly. For example, we expect that these rules and regulations may make it more difficult and more
expensive for us to obtain directors&rsquo; and officers&rsquo; liability insurance, which could make it more difficult for us to attract
and retain qualified members of our board of directors. We cannot predict or estimate the amount of additional costs we will incur as
a public company or the timing of such costs.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sarbanes-Oxley Act requires, among other
things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. In particular, we
must perform system and process evaluation and testing of our internal control over financial reporting to allow management to report
on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. In addition,
we will be required to have our independent registered public accounting firm attest to the effectiveness of our internal control over
financial reporting the later of our second annual report on Form 10-K or the first annual report on Form 10-K following the date on
which we are no longer an emerging growth company or a smaller reporting company. Our compliance with Section 404 of the Sarbanes-Oxley
Act will require that we incur substantial accounting expense and expend significant management efforts. We currently do not have an
internal audit group, and we will need to hire additional accounting and financial staff with appropriate public company experience and
technical accounting knowledge. If we are not able to comply with the requirements of Section 404 in a timely manner, or if we or our
independent registered public accounting firm identify deficiencies in our internal control over financial reporting that are deemed
to be material weaknesses, the value of our securities could decline and we could be subject to sanctions or investigations by the SEC
or other regulatory authorities, which would require additional financial and management resources.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our ability to successfully
implement our business plan and comply with Section 404 requires us to be able to prepare timely and accurate financial statements. We
expect that we will need to continue to improve existing, and implement new operational and financial systems, procedures and controls
to manage our business effectively. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems,
procedures or controls, may cause our operations to suffer and we may be unable to conclude that our internal control over financial
reporting is effective and to obtain an unqualified report on internal controls from our auditors as required under Section 404 of the
Sarbanes-Oxley Act. This, in turn, could have an adverse impact on value of our securities, and could adversely affect our ability to
access the capital markets.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our principal stockholder, executive officers
and directors will beneficially own a significant percentage of the outstanding voting power of the Company following the Company&rsquo;s
initial public offering. As a result, they will be able to exercise significant influence over all matters requiring stockholder approval.</I></B>&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this prospectus, our executive
officers and directors, in the aggregate, beneficially own shares representing approximately 18.7% of our common stock. Dennis Gile,
our largest stockholder and a former officer and director, beneficially owns approximately 28.9% of our common stock. Our executive officers
and directors collectively will beneficially own approximately 10.5% of our outstanding common stock following the Company&rsquo;s initial
public offering if the underwriters do not exercise their over-allotment option, or approximately 10.2% if the underwriters exercise
the over-allotment&nbsp;option in full (based on the assumed public offering price of $4.00 per share of common stock being sold in the
Company&rsquo;s initial public offering, which is the low point of the estimated offering range set forth on the cover page of this prospectus),
and assuming, at the time of the initial public offering, the automatic conversion of the Company&rsquo;s 6% convertible unsecured promissory
notes into a total of 3,152,500 shares of common stock, the automatic conversion of the Company&rsquo;s 8% convertible unsecured promissory
notes into a total of 732,500 shares of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares
of common stock. Management will collectively control the same percentage of the voting power following the offering. Mr. Gile will beneficially
own and have voting power over approximately 13.5% of our outstanding common stock following the initial public offering if the underwriters
do not exercise their over-allotment option, or approximately 13.1% if the underwriters exercise the over-allotment&nbsp;option in full,
subject to the other assumptions described above. Beneficial ownership includes shares over which an individual or entity has investment
or voting power and includes shares that could be issued upon the exercise of options, convertible notes and warrants within 60 days
after the date of determination. On matters submitted to our stockholders for approval, holders of our common stock are entitled to one
vote per share. Mr. Gile, individually, and our executive officers and directors collectively if they choose to act together, would have
significant influence over all matters submitted to our stockholders for approval, as well as our management and affairs. For example,
these individuals would have significant influence on the election of directors and approval of any merger, consolidation, or sale of
all or substantially all of our assets. This concentration of voting power could delay or prevent an acquisition of our company on terms
that other stockholders may desire.</P>


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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Anti-takeover provisions contained in our
Amended and Restated Bylaws, as well as provisions of Delaware law, could impair a takeover attempt.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to&nbsp;Section&nbsp;203&nbsp;of
the Delaware General Corporation Law, or DGCL, which&nbsp;prohibits a Delaware corporation from engaging in any business combination
with any interested stockholder for a period of three&nbsp;years after the date that such stockholder became an interested stockholder,
with the following exceptions:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">before
                                            such date, the Board of the corporation approved either the business combination or the transaction
                                            that resulted in the stockholder becoming an interested stockholder;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">upon
                                            completion of the transaction that resulted in the stockholder becoming an interested stockholder,
                                            the interested stockholder owned at least 85% of the voting stock of the corporation outstanding
                                            at the time the transaction began, excluding for purposes of determining the voting stock
                                            outstanding (but not the outstanding voting stock owned by the interested stockholder) those&nbsp;shares
                                            owned (i)&nbsp;by persons who are directors and also officers and (ii)&nbsp;employee stock
                                            plans in which employee participants do not have the right to determine confidentially whether
                                            shares held subject to the plan will be tendered in a tender or exchange offer; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">on
                                            or after such date, the business combination is approved by the Board and authorized at an
                                            annual or special meeting of the stockholders, and not by written consent, by the affirmative
                                            vote of at least 662&#8725;3% of the outstanding voting stock that is not owned by the interested
                                            stockholder.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general,&nbsp;Section&nbsp;203&nbsp;defines
a &ldquo;business combination&rdquo; to include the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">any
                                            merger or consolidation involving the corporation and the interested stockholder;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">any
                                            sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation
                                            involving the interested stockholder;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">subject
                                            to certain exceptions, any transaction that results in the issuance or transfer by the corporation
                                            of any stock of the corporation to the interested stockholder;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">any
                                            transaction involving the corporation that has the effect of increasing the proportionate
                                            share of the stock or any class or series of the corporation beneficially owned by the interested
                                            stockholder; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">the
                                            receipt by the interested stockholder of the benefit of any loans, advances, guarantees,
                                            pledges or other financial benefits by or through the corporation.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general,&nbsp;Section&nbsp;203&nbsp;defines
an &ldquo;interested stockholder&rdquo; as an entity or person who, together with the person&rsquo;s affiliates and associates, beneficially
owns, or within three&nbsp;years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding
voting stock of the corporation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The statute could prohibit or delay mergers or
other takeover or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may
offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A Delaware corporation may &ldquo;opt out&rdquo;
of these provisions with an express provision in its certificate of incorporation. We have not opted out of these provisions, which may,
as a result, discourage or prevent mergers or other takeover or change of control attempts of us.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, our Amended and Restated Bylaws
contain certain provisions that may have anti-takeover&nbsp;effects, making it more difficult for or preventing a third party from acquiring
control of our company or changing our board of directors and management. Our Certificate of Incorporation provides that a majority of
the board of directors has the sole authority to establish the number of directors and fill any vacancies and newly created directorships.
These provisions may prevent a stockholder from increasing the size of our board of directors and gaining control of our board of directors
by filling the resulting vacancies with its own nominees. In addition, our Amended and Restated Bylaws provide that in addition to any
other vote required by law, no member of our board of directors may be removed from office by our stockholders without the approval of
not less than the majority of the total voting power of all of our outstanding shares of capital stock then entitled to vote in the election
of directors. Our Amended and Restated Bylaws also do not provide our stockholders with the power to call a special meeting of stockholders
and contain certain advance notice provisions for the submission and presentation of stockholder meeting proposals or director nominations
at a stockholder meeting, which may limit the ability of stockholders to influence the composition and business decisions of our management.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Amended and Restated Bylaws expressly provide for a right of first refusal of the Company for any proposed sale or transfer of stock
by a stockholder. As provided, any stockholder may only sell or transfer stock after first giving written notice of the proposed terms
of the transfer and a 30-day option to the Company or any designee(s) to purchase the shares on such terms. To the extent that the Company
and any designee(s) do not exercise the right of first refusal, the stockholder will have 60 days to sell or transfer the shares as proposed.
Certain transfers are exempt from the right of first refusal, including to immediate family, pledges of shares, or to another stockholder
or an officer or director of the Company. </FONT>However, this right of first refusal will terminate upon the date securities of the
Company are first offered to the public pursuant to a registration statement or offering statement filed with, and declared effective
or qualified by, as applicable, the SEC under the Securities Act. It is expected that upon the completion of the Company&rsquo;s initial
public offering, the right of first refusal under the Amended and Restated Bylaws will terminate in accordance with its terms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Amended and Restated Bylaws also provide that the Company may agree with any stockholders to restrict the sale or other disposal of the
stock of the Company owned by such stockholders. Our Amended and Restated Bylaws are expressly subject to the restrictions set forth
in the Shareholder Agreement. As discussed in &ldquo;<I>Corporate History and Structure &ndash; Shareholder Agreement</I>&rdquo; and
&ldquo;<I>Shares Eligible For Future Sale &ndash; </I></FONT><I>Shareholder Agreement</I>&rdquo;, the Shareholder Agreement provides
certain restrictions, rights and obligations relating to the proposed sale, transfer or other disposition of the shares of the Company.
These restrictions, rights and obligations include certain provisions that may have anti-takeover effects and prevent a third party from
acquiring control of the Company, including the Company&rsquo;s right of first refusal for proposed sales of shares by any stockholder;
each of the stockholder parties&rsquo; right to purchase up to their relative percentage ownership of the Company&rsquo;s common stock
of any common stock or securities convertible into or exercisable to purchase common stock that the Company may from time to time issue,
including in an initial public offering, at the proposed price and other offering terms; and tag-along rights of the stockholder parties
to a proposed Change of Control, which may limit the Company&rsquo;s ability to negotiate a Change of Control transaction. However, the
Shareholder Agreement provides that it will terminate on the earliest of (i) the written consent of the board of directors and vote of
two-thirds of the holders of the outstanding common stock of the Company; (ii) the Company&rsquo;s dissolution, filing of a petition
in bankruptcy under Chapter 7 of the United States Bankruptcy Code or insolvency of the Company; (iii) upon the closing of the Company&rsquo;s
first underwritten public offering of its common stock on Nasdaq, the New York Stock Exchange or other exchange or marketplace approved
by the board of directors; or (iv) at such time as only one stockholder party remains. It is expected that upon the completion of the
initial public offering, the Shareholder Agreement will terminate in accordance with its terms.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Furthermore, the holders of our common stock
do not have cumulative voting rights in the election of our directors. The combination of the present ownership by a few stockholders
of a significant portion of our issued and outstanding common stock and lack of cumulative voting makes it more difficult for other stockholders
to replace our board of directors or for a third party to obtain control of our company by replacing its board of directors.</P>

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


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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_003"></A>CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus contains forward-looking statements
that are based on our management&rsquo;s beliefs and assumptions and on information currently available to us. All statements other than
statements of historical facts are forward-looking statements. The forward-looking statements are contained principally in, but not limited
to, the sections entitled &ldquo;<I>Prospectus Summary</I>,&rdquo; &ldquo;<I>Risk Factors</I>,&rdquo; &ldquo;<I>Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations</I>&rdquo; and &ldquo;<I>Business</I>.&rdquo; These statements relate to
future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause
our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, but are not
limited to, statements about:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">our
                                            ability to obtain additional funding to develop additional services and offerings;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">market
                                            acceptance of our new offerings;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">competition
                                            from existing online offerings or new offerings that may emerge;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">our
                                            ability to attract new users and customers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">our
                                            ability and third parties&rsquo; abilities to protect intellectual property rights;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">our
                                            ability to adequately support future growth; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">our
                                            ability to attract and retain key personnel to manage our business effectively.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In some cases, you can identify forward-looking
statements by terms such as &ldquo;may,&rdquo; &ldquo;could,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;would,&rdquo; &ldquo;expect,&rdquo;
&ldquo;plan,&rdquo; &ldquo;intend,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo;
&ldquo;potential,&rdquo; &ldquo;project&rdquo; or &ldquo;continue&rdquo; or the negative of these terms or other comparable terminology.
These statements are only predictions. Factors that may cause actual results to differ materially from current expectations include, among
other things, those listed under the heading &ldquo;<I>Risk Factors</I>&rdquo; and elsewhere in this prospectus. If one or more of these
risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly
from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The forward-looking statements made in this prospectus
relate only to events or information as of the date on which the statements are made in this prospectus. Although we will become a public
company after the Company&rsquo;s initial public offering and have ongoing disclosure obligations under United&nbsp;States federal securities
laws, we do not intend to update or otherwise revise the forward-looking statements in this prospectus, whether as a result of new information,
future events or&nbsp;otherwise.</P>

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


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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_004"></A>USE
OF PROCEEDS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After deducting the estimated underwriting discounts,
commissions and non-accountable expense allowance and other offering expenses payable by us, and assuming no exercise of the representative&rsquo;s
warrants, we expect to receive net proceeds of approximately $12.8 million from the Company&rsquo;s initial public offering (or approximately
$14.8 million if the underwriters exercise the over-allotment option in full), based on an assumed public offering price of $4.00 per
share, which is the low point of the estimated offering range set forth on the cover page of this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We plan to use the net proceeds of the initial
public offering as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">50%
                                            of the net proceeds (approximately $6.4&nbsp;million if the underwriters do not exercise
                                            the over-allotment option, or approximately $7.4 million if the underwriters exercise the
                                            over-allotment option in full), for product and technology development;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">40%
                                            of the net proceeds (approximately $5.1&nbsp;million if the underwriters do not exercise
                                            the over-allotment option, or approximately $5.9 million if the underwriters exercise the
                                            over-allotment option in full), for expansion of our sales team and marketing efforts; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">10%
                                            of the net proceeds (approximately $1.3&nbsp;million if the underwriters do not exercise
                                            the over-allotment option, or approximately $1.5 million if the underwriters exercise the
                                            over-allotment option in full), for general working capital and other corporate purposes,
                                            including repayment of indebtedness used for working capital consisting of $40,000 in principal
                                            outstanding under a promissory note due within ten business days of the closing of the initial
                                            public offering and any balance outstanding under 8% unsecured promissory notes issued for
                                            the aggregate principal amount of $2,350,000 bearing interest at 8% per annum, due on the
                                            earlier to occur of the second anniversary of the initial closing date of the respective
                                            private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000
                                            principal), the closing of the initial public offering and listing of the common stock on
                                            a national stock exchange, or other Liquidity Event (defined in the same manner as &ldquo;Alternative
                                            Liquidity Event,&rdquo; except such term also applies to an initial public offering and national
                                            stock exchange listing of the common stock) (see &ldquo;<I>Description of Securities &ndash;
                                            6% Convertible Unsecured Promissory Notes</I>&rdquo;).</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each $1.00 increase or decrease in the assumed
initial public offering price of $4.00 per share, which is the low point of the estimated offering price range set forth on the cover
page of this prospectus, would increase or decrease the net proceeds that we receive from the initial public offering by approximately
$3.5 million if the underwriters do not exercise the over-allotment option (or approximately $4.0 million if the underwriters exercise
the over-allotment option in full), assuming that the number of shares offered by us, as set forth on the cover page of this prospectus,
remains the same and after deducting the estimated underwriting discounts, commissions and non-accountable expense allowance, and other
offering expenses payable by us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing represents our current intentions
to use and allocate the net proceeds of the initial public offering based upon our present plans and business conditions. Our management,
however, will have broad discretion in the way that we use the net proceeds of the initial public offering. Pending the final application
of the net proceeds of the initial public offering, we intend to invest the net proceeds of the initial public offering in short-term,
interest-bearing, investment-grade securities. See &ldquo;<I>Risk Factors&mdash;Risks Related to Our Common Stock and the Initial Public
Offering&mdash;We have considerable discretion as to the use of the net proceeds from the initial public offering and we may use these
proceeds in ways with which you may not agree</I>.&rdquo;</P>

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


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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_005"></A>DIVIDEND
POLICY</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have never declared or paid cash dividends
on our common stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business
and do not anticipate paying any cash dividends on our common stock in the near future. We may also enter into credit agreements or other
borrowing arrangements in the future that will restrict our ability to declare or pay cash dividends on our common stock. Any future
determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition,
operating results, capital requirements, contractual restrictions, general business conditions and other factors that our board of directors
may deem relevant. See also &ldquo;<I>Risk Factors&mdash;Risks Related to Our Common Stock and Initial Public Offering&mdash;We do not
expect to declare or pay dividends in the foreseeable future</I>.&rdquo;</P>

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


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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_006"></A>CAPITALIZATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth our capitalization
as of December 31, 2022:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">on
                                            an actual basis;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">on
                                            a pro forma basis to reflect (i) the issuance of 8% convertible unsecured promissory notes
                                            in the principal amount of $150,000 subsequent to December 31, 2022; (ii) the issuance of
                                            15,000 shares of common stock as partial payment for legal services subsequent to December
                                            31, 2022; (iii) the issuance &nbsp;of 8% unsecured promissory notes for principal of $2,350,000
                                            subsequent to December 31, 2022; (iv) the repurchase of 600,000 shares of common stock from
                                            a stockholder and former officer and director of the Company for a total purchase price of
                                            $800,000 subsequent to December 31, 2022; and (v) a grant of 90,000 shares of common stock
                                            to an executive officer under the Plan subsequent to December 31, 2022; and </TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">on
                                            a pro forma as-adjusted basis to reflect (i) the issuance of 3,750,000 shares by us in the
                                            Company&rsquo;s initial public offering at an assumed price to the public of $4.00 per share,
                                            which is the low point of the estimated offering range set forth on the cover page of this
                                            prospectus, resulting in net proceeds to us of approximately $12.8 million after deducting
                                            (a) underwriting discounts and commissions and non-accountable expense allowance of approximately
                                            $1.2 million and (b) our estimated other offering expenses of approximately $1.0 million
                                            (assuming no exercise of the underwriters&rsquo; over-allotment option), and assuming no
                                            exercise of the representative&rsquo;s warrants; (ii) the repayment of $40,000 due under
                                            a promissory note within ten business days after the closing of the initial public offering;
                                            (iii) the assumed conversion upon the closing of the initial public offering of the outstanding
                                            6% convertible unsecured promissory notes in the principal amount of $6,305,000 into an aggregate
                                            of 3,152,500&nbsp;shares of common stock assuming a mandatory conversion price of $2.00 per
                                            share, based on the assumed initial public offering price of $4.00 per share, which is the
                                            low point of the price range set forth on the cover page of this prospectus; (iv) the assumed
                                            conversion upon the closing of the initial public offering of the outstanding 8% convertible
                                            unsecured promissory notes in the principal amount of $1,465,000 into an aggregate of 732,500&nbsp;shares
                                            of common stock assuming a mandatory conversion price of $2.00 per share, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus; (v) the assumed automatic exercise of warrants
                                            upon the closing of the initial public offering for the issuance of 940,000&nbsp;shares of
                                            common stock; (vi) the assumed deemed repayment of the principal amount of the 8% unsecured
                                            promissory notes upon such automatic exercise of warrants; (vii) the assumed nominal cash
                                            repayment of any amount remaining outstanding under the 8% unsecured promissory notes as
                                            of the date of this prospectus; (viii) the issuance of up to 77,200 shares of common stock
                                            to Boustead as placement agent in consideration for the waiver of its success fee and expense
                                            allowance for Company-introduced investors in the private placement of the Company&rsquo;s
                                            8% convertible unsecured promissory notes and accompanying warrants equal to 8% of the number
                                            of shares of common stock issuable to the Company-introduced investors upon conversion or
                                            exercise, as applicable, of their securities, based on the assumed initial public offering
                                            price of $4.00 per share, which is the low point of the price range set forth on the cover
                                            page of this prospectus; (ix) the payment of an aggregate $20,000 in deferred success fees
                                            and non-accountable expense allowance to Boustead relating to the private placement of the
                                            8% convertible unsecured promissory notes and accompanying warrants; and (x) the issuance
                                            of 13,375 shares of common stock to certain vendors pursuant to service provider agreements.</TD></TR></TABLE>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pro forma as-adjusted information below is
illustrative only and our capitalization following the completion of the initial public offering is subject to adjustment based on the
initial public offering price of our common stock and other terms of the initial public offering determined at pricing. You should read
this table together with our financial statements and the related notes included elsewhere in this prospectus and the information under
&ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</I>.&rdquo;</P>



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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of December 31, 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Actual</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Pro
                                            Forma</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Pro Forma As Adjusted</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; width: 64%; text-align: left; padding-left: 0.125in">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">254,409</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,791,047</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">14,503,302</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Long-term debt <FONT STYLE="font-size: 10pt">&nbsp;&nbsp;</FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,917,080</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,267,080</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Stockholders&rsquo; (deficit):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Common stock, $0.0001 par value per share, 150,000,000
    shares authorized, 8,086,152 shares issued and outstanding, actual, 7,591,152 shares issued and outstanding, pro forma, 16,256,727
    shares issued and outstanding, pro forma as adjusted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">809</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">760</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,626</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,377,459</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,376,700</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,087,329</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Accumulated deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11,480,816</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11,480,816</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11,480,816</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Total stockholders&rsquo; (deficit)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,102,548</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,103,357</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,608,139</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; font-weight: bold; text-align: left; padding-left: 0.125in">Total capitalization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,185,468</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">163,723</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,608,139</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each $1.00 increase or decrease in the assumed
offering price per share of $4.00 would increase or decrease the net proceeds that we receive in the initial public offering and each
of total stockholders&rsquo; equity and total capitalization by approximately $3.5 million (or approximately $4.0 million if the over-allotment
option is exercised in full), assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains
the same, and after deducting the estimated underwriting discounts and commissions and non-accountable expense allowance and offering
expenses payable by us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table above is based on 8,086,152 shares
of our common stock outstanding as of December 31, 2022, after giving effect to the Reverse Stock Split at a ratio of 1-for-5 which became
effective on April 14, 2023, and excludes the following securities or rights to securities that were outstanding as of December 31, 2022:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">2,039,328
                                            shares of common stock issuable upon the optional conversion of outstanding 6% convertible
                                            unsecured promissory notes at their optional conversion price of approximately $3.09 per
                                            share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">399,294
                                            shares of common stock issuable upon the optional conversion of outstanding 8% convertible
                                            unsecured promissory notes at their optional conversion price of approximately $3.09 per
                                            share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Up
                                            to 65,200 shares of common stock issuable to Boustead as placement agent in consideration
                                            for the waiver of its success fee and expense allowance for Company-introduced investors
                                            in the private placement of the Company&rsquo;s 8% convertible unsecured promissory notes
                                            and accompanying warrants equal to 8% of the number of shares of common stock issuable to
                                            the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of this prospectus;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">176,540
                                            shares of common stock issuable upon exercise of placement agent&rsquo;s warrants at an exercise
                                            price of $2.50 per share upon the optional conversion of outstanding 6% convertible unsecured
                                            promissory notes at their optional conversion price of $2.50 per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">262,000
                                            total shares of common stock issuable upon the exercise of stock options that were granted
                                            to certain employees, consultants, officers, and directors under the Equity Incentive Plan,
                                            at an exercise price per share equal to $3.10 per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">750,000
                                            shares of common stock that are reserved for issuance under the Plan, which is inclusive
                                            of the 262,000 shares issuable upon the exercise of stock options that were granted under
                                            the Plan; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">301,875
                                            shares of common stock issuable upon exercise of representative&rsquo;s warrants to be issued
                                            to the underwriters in connection with the initial public offering, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus, and assuming full exercise by the underwriters
                                            of the over-allotment option.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>


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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_007"></A>DILUTION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dilution in net tangible book value per share
to new investors is the amount by which the offering price paid by the purchasers of the shares of common stock sold in the Company&rsquo;s
initial public offering exceeds the pro forma net tangible book value per share of common stock after the initial public offering. Net
tangible book value per share is determined at any date by subtracting our total liabilities from the total book value of our tangible
assets and dividing the difference by the number of shares of common stock deemed to be outstanding at that date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The net tangible book value of our common stock
as of December 31, 2022 was $(8,237,077), or approximately $(1.02) per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pro forma as adjusted net tangible book value
dilution per share to new investors represents the difference between the amount per share paid by purchasers of common stock in the
initial public offering and the pro forma as adjusted net tangible book value per share of common stock immediately after completion
of the initial public offering. Investors participating in the initial public offering will incur immediate, substantial dilution. After
giving effect to (i) the issuance of 8% convertible unsecured promissory notes in the principal amount of $150,000 subsequent to December
31, 2022; (ii) the issuance of 15,000 shares of common stock as partial payment for legal services subsequent to December 31, 2022; (iii)
the issuance of 8% unsecured promissory notes for principal of $2,350,000 subsequent to December 31, 2022; (iv) the repurchase of 600,000
shares of common stock from a stockholder and former officer and director of the Company for a total purchase price of $800,000 subsequent
to December 31, 2022; (v) a grant of 90,000 shares of common stock to an executive officer under the Plan subsequent to December 31,
2022; (vi) the issuance of 3,750,000 shares by us in the initial public offering at an assumed price to the public of $4.00 per share,
which is the low point of the estimated offering range set forth on the cover page of this prospectus, resulting in net proceeds to us
of approximately $12.8 million after deducting (a) underwriting discounts and commissions and non-accountable expense allowance of approximately
$1.2 million and (b) our estimated other offering expenses of approximately $1.0 million (assuming no exercise of the underwriters&rsquo;
over-allotment option), and assuming no exercise of the representative&rsquo;s warrants; (vii) the repayment of $40,000 due under a promissory
note within ten business days after the closing of the initial public offering; (viii) the assumed conversion upon the closing of the
initial public offering of the outstanding 6% convertible unsecured promissory notes in the principal amount of $6,305,000 into an aggregate
of 3,152,500&nbsp;shares of common stock assuming a mandatory conversion price of $2.00 per share, based on the assumed initial public
offering price of $4.00 per share, which is the low point of the price range set forth on the cover page of this prospectus; (ix) the
assumed conversion upon the closing of the initial public offering of the outstanding 8% convertible unsecured promissory notes in the
principal amount of $1,465,000 into an aggregate of 732,500&nbsp;shares of common stock assuming a mandatory conversion price of $2.00
per share, based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth
on the cover page of this prospectus; (x) the assumed automatic exercise of warrants upon the closing of the initial public offering
for the issuance of 940,000&nbsp;shares of common stock; (xi) the assumed deemed repayment of the full principal amount of the 8% unsecured
promissory notes upon such automatic exercise of warrants; (xii) the assumed nominal cash repayment of any amount remaining outstanding
under the 8% unsecured promissory notes as of the date of this prospectus; (xiii) the issuance of up to 77,200 shares of common stock
to Boustead as placement agent in consideration for the waiver of its success fee and expense allowance for Company-introduced investors
in the private placement of the Company&rsquo;s 8% convertible unsecured promissory notes and accompanying warrants equal to 8% of the
number of shares of common stock issuable to the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover
page of this prospectus; (x) the payment of an aggregate $20,000 in deferred success fees and non-accountable expense allowance to Boustead
relating to the private placement of the 8% convertible unsecured promissory notes and accompanying warrants; and (xi) the issuance of
13,375 shares of common stock to certain vendors pursuant to service provider agreements, our pro forma as adjusted net tangible book
value as of December 31, 2022 would have been approximately $13.3 million, or approximately $0.82 per share. This amount represents an
immediate increase in pro forma net tangible book value of approximately $1.84 per share to existing stockholders and an immediate dilution
in pro forma net tangible book value of approximately $3.18 per share to purchasers of common stock in the initial public offering, as
illustrated in the following table.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-indent: -0.125in; padding-left: 0.125in">Assumed public offering price per share</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">Historical net tangible book value per share as of December 31, 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.02</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Increase in pro forma as adjusted net tangible book value per share attributable to new investors purchasing shares in the initial public offering</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1.84</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Pro forma as adjusted net tangible book value per share after giving effect to the initial public offering</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.82</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Dilution per share to new investors purchasing shares in the initial public offering</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3.18</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>





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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the underwriters exercise their over-allotment
option in full, the pro forma as adjusted net tangible book value per share of our common stock, as adjusted to give effect to the initial
public offering, would be approximately $0.91 per share, and the dilution in pro forma net tangible book value per share to new investors
purchasing shares of common stock in the initial public offering would be approximately $3.09 per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pro forma information discussed above is
illustrative only. Our net tangible book value following the completion of the initial public offering is subject to adjustment based
on the actual initial public offering price of our common stock and other terms of the initial public offering determined at pricing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth, as of December
31, 2022 on a pro forma as adjusted basis, the total number of shares of common stock previously issued and sold to existing investors,
the total consideration paid for the foregoing and the average price per share of common stock paid, or to be paid, by existing owners
and by the new investors. The calculation below is based on the assumed initial public offering price of $4.00 per share, which is the
low point of the estimated offering price range set forth on the cover page of this prospectus, before deducting estimated underwriter
commissions and offering expenses, in each case payable by us, and assumes no exercise of the underwriters&rsquo; over-allotment option
or representative&rsquo;s warrants.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shares
    Purchased </B>&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Total Consideration</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Average&nbsp;
    Price </B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Number
    </B>&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Percent</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<B>Amount
    </B>&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Percent</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Per Share</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 40%; text-align: left">Shares held by existing stockholders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">7,591,152</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">46.7</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">759</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">0.0</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.0001</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Shares issuable upon certain events upon the consummation
    of the initial public offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,915,575</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30.2</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,210,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40.5</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.08</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Shares issued to investors in the initial public offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,750,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23.1</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">15,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">59.5</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,256,727</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100.0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">25,210,759</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100.0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.55</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table above is based on 8,086,152 shares
of our common stock outstanding as of December 31, 2022, after giving effect to the Reverse Stock Split at a ratio of 1-for-5 which became
effective on April 14, 2023, and excludes the following securities or rights to securities that were outstanding as of December 31, 2022:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">2,039,328
                                            shares of common stock issuable upon the optional conversion of outstanding 6% convertible
                                            unsecured promissory notes at their optional conversion price of approximately $3.09 per
                                            share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">399,294
                                            shares of common stock issuable upon the optional conversion of outstanding 8% convertible
                                            unsecured promissory notes at their optional conversion price of approximately $3.09 per
                                            share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">Up
                                            to 65,200 shares of common stock issuable to Boustead as placement agent in consideration
                                            for the waiver of its success fee and expense allowance for Company-introduced investors
                                            in the private placement of the Company&rsquo;s 8% convertible unsecured promissory notes
                                            and accompanying warrants equal to 8% of the number of shares of common stock issuable to
                                            the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of this prospectus;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">176,540
                                            shares of common stock issuable upon exercise of placement agent&rsquo;s warrants at an exercise
                                            price of $2.50 per share upon the optional conversion of outstanding 6% convertible unsecured
                                            promissory notes at their optional conversion price of $2.50 per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">262,000
                                            total shares of common stock issuable upon the exercise of stock options that were granted
                                            to certain employees, consultants, officers, and directors under the Equity Incentive Plan,
                                            at an exercise price per share equal to $3.10 per share;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">750,000
                                            shares of common stock that are reserved for issuance under the Plan, which is inclusive
                                            of the 262,000 shares issuable upon the exercise of stock options that were granted under
                                            the Plan; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">301,875
                                            shares of common stock issuable upon exercise of representative&rsquo;s warrants to be issued
                                            to the underwriters in connection with the initial public offering, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus, and assuming full exercise by the underwriters
                                            of the over-allotment option.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent that any outstanding stock options
or warrants are exercised, or new stock options, restricted stock units or other securities are granted under the Plan, or we issue additional
shares of common stock in the future, there will be further dilution to investors participating in the initial public offering.</P>

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


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

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_008"></A>MANAGEMENT&rsquo;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The following discussion and analysis summarizes
the significant factors affecting our operating results, financial condition, liquidity and cash flows of our company as of and for the
periods presented below. The following discussion and analysis should be read in conjunction with our financial statements and the related
notes thereto included elsewhere in this prospectus. The discussion contains forward-looking statements that are based on the beliefs
of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially
from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and
elsewhere in this prospectus, particularly in the sections titled &ldquo;Risk Factors&rdquo; and &ldquo;Cautionary Statement Regarding
Forward-Looking Statements&rdquo;.</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are a technology
company developing and operating platforms to give significantly more student-athletes the opportunity to go to college and continue
playing sports. Our platform, Signing Day Sports, is a digital ecosystem to help athletes get discovered and recruited by coaches and
recruiters across the country. We currently fully support football and baseball, and we plan to expand the Signing Day Sports platform
to include additional sports. Each sport is led by former professional athletes and coaches who know what it takes to get to the big
leagues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Signing Day Sports launched
in 2019, and as of March 2023, many high schools, sports clubs, and aspiring high school athletes have subscribed to the Signing Day
Sports platform. Colleges in the NCAA Division I, Division II, and Division III, and the NAIA, have utilized our platform for recruitment
purposes. Signing Day Sports initially supported football athletes, also now offers a platform for baseball and softball, and is expected
to offer a men&rsquo;s and women&rsquo;s soccer platform in or around May 2023, resulting in even more recruiter and athlete platform
participants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We founded Signing Day
Sports to reinvent the high school and college sports recruiting process for the digital era. When we started the Company, recruiting
was still being done largely as it had been done since before the mass availability of Internet-connected devices and was still limited
by that model. We identified the flaws in the recruiting process and the unique opportunity it presented for us to become a solution
provider in the industry. We developed and operated our platform with the objective of optimizing and enhancing the sports recruitment
process across all sizes of colleges and athletic departments.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our ability to leverage
modern technologies to bring coaches and athletes together in a mutually beneficial ecosystem has shown significant benefits for both
sides of the student-athlete recruitment process. Parents and athletes can use the platform to understand and provide what recruiters
want to see, seek and gain offers of better athletic scholarships or other financial aid packages, and maximize the potential of an athlete&rsquo;s
career. Recruiters now have a comprehensive recruitment application that shows video verification of key attribute data and gives the
recruiter the ability to narrow down their search with a highly optimized search engine and athlete screening process.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In short, we offer a comprehensive solution that
services the needs of all participants in the sports recruitment process. We are aware of no other platform that offers what our platform
does. Our goal is to change the way sports recruitment is done for the betterment of everyone.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company&rsquo;s current
and former independent registered public accounting firms have expressed substantial doubt as to the Company&rsquo;s ability to continue
as a going concern. We have incurred losses for each period from our inception and a significant accumulated deficit. For the fiscal years
ended December 31, 2022 and 2021, our net loss was approximately $6.7 million and $8.8 million, respectively, our cash used in operating
activities was approximately $4.9 million and $5.7 million, respectively, and we had cumulative losses of approximately $18.1 million
and $11.5 million<FONT STYLE="font-family: Times New Roman, Times, Serif">, respectively. </FONT>We expect to incur expenses and operating
losses over the next several years. Accordingly, we will need additional financing to support our continuing operations. We will seek
to fund our operations through public or private equity offerings, debt financings, government or other third-party funding, collaborations
and licensing arrangements. Adequate additional financing may not be available to us on acceptable terms, or at all. Our failure to raise
capital as and when needed would impact our going concern status and would have a negative impact on our financial condition and our ability
to pursue our business strategy and continue as a going concern. We will need to generate significant revenues to achieve profitability,
and we may never do so.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">For further discussion,
see &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations &ndash; Liquidity and Capital
Resources &ndash; Going Concern</I>&rdquo;.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>8% Convertible Unsecured Promissory Notes
and Warrants</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to December 31, 2022, the Company
issued two 8% convertible unsecured promissory notes and accompanying warrants to accredited investors under subscription agreements
for aggregate loans of $150,000. The convertible notes bear interest at 8% annually, and are due August 8, 2023 unless converted in accordance
with their terms. For a further description of the terms of these convertible notes and warrants, see &ldquo;<I>Description of Securities
&ndash; 8% Convertible Unsecured Promissory Notes</I>&rdquo; and &ldquo;<I>Description of Securities &ndash; Warrants &ndash; Investor
Warrants</I>&rdquo;, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>January 2023 Settlement</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On or about November 29, 2022, John Dorsey, a
former Chief Executive Officer and director of the Company, through his counsel, sent the Company a letter demanding full payment on
a $50,000 loan that Mr. Dorsey allegedly made to the Company on or about July 21, 2022 while Mr. Dorsey was the Chief Executive Officer
of the Company that was due and payable two weeks thereafter (the &ldquo;Alleged Loan&rdquo;). The Company has generally denied entering
into a binding agreement with Mr. Dorsey on those terms and that payment is due and owing (the &ldquo;Loan Dispute&rdquo;). Under a Settlement
Agreement, Release of Claims, and Covenant Not To Sue between the Company and Mr. Dorsey, dated as of January 12, 2023 (the &ldquo;January
2023 Dorsey Settlement Agreement&rdquo;), Mr. Dorsey agreed to a discharge of the Alleged Loan and waiver and release of claims relating
to the Alleged Loan and Loan Dispute and covenant not to sue on the basis of such claims or otherwise commence any action or proceeding
that would be inconsistent with the release of such claims. The Company agreed to pay Mr. Dorsey $10,000 and issue a promissory note
to Mr. Dorsey in the principal amount of $40,000 payable on the earlier of ten business days following the successful closing of an initial
public offering of the Company&rsquo;s common stock that generates at least $1 million in net proceeds to the Company or July 1, 2023.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>8% Unsecured Promissory Notes and Warrants
Private Placements</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2023 and April 2023 we completed one
private placement, and in May 2023 &nbsp;we conducted a subsequent private placement in which we entered into subscription agreements
with a number of accredited investors, pursuant to which we issued 8% unsecured promissory notes in the aggregate principal amount of
$2,350,000, which bear interest at the annual rate of 8%, and accompanying warrants to purchase an aggregate of 940,000&nbsp;shares of
common stock exercisable at $2.50 per share. The warrants may be voluntarily exercised for cash prior to the maturity date of the promissory
notes or will be automatically exercised as described below. The amount outstanding under the 8% unsecured promissory notes must be repaid
upon the earlier to occur of the consummation of a Liquidity Event or the second anniversary of the initial closing date of the respective
private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000 principal). If a Liquidity Event occurs before
the second anniversary of the initial closing date of the applicable private placement, the warrants will be automatically exercised
as to the unexercised portion of the warrants, the outstanding balance under the 8% unsecured promissory notes will be deemed repaid
in the amount of the exercise price for the automatic exercise of the unexercised portion of the related warrants, with any remaining
balance owed on the promissory notes to be repaid in cash. If a Liquidity Event does not occur before the second anniversary of the initial
closing date of the applicable private placement, then both principal and interest outstanding under the notes must be repaid in cash.
The Company agreed to register the resale all of the shares of common stock that such warrants may or shall be exercised to purchase
with the shares being registered for sale in the registration statement of which this prospectus forms a part. The Company must generally
keep the registration statement effective for a period as shall be required to permit the investors to complete the offer and sale of
their shares. The Company and the investors also provided customary mutual indemnification relating to any damages arising from such
registration.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Boustead has acted as placement agent in these
private placements. Pursuant to our engagement letter agreement with Boustead, in addition to a commission equal to 7% of the gross proceeds
raised in the private placements, a non-accountable expense allowance equal to 1% of the gross proceeds raised in the private placements,
and payment of certain other expenses, we agreed to issue Boustead five-year warrants to purchase a number of shares of common stock
equal to 7% of the common stock underlying the warrants accompanying the 8% unsecured promissory notes at an exercise price equal to
the exercise price as defined in such warrants. Under the engagement letter with Boustead, its placement agent&rsquo;s warrants must
be registered for resale with the Company&rsquo;s initial public offering. However, Boustead has informally deferred these registration
rights with respect to the registration statement for the initial public offering.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the subscription agreements with the investors
in the first of these two private placements, the Company was required to use the first $450,000 of the net proceeds from the private
placement to expand its current operations, including its technology and intellectual property portfolio, and to fund the costs of its
initial public offering. The Company was required to use the next $800,000 of the net proceeds from the private placement to repurchase
up to 600,000 shares of common stock that were held by Dennis Gile, our largest stockholder and a former officer and director of the
Company, at a price equal to approximately $1.35 per share. The repurchase was required to be consummated only to the extent that it
does not impair the Company&rsquo;s capital within the meaning of Section 160 of the DGCL or the Company&rsquo;s ability to pay down
its debts as they become due. The Company was required to enter into an agreement with Mr. Gile providing that Mr. Gile will use the
proceeds of the repurchase to settle an existing lawsuit filed against Mr. Gile by John Dorsey, a former officer and director of the
Company, subject to a full release of Mr. Gile and the Company, and that Mr. Gile will resign from the board of directors of the Company
and from any officer position with the Company upon the repurchase. The Company was required to use any remaining net proceeds from the
private placement, which consisted of $250,000 less placement agent fees and expenses, for working capital and other general corporate
purposes. Subsequently, the Company used the net proceeds as required. For discussion of related recent developments, see &ldquo;&mdash;<I>Repurchase
of Shares, Settlement and Release</I>&rdquo; below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Repurchase of Shares, Settlement and Release</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 31, 2023, under the terms of a Repurchase
and Resignation Agreement, dated March 21, 2023, with Dennis Gile (the &ldquo;Repurchase Agreement&rdquo;), we paid an aggregate purchase
price of $800,000 for the repurchase (the &ldquo;Repurchase&rdquo;) of 600,000 shares of common stock from Dennis Gile, our largest stockholder
and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, at approximately $1.33 per share.
Pursuant to the Repurchase Agreement, $695,000 of the $800,000 payment was made to the attorneys for John Dorsey, a former officer and
director of the Company (the &ldquo;Dorsey/Gile Settlement Payment&rdquo;), as part of the settlement of a private lawsuit under a settlement
agreement between Mr. Gile and Mr. Dorsey (the &ldquo;Dorsey/Gile Lawsuit&rdquo;) between these individuals and Dorsey LLC (the &ldquo;Dorsey/Gile
Settlement Agreement&rdquo;). Pursuant to the Repurchase Agreement, the balance of the aggregate purchase price was paid to the attorneys
for Mr. Gile. Pursuant to the Repurchase Agreement, Mr. Gile agreed to resign his position as Chairman and every other director and officer
position he held with the Company effective as of March 21, 2023. Prior to such date, on March 20, 2023, Mr. Gile delivered notice of
resignation from such positions, which stated that it was effective March 19, 2023. Pursuant to the Repurchase Agreement, Mr. Gile will
not receive any severance payments in connection with any other agreement with the Company as a result of his resignation. The Repurchase
was also conditioned on the Company&rsquo;s prior review of and consent to the Dorsey/Gile Settlement Agreement prior to its execution,
and receipt of a certificate from the Chief Financial Officer of the Company that the Repurchase will not impair the Company&rsquo;s
capital within the meaning of Section 160 of the DGCL or the Company&rsquo;s ability to pay down its debts as they become due (the &ldquo;CFO
Certificate&rdquo;). Under the Repurchase Agreement, the Dorsey/Gile Settlement Agreement was required to fully resolve, settle and dismiss
the Gile/Dorsey Lawsuit and contain a general release of claims by all the plaintiffs in the Dorsey/Gile Lawsuit in favor of Mr. Gile,
the Company, the Company&rsquo;s affiliates, stockholders, and certain other Company releasees. Under the Repurchase Agreement, Mr. Gile
agreed to indemnify the Company for claims arising out of based upon the Repurchase Agreement. Pursuant to the Repurchase Agreement,
a copy of the Dorsey/Gile Settlement Agreement was reviewed and consented to by the Company and entered into as of March 20, 2023. Under
the Dorsey/Gile Settlement Agreement, between Mr. Gile, Mr. Dorsey, and Dorsey LLC, Mr. Gile agreed to pay the Dorsey/Gile Settlement
Payment, transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile, Mr. Dorsey and Dorsey LLC agreed to mutual releases of all claims
relating to the Dorsey/Gile Lawsuit and to dismiss the Dorsey/Gile Lawsuit. Although the Dorsey/Gile Settlement Agreement did not contain
a release of the Company and did not contain releases by the plaintiffs of Mr. Gile other than with respect to the Lawsuit, the Company
waived any related requirements under the Repurchase Agreement in light of the expected execution of the Mutual Release Agreement (as
defined below). The CFO Certificate was received as of March 21, 2023. The repurchased shares were cancelled as of March 31, 2023. The
transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023, after waiver of the board of directors of the repurchase
rights and purchase rights provided for under the Shareholder Agreement by resolutions adopted on March 24, 2023.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective March 29, 2023, a Confidential Mutual
General Release and Covenant Not to Sue Agreement was entered into between the Company and Mr. Dorsey (the &ldquo;Mutual Release Agreement&rdquo;).
Under the Mutual Release Agreement, Mr. Dorsey agreed to a general release of claims against and covenant not to sue the Company, the
Company&rsquo;s affiliates, stockholders, and certain other Company releasees, and the Company agreed to a general release of claims
against and covenant not to sue Mr. Dorsey, Mr. Dorsey&rsquo;s affiliates, and certain other releasees, subject to payment of the Dorsey/Gile
Settlement Payment, which, as indicated above, was made on March 31, 2023. The releases of claims and covenants not to sue under the
Mutual Release Agreement do not apply to breach of the Dorsey/Gile Settlement Agreement or to the January 2023 Dorsey Settlement Agreement.</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We qualify as an &ldquo;emerging growth company&rdquo;
under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so
long as we are an emerging growth company, we will not be required to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">have
                                            an auditor report on our internal controls over financial reporting pursuant to Section 404(b)
                                            of the Sarbanes-Oxley Act;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD>being
                                            permitted to present only two years of audited financial statements, in addition to any required
                                            unaudited interim financial statements, with correspondingly reduced &ldquo;Management&rsquo;s
                                            Discussion and Analysis of Financial Condition and Results of Operations&rdquo; disclosure
                                            in this prospectus;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">comply
                                            with any requirement that may be adopted by the Public Company Accounting Oversight Board
                                            regarding mandatory audit firm rotation or a supplement to the auditor&rsquo;s report providing
                                            additional information about the audit and the financial statements (i.e., an auditor discussion
                                            and analysis);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">submit
                                            certain executive compensation matters to stockholder advisory votes, such as &ldquo;say-on-pay&rdquo;
                                            and &ldquo;say-on-frequency;&rdquo; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">disclose
                                            certain executive compensation related items such as the correlation between executive compensation
                                            and performance and comparisons of the chief executive officer&rsquo;s compensation to median
                                            employee compensation.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits
of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will remain an emerging growth company for
up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed
$1,235,000,000, (ii) the date that we become a &ldquo;large accelerated filer&rdquo; as defined in Rule 12b-2 under the Exchange Act,
which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business
day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible
debt during the preceding three year period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Principal Factors Affecting Our Financial
Performance</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our operating results are primarily affected
by the following factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD>our
                                            ability to acquire new customers and users or retain existing customers and users;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD>our
                                            ability to offer competitive product pricing;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD>our
                                            ability to broaden product offerings;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD>our
                                            ability to leverage technology and use and develop efficient processes;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD>our
                                            ability to attract and retain talented employees; and</TD></TR></TABLE>

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

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

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

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

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0in">The following table sets forth
key components of our results of operations during the years ended December 31, 2022 and 2021.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Years Ended</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center">December 31,</TD><TD STYLE="white-space: nowrap; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center">December 31,</TD><TD STYLE="white-space: nowrap; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">2021</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Revenues, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">78,336</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">340,984</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cost of revenues</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">783,064</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">504,342</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross profit (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(704,728</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(163,358</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-decoration: underline; text-align: left">Operating cost and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Advertising and marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,842,666</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,104,939</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,025,223</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,027,820</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Impairment charge</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">820,951</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,276,159</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,688,840</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,408,918</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net income (loss) from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,393,568</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,572,276</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: underline; text-align: left">Other Income (expense)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(597,747</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(78,503</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,187</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Deferred tax income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Change in fair value of SAFE Agreements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">154,635</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(154,635</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Other expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(53,640</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Other Income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,406</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total other income (expense)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(280,246</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(231,951</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(6,673,814</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(8,804,227</TD><TD STYLE="text-align: left">)</TD></TR>
  </TABLE>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net
revenues for the&nbsp;years ended December 31, 2022 and 2021 was approximately $</FONT>0.08 <FONT STYLE="font-family: Times New Roman, Times, Serif">million
and $</FONT>0.3<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;million, respectively. Net revenues decreased approximately
$</FONT>0.26 <FONT STYLE="font-family: Times New Roman, Times, Serif">million, or approximately 77.0%, due to</FONT> an increase in the
proportion of customers using our technology platform under a free trial arrangement.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cost
of revenues for the&nbsp;years ended December 31, 2022 and 2021 was approximately $</FONT>0.8 <FONT STYLE="font-family: Times New Roman, Times, Serif">million
and $</FONT>0.5<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;million, respectively. Cost of revenue increased approximately
$</FONT>0.3 <FONT STYLE="font-family: Times New Roman, Times, Serif">million, or approximately 55.3%, due to&nbsp;an increase in the
number of employees in our internal engineering and development team.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Gross
loss was approximately $</FONT>0.7 million<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;and $</FONT>0.2 <FONT STYLE="font-family: Times New Roman, Times, Serif">million
for the&nbsp;years ended December 31, 2022 and 2021, respectively. The increase of approximately $0.5 million, or 331.4%, was due to&nbsp;the
decrease in revenue and increase in cost of revenues for the reasons described above.</FONT></P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Advertising and marketing <FONT STYLE="font-family: Times New Roman, Times, Serif">expenses
were approximately $</FONT>1.8 million<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;and $</FONT>1.1 <FONT STYLE="font-family: Times New Roman, Times, Serif">million
for the&nbsp;years ended December 31, 2022 and 2021, respectively. The increase of approximately $0.7 million, or 66.8%, was due to&nbsp;increased
advertising and marketing on social media platforms.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">General
and administrative expenses were approximately $</FONT>3.0 million<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;and
$</FONT>5.0 <FONT STYLE="font-family: Times New Roman, Times, Serif">million for the&nbsp;years ended December 31, 2022 and 2021, respectively.
The decrease of approximately $2.0 million, or 41.2%, was due to </FONT>a reduction of nonessential employees and the move of corporate
headquarters to office space under a lower rental rate.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Impairment
charge was approximately $</FONT>0.8 <FONT STYLE="font-family: Times New Roman, Times, Serif">million and $</FONT>2.3<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;million
for the&nbsp;years ended December 31, 2022 and 2021, respectively. Impairment charge decreased approximately $</FONT>1.5 <FONT STYLE="font-family: Times New Roman, Times, Serif">million,
or 63.9%, was due to an increase in the proportion of customers using our technology platform under a free trial arrangement.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total operating expenses <FONT STYLE="font-family: Times New Roman, Times, Serif">were
approximately $</FONT>5.7 million<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;and $</FONT>8.4 <FONT STYLE="font-family: Times New Roman, Times, Serif">million
for the&nbsp;years ended December 31, 2022 and 2021, respectively. The decrease of approximately $2.7 million, or 32.3%, was due to&nbsp;the
factors discussed above.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Net Income (Loss) From Operations</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net income (loss) from operations was approximately
$(6.4 million) and $(8.6 million) for the&nbsp;years ended December 31, 2022 and 2021, respectively. The decrease of approximately $2.2
million, or 25.4%, was due to&nbsp;the factors discussed above.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Interest expense <FONT STYLE="font-family: Times New Roman, Times, Serif">was
approximately $0.6 million and $0.08 million for the&nbsp;years ended December 31, 2022 and 2021, respectively. The increase of approximately
$0.52 million, or 661.4%, was due to&nbsp;an increase in convertible notes payable.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Interest income&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">was
$1.1 thousand</FONT>&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">and approximately $1.2 thousand for the&nbsp;years
ended December 31, 2022 and 2021, respectively. The decrease was due to a reduction</FONT> in <FONT STYLE="font-family: Times New Roman, Times, Serif">interest-bearing
assets.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deferred tax income was $0.1 million and none
<FONT STYLE="font-family: Times New Roman, Times, Serif">for the&nbsp;years ended December 31, 2022 and 2021, respectively. The increase
was due to recognition of deferred tax assets.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Change in Fair Value of SAFE Agreements</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Change in fair value of SAFE Agreements <FONT STYLE="font-family: Times New Roman, Times, Serif">was
approximately $</FONT>0.2 <FONT STYLE="font-family: Times New Roman, Times, Serif">million and $(</FONT>0.2 <FONT STYLE="font-family: Times New Roman, Times, Serif">million)
for the&nbsp;years ended December 31, 2022 and 2021, respectively. The change was due to&nbsp;a change in fair value measurement.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other expense <FONT STYLE="font-family: Times New Roman, Times, Serif">was
approximately $</FONT>0.05 million <FONT STYLE="font-family: Times New Roman, Times, Serif">and none for the&nbsp;years ended December
31, 2022 and 2021, respectively. The increase was due to an increase in&nbsp;events-related equipment expense.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other income <FONT STYLE="font-family: Times New Roman, Times, Serif">was
approximately $</FONT>0.1 million <FONT STYLE="font-family: Times New Roman, Times, Serif">and none for the&nbsp;years ended December
31, 2022 and 2021, respectively. The increase was due to tax deductions relating to&nbsp;employee travel expenses.</FONT></P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Total Other Income (Expense)</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total other income (expense) <FONT STYLE="font-family: Times New Roman, Times, Serif">was
approximately $(</FONT>0.3 million) <FONT STYLE="font-family: Times New Roman, Times, Serif">and $(0.</FONT>2 million)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;
for the&nbsp;years ended December 31, 2022 and 2021, respectively. The increase was due to&nbsp;</FONT>the factors discussed above<FONT STYLE="font-family: Times New Roman, Times, Serif">.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">During
the&nbsp;years ended December 31, 2022 and 2021, we incurred net loss of approximately $6.7 million and $</FONT>8.8<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;million,
respectively, due to the factors discussed above.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, we had cash and cash
equivalents of $254,409. To date, we have financed our operations primarily through revenue generated from operations and private placements
of securities. We are currently in discussions with other banks and believe that we will secure substantially equivalent financing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that our current levels of cash, either
with or without the proceeds of the Company&rsquo;s initial public offering, will be sufficient to meet our anticipated cash needs for
our operations for at least the next 12 months, including our anticipated costs associated with becoming a public reporting company.
We may, however, in the future require additional cash resources due to changing business conditions, implementation of our strategy
to expand our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient
to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities.
The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in
increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations.
Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms
favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
current auditor and former auditor&rsquo;s opinions included in our audited financial statements for the years ended December 31, 2022
and 2021 contain an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern. </FONT>For the
fiscal years ended December 31, 2022 and 2021, our net loss was approximately $6.7 million and $8.8 million, respectively, our cash used
in operating activities was approximately $4.9 million and $5.7 million, respectively, and we had cumulative losses of approximately
$18.1 million and $11.5 million<FONT STYLE="font-family: Times New Roman, Times, Serif">, respectively. In recent years, we have suffered
recurring losses from operations, have negative working capital and cash outflows from operating activities, and therefore we are dependent
upon external sources for financing our operations.</FONT></P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our transition to profitable operations is dependent
on generating a level of revenue adequate to support our cost structure. We must continue our path to profitability through increased
business development, marketing and sales of the Company&rsquo;s multiple lines of subscriptions. Our management has evaluated the significance
of these conditions as well as the time in which we have to complete these tasks and has determined that we can meet our operating obligations
for the foreseeable future. We plan to finance our operations using primarily proceeds from private placements of securities and our
initial public offering. There can be no assurance that we will succeed in generating sufficient revenues from our product sales to continue
our operations as a going concern.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our management expects to have the required funds
in order to continue to operate as a going concern in the coming year from the initial public offering. Nonetheless, there can be no
assurance that necessary financing will be available on satisfactory terms, if at all. If we are unable to secure needed financing, management
may be forced to take additional restructuring actions, which may include significantly reducing our anticipated level of expenditures.
The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and
classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From March 2021 through July 2021, the Company
entered into eight agreements consisting of a &ldquo;Simple Agreement for Future Equity&rdquo; (the &ldquo;SAFE agreements&rdquo;) totaling
$1,980,000. The SAFE agreements provided a right to the holder to future equity in the Company in the form of these agreements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In September 2022 and October 2022, all of the
SAFE agreements were canceled and in exchange a total of 591,048 shares of common stock were issued to the former SAFE holders pursuant
to cancellation and exchange agreements with the former SAFE holders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Company had conducted an Equity Financing
(as defined in the SAFE agreements), the SAFE agreements would have automatically converted into the number of shares of preferred stock
equal to the Purchase Amount (as defined in the SAFE agreements) divided by the conversion price per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If there had been a SAFE Liquidity Event (as
defined in the &ldquo;<I>Description of Securities &ndash; SAFEs &ndash; Specific Conversion Terms</I>&rdquo;), the holder of the SAFE
agreement would have been automatically entitled to receive a portion of the proceeds equal to the greater of (i) the Purchase Amount
or (ii) an amount equal to a percentage of the proceeds to be received in a SAFE Liquidity Event with such percentage calculated by dividing
the Purchase Amount by the Liquidity Event Amount (as defined in the SAFE agreements).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If there had been a Dissolution Event (as defined
in the SAFE agreements), the holder of the SAFE agreement will automatically receive a portion of the Proceeds equal to the Purchase
Amount/Cash-out Amount, due and payable immediately prior to the consummation of the Dissolution Event.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If after eighteen months, there had been no Equity
Financing, SAFE Liquidity Event, or Dissolution Event, the SAFE agreement would have automatically converted into the number of shares
of common stock equal to the Purchase Amount divided by the Valuation Discount Price Per Share (as defined in the SAFE agreements) resulting
in an approximate 20% discount.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SAFE agreements were not subject to mandatory
redemption, and they could have required the Company to issue a variable number of shares. Management of the Company determined that
the SAFE agreements contained a liquidity event provision that embodied an obligation indexed to the fair value of the equity shares
and that could have required the Company to settle the SAFE obligation by transferring assets or cash. The SAFE agreements represented
a recurring measurement that is classified within Level 3, disclosed and defined in Note 4 to the financial statements accompanying this
prospectus of the fair value hierarchy wherein fair value is estimated using significant unobservable inputs.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 31, 2022, the Company adopted the Equity
Incentive Plan for the purpose of granting restricted stock, stock options, and other forms of incentive compensation to officers, employees,
directors, and consultants of the Company. A total of 750,000 shares of common stock are reserved for issuance under the Plan. In September
2022, stock options were granted under the Plan to certain officers, directors and employees that may be exercised to purchase a total
of 234,000 shares of common stock, not including stock options or portions of stock options that subsequently terminated due to employee,
officer and director departures. Subsequent to December 31, 2022, stock options were granted under the Plan to certain employees, an
executive officer and directors that may be exercised to purchase a total of 286,450 shares of common stock, not including stock options
or portions of stock options that subsequently terminated due to employee and director departures, and 90,000 shares of restricted common
stock was granted to an officer. See &ldquo;<I>Executive Compensation &ndash; 2022 Equity Incentive Plan</I>&rdquo; for a summary of
the principal features of the Plan.</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table provides detailed information about our net cash
flow for all financial statement periods presented in this prospectus:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Cash Flow</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,
    <BR> 2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,
    <BR> 2021 (restated)</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -10pt; padding-left: 10pt">Net cash provided by (used in) operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(4,928,461</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(5,729,483</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Net cash (used in) investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(855,480</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,086,278</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Net cash provided by (used in) financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,350,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,452,434</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Net increase (decrease) in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,433,141</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,636,673</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Cash and cash equivalents, beginning of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,687,550</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,050,877</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Cash and cash equivalents, end of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">254,409</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,687,550</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net
cash used in operating activities was approximately $</FONT>4.9 million <FONT STYLE="font-family: Times New Roman, Times, Serif">for
the year ended December 31, 2022, as compared to net cash used in operating activities of approximately $</FONT>5.7 million <FONT STYLE="font-family: Times New Roman, Times, Serif">for
the year ended December 31, 2021. The decrease was primarily due to </FONT>a reduction of nonessential employees and movement into office
space at a reduced rental rate<FONT STYLE="font-family: Times New Roman, Times, Serif">.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in investing activities was approximately
$0.9 million for the year ended December 31, 2022 and approximately $1.1 million for the year ended December 31, 2021. The decrease was
primarily due to reductions in computer equipment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net
cash provided by financing activities was approximately $</FONT>1.4 <FONT STYLE="font-family: Times New Roman, Times, Serif">million
for the year ended December 31, 2022 and approximately $10.4 million for the year ended December 31, 2021. The decrease was primarily
due to a decrease in proceeds from private placements of debt and equity securities.</FONT></P>

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



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

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

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

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



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of December 31, 2022 and 2021, the outstanding convertible unsecured
promissory notes of the Company consisted of the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>December 31, <BR>
    2022</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>December 31, <BR>
    2021</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">13 8% convertible unsecured promissory notes, maturity date August 8, 2023</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,315,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">9 6% convertible notes payable, maturity date October 15, 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,300,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,300,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">12 6% convertible notes payable, maturity date November 15, 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,205,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,205,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">6 6% convertible notes payable, maturity date December 23, 2024</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,800,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,800,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,620,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,305,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less unamortized debt issuance costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(387,920</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(495,007</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Long-term debt, less unamortized debt issuance costs</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,232,080</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,809,993</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For
                                            a description of the terms of the Company&rsquo;s 6% convertible unsecured promissory notes,
                                            see &ldquo;<I>Description of Securities &ndash; 6% Convertible Unsecured Promissory Notes</I>&rdquo;.
                                            For a description of the terms of the Company&rsquo;s 8% convertible unsecured promissory
                                            notes, see &ldquo;<I>Description of Securities &ndash; 8% Convertible Unsecured Promissory
                                            Notes</I>&rdquo;.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, the Company&rsquo;s
convertible unsecured promissory notes will mature and require repayment in future years with respect to the total principal amounts
indicated below:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>Years Ending December 31,</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Amount ($)</B></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 87%; text-align: left">2023</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,315,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6,305,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,620,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company formerly leased office space under
a lease agreement with a term from January 2022 to December 2026. The office space was owned by a former chief executive officer and
director of the Company. The lease agreement required monthly payments of approximately $20,800 plus tax and certain operating expenses,
with an increase of 3% at the beginning of every calendar year following the first year of the term of the lease agreement through January
2026. As of December 31, 2021, a security deposit was paid in the amount of $23,411. In August 2022, the Company entered into a lease
termination agreement in which both parties agreed to terminate the lease and release each other from all future obligations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company currently leases its corporate offices
consisting of approximately 3,154 square feet under a lease agreement dated November 1, 2022, as amended by an addendum dated November
2, 2022, and as further amended under a first amendment to lease dated April 1, 2023. As amended, the lease&rsquo;s initial term from
November 1, 2022 to April 30, 2023 was extended for a 39-month term beginning on May 4, 2023 and ending on August 3, 2026. Under the
amended lease agreement, rent for the first month was $6,741.90 and was $7,491.00 for each subsequent month through April 2023, plus
applicable rental taxes, sales taxes, and operating expenses. Monthly rent will be $7,359 from May 4, 2023 to May 3, 2024, abated for
the first three months of this period; $7,580 from May 4, 2024 to May 3, 2025; $7,808 from May 4, 2025 to May 3, 2026; and $8,042 from
May 4, 2026 to August 3, 2026, plus applicable rental taxes. Parking fees were $290.50 for the first month and will be $325.00 for each
subsequent month. The Company also paid an initial security deposit of $8,000.00 in November 2022 and a second security deposit of $16,000
in May 2023. The initial security deposit will be refunded and credited toward monthly rent for the months beginning May 4, 2024 and
May 4, 2025 if the Company has performed all obligations under the amended lease agreement including making all rent payments when due.
The Company may exercise a one-time option to extend the amended lease agreement for an additional three-year term upon 9-12 months&rsquo;
notice for the fair market rent at the time of the extension, as determined in accordance with the amended lease agreement and which
will not be less than 103% of the final rent amount under the current term. Under the amended lease agreement, the Company must pay for
any tenant improvements above the allowance provided for such improvements of $37,848 or that are not in compliance with the terms of
the amended lease agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company also leases office space under a
lease agreement expiring on May 31, 2023. Monthly rent is $12,075 and includes annual escalations. In December 2021, the Company entered
into an agreement to sublease its office space. The sublease ends on May 31, 2023 and includes fixed rent of $9,894. As a result of the
sublease, the Company incurred a loss on the transaction of $43,785 during the year ended December 31, 2021, which is shown as lease
liability in the balance sheet included with the financial statements that begin on page F-1 of this prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total rental expense to non-related parties in
2022 and 2021 was $158,621 and $174,437, respectively. Total rental expense to related parties in 2022 and 2021 was $148,876 and $0,
respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022, there are no future
maturities of non-cancelable leases with a term longer than one year.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have no off-balance sheet arrangements that
have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues
or expenses, results of operations, liquidity, capital expenditures or capital resources.</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following discussion relates to critical
accounting policies for our company. The preparation of financial statements in conformity with GAAP requires our management to make
assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments
and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements.
These accounting policies are important for an understanding of our financial condition and results of operation. Critical accounting
policies are those that are most important to the portrayal of our financial condition and results of operations and require management&rsquo;s
difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently
uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance
to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management&rsquo;s
current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in
the preparation of our financial statements:</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-weight: normal">The Company
maintains its cash account in several deposit accounts, the balances of which are periodically more than federally insured limits. At
December 31, 2022 and 2021, the uninsured amounts approximated $0 and $4,000,000, respectively.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company estimates an allowance for doubtful
accounts based upon an evaluation of the status of receivables, historical experience, and other factors as necessary. It is reasonably
possible that the Company&rsquo;s estimate of the allowance for doubtful accounts will change. There were approximately $16,000 of open
receivables at December 31, 2022 and $5,000 at December 31, 2021. At December 31, 2022 and 2021, the Company believes the accounts receivable
are fully collectable and has no reserve established.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payments from individuals and organizations are
required prior to providing access to the Company&rsquo;s website and application. If not paid in advance, payments are required from
organizations on a monthly basis. If a payment is not made, access to the Company&rsquo;s website and application is suspended until
the required payment is received.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property and equipment is recorded at cost. Expenditures
for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized.
Expenditures for maintenance and repairs are charged to expense. When equipment is retired or sold, the cost and related accumulated
depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.25pt 0pt 0; text-align: justify">Depreciation is provided using the
straight-line method, based on useful lives of the assets which range from three to five years.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-weight: normal">The
Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying
value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition.
In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an
amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment
include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand,
competition, and other economic factors. Based on this assessment there was no impairment at December 31, 2022 and 2021.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Software consists of an internally developed
information system for use by the Company in matching athletes with qualified coaches. The Company has capitalized costs incurred with
development and upgrades of the information systems in accordance with applicable accounting standards. Costs incurred up to and including
the feasibility stage of development as well as maintenance costs are expensed as incurred. The Company amortizes these capitalized costs
on a straight-line basis over the estimated useful life of the asset of five years.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company periodically performs reviews of
the recoverability of such capitalized technology costs. At the time a determination is made that capitalized amounts are not recoverable
based on estimated cash flows to be generated from technology; any remaining capitalized amounts are written off. During the years ended
December 31, 2022, and 2021, the Company wrote off net capitalized software development costs of $820,951 and $2,276,159 respectively.
An impairment charge for this write-off is reflected in the operating expenses in the accompanying statement of operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intangible assets consist of development software,
patented technology, customer lists, trademarks, software IP, and customer data in the form of verifiable video uploads, player statistics,
and academic records. Intangible assets are stated at cost less accumulated amortization. For intangible assets that have finite lives,
the assets are amortized using the straight-line method over the estimated useful lives of the related assets. For intangible assets
with indefinite lives, the assets are tested periodically for impairment.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company values its &ldquo;Simple Agreement
for Future Equity&rdquo; Agreements (&ldquo;SAFE Agreements&rdquo;) under the provisions of FASB ASC 820, &ldquo;<I>Fair Value Measurements
and Disclosures</I>,&rdquo; which defines fair value under U.S. GAAP, establishes a framework for measuring fair value and enhances disclosures
about fair value measurements. U.S. GAAP establishes a fair value hierarchy, which required an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. The asset or liability&rsquo;s fair value measurement level
within the fair value hierarchy is based up the lowest level of any input that is significant to the fair value measurement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A fair value hierarchy has been established,
which prioritizes the valuation inputs into three broad levels. Level 1 inputs consist of quoted prices in active markets for identical
assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than
quoted prices included within Level 1 that are observable for the related asset or liability. Level 3 inputs are unobservable inputs
related to the asset or liability.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.4pt 0pt 0; text-align: justify">The SAFE Agreements are valued using
market conditions to estimate the fair value of the agreements. These are classified within Level 3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.35pt 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.35pt 0pt 0; text-align: justify"><B><I>Income Taxes</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Income taxes are provided for the tax effects
of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences
between the basis of internally developed software and net operating loss and research and development tax credit carry forwards for
financial and income tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences,
which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets are reduced
by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax
assets will not be realized.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company converted to a C corporation in August
of 2021. As a limited liability company for the 2020 year and through the date of conversion in 2021, the Company&rsquo;s taxable loss
was allocated to members in accordance with their respective percentage of ownership. Therefore, no provision for income taxes has been
included in the financial statements for the period prior to the Company&rsquo;s conversion to a corporation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates its tax positions that
have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions.
As of December 31, 2022 and 2021, the unrecognized tax benefits accrual was zero. The Company will recognize future accrued interest
and penalties related to unrecognized tax benefits in income tax expense if incurred. As of December 31, 2022, the 2020 through 2022
tax years generally remain subject to examination by federal and state authorities.</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deferred revenues are contract liabilities for
collections on subscription agreements in excess of revenue recognized.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for revenue under the guidance
of FASB ASC 606, &ldquo;Revenue from Contracts from Customers&rdquo; (&ldquo;ASC 606&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ASC 606 prescribes a five-step model that focuses
on transfer of control and entitlement to payment when determining the amount of revenue to be recognized. Under the ASC 606 guidance,
an entity is required to perform the following five steps:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(1) identify the contract(s) with a customer;
(2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to
the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Revenue from performance obligations satisfied
at a point in time consist of sales to individuals representing a one-month subscription and are recognized at the end of the subscription.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.4pt 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue from performance obligations satisfied
over time consists of the sale of subscription agreements to individual organizations or customers that are more than one month in duration
and are recognized on a monthly basis over the life of the subscription agreement.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Debt issuance costs are amortized over the period
the related obligation is outstanding using the straight-line method. The straight-line method is a reasonable estimate of the effective
interest method due to the relatively short maturities of the related debt. Debt issuance costs are included within long-term debt on
the balance sheet. Amortization of debt issuance costs is included in interest expense in the accompanying financial statements. As of
December 31, 2022 and 2021, unamortized debt issuance costs were $387,920 and $495,007, respectively.</P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Advertising costs are expensed as incurred. Such
costs amounted to $ 1,842,666 and $1,104,939 for the years ended December 31, 2022 and 2021, respectively. Advertising costs are included
in advertising and marketing expenses in the statements of operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-weight: normal">The preparation
of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. </FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Incremental costs of obtaining a contract are
expensed as incurred as the amortization period of the asset that otherwise would have been recognized is estimated to be one year or
less.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for stock-based compensation
costs under the provisions of ASC 718, Compensation&mdash;Stock Compensation, which requires the measurement and recognition of compensation
expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. Stock-based compensation expense
recognized includes the compensation cost for all stock-based payments granted to employees, officers, and directors based on the grant
date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled
during the periods reported. Stock-based compensation is recognized as expense over the employee&rsquo;s requisite vesting period and
over the nonemployee&rsquo;s period of providing goods or services.</P>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Basic and Diluted Net Loss per Common
Share </I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic loss per common share is computed by dividing
the net loss by the weighted average number of shares of common stock outstanding for each period. Diluted loss per share is computed
by dividing the net loss by the weighted average number of shares of common stock outstanding plus the dilutive effect of shares issuable
through the common stock equivalents. The weighted-average number of common shares outstanding excludes common stock equivalents because
their inclusion would be anti-dilutive. As of December 31, 2022, and 2021, 253,000 and zero stock options, respectively, were excluded
from dilutive earnings per share as their effects were anti-dilutive.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.3pt 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued Accounting
Standards Update No. 2016-02, Leases (Topic 842), which requires lessees to recognize leases on the balance sheet and disclose key information
about leasing arrangements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and
lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating,
with classification affecting the pattern and classification of the expense recognition in the income statement. The Company has implemented
the new standard and it does not have an impact on its assets, liabilities and results of operations or cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.3pt 0pt 0; text-align: justify">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the inception or modification of a contract,
the Company determines whether a lease exists and classifies its leases as an operating or finance lease at commencement. Right-of-use
(&ldquo;ROU&rdquo;) assets represent the Company&rsquo;s right to use an underlying asset for the lease term and lease liabilities represent
their obligation to make lease payments arising from the lease.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As most of the Company&rsquo;s leases do not
provide an implicit interest rate, the lease liability is calculated at lease commencement as the present value of unpaid lease payments
using the Company&rsquo;s estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that the
Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined
using a portfolio approach based on information available at the commencement date of the lease.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The lease asset also reflects any prepaid rent,
initial direct costs incurred and lease incentives received. The Company&rsquo;s lease terms may include optional extension periods when
it is reasonably certain that those options will be exercised.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Leases with an initial expected term of 12 months
or less are not recorded in the Balance Sheet and the related lease expense is recognized on a straight-line basis over the lease term.
For certain classes of underlying assets, the Company has elected to not separate fixed lease components from the fixed non-lease components.
As of December 31, 2022 and 2021, there were no leases with an expected term greater than 12 months.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_009"></A>CORPORATE
HISTORY AND STRUCTURE</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">SDS LLC &ndash; AZ was formed on January 21,
2019. SDS LLC &ndash; AZ formed two wholly-owned subsidiaries, SDSF LLC, and SDSB LLC, on September 29, 2020 and November 25, 2020, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 5, 2020, the Arizona-to-Delaware Conversion
Process was initiated. On that date, a certificate of formation of SDS LLC &ndash; DE, and a certificate of conversion of SDS LLC &ndash;
AZ into SDS LLC &ndash; DE, were filed with the Delaware Secretary of State. On September 9, 2021, the Certificate of Incorporation of
SDS Inc. &ndash; DE, and a certificate of conversion of SDS LLC &ndash; DE into SDS Inc. &ndash; DE were filed with the Delaware Secretary
of State. From September 9, 2021 to July 11, 2022, SDS Inc. &ndash; DE operated as the successor entity to SDS LLC &ndash; AZ, and SDS
LLC &ndash; AZ continued to be registered as an active entity with the Arizona Corporation Commission while its conversion into SDS LLC
&ndash; DE pended.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A unanimous written consent of the board of directors
of SDS Inc. &ndash; DE, dated as of March 25, 2022, approved the Merger Agreement and related merger documents, the related merger transactions,
the form of the Settlement, the form of the Shareholder Agreement (for a description of the terms of the Shareholder Agreement, see &ldquo;<I>Corporate
History and Structure &ndash; Shareholder Agreement</I>&rdquo;), and a proposed capitalization table of SDS Inc. &ndash; DE, approved
and ratified the Certificate of Incorporation and approved amended and restated bylaws of SDS Inc. &ndash; DE, and approved and ratified
related matters. In anticipation of the execution of the Merger Agreement and its consummation, in April 2022 and May 2022, SDS LLC &ndash;
AZ, SDS Inc. &ndash; DE, and each of the members or stockholders of SDS LLC &ndash; AZ, SDSF LLC, SDSB LLC, and SDS Inc. &ndash; DE,
entered into the Settlement Agreements, which provided, among other things, for the mutual general release of all claims by the parties
against and relating to SDS LLC &ndash; AZ, SDSF LLC, SDSB LLC, and SDS Inc. &ndash; DE, and confirmed the owners and related amounts
of all outstanding shares of common stock of SDS Inc. represented by the capitalization table exhibit to the Settlement Agreements. The
stockholders of SDS Inc. &ndash; DE and the members of SDS LLC &ndash; AZ executed unanimous written consents, dated as of May 17, 2022
and July 6, 2022, respectively, approving the Merger Agreement and related transactions, the form of the Settlement Agreements, the form
of the Shareholder Agreement, an updated capitalization table of SDS Inc., and approved and ratified the Certificate of Incorporation,
the Amended and Restated Bylaws, and the prior corporate actions that were taken in connection with the Arizona-to-Delaware Conversion
Process, and certain related matters.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 11, 2022, the Merger Agreement was executed.
On the same date, pursuant to the Merger Agreement, a certificate of merger was filed with the Delaware Secretary of State and a statement
of merger was filed with the Arizona Secretary of State effecting the merger of SDS LLC &ndash; AZ, SDSF LLC, and SDSB LLC with and into
SDS Inc. &ndash; DE, and SDS Inc. &ndash; DE succeeded to the rights, property, obligations, and liabilities of each of SDS LLC &ndash;
AZ, SDSF LLC, and SDSB LLC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The releases of claims under the Settlement Agreements
with each of Dennis Gile, Dorsey LLC, Joshua A. Donaldson Revocable Trust, and Zone Right are subject to certain specific exceptions
for claims under certain separate agreements or instruments, including rights under one convertible note held by Zone Right. For a further
description of the Settlement Agreements, including the rights under the convertible note held by Zone Right and other rights subject
to exceptions referenced in the Settlement Agreements, see &ldquo;<I>Certain Relationships and Related Party Transactions &ndash; Transactions
With Related Persons</I>&rdquo;.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 13, 2023, the Reverse Stock Split, in
which each five shares of the outstanding common stock were automatically combined and converted into one share of outstanding common
stock, was approved by the board of directors, and was approved by stockholders holding a majority of the voting power of our issued
and outstanding voting capital stock as of April 4, 2023. On April 14, 2023, we filed a certificate of amendment to the Certificate of
Incorporation, which provided for the Reverse Stock Split, and the Reverse Stock Split became effective on the same date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as otherwise indicated, all references
to our common stock, share data, per share data and related information has been adjusted for the Reverse Stock Split ratio of 1-for-5
as if it had occurred at the beginning of the earliest period presented. The&nbsp;Reverse&nbsp;Stock&nbsp;Split combined each five shares
of our outstanding common stock into one share of common stock, without any change in the number of authorized shares of common stock
or the par value per share of common stock. The&nbsp;Reverse&nbsp;Stock&nbsp;Split, correspondingly adjusted, among other things, the
exercise price of our warrants, convertible notes and stock options. No fractional shares were issued in connection with the&nbsp;Reverse&nbsp;Stock&nbsp;Split,
and any fractional shares resulting from the&nbsp;Reverse&nbsp;Stock&nbsp;Split&nbsp;were rounded up to the nearest whole share.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Amended and Restated Certificate of Incorporation
and Amended and Restated Bylaws</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 5, 2023, the amendment and restatement
of the Certificate of Incorporation was approved by stockholders holding a majority of the voting power of our issued and outstanding
voting capital stock, and on May 9, 2023, the amended and restated Certificate of Incorporation was filed with the Delaware Secretary
of State and became effective the same date. Effective the same date, the Amended and Restated Bylaws were adopted by unanimous written
consent of the board of directors. The Certificate of Incorporation and Amended and Restated Bylaws contain certain provisions relating
to limitations of liability and indemnification of directors and certain officers, provide advance notice procedures for stockholder
proposals at stockholder meetings, and other matters. See &ldquo;<I>Description of Securities &ndash; Anti-Takeover Provisions</I>&rdquo;
and &ldquo;<I>Management &ndash; Limitation on Liability and Indemnification of Directors and Certain Officers</I>&rdquo;.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From March 2021 to July 2021, we raised an aggregate
of $1,980,000 from investors in exchange for securities called Simple Agreements for Future Equity (collectively, the &ldquo;SAFEs&rdquo;).
For a description of the terms of the SAFEs, see &ldquo;<I>Description of Securities &ndash; SAFEs</I>&rdquo;.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From September 22, 2022 to October 11, 2022,
we entered into cancellation and exchange agreements with the holders of the SAFEs. Under these agreements, each SAFE holder agreed to
cancel and exchange the holder&rsquo;s SAFE for a number of shares of common stock equal to the purchase amount under the SAFE divided
by approximately $3.35, based on a $25 million valuation for the Company. As a result, SAFEs that were purchased in the aggregate amount
of $1,980,000 were cancelled and exchanged for a total of 591,048 shares of common stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>6% Convertible Unsecured Promissory Notes</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From October 2021 to December 2021, we conducted
a private placement of 6% convertible unsecured promissory notes due three years from the date of execution and entered into related
subscription agreements and investor rights and lockup agreements with a number of accredited investors. Pursuant to the agreements,
we issued 27 convertible notes for aggregate loans of $6,305,000. The convertible notes bear interest at 6% annually. For a further description
of the terms of these convertible notes, see &ldquo;<I>Description of Securities &ndash; 6% Convertible Unsecured Promissory Notes</I>&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>8% Convertible Unsecured Promissory Notes
and Warrants</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From August 2022 to January 2023, we conducted
a private placement of the Company&rsquo;s 8% convertible unsecured promissory notes and accompanying warrants under subscription agreements
with a number of accredited investors. Pursuant to the agreements, we issued 15 convertible notes and accompanying warrants for aggregate
loans of $1,465,000. The convertible notes bear interest at 8% annually, and are due August 8, 2023 unless converted in accordance with
their terms. For a further description of the terms of these convertible notes and warrants, see &ldquo;<I>Description of Securities
&ndash; 8% Convertible Unsecured Promissory Notes</I>&rdquo; and &ldquo;<I>Description of Securities &ndash; Warrants &ndash; Investor
Warrants</I>&rdquo;, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>8% Unsecured Promissory Notes and Warrants</I></P>

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

<P STYLE="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In March 2023 and April 2023 we completed one
private placement, and in May 2023 we conducted a subsequent private placement, in which we issued 8% unsecured promissory notes and
accompanying warrants to a number of accredited investors under subscription agreements.&nbsp; Pursuant to the agreements, we issued
promissory notes for aggregate loans of $2,350,000. The notes will be due by the earlier of the second anniversary of the initial closing
date of the respective private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000 principal) or the
date of a Liquidity Event. For a further description of the private placement and the terms of these notes and warrants, see &ldquo;<I>Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations &ndash; Recent Developments &ndash; 8% Unsecured Promissory
Notes and Warrants Private Placements</I>&rdquo;, &ldquo;Description of Securities &ndash; 8% Unsecured Promissory Notes&rdquo;, and
&ldquo;<I>Description of Securities &ndash; Warrants &ndash; Investor Warrants</I>&rdquo;.</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Boustead acted as placement agent in our private
placements of the convertible promissory notes, promissory notes, and warrants described above. Pursuant to our engagement letter agreement
with Boustead, in addition to a commission equal to 7% of the gross proceeds raised in the private placements, a non-accountable expense
allowance equal to 1% of the gross proceeds raised in the private placements, and payment of certain other expenses, we agreed to issue
Boustead five-year warrants to purchase a number of shares of common stock at an exercise price equal to the conversion price as defined
in the convertible notes in an amount equal to 7% of the common stock underlying the securities sold in the private placements. Accordingly,
a warrant to purchase common stock was issued in December 2021 in connection with our private placement of 6% convertible unsecured promissory
notes, exercisable to purchase 7% of the original principal amount of the Company&rsquo;s 6% convertible unsecured promissory notes divided
by the convertible notes&rsquo; applicable conversion price, at an exercise price equal to the convertible notes&rsquo; applicable per-share
conversion price. Warrants to purchase shares of common stock have also been issued to Boustead in March 2023, April 2023 and May 2023
in connection with our private placements of 8% unsecured promissory notes and accompanying investor warrants. The warrants may be exercised
to purchase an aggregate of 7% of the common stock underlying the warrants that were issued to the initial 8% unsecured promissory note
holders at an exercise price equal to the exercise price as defined in such warrants. Each of the placement agent&rsquo;s warrants will
terminate five years after issuance. Boustead has informally waived its rights to warrants to purchase shares of common stock in connection
with our private placement of 8% convertible unsecured promissory notes and accompanying investor warrants. Under the engagement letter
with Boustead, its placement agent&rsquo;s warrants must be registered for resale with the Company&rsquo;s initial public offering. However,
Boustead has informally deferred these registration rights with respect to the registration statement for the initial public offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Boustead agreed to waive its success fee and
expense allowance for any Company-introduced investors in the private placement of the Company&rsquo;s 8% convertible unsecured promissory
notes and accompanying warrants and in consideration of such waiver Boustead will receive a number of shares of common stock of the Company
that is equal to 8% of the number of shares of common stock issuable to the Company-introduced investors upon conversion or exercise,
as applicable, of their securities. A total of $965,000 were invested by Company-introduced investors in that private placement. Accordingly,
Boustead will receive a total of up to 77,200 shares of common stock based on the number of shares of common stock that will be issued
upon the automatic conversion of the 8% convertible promissory notes and issuable to the holders of the related warrants upon the Company&rsquo;s
initial public offering, based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range
set forth on the cover page of the prospectus. Further, Boustead agreed to defer 50% of its total success fee and 50% of its expense
allowance for the other investors in the private placement of the Company&rsquo;s 8% convertible unsecured promissory notes and accompanying
warrants until the closing of the initial public offering. Based on a total of $500,000 invested by non-Company-introduced investors
in that private placement, such deferred fees and non-accountable expense allowance total $20,000.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 17, 2022, the Shareholder Agreement was
entered into by and among the Company and the stockholders of the Company. The Shareholder Agreement provides certain restrictions, rights
and obligations relating to the proposed sale, transfer or other disposition of the shares of the Company.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a stockholder party proposes to sell their
shares, or the ownership of the shares would change as a result of a marital divorce or separation, death, bankruptcy or similar proceeding,
or the stockholder party engages in fraud, a felony or bad-faith violation of the implied contractual covenant of good faith and fair
dealing, the Company may repurchase the shares within a certain period. If the Company does not repurchase any of the shares within the
prescribed period, the other stockholder parties may then purchase the unpurchased shares within a certain period. The purchase price
would be the seller&rsquo;s proposed price, or, in the event of a purchase pursuant to a change in the ownership of the shares for one
of the reasons stated above, at the Company or other stockholder party buyer&rsquo;s proposed price, and if not accepted by the disposing
stockholder or their spouse, representative or successor, as applicable, then the fair market value of the shares. The purchase price
must be paid at the proposed price for proposed sales; in cash as to dispositions pursuant to marital divorce or separation; and for
the other events described above, must be paid in cash or with a 5-year nonnegotiable promissory note bearing interest at the rate per
annum equal to <I>The Wall Street Journal</I> prime rate of interest as quoted in the Money Rates section of <I>The Wall Street Journal</I>,
compounded annually on each anniversary of the note. These purchase rights are subject to certain notice, timing and other provisions
set forth in the Shareholder Agreement. The board of directors of the Company may waive the application of the repurchase rights of the
Company and the purchase rights of the other stockholder parties described above. Dispositions subject to the tag-along right or drag-along
rights described below are subject to the requirements described below and are not subject to the purchase rights and repurchase rights
described above.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Drag-Along Right and Tag-Along Rights</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Company proposes a transaction or series
of related transactions resulting in (i) the sale of all or substantially all of the assets of the Company to a non-affiliated third
party; (ii) a sale resulting in more than 50% of the voting power of the Company being held by one or a non-affiliated third parties;
or (iii) a merger, consolidation, recapitalization or reorganization of the Company with or into a non-affiliate third party after which
the stockholder parties will be unable to designate or elect a majority of the board of directors or similar governing body (a &ldquo;Change
of Control&rdquo;), the Company may require the other stockholders to transfer all of their shares to the proposed transferee for the
same consideration and otherwise on the same terms and conditions upon which the Company is arranging for the sale of shares. Likewise,
in the event of such a proposed transaction or series of transactions, subject to the Company&rsquo;s repurchase rights described above,
any stockholder party may cause the Company to effect a disposition of such stockholder&rsquo;s shares in the transaction. The drag-along
right and tag-along rights are subject to certain notice, timing, payment, and other provisions set forth in the Shareholder Agreement.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each of the stockholder parties generally has
the right to purchase up to their relative percentage ownership of the Company&rsquo;s common stock of any common stock or securities
convertible into or exercisable to purchase common stock that the Company may from time to time issue, including in an initial public
offering, at the proposed price and other offering terms. These purchase rights are subject to certain notice and timing provisions set
forth in the Shareholder Agreement.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The stockholder parties are subject to certain
confidentiality requirements. The Shareholder Agreement will terminate on the earliest of (i) the written consent of the board of directors
and vote of two-thirds of the holders of the outstanding common stock of the Company; (ii) the Company&rsquo;s dissolution, filing of
a petition in bankruptcy under Chapter 7 of the United States Bankruptcy Code or insolvency of the Company; (iii) upon the closing of
the Company&rsquo;s first underwritten public offering of its common stock on The Nasdaq Stock Market LLC, or Nasdaq, the New York Stock
Exchange or other exchange or marketplace approved by the board of directors; or (iv) at such time as only one stockholder party remains.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_010"></A>BUSINESS</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are a technology
company developing and operating platforms to give significantly more student-athletes the opportunity to go to college and continue
playing sports. Our platform, Signing Day Sports, is a digital ecosystem to help athletes get discovered and recruited by coaches and
recruiters across the country. We currently fully support football and baseball, and we plan to expand the Signing Day Sports platform
to include additional sports. Each sport is led by former professional athletes and coaches who know what it takes to get to the big
leagues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Signing Day Sports launched
in 2019, and as of March 2023, many high schools, sports clubs, and aspiring high school athletes have subscribed to the Signing Day
Sports platform. Colleges in the National Collegiate Athletic Association (NCAA) Division I, Division II, and Division III, and the National
Association of Intercollegiate Athletics (NCIA), have utilized our platform for recruitment purposes. Signing Day Sports initially supported
football athletes, also now offers a platform for baseball and softball, and is expected to offer a men&rsquo;s and women&rsquo;s soccer
platform in or around May 2023, resulting in even more recruiter and athlete platform participants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We founded Signing Day
Sports to reinvent the high school and college sports recruiting process for the digital era. When we started the Company, recruiting
was still being done largely as it had been done since before the mass availability of Internet-connected devices and was still limited
by that model. We identified the flaws in the recruiting process and the unique opportunity it presented for us to become a solution
provider in the industry. We developed and operated our platform with the objective of optimizing and enhancing the sports recruitment
process across all sizes of colleges and athletic departments.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our ability to leverage
modern technologies to bring coaches and athletes together in a mutually beneficial ecosystem has shown significant benefits for both
sides of the student-athlete recruitment process. Parents and athletes can use the platform to understand and provide what recruiters
want to see, seek and gain offers of better athletic scholarships or other financial aid packages, and maximize the potential of an athlete&rsquo;s
career. Recruiters now have a comprehensive recruitment application that shows video verification of key attribute data and gives the
recruiter the ability to narrow down their search with a highly optimized search engine and athlete screening process.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In short, we offer a comprehensive solution that
services the needs of all participants in the sports recruitment process. We are aware of no other platform that offers what our platform
does. Our goal is to change the way sports recruitment is done for the betterment of everyone.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The sports recruitment industry has a number
of problems. Frequently, the best athletes in the world get overlooked because of a lack of exposure, promotion, and experience. The
dominance of the top athletic programs reduces opportunities for talented student-athletes. Many student-athletes who do not know how
to effectively promote themselves will get pushed down ranking sheets. Signing Day Sports has built an application to bring equal opportunity
to all student-athletes looking to be recruited at every level.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that our technology can help level
the playing field for both student-athletes and recruiters. Any student-athlete can promote and demonstrate their talent to all of the
recruiters on our platform. On the other side, every recruiter who uses the platform can access the same rich level of data that can
be provided by our platform&rsquo;s student-athletes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe our technology will help move sports
recruitment toward a truly fair experience for all parties involved.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Signing Day Sports is a platform in the form
of an app available on Apple&rsquo;s App Store and Google Play for student-athletes and desktops for coaches and recruiters. We believe
Signing Day Sports is the first comprehensive sports recruitment platform. The platform interface is designed to be optimized for each
participant in the sports recruitment process. The three-tiered technology platform serves student-athletes and their parents, high school
and sports club coaches, and college and professional recruiters and scouts.</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Student-athletes can upload key information and
verified data that is critical in the recruitment process. The data fields in our player platform include the following: Video-verified
measurables (such as height, weight, 40-yard dash, wingspan, hand size), academic information (such as official transcripts and SAT/ACT
scores), and technical skill videos (such as drills and mechanics that exemplify player mechanics, coordination, and development).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">College coaches, team managers and other recruiters
can load in all athletes on their respective teams, sports clubs or programs. They can use the platform to communicate directly with
athletes, track their progress in the weight room and training field, and manage other aspects of their athletes. Additionally, the platform
serves as an important tool for recruitment and development. In particular, college coaches can manage their entire recruitment process
through our platform. Our platform provides college coaches an optimized organizational system, communication tools, and verified data
to make informed decisions and save program costs. Athletes and parents can use the platform to communicate with their coaches and managers
as well as track individual performance and key metrics that are valuable to recruiters. The platform was built by athletes and recruiters
for athletes and recruiters, and we believe it truly represents the future of sports recruitment.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The youth sports market was $28.7 billion in
the U.S. in 2019 before it declined to $6.7 billion in the wake of the pandemic, and it was projected that it would start to recover
in 2021 (Wintergreen Research, Inc., &ldquo;Global Youth Team, League, and Tournament Sports Market Report 2021: The $28.7 Billion Market
Declined to $6.7 Billion in 2020 in the Wake of the Pandemic with Recovery Expected in 2021,&rdquo; May 2021). Prior to the pandemic,
it was reported that the youth sports market was projected to reach $77.6 billion by 2026 (Business Wire, &ldquo;Youth Sports: Market
Shares, Strategies and Forecasts, Worldwide, 2019-2026 - ResearchAndMarkets.com&rdquo;, December 26, 2019). In the United States alone,
in the 13-17 age-range only, as of 2020, there are 1,845,000 youth baseball players, 1,437,000 youth tackle football players, 1,208,000
outdoor soccer players, and 353,000 youth fastpitch softball players (Sports &amp; Fitness Industry Association, 2020). Additionally,
sports families spent an average of $693 per child, per sport annually (Project Play &ndash; An Initiative of the Aspen Institute, &ldquo;State
of Play &ndash; 2019,&rdquo; September 4, 2019).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Globally, we believe that the number is likely
in the hundreds of millions. This grouping includes school-affiliated athletic programs, sports clubs, and recreational participants.
In 2020, in the United States alone there were 8 million student-athletes competing in high school sports (NCAA, &ldquo;Probability of
Competing Beyond High School&rdquo;). In most sports, less than 10% of high school athletes compete in college athletics, and the probability
of NCAA athletes making it to the professional leagues ranges from about 2% to essentially zero (NCAA, &ldquo;2020 Probability of Competing
Beyond High School Figures and Methodology&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Parents of recruitable student-athletes are also
an important demographic. According to a&nbsp;survey&nbsp;conducted by The Harris Poll for TD Ameritrade, sports parents say a third
of their income goes toward covering children&rsquo;s expenses, including sports (TD Ameritrade, &ldquo;Cost of Youth Sports Delaying
Retirement for Parents,&rdquo; May 15, 2019). According to the survey, the majority (62%) of sports parents believe college scholarships
will cover more than half of tuition. Yet from 2016 to 2019, according to the report, the number of sports parents&rsquo; children who
secured an athletic scholarship has declined by more than half (24% in 2016; 11% in 2019).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Historically, only those parents with the necessary
knowledge and resources could access the private coaches, training camps, and other services often needed to ensure that their student-athletes
would have the best opportunities in the traditional recruitment process. Long-distance traveling, an essential part of the traditional
recruitment process, has always presented unique difficulties for student-athletes, parents, and coaches, both as a major expense and
distraction from academic or job priorities. However, most student-athletes and their parents do not have the necessary resources or
know-how to overcome the challenges in the recruitment process, and may be at a severe disadvantage as a result.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the past several years, online recruiting
services have emerged to improve the reach and accessibility of the recruiting process for coaches and athletes. The overall technology,
familiarity and overall usage of online recruiting has developed, and the number of users leveraging appears to be growing. Additionally,
the ongoing COVID-19 global pandemic has increased both the need for, and familiarity with, remote interactions. As a result, we believe
a significant business opportunity exists to provide these opportunities to existing and new customers as alternatives to in-person recruiting
events.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our proprietary and custom technology allows
coaches and athletes to bypass that process by providing a platform that allows coaches to effectively evaluate talent without having
to see the athletes in person.</P>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe our key competitive strengths include:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Massive
                                            Low-Cost Access to Recruiters</I></B>. Recruiting events, camps, games and showcases such
                                            as those hosted by Next College Student Athlete, Gridiron Elite and Perfect Game strive to
                                            match high-level high school athletes for in-person competition. Attendees sometimes travel
                                            interstate to attend these events and typically pay an attendance fee as well. These events
                                            are typically costly to recruits&rsquo; families and present a number of practical challenges
                                            for recruits. Our app evens the playing field by allowing an athlete to get in front of numerous
                                            recruiters without any travel or significant costs.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>More
                                            Objective and Fair Player Evaluations</I></B>. Our platform fills a niche in the current
                                            competitive landscape by allowing recruits to put their best foot forward by submitting only
                                            their best interviews, verified athletic/academic measurables, verified drill footage, and
                                            actual game film. Recruiters can then better assess their prospects than in traditional in-person
                                            recruitment events where chance events can throw off even the best athletes&rsquo; performances.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Better
                                            Athlete Comparison Tools.</I></B> Other digital sports recruitment apps such as Hudl do not
                                            allow coaches to evaluate prospects&rsquo; drill performances frame-by-frame, side-by-side.
                                            Additionally, these platforms do not have verified statistics within individual recruiting
                                            profiles. Our tool offers these and a number of other unique features that recruiters and
                                            their prospects find exceptionally valuable.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Designed
                                            for Coaches and Recruiters.</I></B> Through our verified measurables, &ldquo;Film Room,&rdquo;
                                            &ldquo;Big Board&rdquo;, &ldquo;Interview&rdquo; and recruiter-athlete messaging features,
                                            our app&rsquo;s coach/recruiter platform allows college coaches and recruiters to drive the
                                            recruitment process. At their desktops, recruiters can easily access and request verifiable
                                            information from thousands of athletes across the nation. After players submit their video-verified
                                            uploads, verified academics, and supplemental data like responses to interview questions,
                                            coaches can make well-informed decisions. Our in-app messaging allows coaches to communicate
                                            directly with prospective recruits. All of our app&rsquo;s features are designed to produce
                                            an efficient, comprehensive and intuitive process for make accessing, comparing, ranking
                                            and recruiting athletes by user coaches and recruiters.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Designed
                                            for Players and Parents.</I></B> Our app&rsquo;s player-facing mobile platform easily allows
                                            players to submit video-verified information, verified academic information, responses to
                                            interview questions, and other data, and be seen by hundreds of college coaches and recruiters.
                                            In the comfort of their own home or a nearby field, players can upload all the information
                                            coaches need to make a well-informed decision.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>PRO+
                                            Service</I></B>: PRO+, our premium services offering, provides players with all of the critical
                                            features within our platform, and adds direct support and guidance from former Division I
                                            football recruiters and personnel. For this service, our recruitment team provides players
                                            and families with the following: Two film evaluations, access to college recruiting experts,
                                            highlight tape development, custom college scorecard, and more recruiting services. At a
                                            price of $299.99 per year, the combination of our technology platform and recruitment guidance
                                            will ensure the players have the best opportunity to earn a scholarship.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Educational
                                            Tools for Players and Parents</I></B>. Signing Day Sports supports student-athletes and parents
                                            through the entirety of the recruiting process in three ways. First, our former college coaches,
                                            athletes, and player personnel directors are readily available through the Signing Day Sports
                                            app, website, and personal social media accounts. They support and communicate regularly
                                            with student-athletes to assist them throughout the recruiting process. The second way is
                                            <I>The Wire</I>, Signing Day Sports&rsquo; official blog. We regularly post educational and
                                            informative blog entries that consist of interviews, player features, in-depth dives into
                                            specific recruiting processes and events, and other relevant subjects. Thousands of visitors
                                            read <I>The Wire</I>&rsquo;s entries every month to stay up to date regarding the most recent
                                            recruiting news and updates. The third way is called &ldquo;Signing Day Sports University&rdquo;
                                            or &ldquo;SDS University&rdquo;. SDS University is a Zendesk-based customer-facing knowledge
                                            base and is composed of short, educational videos. Student-athletes, parents, and coaches
                                            can learn about our app, the collegiate recruiting process from beginning to end, and more
                                            through the SDS University video catalog. Topics range from NIL, the transfer portal, and
                                            eligibility to more specific app tutorials like uploading videos or sharing the student-athlete&rsquo;s
                                            profile link. SDS University helps leverage our internal knowledge to communicate more efficiently
                                            and with more people.</TD></TR></TABLE>

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


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The key elements of our strategy to grow our
business include:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Completion
                                            and Development of New Sports Platforms</I></B>. Our app previously offered fully-supported
                                            football and baseball platforms. More recently, our official platform for softball launched
                                            in February 2023, and we expect our men&rsquo;s and women&rsquo;s soccer platform to launch
                                            in May 2023. We plan to continue to develop all of our platforms with additional features.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Investment
                                            in our Platform</I></B>. We will continue to invest in our technology and infrastructure
                                            to improve our product and ability to present best-in-class technology in the recruitment
                                            space, with planned features such as player recommendations for coaches based on their specific
                                            requirements and preferences. We hired key employees and retained an onshore technology and
                                            development agency, Midwestern, for product launches in baseball, softball, and soccer, in
                                            addition to continually improving the features and performance of our platform. Additionally,
                                            we will recruit, hire, and employ a high-quality offshore team to improve the efficiency
                                            and quality of our platform. We will also prioritize internal hires of engineers and developers
                                            to launch new features and sports platforms, while ensuring product stability and effectiveness.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B><I>&nbsp;</I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Launch
                                            New Products and Expand Features</I></B>. Over time, we will continue to launch new products
                                            and features to meet market demand. We will prioritize both the needs of college coaches
                                            and recruiters across the nation and the athletes seeking to be recruited in major sports
                                            verticals. Some of the planned features include:</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Public
                                            Player Profile</I></B>. By allowing athletes and their parents to share a public version
                                            of the athlete&rsquo;s profile, we can ensure that the ultimate power of recruiting is in
                                            the athlete&rsquo;s hands.&nbsp; We expect that the public version may be shared with coaches,
                                            other athletes and on social media and will contain all of the athlete&rsquo;s data, including
                                            videos.&nbsp; The profile will be available to anyone, including recruiters and others that
                                            are not Signing Day Sports users. Additionally, our profile tracking is being designed to
                                            allow players to see who has viewed their profile and may be interested in recruiting them.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Social
                                            Community of Student-Athletes</I></B>. Signing Day Sports plans to introduce social features
                                            on the platform. We expect these features will help athletes share and exchange videos, information,
                                            and bragging rights, and enhance the users&rsquo; sense of community. With a robust integration
                                            of LinkedIn and Facebook, athletes will be able to follow other athletes, see their profiles
                                            and videos in a feed, favorite other athletes, and exchange workout tips on our platform
                                            forums.&nbsp; Athletes will also be able to compete against one another for bragging rights
                                            on the leaderboard, complete tasks for badges, and take part in Signing Day Sports community
                                            challenges.&nbsp; These social features are expected to engage athletes with the Signing
                                            Day Sports app more holistically through these social connections.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Release
                                            of My Invites</I></B>. With the first iterative release of our platform&rsquo;s My Invites
                                            feature, coaches can drive player subscriptions and engagement by uploading unlimited lists
                                            of athletes and inviting them to our platform with as few as two mouse clicks.&nbsp; Our
                                            system analyzes the submitted data and tracks whether an athlete deleted their email, opened
                                            it or signed up for subscription.&nbsp; With this functionality, coaches can play a key role
                                            in the recruitment process by getting prospective athletes to not only join the platform
                                            but encourage them to upload verified information like transcripts, drill videos, and height
                                            and weight.&nbsp; This data upload from the coaches is simple, streamlined and provides them
                                            with key information to make data-informed decisions, communicate with prospects and even
                                            make offers and build their virtual team.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Increase
                                            Profitability through Multiple Revenue Streams</I></B>. Signing Day Sports expects increased
                                            profitability as we launch digital marketing campaigns and sports platforms. We expect that
                                            a growing subscriber base will allow us to increase subscription margin, increase subscriber
                                            lifetime value, and increase monthly and annual renewal profits. An increase in profitability
                                            from a greater subscription base and multiple sports platforms can in turn support our branding,
                                            marketing, and operational spend.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><B><I>Expand
                                            Sports Club Support<FONT STYLE="font-family: Times New Roman, Times, Serif">.</FONT></I></B>
                                            Prominent youth sports organizations in the United States are involved in many different
                                            sports including soccer, baseball, softball, lacrosse, basketball, and track and field. Sports
                                            clubs are often more competitive than high school athletic programs, and club players often
                                            demonstrate a commitment to continue playing sports at the next level. As we expand our platform
                                            to other sports, we will prioritize support for youth club sports organizations. Our support
                                            will be the expansion of a sales team to directly work with club coaches and organizations.
                                            We expect that club teams and organizations will embed our platform fees into their annual
                                            fees so that they can offer enhanced recruitment support for players and their parents, while
                                            providing their coaches with a tool to streamline the recruitment process.</TD></TR></TABLE>

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


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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Grow and Broaden Brand Awareness</I></B>.
                                            Our brand awareness has developed primarily within our football vertical, particularly in
                                            the Southwestern United States and other areas where football is a dominant sport. With strategic
                                            partnerships with football associations and organizations, digital, social media, event marketing,
                                            and organizational partnerships, we expect to grow our brand throughout the United States.
                                            Additionally, as we launch new sports verticals, we will have many opportunities to increase
                                            brand and product awareness through additional markets. We will broaden our reach through
                                            educating players, parents, and coaches through best-in-class technology and compelling value.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Pursue Strategic Geographies
                                            for Product Expansion</I></B><FONT STYLE="font-family: Times New Roman, Times, Serif">. </FONT>With
                                            youth sports being played across the world, we will seek to expand our platform and technology
                                            to other countries across the globe. Through disciplined research, we will seek to expand
                                            our product to areas with significant children&rsquo;s sport participation, technology adoption,
                                            and access to recruiters. We expect to prioritize the North America markets first, then replicate
                                            and introduce products suited to the local. For example, our anticipated soccer platform
                                            could provide a significant solution to inefficiencies in the student-athlete recruitment
                                            process in markets like Mexico and Europe.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Digital Marketing Campaigns</I></B></TD></TR></TABLE>

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

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Business-to-consumer (B2C)
                                            digital marketing</I></B>. Through our B2C digital marketing campaign, we will promote and
                                            advertise our products and services to thousands of high-school-aged football players and
                                            parents across the nation. With our planned combination of compelling content, brand influencers,
                                            and a marketing website, we expect significant growth in individual subscriber growth. In
                                            particular, we will prioritize parent-friendly social media platforms such as Facebook, Twitter,
                                            and Instagram, and our campaigns will support and educate parents on the recruitment process
                                            while providing our value proposition through our products, services and technology.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify"><B><I>&nbsp;</I></B></P>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Business-to-business (B2B)
                                            digital marketing</I></B>. Through our B2B digital marketing campaign, we will promote and
                                            advertise our products and services to high school and sports club coaches, athletic directors,
                                            sports club owners, and their business development teams.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Digital marketing techniques</I></B>.
                                            Our digital marketing campaigns will utilize search engine optimization, pay per click, digital
                                            ads, and other effective techniques to increase team and organizational subscriptions.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Marketing and Sponsorship
                                            Agreements and Collaborations</I></B>. Our focus on key sponsorship and marketing agreements
                                            will serve to both increase overall player subscriptions and marketing.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Louisville Slugger Hitting
                                            Science Center</I></B>: We and Louisville Slugger Hitting Science Center LLC, or LSHSC, whose
                                            mission is to become the gold standard in baseball and fastpitch softball education and instruction,
                                            will collaborate on the joint marketing and promotion of each other&rsquo;s products and
                                            services. LSHSC will offer subscriptions to our platform and subscription revenues will be
                                            shared between us. See &ldquo;<I>Business &ndash; Sales and Marketing &ndash; Marketing and
                                            Sponsorship Agreements</I>&rdquo; for further information regarding the terms of this agreement.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>The U.S. Army Bowl</I></B>:
                                            Over the course of our three-year agreement, we will be the official recruitment platform
                                            for the Bowl, an annual national all-star game for U.S. high school football which was last
                                            held in December 2022 at Ford Center at The Star in Frisco, Texas. Aside from having priority
                                            on-site access to many of the top players in the game, we may potentially promote ourselves,
                                            advertise to, and onboard more than an estimated 30,000 athletes as a sponsor through the
                                            game&rsquo;s advertising channels. The first Bowl event in December 2022 resulted in more
                                            than 600 player subscriptions. Bowl-related events planned for 2023 include, among others,
                                            the 2023 U.S. Army Bowl National Combine Series, which are scheduled from March 2023 to June
                                            2023. Data collected and analyzed by our platform will be part of the selection process for
                                            determining whether athletes participating in the combines may advance to the Bowl and/or
                                            National Combine events in December 2023. Athletes participating in Bowl combines will receive
                                            three months of access to the Signing Day Sports app&rsquo;s recruiting platform with registration,
                                            a Signing Day Sports recruiting profile with personal guidance from recruiting experts, video
                                            highlights from their combine, and tools to put their game highlights into their profiles
                                            on the Signing Day Sports app. See &ldquo;<I>Business &ndash; Sales and Marketing &ndash;
                                            Marketing and Sponsorship Agreements</I>&rdquo; for further information regarding the terms
                                            of this agreement.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></P>

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

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>State Athletic and Coaches
                                            Associations</I></B>: We have sponsored a number of state athletic associations across the
                                            U.S., including the Texas High School Coaches Association, or THSCA, the North Carolina Coaches
                                            Association, or NCCA, and the Arizona Football Coaches Association, or AZFCA. These associations
                                            have agreed to designate us as their exclusive recruitment platform for all coaches in their
                                            respective states. In addition, we have marketing rights to their coaches, athletes, and
                                            athletic events and combines throughout the year. Please see the details of our marketing
                                            and sponsorship agreements with these associations in &ldquo;<I>Business &ndash; Sales and
                                            Marketing &ndash; Marketing and Sponsorship Agreements</I>&rdquo;.</TD></TR></TABLE>

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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Potential Accretive Acquisitions</I></B>.
                                            We are currently evaluating potential acquisition targets (although no such acquisition target
                                            has yet been identified) that could bolster subscriber growth, branding awareness, and revenue
                                            shares. These potential acquisitions range from owners of specific game events, athlete development
                                            programs, and technologies to boost subscriber growth and revenue.&nbsp;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><B><I>Event and Marketing</I></B>.
                                            Through key partnerships, our events team will conduct on-site Signing Day Sports app registration
                                            with high school-aged athletes and their parents. Specifically, at these events, athletes
                                            will have the opportunity to purchase, download, and upload key data and information on-site.
                                            These events will include football skills camps, soccer tournaments, 7v7 football tournaments,
                                            baseball showcases, and state-wide combines. In particular, our hosted combine events are
                                            expected to continue to be an effective means for gaining exposure to our brand and registering
                                            new users on our platform. We plan to increase the number of our hosted combine events and
                                            utilize media to increase attendance and exposure at these events.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Platform&rsquo;s Features</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our recruitment platform allows athletes to manage
their recruitment profile, upload drills and evaluation metrics, interview, and communicate directly with recruiters in our proprietary
ecosystem. Among the features our platform provides are:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Manage Athlete&rsquo;s Profile</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Athletes can easily set up an account to start
completing a profile by uploading their measurables, testing stats, academics, and demographic information.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Upload Key Drills and Statistics for Recruiters to Evaluate
</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Athletes can easily upload key drills and valuable
gameplay statistics that recruiters at all levels will need to review to make a decision on proceeding with the recruitment process.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Keep Track of Athlete Stats and Get Verified </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Users can upload their game logs after each game
or each week to keep their season stats up to date. We verify this data to potentially increase an athlete&rsquo;s chances to get recruited.
Recruiters will need to see and validate an athlete&rsquo;s key attributes such as:</P>

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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Height;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Academic information; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">By having this baseline information verified
with digital transcripts (image, video, document), a recruiter can establish a baseline of trust establishing a highly educated decision
on how to proceed with a student-athlete. Without this kind of verification, a recruiter must trust what was input on a spreadsheet by
an athlete or a paid recruitment consultant. This reliance can lead to confusion, false starts, wasted time, and loss of confidence in
the information. This reliance can also cause, unfairly at times, the recruiter to lose trust in the athlete that may have inappropriately
mis-recorded key attributes.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Let Recruiters Meet the Real Athlete</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Through our platform, athletes can introduce
themselves to a recruiter before they have even stepped on a facility&rsquo;s grounds. The platform&rsquo;s interview process gives recruiters
a first look at the player behind the film. This function is important because recruiters want to get a sense of an athlete&rsquo;s personality
before they take the next step in the recruitment process.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The platform also allows recruiters to view actual
game film of athletes by integrating with verified game film distribution services.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All platform users can freely download the app.
Individual student-athletes can use its basic features without payment or upgrade to use premium features of the platform; coach-recruiters
can access the app&rsquo;s backend to evaluate potential recruits without payment. Basic features include building a profile, filling
in measurables, uploading academic information, and testing their skills. Premium features include filming measurables, viewing pro day
script tutorials, viewing pro day videos, gaining access to interview features, and others. Athletic departments or other group organizations
may be eligible for reduced pricing per athlete if the whole team participates. Premium subscriptions for individual athletes are currently
$249.99 for an annual plan and $24.99 for a monthly plan, and PRO+ subscriptions for individual athletes are currently $299 per year.
High school football team annual group plans are $5,000. Currently colleges are accepted onto the platform free of charge to encourage
participation.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We intend to invest in the development and expansion
of our technology with the goal of continuously supporting our products and services. Our current technology&rsquo;s basic attributes
are listed below, and may change as we continue to develop it.</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Hosted on: Microsoft Azure cloud infrastructure</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Primary OS: Nginx/Linux</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Primary programming language: PHP</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>CI/CD - Continuous Integration, Continuous Deployment</I></B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>TDD with PHPUNIT tests</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>Pipelines for clean, downtime-less deployments using Envoyer</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD>OAuth 2.0</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As of May 2023, many
high schools, sports clubs, and aspiring high school athletes have subscribed to the Signing Day Sports platform. Colleges in the NCAA
Division I, Division II, and Division III, and the NAIA, have utilized our platform for recruitment purposes. Signing Day Sports initially
supported football athletes, also now offers a platform for baseball and softball, and is expected to offer a men&rsquo;s and women&rsquo;s
soccer platform in or around May 2023, resulting in even more recruiter and athlete platform participants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our customers are primarily
medium and large-sized sports clubs ranging from 100 to 5,000 athletes, school districts, and statewide/nationwide sports organizations,
particularly those that use our free trial model. We solicit feedback from our customers and coaches on a regular basis, allowing us
to understand their evolving needs. We have used this feedback to develop new applications and we intend to continue to develop new offerings
based on customer feedback. Our business is not dependent on any particular end customer.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Intellectual Property and License Agreements</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We believe that our
intellectual property rights are valuable and important to our business. We rely on trademarks, patents, copyrights, trade secrets, license
agreements, intellectual property assignment agreements, confidentiality procedures, non-disclosure agreements, and employee non-disclosure
and invention assignment agreements to establish and protect our proprietary rights. Though we rely in part upon these legal and contractual
protections, we believe that factors such as the skills and ingenuity of our employees and the functionality and frequent enhancements
to our solutions are larger contributors to our success in the marketplace.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Signing Day Sports currently
has a pending provisional patent for its video analysis and review of a student-athlete tool. Patent application number 63/084,295 entitled
&ldquo;Athlete Recruitment Preliminary Analysis System and Methods&rdquo; was filed on September 28, 2020. This tool allows recruiters
to analyze and compare performance of a drill by two athletes, side-by-side, frame-by-frame. We believe that no other recruiting service
can provide this level of athlete comparison tracking.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We also use products, technologies, and intellectual
property that we license from third parties for use in our business-to-business and business-to-consumer offerings. Substantially all
our offerings and services use intellectual property licensed from third parties. While we intend to develop our own intellectual property,
the future success of our business may depend, in part, on our ability to obtain, retain, or expand licenses for popular technologies
in a competitive market.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Research and Development</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our research and development
team is responsible for the design, architecture, operation and quality of our platform. In addition to improving on the platform&rsquo;s
features, functionality and scalability, the Company&rsquo;s R&amp;D team is tasked with coordinating with our cloud operations staff
to ensure that our platform is available, reliable, and stable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our success will depend
on our continuous drive for innovation. We plan to invest substantial resources in research and development to enhance our platform and
develop new features and functionality. We believe timely development and enhancement of products, services, and features is essential
to maintaining our competitive position. Our technical staff must monitor and regularly test our platform, and may on occasion use third-party
quality control software. We also maintain a regular release process to update and enhance our existing solutions. In addition, we engage
security consulting firms to perform periodic vulnerability analysis of our solutions.&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently operate primarily in the United
States. We believe that there will be opportunities within the next 12-24 months to expand our operations into other parts of the Americas
and globally in order to address recruitment technology gaps in these other sports markets. Expansion beyond our current market may require
changes to effectively penetrate international markets, such as translations of our website and apps into several additional languages,
offer customer services and technical support in the local language of foreign key markets, and implement data-privacy and other relevant
compliance procedures of non-U.S. regulatory regimes.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Technology and Human Resources Vendor Relationships</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We maintain key relationships with certain vendors
to provide critical infrastructure and services to enable us to provide a full suite of services for our customers and human resources.
We also make every effort to ensure that risk is appropriately managed with each vendor. For example, we may use redundant accounts or
deployments for a given vendor&rsquo;s services, or maintain a backup strategy in case a vendor fails to provide the contracted services.
These strategies enable us and our platform to continue to function without complete service disruption for our users and staff if a
vendor encounters any issues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following are some of our key vendor relationships:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under a work for hire agreement
                                            with Midwestern, dated August 17, 2022, we engage Midwestern to perform contract engineering-related
                                            projects to utilize agile development and/or design processes, define two- or one-week sprints
                                            that consist of development and/or design tasks and priorities set by the parties to move
                                            their project forward, continually improve the Company&rsquo;s platform, and add new features
                                            and sports. Midwestern will include the full-time equivalent services of three engineers,
                                            one designer and one-half project manager per month at its current rate of $46,666 per month
                                            for specific development and/or design services provided to us pursuant to the agreement,
                                            and reasonable and pre-approved travel and/or other expenses related to the project. We will
                                            own all works created or developed by Midwestern under the agreement. Our rights with respect
                                            to such works may be freely assigned and licensed at our sole discretion. The current term
                                            of our contract with Midwestern begins on September 1, 2022 and ends on February 28, 2023.
                                            We may terminate the contract upon a material breach or default by Midwestern upon thirty
                                            days&rsquo; written notice and opportunity to cure such breach or default. The contract is
                                            subject to certain confidentiality, non-compete, and non-solicitation provisions.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under a client service agreement
                                            with Tilson HR, Inc., or Tilson, dated June 18, 2020, Tilson agreed to pay wages and benefits,
                                            withhold employment taxes, maintain workers&rsquo; compensation, and provide certain other
                                            employment-related services to certain designated employees of the Company and co-employed
                                            by Tilson. We agreed to provide certain information to Tilson and meet certain employment
                                            conditions for any co-employed employees. We will generally remain solely responsible for
                                            co-employed employees&rsquo; acts, errors or omissions with respect to the business activities
                                            of the Company. Both parties will cooperate, develop, and implement employment policies and
                                            practices relating to co-employed employees, administer paid time off and report any claim,
                                            accident, injury, or complaint to the other in relation to co-employed employees. Under the
                                            agreement, we paid Tilson an initial enrollment fee, gross payroll and benefits for each
                                            co-employed employee each pay period, and a service fee of $500.00 per month for groups of
                                            6 or under, following which time the administrative fee will convert to $1,075.00 per employee
                                            per year, which will increase 4% annually after the initial contract term. We must maintain
                                            certain general liability insurance, comprehensive automobile liability insurance, and certain
                                            professional liability insurance if applicable. The agreement also has customary mutual employee
                                            non-solicitation provisions. The agreement also requires an annual irrevocable letter of
                                            credit guarantee from our bank. The agreement has a two-year term and automatically renews
                                            for additional two-year terms until terminated by either party providing at least sixty days
                                            of written notice, by Tilson immediately without notice upon certain material breaches by
                                            the Company, or by the Company immediately with payment of an early termination penalty.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under an order for services with
                                            Paycor Services, or Paycor, dated May 23, 2022, Paycor provides employee payroll and benefit
                                            support services. We must pay an annualized fee of $11,786. The agreement is subject to an
                                            early termination fee if terminated prior to the six-month anniversary of the effective date.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under a master services agreement
                                            with SAGE186, LLC, or SAGE186, dated January 18, 2022, SAGE186 agreed to provide certain
                                            services to the Company pursuant to a statement of work, or SOW. Pursuant to an SOW dated
                                            January 18, 2022, SAGE186 will provide us with ongoing human resources support to assist
                                            in a variety of people-related business needs. Under this SOW, we will pay SAGE186 a monthly
                                            retainer of $1,850 for up to 10 hours per month of billable time, with additional payments
                                            for excess hours, from February 1, 2022 and ending July 31, 2022. Under this SOW, we will
                                            also pay a one-time $3,500 fee for SAGE186&rsquo;s completion of a human resources audit
                                            of the Company&rsquo;s people, processes and procedures, including a prioritized project
                                            list and strategic human resources roadmap, by February 15, 2022. Under the agreement, we
                                            will have five business days following SAGE186&rsquo;s delivery of any deliverable described
                                            in the SOW to accept the deliverable and SAGE186 will have a reasonable period of time not
                                            exceeding ten business days to remedy the deficiencies if we do not accept the deliverable.
                                            The master service agreement is subject to certain mutual confidentiality provisions. All
                                            work products will be considered work made for hire and be our sole and exclusive property.
                                            We granted SAGE186 a limited right to use our trademarks only within the scope of the agreement,
                                            and may include our name in its published client lists and issue announcements and written
                                            statements concerning this agreement and the general substance of services performed under
                                            it. The agreement has certain mutual indemnification and employee non-solicitation provisions.
                                            The agreement has an initial term of six months and automatically renews for successive six
                                            months terms unless either party terminates it for any reason within thirty calendar days&rsquo;
                                            written notice to the other party, or upon breach by the non-breaching party or mutual agreement
                                            to terminate. Termination of the agreement also terminates any SOWs, while termination of
                                            a SOW will not have the effect of terminating other SOWs or the agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Sales and Marketing</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our sales and events
and marketing teams work together closely to drive market awareness, build a strong sales pipeline and cultivate customer relationships
to drive revenue growth.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our marketing organization
is focused on building our brand reputation, increasing the awareness and reputation of our platform, and driving customer demand. We
also engage in paid media and web marketing, attend industry and trade conferences, and host events and jamborees for athletes, coaches,
parents, and other stakeholders. We employ a wide range of digital programs, including search engine marketing, online and social media
initiatives, and content syndication to increase traffic to our website and encourage new customers to sign up. We also harness targeted
radio advertising to drive down our cost of acquisition and increase awareness of the brand.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, we plan to engage in more joint
marketing activities with our sports and technology alliance partners along with pursuing an affiliate marketing program focused on our
core sports domains and individual social media influencers. As part of our efforts to market our online recruiting services, we will
attempt to enter into affiliate marketing agreements with individuals and groups within the high school, sports club, and college sports
community. We expect this affiliate marketing system will allow us to spend fewer resources on direct advertising, provide enhanced direct
or targeted marketing, and lead to increased traffic on our website.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As of May 2023, we had
marketing and sponsorship agreements with or relating to LSHSC, The U.S. Army Bowl, THSCA, NCCA, and AZFCA. The following are summaries
of our agreements with these and our rights and obligations under the agreements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Collaboration and Revenue-Sharing Agreement
with Louisville Slugger Hitting Science Center LLC.</I> LSHSC is in the business of putting on and offering &ldquo;LSHSC Events,&rdquo;
<I>i.e.</I>, membership programs, classes, camps, clinics, and similar events to baseball and softball players and their parents. Under
this agreement, dated October 31, 2022, we and LSHSC will collaborate on the joint marketing and promotion of LSHSC Events and the &ldquo;SDS
Platform,&rdquo; <I>i.e.,</I> the web-based technology platform that we offer to help athletes get discovered and recruited by coaches.
Under the agreement, we and LSHSC agreed to issue a joint press release regarding our collaboration. As part of this collaboration, we
and LSHSC are to jointly create emails, digital ads, and social media posts in furtherance of our collaboration, which each party will
issue through its regular channels to its typical target audiences for its own products and services. We and LSHSC will also jointly
create and maintain co-branded educational content (to be supported by us), including content for athletes and their parents on training,
development, and recruiting.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the agreement, we will be LSHSC&rsquo;s
exclusive provider of athlete recruitment technology substantially similar to the SDS Platform for the term of the agreement. LSHSC will
include an advertisement for the SDS Platform and information on how persons can subscribe to it in all emails and written materials
related to LSHSC Events that LSHSC sends to its customers and prospective customers. LSHSC has also agreed to permit our representatives
to present information on the SDS Platform at LSHSC Events and to list us as &ldquo;Our Partner&rdquo; on LSHSC&rsquo;s websites for
the term of the agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As part of this agreement, LSHSC will also offer
individuals a 1-year subscription license to the SDS Platform at a price to be set by LSHSC not below $30.00 per month, and we will provide
each person whom LSHSC enrolls for the SDS Platform (each an &ldquo;LSHSC Referral&rdquo;) a 1-year subscription license to the SDS Platform.
LSHSC must pay us a &ldquo;Revenue Share Payment&rdquo; every month for each LSHSC Referral that pays LSHSC in that month his/her monthly
fee on his/her 1-year subscription license for the SDS Platform, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">For the first 100,000 LSHSC Referrals,
                                            the Revenue Share Payment is $25.00 per LSHSC Referral;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">For the next 149,999 LSHSC Referrals,
                                            the Revenue Share Payment is $20.00 per LSHSC Referral; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">For the 250,000th LSHSC Referral
                                            and beyond, the Revenue Share Payment is $17.50 per LSHSC Referral.</TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">LSHSC will pay Revenue Share Payments to us for
each LSHSC Referral for the life of the 1-year subscription license to the SDS Platform associated with such LSHSC Referral. LSHSC must
send Signing Day Sports all Revenue Share Payments due for a month within 15 days after the month ends and include a statement on how
it calculated that payment. The agreement requires LSHSC to keep complete and accurate books and records according to U.S. GAAP for the
LSHSC Referrals which it enrolls to the SDS Platform and the license subscription fees for the SDS Platform charged to and paid by the
LSHSC Referrals, and we may examine and audit those books and records.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the agreement, LSHSC will collect and provide
us with the first and last name, email address, and all &ldquo;Player Profile&rdquo; data for each LSHSC Referral and obtain the written
consent from each LSHSC Referral or his/her parent or guardian, in a form reasonably acceptable to us, for LSHSC to share that information
with SDS and for his/her Player Profile to be posted to the SDS Platform. Under the agreement, a &ldquo;Player Profile&rdquo; is the
collection of athletic-related data for a particular LSHSC Referral, such as the LSHSC Referral&rsquo;s first and last names and athletic
statistics. We will upload onto the SDS Platform the Player Profile for each LSHSC Referral and host the data in that Player Profile
on the SDS Platform. We must include an LSHSC leaderboard in the SDS Platform or specified Player Profiles in Signing Day Sports influencer
promotions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The term of the agreement is one year, with three
renewal periods of one year each. Either party may terminate the agreement for cause, defined as a material breach of the agreement that
is not cured or cannot be cured within 30 days, or without cause if 30 days&rsquo; advance written notice is provided to the other party.
The agreement also contains mutual limited trademark license grants, confidentiality and indemnification provisions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Sponsorship Agreement
for The U.S. Army Bowl</I>. Over the course of our three-year sponsorship agreement, dated as of September 9, 2022, we will be the exclusive
national recruiting partner in 2022, 2023 and 2024 for the Bowl, an annual national all-star game for U.S. high school football along
with a branded football combine, fiesta event, all-star youth championship, 7v7 and flag championship, and National Signing Day event,
which is traditionally the first day that a high school senior can sign a binding National Letter of Intent committing to attend a year
at a NCAA member school in exchange for athletics financial aid. The first Bowl held during the term of the sponsorship agreement was
held in December 2022 at Ford Center at The Star in Frisco, Texas. Aside from having priority on-site access to many of the top players
in the game, we will be able to promote ourselves, advertise to, and onboard more than an estimated 30,000 athletes as a sponsor through
the game&rsquo;s advertising channels. At the game event alone, we expect to be able to subscribe and onboard more than 4,000 players
onto our platform.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Under our sponsorship
agreement with Goat Farm Sports, the owner of the Bowl, we will have onsite marketing rights at every Bowl event and football event during
the week of Bowl events in the Frisco region at all such events operated by Goat Farm Sports, as well as onsite marketing nationally
or internationally, wherever Goat Farm Sports produces and owns such football events, which can include showcases/training camp, combine,
7v7, College Football All-America Team honors selection and other events, rankings shows, and reality show series dedicated to high school
football athletes that Goat Farm Sports owns and produces. We will also have a national presence at The Ladies Ball, a girls&rsquo; basketball
tournament owned by Goat Farm Sports, for 2023 and 2024 with branding rights, access to athlete data and on-site education.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Under our agreement,
we will have unlimited rights to reuse all Bowl-related media in social media and other media, including on-air content packages, pre-game
promos and other footage taken at the Bowl featuring the Company&rsquo;s apparel or recruiting services. Our branding benefits include
Bowl-provided Company signage at the Bowl including eight sideline banners at Bowl events; having our logo, tagline and &ldquo;National
Recruiting Partner&rdquo; status featured on all official Bowl-related materials including tickets and lanyards; and Bowl-provided Company-branded
non-game day apparel for athletes and coaches. We may provide other promotional materials to all athletes, coaches and media members
at each regional and national event. The Bowl&rsquo;s website will feature our logo, tagline, and key messaging; we will be featured
in Bowl social and digital media in the months leading up to Bowl events, every day in the week prior to an event and at least twice
on the date of an event. During a Bowl event, we will be recognized as &ldquo;National Partner&rdquo; with a script provided by us on
the Bowl&rsquo;s schedule. We may construct and place a booth at or near Bowl registration and at all Bowl events to promote the Company
and hand out materials to attendees. We may have a sales representative at the booth to sell services or products at Bowl events and
meet coaches, players and spectators. We may also have breakout functions for speaking opportunities with coaches, athletes and parents
at Bowl events. We will receive a complete database after each Bowl event with all athlete and parent information. In addition, we will
receive 500 game tickets to use for any purpose and 25 VIP tickets. The television broadcasting rights will include featuring our national
sponsorship status with the official Bowl logo on all U.S. television packages and certain international broadcasts, six Company TV spots,
opening, middle and closing billboards, and a detailed $100,000 media plan promoting us at the Bowl and all events where Bally Sports
Network is producing media.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In addition, both parties
will work towards creating event sales packages with baked-in services by the Company as well as incentives for additional revenue opportunities
for The U.S. Army Bowl from our sales, and revenue sharing opportunities for both parties from clients or partners who can access or
leverage our ability, technology, services or expertise (including The U.S. Army).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">During 2023, the 2023
U.S. Army Bowl National Combine Series will feature a series of drills and assessments to measure participating athletes&rsquo; athleticism
and football skills. Data collected and analyzed by our platform from these drills and assessments will be part of the selection process
for determining whether athletes participating in the combines may advance to the Bowl and/or National Combine events in December 2023.
Each athlete will be reviewed based on physical ability, skills, game film, combine numbers, and, most importantly, their character,
values and leadership. Athletes participating in Bowl combines will receive three months of access to the Signing Day Sports app&rsquo;s
recruiting platform with registration, a Signing Day Sports recruiting profile with personal guidance from recruiting experts, video
highlights from their combine, and tools to put their game highlights into their profiles on the Signing Day Sports app.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We agreed to make sponsorship
payments consisting of a total of $325,000 for 2022 Bowl events, and equity grants. We agreed to make an initial contribution of $100,000
to Goat Farm Sports; provide valuable product or service donations to athletes and participants at our breakout speaking functions with
coaches, athletes and parents; pay $25,000 to Noel Mazzone by December 15, 2022 for partnership activation purposes; and pay an additional
$200,000 to Goat Farm Sports by December 15, 2022. In addition, we agreed that we will grant Richard McGinness Company stock with a value
of $175,000 for a role to be determined, and that Mr. McGuinness will provide Noel Mazzone with $50,000 of Company stock with rights
to purchase an additional $25,000 of Company stock through Bowl activities, pursuant to a separate agreement outlining such terms. We
will also pay for all expenses relating to our sponsorship except as otherwise provided. Upon the Company&rsquo;s request, Bowl will
secure commercial insurance and add the Company as an additional insured for Bowl events. The agreement will terminate on December 31,
2024. At the end of the contract term, we will have a first right of negotiation for future years. The agreement may be terminated immediately
in the event of notice of breach by either party and the other party&rsquo;s failure to cure within 20 business days of such notice.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Marketing Agreement
with Texas High School Coaches Association</I>. The THSCA is the principal advocate and leadership organization for more than 20,000
coaches across all high school sports in Texas. As their official recruitment platform, and in our three-year agreement, we are therefore
the official recruitment platform for more than 20,000 coaches across all high school sports in Texas. Our agreement with the THSCA,
dated June 22, 2021, began July 1, 2021 and ends June 30, 2024 with an option to renew annually. Under the agreement, we will become
a Cornerstone Sponsor of the THSCA. We will receive first-choice-priority convention booth space, recognition as a sponsor on the THSCA&rsquo;s
website and related rights, advertising rights in the THSCA&rsquo;s <I>Texas Coach</I> magazine, digital ad rights on the THSCA&rsquo;s
website, rights to send quarterly email blasts to the THSCA members with the THSCA&rsquo;s prior approval of content, up to four social
media posts per month, and other sponsorship rights. We may receive payments for platform services from schools only and not directly
from individual students or their families in Texas under the agreement. The THSCA will assist with setting up eight locations at the
National Football League&rsquo;s Super Regional Combines in late May or early June during each contract year. Sign up for the combines
may be done only by athletes at participating schools. We will make sponsorship payments to the THSCA totaling $100,000 per contract
year.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Marketing Agreement with North Carolina Coaches
Association</I>. The NCCA exists to promote and improve athletics in North Carolina&rsquo;s public schools and to foster high standards
of ethics and sportsmanship. Our agreement with the NCCA, dated September 15, 2021, has a one-year term beginning September 15, 2021,
with an option to renew annually upon mutual agreement. Under the agreement, we will become the official recruiting platform sponsor
of the NCCA. We will receive booth space at the annual NCCA coaching clinic, ad space in three NCCA digital newsletters, email promotion
rights to high school coaches, website promotions on NCCA&rsquo;s websites including digital ad space, and print ad rights in NCCA game
program/year book publications. We will make sponsorship payments to the NCCA totaling $3,500 for the initial contract year.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Marketing Agreement with Arizona Football
Coaches Association</I>. The AZFCA focuses on advancing Arizona high school athletic and academic competitions through governance, coaching,
officiating and community advocacy. Under our marketing agreement, dated May 23, 2022, we agreed to be the official and exclusive recruiting
platform sponsor of the AZFCA beginning June 1, 2022 for a term of three years, expiring on June 1, 2025, with an option to renew annually.
As the title sponsor, for the AZFCA coaches clinic/showcase series except in cases where participation would be considered out of compliance
with the NCAA. In addition to AZFCA&rsquo;s commitment to endorse us as the official recruiting platform for the AZFCA, we will receive
booth space for AZFCA coaches clinics, ad space in AZFCA digital newsletters, monthly email promotions about us for high school coaches,
website promotions on all AZFCA-related websites, and access to AZFCA&rsquo;s email and cell phone contact list for head coaches. AZFCA
will also coordinate with us to identify locations in Arizona for potential combines to take place each year. We will make an annual
sponsorship payment to the AZFCA of $2,500. In addition, we agreed to provide introductory premium subscriptions to our app for Arizona
high school teams at no charge from June 1, 2022 to December 31, 2022 for up to 30 participating schools. After that time, ongoing premium
subscriptions to our app for Arizona high school teams would be $49.99 per player per year for 5-30 players per team, and $29.99 per
player for 31 or more players per team, not to exceed $3,000 per team. Participating teams on either our basic or premium subscription
plans will be required to provide their full team roster and current player prospect list as part of account activation.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As we continue to educate players, parents, coaches,
and recruiters about our product and value propositions, we are confident that we will see a rise in profitability and brand awareness.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following statements are examples of how
we may communicate the attributes of our app to student-athletes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Take control of your recruiting
                                            journey: Get discovered and recruited by coaches across the country. Set up a profile with
                                            the information college coaches need to evaluate you all in one place.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Share your recruiting information:
                                            After completing your profile, set it to Public, share it on social media and send it directly
                                            to college coaches!</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Get your film evaluated: Our Signing
                                            Day Sports&rsquo; Recruiting Experts will evaluate your film and provide detailed recruiting
                                            feedback. Looking for more recruiting services? Check out our new Pro+ Program. [link to
                                            webpage]</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Prove yourself to college coaches:
                                            Upload your video-verified measurables to confirm your data. This is what college coaches
                                            need to see to evaluate you accurately.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Showcase your talent: Once you have
                                            chosen your primary and secondary positions, you can upload a variety of position-specific
                                            drills that college coaches want to see.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Show college coaches who you are:
                                            The Signing Day Sports&rsquo; interview process was designed by college coaches to get to
                                            know you better.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following statements are examples of how
we may communicate the attributes of our app to high school coaches:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Give your program an edge: Signing
                                            Day Sports supports athletes in football, baseball, softball, and soccer. Coaches have the
                                            capability to maximize each athlete&rsquo;s recruiting journey all in one place.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Share your athletes&rsquo; profiles
                                            with colleges: You can create a digital prospect list at the click of a button. Share this
                                            list easily with college coaches.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Manage your roster: Upload and manage
                                            your roster all in one place within the Signing Day Sports platform and track your teams&rsquo;
                                            profile completion.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Maximize your teams&rsquo; visibility:
                                            Your players can complete their Signing Day Sports&rsquo; profiles &ndash; including uploading
                                            video-verified data, position-specific drills and interview questions.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Get your athletes seen by college
                                            coaches: Your athletes can set their completed profiles to Public, and you can share their
                                            public link with college coaches.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following statements are examples of how
we may communicate the attributes of our app to college coaches and recruiters:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">View verifiable information: Using
                                            the &ldquo;My Invites&rdquo; feature, you can request accurate data on prospects all in one
                                            place.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Find the perfect fit: Use advanced
                                            search tools to find prospects that fit your program&rsquo;s criteria.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Manage your prospects: Build multiple
                                            comprehensive prospect lists that you can customize and track throughout the season.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Skip the trip: Save yourself time
                                            and travel by using our side-by-side technology to compare prospects&rsquo; drills and video-verified
                                            data simultaneously.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Communicate easily, all in one place:
                                            Send messages directly within the Signing Day Sports&rsquo; platform to coaches and prospects.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Sales</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We primarily sell subscriptions
to our recruiting platform through our direct sales and events team, which is comprised of area sales managers who are segmented by sport
and geography. Our sales and events team also leverages our network of schools, sports associations and clubs, consultants, and other
potential partners. By segmenting our sales and events team, we can deploy a low-touch sales model that efficiently identifies prospective
customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Security Procedures</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Data Collection Practices</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our user agreements and certain sponsorship
agreements, we collect certain information about student-athletes that have been submitted by the student-athletes and, if applicable,
their coaches, recruiters, or other teaching professionals or institutions. This data includes age, date of birth, name, email address,
athletic and educational data, and payment information. We intend to use such data for purposes of providing platform services to the
submitting student-athletes and, if applicable, their coaches, recruiters, and other teaching professionals and institutions. In order
to provide such services, we may need to share certain data with certain third-party services providers. We do not intend to share such
data for any other purposes. All such data collection is subject to our prior receipt of electronically- or physically-signed written
consents or acceptance of terms of use and terms and conditions of our platform app software by student-athletes and, if applicable,
their coaches, recruiters, or other teaching professionals or institutions, granting us rights to share such information for posting
on our platform. Such consents or acceptances of terms and use and terms of conditions of our app software explicitly includes the student-athlete&rsquo;s
and, if applicable, their coach, recruiter, or other teaching professional or institution&rsquo;s grant of a license to each coach, recruiter,
or other teaching professional or institution on our platform to view, compare, analyze and store platform player data. Each coach, recruiter,
or other teaching professional or institution on our platform is in turn required to agree to such terms and use and terms of conditions
to access and use such player data only as permitted under all applicable international, national, state, and local law, including laws
applicable to the use of data of minors. Regardless of these agreements and consents, however, we are subject to a number of data protection
requirements relating to the management and safeguarding of information of users, including minors, including those described in &ldquo;<I>Risk
Factors &ndash; Risks Related to the Company&rsquo;s Business, Operations and Industry &ndash; We are subject to governmental regulation,
which can change, and any failure to comply with these regulations may have a material negative effect on our business and results of
operations.</I>&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We adhere to internal data governance procedures.
Because our users include minors, we comply with heightened disclosure requirements and best practices for how we can use and protect
their information. We give guidance to our users and their guardians on their rights to delete and be forgotten from our application.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Every year we will engage in penetration testing
of our applications to ensure that we maintain a very high degree of protection from bad actors looking to steal information. We also
employ secure coding standards and annual training to our engineering team and product managers. We encrypt all data that we transmit,
and any data that we receive and that is legally or generally considered sensitive, such as personally identifiable information (PII)
and academic records. We regularly rotate private encryption keys used to sign and secure data.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We closely monitor relationships with third-party
vendors that we rely on for critical services, such as Microsoft and Salesforce. We also use a set of observability tools and monitoring
software with the aim of identifying problems as they occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Business continuity and disaster recovery are
ongoing projects for our operations and engineering teams. Ensuring outages and other catastrophic failures of service are mitigated
effectively is among our highest priorities. We use Structured Query Language, or SQL, a specialized programming language designed for
interacting with a database, and maintain seven days of trailing SQL data retention. As of the end of 2022, we had increased our SQL
data&rsquo;s backup retention to 35 days. Our file/content storage system has geo-replicated data, and we plan to enable the system&rsquo;s
file/content backup data retention function to 30 days. Data retention allows data to be restored without any data loss as of a specified
point in time within the trailing retention period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At this time, we are not aware of any significant
failures to maintain submitted personal data in compliance with applicable law, including laws governing the collection and use of the
data of minors. However, there are significant regulatory and legal consequences for such failures and related risks to our business.
For further discussion, see &ldquo;<I>Risk Factors &ndash; Risks Related to the Company&rsquo;s Business, Operations and Industry &ndash;
We are subject to governmental regulation, which can change, and any failure to comply with these regulations may have a material negative
effect on our business and results of operations.</I>&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Employees</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of May 9, 2023, we had 15 employees, all of
whom are full-time. We also engage consultants as needed to support our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not believe any of our employees are represented
by labor unions, and we believe that we have an excellent relationship with our employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Legal Proceedings and Claims</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From time to time, we may become involved in
various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business. Other than as described below,
we are not aware of any such legal proceedings or claims against us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Betterdays Media, Inc. v. Signing Day Sports,
LLC,</I> Case No. 2:21-cv-07442-DMG-JDE (United States District Court for the Central District of California, September 17, 2021)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The plaintiff, Betterdays Media, Inc. commenced
this case in the Superior Court of California for Los Angeles County. Thereafter, the defendant, SDS LLC &ndash; AZ, removed the case
to U.S. District Court for the Central District of California on September 17, 2021. The plaintiff&rsquo;s complaint in the case alleges
that it entered into a contract with the defendant pursuant to which the plaintiff was to perform film production work on a sports documentary
for the defendant and that the defendant breached that contract by failing to pay the full amount owed under the contract to the plaintiff.
The plaintiff claimed damages in the amount of $138,062.97 plus interest. In its answer to the complaint, SDS LLC &ndash; AZ denied the
plaintiff&rsquo;s allegations. On February 1, 2022, the parties filed a joint notice stating that they had agreed to settle the case,
were preparing a written settlement agreement and stipulation of dismissal, and that by February 28, 2022 they would file such stipulated
dismissal or a report why such stipulated dismissal was not filed. On February 4, 2022, the court entered an order providing that, by
March 1, 2022, the parties were to file either (1) a stipulation and proposed order for dismissal of the action or judgment, or (2) a
motion to reopen if settlement has not been consummated and that upon the failure to timely comply with this order, the action would
be deemed to be dismissed as of March 2, 2022. That was the last docket entry in the case. Therefore, pursuant to that order, the case
was deemed dismissed as neither a stipulation and proposed order of dismissal nor a motion to reopen was filed by March 1, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Claim of John Dorsey</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On or about November 29, 2022, John Dorsey, a
former Chief Executive Officer and director of the Company, through his counsel, sent the Company a letter demanding full payment on
the Alleged Loan in connection with the Loan Dispute. Under the January 2023 Dorsey Settlement Agreement, Mr. Dorsey agreed to a discharge
of the Alleged Loan and waiver and release of claims relating to the Alleged Loan and Loan Dispute and covenant not to sue on the basis
of such claims or otherwise commence any action or proceeding that would be inconsistent with the release of such claims. The Company
agreed to pay Mr. Dorsey $10,000 and issue a promissory note to Mr. Dorsey in the principal amount of $40,000 payable on the earlier
of ten business days following the successful closing of an initial public offering of the Company&rsquo;s common stock that generates
at least $1 million in net proceeds to the Company or July 1, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Properties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our corporate offices are located in Scottsdale,
Arizona. We leased our former corporate offices consisting of approximately 7,800 square feet in October 2021 for a term of five years
beginning January 1, 2022 and ending December 31, 2026 for a monthly rent of $20,800 plus tax, with an increase of 3% at the beginning
of every calendar year following the first year of the term of the lease agreement through January 2026. As of December 31, 2021, a security
deposit was paid in the amount of $23,411. On August 31, 2022, we entered into a Lease Termination Agreement to terminate this lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On September 1, 2022, our corporate offices temporarily
moved to offices owned by Daniel D. Nelson, our Chief Executive Officer, Chairman and director. We did not have a lease agreement for
this facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently lease our corporate offices consisting
of approximately 3,154 square feet under a lease agreement dated November 1, 2022, as amended by an addendum dated November 2, 2022,
and as further amended under a first amendment to lease dated April 1, 2023. As amended, the lease&rsquo;s initial term from November
1, 2022 to April 30, 2023 was extended for a 39-month term beginning on May 4, 2023 and ending on August 3, 2026. Under the amended lease
agreement, rent for the first month was $6,741.90 and was $7,491.00 for each subsequent month through April 2023, plus applicable rental
taxes, sales taxes, and operating expenses. Monthly rent will be $7,359 from May 4, 2023 to May 3, 2024, abated for the first three months
of this period; $7,580 from May 4, 2024 to May 3, 2025; $7,808 from May 4, 2025 to May 3, 2026; and $8,042 from May 4, 2026 to August
3, 2026, plus applicable rental taxes. Parking fees were $290.50 for the first month and will be $325.00 for each subsequent month. We
also paid an initial security deposit of $8,000.00 in November 2022 and a second security deposit of $16,000 in May 2023. The initial
security deposit will be refunded and credited toward monthly rent for the months beginning May 4, 2024 and May 4, 2025 if we have performed
all obligations under the amended lease agreement including making all rent payments when due. We may exercise a one-time option to extend
the amended lease agreement for an additional three-year term upon 9-12 months&rsquo; notice for the fair market rent at the time of
the extension, as determined in accordance with the amended lease agreement and which will not be less than 103% of the final rent amount
under the current term. Under the amended lease agreement, we must pay for any tenant improvements above the allowance provided for such
improvements of $37,848 or that are not in compliance with the terms of the amended lease agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company also leases office space containing
4,025 square feet at another location in Scottsdale, Arizona under a lease which began on February 1, 2021 and will end on May 31, 2023.
Monthly rent is $12,075 and includes annual escalations. The lease also provides for additional rent based on our proportionate share
of certain increases in building operating expenses and taxes. A $25,491.67 security deposit was required. The lease provided for the
abatement of rent during the first four months. In December 2021, the Company entered into an agreement to sublease its office space.
The sublease ends on May 31, 2023 and includes fixed rent of $9,894.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Charity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have a history of providing pro bono service
and giving back to our local community through sports and sports related activities. We would expect to continue and grow these efforts
moving forward in many of the markets that we serve.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Competition</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The market for our services is intensely competitive
and characterized by rapid changes in technology, customer requirements, and industry standards, and by frequent new product and service
offerings and improvements. We compete with an array of established and emerging recruiting solution providers. Conditions in our market
could change rapidly and significantly as a result of technological advancements, partnerships, or acquisitions by our competitors or
continuing market consolidation. With the introduction of new technologies and market entrants, we expect the competitive environment
to remain intense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Laws and Regulations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to domestic and foreign laws and
regulations that pertain to our business practices. In order to grow and maintain our business, we will continue to adhere to the laws,
regulations, association rules, and licenses that we need to maintain our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>College Athlete Recruiting Regulations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are required to adhere to applicable rules
and regulations of the recruitment of high school and college-level athletes. In particular, we must comply with Article 13 of each of
the NCAA Division I Manual and NCAA Division II Manual, and related NCAA rules, regulations, and bylaws, which govern the locations,
periods, manner, persons, and other matters involved in student-athlete recruitment of NCAA member institutions and their recruitment
prospects. We must also comply with applicable sections of the National Association of Intercollegiate Athletics Official Handbook &amp;
Policy Handbook.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Data Protection and Information Security
Regulations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to several laws and regulations
that affect companies conducting business on the Internet and in the athletic recruitment industry, many of which are still evolving
and could be interpreted in ways that could harm our business. The way existing laws and regulations will be applied to the Internet
and athletes in general and how they will relate to our business, are often unclear. For example, we often cannot be certain how existing
laws will apply in the e-commerce and online context, including with respect to such topics as privacy, defamation, pricing, credit card
fraud, advertising, taxation, promotions, content regulation, financial aid, scholarships, student matriculation and student-athlete
recruitment, quality of products and services, and intellectual property ownership and infringement. In addition, we may be subject to
state oversight for the recruiting, admissions, and marketing activities associated with the business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Numerous laws and regulatory schemes have been
adopted at the national and state level in the United States, and in some cases internationally, that have a direct impact on our business
and operations. For example:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The CAN-SPAM Act of 2003 and similar
                                            laws adopted by several states, regulate unsolicited commercial emails, create criminal penalties
                                            for emails containing fraudulent headers, and control other abusive online marketing practices.
                                            Similarly, the U.S. Federal Trade Commission (FTC) has guidelines that impose responsibilities
                                            on us with respect to communications with consumers and impose fines and liability for failure
                                            to comply with rules with respect to advertising or marketing practices it may deem misleading
                                            or deceptive.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The Telephone Consumer Protection
                                            Act of 1991 (TCPA) restricts telemarketing and the use of automated telephone equipment.
                                            The TCPA limits the use of automatic dialing systems, artificial or prerecorded voice messages,
                                            SMS text messages, and fax machines. It also applies to unsolicited text messages advertising
                                            the commercial availability of goods or services. Additionally, several states have enacted
                                            statutes that address telemarketing. For example, some states, such as California, Illinois,
                                            and New York, have created do-not-call lists. Other states, such as Oregon and Washington,
                                            have enacted &ldquo;no rebuttal statutes&rdquo; that require the telemarketer to end the
                                            call when the consumer indicates that he or she is not interested in the product being sold.
                                            Restrictions on telephone marketing, including calls and text messages, are enforced by the
                                            FTC, the Federal Communications Commission, states, and through the availability of statutory
                                            damages and class action lawsuits for violations of the TCPA.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The Credit Card Accountability Responsibility
                                            and Disclosure Act of 2009, or CARD Act, and similar laws and regulations adopted by several
                                            states regulate credit card and gift certificate use fairness, including expiration dates
                                            and fees. Our business also requires that we comply with payment card industry data security
                                            and other standards. We are subject to payment card association operating rules, certification
                                            requirements, and rules governing electronic funds transfers, which could change or be reinterpreted
                                            to make it difficult or impossible for us to comply. If we fail to comply with these rules
                                            or requirements, or if our data security systems are breached or compromised, we may be liable
                                            for card issuing banks&rsquo; costs, subject to fines and higher transaction fees, and lose
                                            our ability to accept credit and debit card payments from our customers, process electronic
                                            funds transfers, or facilitate other types of online payments, and our business and results
                                            of operations could be adversely affected.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Regulations related to the Program
                                            Participation Agreement of the U.S. Department of Education and other similar laws that regulate
                                            the recruitment of students to colleges and other institutions of higher learning.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The Digital Millennium Copyright
                                            Act (DMCA) provides relief for claims of circumvention of copyright protected technologies
                                            and includes a safe harbor intended to reduce the liability of online service providers for
                                            hosting, listing, or linking to third-party content that infringes copyrights of others.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The Communications Decency Act provides
                                            that online service providers will not be considered the publisher or speaker of content
                                            provided by others, such as individuals who post content on an online service provider&rsquo;s
                                            website.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The California Consumer Privacy
                                            Act (CCPA), which went into effect on January 1, 2020, provides consumers the right to know
                                            what personal data companies collect, how it is used, and the right to access, delete, and
                                            opt out of the sale of their personal information to third parties. It also expands the definition
                                            of personal information and gives consumers increased privacy rights and protections for
                                            that information. The CCPA also includes special requirements for California consumers under
                                            the age of 16. Effective January 1, 2023, we will also become subject to the California Privacy
                                            Rights Act, which expands upon the consumer data use restrictions, penalties and enforcement
                                            provisions under the California Consumer Privacy Act.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The Virginia Consumer Data Protection
                                            Act (CDPA) establishes rights for Virginia consumers to control how companies use individuals&rsquo;
                                            personal data. The CDPA dictates how companies must protect personal data in their possession
                                            and respond to consumers exercising their rights, as prescribed by the law, regarding such
                                            personal data. The CDPA went into effect on January 1, 2023.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Effective July 1, 2023, we may also
                                            become subject to the Colorado Privacy Act and Connecticut&rsquo;s An Act Concerning Personal
                                            Data Privacy and Online Monitoring, which are comprehensive consumer privacy laws. Effective
                                            December 31, 2023, we may become subject to the Utah Consumer Privacy Act, regarding business
                                            handling of consumers&rsquo; personal data. Effective January 1, 2025, we may also become
                                            subject to the Iowa Consumer Privacy Act, a similar consumer data privacy law.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">We may be subject to the EU&rsquo;s
                                            General Data Protection Regulation (GDPR). The GDPR imposes stringent requirements for controllers
                                            and processors of personal data of persons in the EU, including, for example, more robust
                                            disclosures to individuals and a strengthened individual data rights regime, shortened timelines
                                            for data breach notifications, limitations on retention of information, increased requirements
                                            pertaining to special categories of data, and additional obligations when we contract with
                                            third-party processors in connection with the processing of the personal data. The GDPR also
                                            imposes strict rules on the transfer of personal data out of the European Union to the United
                                            States and other third countries. In addition, the GDPR provides that EU member states may
                                            make their own further laws and regulations limiting the processing of personal data.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The GDPR applies extraterritorially,
and we may be subject to the GDPR because of our data processing activities that involve the personal data of individuals located in
the European Union, such as in connection with our EU-based students. Failure to comply with the requirements of the GDPR and the applicable
national data protection laws of the EU member states may result in fines of up to &euro;20,000,000 or up to 4% of the total worldwide
annual turnover of the preceding financial year, whichever is higher, and other administrative penalties. GDPR regulations may impose
additional responsibility and liability in relation to the personal data that we process, and we may be required to put in place additional
mechanisms to ensure compliance with the new data protection rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Following the withdrawal of the United
Kingdom from the EU and the expiry of the transition period, from January 1, 2021, the United Kingdom Data Protection Act 2018 (UK GDPR)
retains in large part the GDPR in United Kingdom national law. The UK GDPR mirrors the fines under the GDPR, e.g., we could be fined
up to the greater of &euro;20 million/&pound;17.5 million or 4% of global turnover under each regime.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The Children&rsquo;s Online Privacy
                                            Protection Act (COPPA), the GDPR, and the UK GDPR impose additional restrictions on the ability
                                            of online services to collect information from minors. In addition, certain states, including
                                            Utah and Massachusetts, have laws that impose criminal penalties on the production and distribution
                                            of content that is &ldquo;harmful to a minor.&rdquo;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_011"></A>MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Directors and Executive Officers </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Set forth below is information regarding our directors and executive
officers as of the date of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 22%; vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Name</B></P></TD>
    <TD STYLE="text-align: left; width: 2%; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 10%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Age</B></FONT></TD>
    <TD STYLE="text-align: left; width: 2%; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 64%; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Position</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>Daniel D. Nelson</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">60</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Chief Executive Officer, Chairman and Director</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>Richard Symington</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">43</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>President, Chief Marketing Officer, and Director</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>Damon Rich</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">53</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Interim Chief Financial Officer</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>David O&rsquo;Hara</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">42</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Chief Operating Officer and Secretary</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>Glen Kim</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">40</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Director</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>Martin Lanphere</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">48</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Director</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>Roger Mason Jr.</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">42</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Director</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>Greg Economou</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">58</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Director</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Daniel D. Nelson</I></B>. Mr. Nelson has
been a member of our board of directors since July 2022, was our President from August 2022 to November 2022, has been our Chief Executive
Officer since November 2022, and has been our Chairman since March 2023. Mr. Nelson began working in the financial services industry
in 1986. In 1997, Mr. Nelson formed, and has since served as chief executive officer of, Nelson Financial Services Inc., which focuses
on the employee benefits market. For more than 30 years, Mr. Nelson has acquired extensive knowledge and experience in the financial
services arena. Mr. Nelson also formed Nelson Financial Services to provide financial guidance for all individuals. We believe that Mr.
Nelson is qualified to serve on our board of directors due to his experience in finance, particularly with respect to the sports management
division of Nelson Financial Services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Richard Symington</I></B>. Mr. Symington
has served as our President and Chief Marketing Officer and a member of our board of directors since April 2023. From May 2015 to February
2020, Mr. Symington was the Manager of Blacklight Technologies LLC. From January 2015 to September 2019, Mr. Symington was also the founder,
Chief Executive Officer, and Manager of Island Marketing Consultants LLC (formerly A20 Media LLC). From 2002 to 2014, Mr. Symington founded
or managed a number of other businesses. Mr. Symington obtained a B.A. in International Relations from the University of San Diego in
2002 and a Diploma in Culinary Arts/Restaurant Management from Arizona Culinary Institute in 2003. We believe that Mr. Symington is qualified
to serve on our board of directors due to his experience in technology and marketing-driven businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Damon Rich</I></B>. Damon Rich has served
as our Interim Chief Financial Officer since April 2023. Since February 2019, Mr. Rich has also been Chief Financial Officer of Nelson
Financial Services Inc. From July 2011 to February 2019, Mr. Rich was Accounting Manager &ndash; General Ledger/Financial Reporting at
Safeway, Inc. From July 2005 to July 2011, Mr. Rich was Accounting Manger &ndash; Warehouse Payables, at Safeway, Inc.&nbsp; From May
2001 to July 2005, Mr. Rich was an accountant for Safeway, Inc. From February 1999 to May 2001, Mr. Rich was the Controller of North
Phoenix Baptist Church in Phoenix, Arizona. Mr. Rich holds a Bachelor of Accountancy and a Bachelor of Business Administration from New
Mexico State University, and earned his CPA designation in 1999.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>David O&rsquo;Hara</I></B>. Mr. O&rsquo;Hara
has served as our Chief Operating Officer since July 2022 and has served as our Secretary since March 2023. Mr. O&rsquo;Hara also served
as our interim Chief Executive Officer and Chief Financial Officer in July 2022, and as our Chief Administrative Officer from September
2021 to July 2022. Mr. O&rsquo;Hara joined Signing Day Sports as General Manager in April 2021. Prior to joining the Company, from March
2019 to March 2021, Mr. O&rsquo;Hara served as Chief of Education and Operations at Harlem Village Academies, a network of charter schools
in Harlem, New York, where he oversaw operations, academics, recruitment, hiring, and talent development. From July 2017 to February
2019, Mr. O&rsquo;Hara supported nonprofit organizations via his work as Senior Director of District Leadership with the Buck Institute
for Education, a nonprofit organization, where Mr. O&rsquo;Hara also supported charter management organizations, school districts in
leadership development, operations, organizational leadership, and strategic planning. From September 2011 to July 2017, Mr. O&rsquo;Hara
additionally served as the school principal of Leaders High School in Brooklyn, NY. Mr. O&rsquo;Hara was also a member of the cohort
of New Leaders, a national leadership program. Mr. O&rsquo;Hara is a former collegiate athlete having been an All-Arizona wide receiver
recruited to play at a Division I school. Mr. O&rsquo;Hara is a graduate of Arizona State University, has a MSEd in Science Education
from Lehman College, a MSEd in Organizational Leadership from Baruch College, and is a graduate of the Cahn Fellows Program at Columbia
University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Glen Kim</I></B>. Mr. Kim has served as
a member of our board of directors since July 2022. Mr. Kim has over 15 years of experience in digital media, software, SaaS, and various
technology industries where he has led corporate financial planning and analysis efforts, built business operating models, and led many
corporate development activities, including M&amp;A and post-acquisition integration. Since October 2020, Mr. Kim has been the chief
financial officer at Longevity Nutrition Inc., a plant-based food company, and since September 2019, Mr. Kim has been the chief financial
officer at Performa Labs Inc., a government technology company. Since September 2021, Mr. Kim has also been the chief financial officer
at Apollo Education Systems Inc., an education software company. Since November 2016, Mr. Kim has also served as Vice President of Finance,
Accounting Analytics of Cie Digital Labs, a Technology Development &amp; Venture Studio. From September 2017 to November 2020, Mr. Kim
was the chief financial officer of Titan School Solutions Inc., a school nutrition software company, wholly acquired by EMS LINQ. From
June 2010 to November 2016, Mr. Kim served as the Director of Finance of Internet Brands, Inc., a former public software-as-a-service,
or SaaS, and Internet media portfolio company. Mr. Kim graduated from Claremont McKenna College with a Bachelor of Arts in 2004 and majored
in Economics. Mr. Kim is a former collegiate athlete in football and track and field, and served as captain of his college football team.
We believe that Mr. Kim is qualified to serve on our board of directors due to his extensive experience in digital media and SaaS-based
companies, his background in mergers and acquisitions, private equity and venture capital-based financing, in addition to firsthand experience
in coaching, recruiting, and playing sports at the NCAA level.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Martin Lanphere</I></B>.
Mr. Lanphere has been a member of our board of directors since September 2022. Mr. Lanphere was also Vice-President of the Company from
August 2022 to February 2023.&nbsp;Mr. Lanphere is the Owner/President of Timberline Drilling Inc., an industry leader in underground
and surface core drilling. Mr. Lanphere was hired as President of Timberline Drilling in 2007 to take on the task of turning around a
company near insolvency. Due to his ability to quickly gauge the pulse of an organization and internally maximize potential opportunities,
Mr. Lanphere was able to quickly execute and turn the company around. After Mr. Lanphere purchased Timberline Drilling in 2011, it has
grown to more than 200 employees. Prior to Mr. Lanphere&rsquo;s success with Timberline Drilling, Mr. Lanphere was District Sales Manager
at HSBC (NYSE: HSBC), where he led and managed numerous teams and employees. During his time with the bank, Mr. Lanphere led the restructuring
of branches from Washington State to Southern California. As a veteran of the United States Marine Corps, Mr. Lanphere earned several
Merits, Service and Campaign Metals and Leadership awards. We believe that Mr. Lanphere is qualified to serve on our board of directors
due to his enthusiastic leadership style and years of experience implementing efficient processes and managing and motivating people.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Roger Mason Jr</I></B><I>.</I> Mr. Mason
has been a member of our board of directors since September 2022. Mr. Mason is a former professional basketball player for the National
Basketball Association, or NBA. Mr. Mason was selected with the 31st overall pick by the Chicago Bulls in the 2002 NBA draft and continued
his NBA player career with various NBA teams through January 2014. Mr. Mason also played professional basketball internationally for
Olympiacos of Greece during the 2004&ndash;05 season and Hapoel Jerusalem in Israel during the 2005&ndash;06 season. From August 2013
to September 2014, Mr. Mason served as First Vice President of the National Basketball Players Association, or NBPA, and from November
2014 to December 2016, was the NBPA&rsquo;s Deputy Executive Director. In March 2018, Mr. Mason co-founded and has since served as the
Chief Executive Officer of Vaunt. Vaunt, based in New York City, creates in-person, once-in-a-lifetime destination programming and alternative
competitions with pro athletes and entertainers. Mr. Mason earned a Bachelor of Science in Architecture/Business from the University
of Virginia in 2002, a Bachelor of Science in Business/Management from Union Institute &amp; University, and an MBA from Columbia Business
School in 2017. We believe that Mr. Mason is qualified to serve on our board of directors due to his business acumen and success in numerous
organizations. Additionally, with Mr. Mason&rsquo;s knowledge and skills as a former NBA player and Deputy Executive Director of the
NBPA, Mr. Mason will be able to provide insights, leadership, and expertise as it pertains to our technology, recruitment, and marketplace.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Greg Economou</I></B>. Mr. Economou has
been a member of our board of directors since May 2023. Since March 2023, Mr. Economou has been Managing Director of <FONT STYLE="font-size: 10pt">Greg
Economou Consulting</FONT>. From July 2019 to March 2023, Mr. Economou was co-founder and Chief Executive Officer of game1, LLC. From
April 2017 to June 2019, Mr. Economou was Chief Commercial Officer and Head of Sports of Live Nation Entertainment, Inc. Mr. Economou
earned a BA in History and Communications. We believe that Mr. Economou is qualified to serve on our board of directors due to Mr. Economou&rsquo;s
executive-level experience with sports-related businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our directors currently have terms which will
end at our next annual meeting of the stockholders or until their successors are elected and qualify, subject to their prior death, resignation
or removal. Officers serve at the discretion of the board of directors. There is no arrangement or understanding between any director
or executive officer and any other person pursuant to which he was or is to be selected as a director, nominee or officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Family Relationships</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are no family relationships among any of
our executive officers or directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Involvement in Certain Legal Proceedings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the best of our knowledge, except as described
above, none of our directors or executive officers has, during the past ten years:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">been convicted in a criminal proceeding
                                            or been subject to a pending criminal proceeding (excluding traffic violations and other
                                            minor offences);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">had any bankruptcy petition filed
                                            by or against the business or property of the person, or of any partnership, corporation
                                            or business association of which he was a general partner or executive officer, either at
                                            the time of the bankruptcy filing or within two years prior to that time;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">been subject to any order, judgment,
                                            or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction
                                            or federal or state authority, permanently or temporarily enjoining, barring, suspending
                                            or otherwise limiting, such director or executive officer&rsquo;s involvement in any type
                                            of business, securities, futures, commodities, investment, banking, savings and loan, or
                                            insurance activities, or to be associated with persons engaged in any such activity;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">been found by a court of competent
                                            jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity
                                            Futures Trading Commission to have violated a federal or state securities or commodities
                                            law, and the judgment has not been reversed, suspended, or vacated;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">been the subject of, or a party
                                            to, any federal or state judicial or administrative order, judgment, decree, or finding,
                                            not subsequently reversed, suspended or vacated (not including any settlement of a civil
                                            proceeding among private litigants), relating to an alleged violation of any federal or state
                                            securities or commodities law or regulation, any law or regulation respecting financial institutions
                                            or insurance companies including, but not limited to, a temporary or permanent injunction,
                                            order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist
                                            order, or removal or prohibition order, or any law or regulation prohibiting mail or wire
                                            fraud or fraud in connection with any business entity; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">been the subject of, or a party
                                            to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory
                                            organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))),
                                            any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C.
                                            1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary
                                            authority over its members or persons associated with a member.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Corporate Governance</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Board&rsquo;s Role in Risk Oversight
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The board of directors oversees that the assets
of our company are properly safeguarded, that the appropriate financial and other controls are maintained, and that our business is conducted
wisely and in compliance with applicable laws and regulations and proper governance. Included in these responsibilities is the board&rsquo;s
oversight of the various risks facing our company. In this regard, our board seeks to understand and oversee critical business risks.
Our board does not view risk in isolation. Risks are considered in virtually every business decision and as part of our business strategy.
Our board recognizes that it is neither possible nor prudent to eliminate all risk. Indeed, purposeful and appropriate risk-taking is
essential for our company to be competitive on a global basis and to achieve its objectives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While the board oversees risk management, company
management is charged with managing risk. Management communicates routinely with the board and individual directors on the significant
risks identified and how they are being managed. Directors are free to, and indeed often do, communicate directly with senior management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board administers its risk oversight function
as a whole by making risk oversight a matter of collective consideration. Much of this work will be delegated to committees, which will
meet regularly and report back to the full board beginning on the date of this prospectus. The Audit Committee will oversee risks related
to our financial statements, the financial reporting process, accounting and legal matters, and related party transactions; the Compensation
Committee will evaluate the risks and rewards associated with our compensation philosophy and programs, and the Nominating and Corporate
Governance Committee will evaluate risk associated with management decisions and strategic direction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Independent Directors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NYSE American&rsquo;s rules generally require
that a majority of an issuer&rsquo;s board of directors consist of independent directors. Our board of directors currently consists of
six directors, four of whom, Roger Mason Jr., Glen Kim, Greg Economou, and Martin Lanphere, have each been determined to be an &ldquo;independent
director&rdquo; within the meaning of NYSE American&rsquo;s rules, and two of whom, Richard Symington and Daniel Nelson, have not been
determined to be an &ldquo;independent director&rdquo; within the meaning of NYSE American&rsquo;s rules. We have entered into an independent
director agreement with each of Mr. Mason, Mr. Kim, Mr. Economou, and Mr. Lanphere.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Committees of the Board of Directors </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our board of directors has established the Audit
Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee, each with its own charter approved by the
board. The committee charters have been filed as exhibits to the registration statement of which this prospectus is a part. Upon completion
of the Company&rsquo;s initial public offering, we intend to make each committee&rsquo;s charter available on our website at https://www.signingdaysports.com/.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, our board of directors may, from
time to time, designate one or more additional committees, which shall have the duties and powers granted to it by our board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Audit Committee</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Glen Kim, Roger Mason Jr., and Greg Economou,
each of whom has been determined by our board of directors to meet the &ldquo;independence&rdquo; requirements of Rule&nbsp;10A-3 under
the Exchange Act and the definition of an &ldquo;independent director&rdquo; under NYSE American&rsquo;s rules, will serve on the Audit
Committee effective as of the date of this prospectus, with Mr. Kim serving as the chairman. Our board has determined that Mr. Kim qualifies
as an &ldquo;audit committee financial expert&rdquo; as defined by Item 407(d)(5) of Regulation S-K. The Audit Committee oversees our
accounting and financial reporting processes and the audits of the financial statements of our company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Audit Committee will be responsible for,
among other things: (i) the integrity of the Company&rsquo;s and its subsidiaries&rsquo; financial statements and financial reporting
process and the Company&rsquo;s and its subsidiaries&rsquo; systems of internal accounting and financial controls, (ii) the performance
of the internal audit services function, (iii) the annual independent audit of the Company&rsquo;s and subsidiaries&rsquo; financial
statements, the engagement of the independent auditors and the evaluation of the independent auditors&rsquo; qualifications, independence
and performance, (iv) the compliance by the Company with legal and regulatory requirements, including the Company&rsquo;s disclosure
of controls and procedures, (v) the approval of related party transactions, (vi) the evaluation of enterprise risk issues, and (vii)
the fulfillment of the other responsibilities set out in its charter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Compensation Committee</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Glen Kim, Roger Mason Jr., and Greg Economou,
each of whom has been determined by our board of directors to meet the &ldquo;independence&rdquo; requirements of Rule&nbsp;10C-1 under
the Exchange Act and the definition of an &ldquo;independent director&rdquo; under NYSE American&rsquo;s rules, will serve on the Compensation
Committee effective as of the date of this prospectus, with Mr. Mason serving as the chairman. The members of the Compensation Committee
will also be &ldquo;non-employee directors&rdquo; within the meaning of Section 16 of the Exchange Act. The Compensation Committee will
assist the board in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors
and executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Compensation Committee will be responsible
for, among other things: (i) reviewing and approving the compensation of the Company&rsquo;s Chief Executive Officer, Interim Chief Financial
Officer and any other executive officers that serve in executive officer capacities for the Company, (ii) evaluating and making recommendations
to the board of directors regarding the compensation of the directors of the Company; (iii) evaluating and making recommendations to
the board regarding equity- based and incentive-compensation plans, policies and programs that are subject to board approval; and (iv)
the fulfillment of the other responsibilities set out in its charter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Nominating and Corporate Governance Committee</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Glen Kim, Roger Mason Jr., and Greg Economou,
each of whom has been determined by our board of directors to meet the definition of an &ldquo;independent director&rdquo; under NYSE
American&rsquo;s rules, will serve on the Nominating and Corporate Governance Committee effective as of the date of this prospectus,
with Mr. Economou serving as the chairman. The Nominating and Corporate Governance Committee will assist the board of directors in selecting
individuals qualified to become our directors and in determining the composition of the board and its committees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Nominating and Corporate Governance Committee
will be responsible for, among other things: (i) identifying and evaluating individuals qualified to become members of the board by reviewing
nominees for election to the board submitted by stockholders and recommending to the board director nominees for each annual meeting
of stockholders and for election to fill any vacancies on the board, (ii) advising the board with respect to board organization, desired
qualifications of board members, the membership, function, operation, structure and composition of committees (including any committee
authority to delegate to subcommittees), and self-evaluation and policies, (iii) advising on matters relating to corporate governance
in each case, subject to the requirements of the Amended and Restated Bylaws of the Company and monitoring developments in the law and
practice of corporate governance, (iv) overseeing compliance with the Company&rsquo;s Code of Ethics and Business Conduct and conduct
of the Company&rsquo;s officers and directors; and (v) the fulfillment of the other responsibilities set out in its charter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Nominating and Corporate Governance Committee&rsquo;s
methods for identifying candidates for election to our board of directors (other than those proposed by our stockholders, as discussed
below) will include the solicitation of ideas for possible candidates from a number of sources &ndash; members of our board of directors,
our executives, individuals personally known to the members of our board of directors, and other research. The Nominating and Corporate
Governance Committee may also, from time-to-time, retain one or more third-party search firms to identify suitable candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In making director recommendations, the Nominating
and Corporate Governance Committee may consider some or all of the following factors: (i) the candidate&rsquo;s judgment, skill, experience
with other organizations of comparable purpose, complexity and size, and subject to similar legal restrictions and oversight; (ii) the
interplay of the candidate&rsquo;s experience with the experience of other board members; (iii) the extent to which the candidate would
be a desirable addition to the board and any committee thereof; (iv) whether or not the person has any relationships that might impair
his or her independence; and (v) the candidate&rsquo;s ability to contribute to the effective management of our company, taking into
account the needs of our company and such factors as the individual&rsquo;s experience, perspective, skills and knowledge of the industry
in which we operate. The Nominating and Corporate Governance Committee will also develop, reevaluate at least annually and modify as
appropriate a set of specific considerations outlining the skills, experiences (whether in business or in other areas such as public
service, academia or scientific communities), particular areas of expertise, specific backgrounds, and other characteristics for which
there is a specific need on the board of directors and which would enhance the effectiveness of the board and its committees given its
current composition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Code of Ethics and Business Conduct</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have adopted a Code of Ethics and Business
Conduct that applies to all of our directors, officers and employees, including our principal executive officer, principal financial
officer and principal accounting officer. Such Code of Ethics and Business Conduct addresses, among other things, honesty and ethical
conduct, conflicts of interest, compliance with laws, regulations and policies, including disclosure requirements under the federal securities
laws, and reporting of violations of the code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A copy of the Code of Ethics and Business Conduct
has been filed as an exhibit to the registration statement of which this prospectus is a part. We are required to disclose any amendment
to, or waiver from, a provision of the Code of Ethics and Business Conduct applicable to our principal executive officer, principal financial
officer, principal accounting officer, controller, or persons performing similar functions. We intend to use our website as a method
of disseminating this disclosure as well as by SEC filings, as permitted or required by applicable SEC rules. Any such disclosure will
be posted to our website within four (4) business days following the date of any such amendment to, or waiver from, a provision of the
Code of Ethics and Business Conduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Limitation on Liability and Indemnification
of Directors and Certain Officers </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Limitation on Liability of Directors and
Certain Officers </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 102(b)(7) of the DGCL authorizes a corporation
to&nbsp;limit&nbsp;or eliminate the personal&nbsp;liability&nbsp;of&nbsp;directors&nbsp;and certain officers&nbsp;to the corporation
and its stockholders for monetary damages for breaches of directors&rsquo; and officers&rsquo; fiduciary duties, subject to certain limitations.
However, directors and officers remain liable for breaches of duties of loyalty, failing to act in good faith, engaging in intentional
misconduct, knowingly violating a law, or obtaining an improper personal benefit. Directors also remain liable for paying a dividend
or approving a stock repurchase which was illegal under DGCL Section 174, and officers remain liable for any action by or in the right
of the corporation. Liability may be limited under Section 102(b)(7) for an officer only if the officer meet the requirements of Section
3114 of the DGCL, including that such officer is or was the president, chief executive officer, chief operating officer, chief financial
officer, chief legal officer, controller, treasurer or chief accounting officer of the corporation at any time during the course of conduct
alleged in the action or proceeding to be wrongful; Is or was identified in a reporting company&rsquo;s SEC filings as one of the corporation&rsquo;s
most highly compensated executives at any time during the allegedly wrongful conduct; or has agreed in writing with the corporation to
be identified as an officer for these purposes. In addition, equitable remedies for breach of fiduciary duty of care, such as injunction
or recession, are available.&nbsp;The Certificate of Incorporation eliminates the personal liability of the Company&rsquo;s directors
and officers to the fullest extent permitted by the DGCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Indemnification
of </I></B></FONT><B><I>Directors and Executive Officers</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 145 of the DGCL provides that a corporation
has the power to indemnify a director, officer, employee or agent of the corporation, or a person serving at the request of the corporation
for another corporation, partnership, joint venture, trust or other enterprise in related capacities against expenses (including attorneys&rsquo;
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with an action, suit
or proceeding to which he was or is a party or is threatened to be made a party to any threatened, ending or completed action, suit or
proceeding by reason of such position, if such person acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the corporation, and, in any criminal action or proceeding, had no reasonable cause to believe such person&rsquo;s
conduct was unlawful, except that, in the case of actions brought by or in the right of the corporation, no indemnification shall be
made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless
and only to the extent that the Court of Chancery or other adjudicating court determines that, despite the adjudication of liability
but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which
the Court of Chancery or such other court shall deem proper.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Certificate of Incorporation authorizes the
Company to indemnify, and advance expenses to, to the fullest extent permitted by law, any person who was or is a party to or is threatened
to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative
by reason of the fact that the person is or was a director, officer, employee or agent of the Corporation, or is or was serving at the
request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other
enterprise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Amended and Restated Bylaws require that
we indemnify our directors and executive officers to the fullest extent permitted by law, provided that we may modify the extent of such
indemnification by individual contracts with directors and executive officers, and also provided&nbsp;that we are not required to indemnify
any director or executive officer in connection with any proceeding (or part thereof) initiated by such person unless (i) such indemnification
is expressly required to be made by law, (ii)&nbsp;the proceeding was authorized by the our board of directors, (iii)&nbsp;such indemnification
is provided by the Company, in its sole discretion, pursuant to the powers vested in the Company under the DGCL or any other applicable
law, or (iv) such indemnification is required to be made under the indemnification rights enforcement provision of the Amended and Restated
Bylaws. Our obligation, if any, to indemnify any person pursuant to our Amended and Restated Bylaws who was or is serving at its request
as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, enterprise, or nonprofit entity
shall be reduced by any amount such person may collect as indemnification from such other corporation, partnership, joint venture, trust,
enterprise, or nonprofit entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Amended and Restated Bylaws also provide for advancement of expenses to a</FONT>ny person who was or is a party or is threatened to be
made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative,
by reason of the fact that the person is or was a director or executive officer of the Company, or is or was serving at the request of
the Company as a director or executive officer of another corporation, partnership, joint venture, trust or other enterprise, prior to
the final disposition of the proceeding, promptly following request therefor, all expenses actually and reasonably incurred by any director
or executive officer in defending such proceeding, upon receipt of an undertaking by or on behalf of such person to repay all amounts
advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal that such person
is not entitled to be indemnified for such expenses. Notwithstanding the foregoing, generally no advance shall be made by the Company
to an executive officer of the Company (except by reason of the fact that such executive officer is or was a director of the Company)
in any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly
made (i)&nbsp;by a majority vote of a quorum consisting of directors who were not parties to the proceeding, even if not a quorum, or
(ii)&nbsp;by a committee of such directors designated by a majority of such directors, even though less than a quorum, or (iii) if there
are no such directors, or such directors so direct, by independent legal counsel in a written opinion, that the facts known to the decision-making
party at the time such determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner
that such person did not believe to be in or not opposed to the Company&rsquo;s interest. The Company&rsquo;s obligation, if any, to
indemnify any person pursuant to the Amended and Restated Bylaws who was or is serving at its request as a director, officer, employee,
or agent of another corporation, partnership, joint venture, trust, enterprise, or nonprofit entity shall be reduced by any amount such
person may collect as indemnification from such other corporation, partnership, joint venture, trust, enterprise, or nonprofit entity.
Our Amended and Restated Bylaws also permit the Company to indemnity its other officers, employees and other agents as set forth in the
DGCL. The board of directors has the power to delegate the determination of whether indemnification shall be given to any such person
except executive officers to such officers or other persons as the board of directors shall determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have also separately entered into an indemnification
agreement with each of our directors and executive officers. Each indemnification agreement provides for indemnification to the fullest
extent permitted by law, including: (i) all expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably
incurred by a director or executive officer, or on their behalf, in connection with any proceeding other than proceedings by or in the
right of the Company or any claim, issue or matter therein, if the director or executive officer acted in good faith and in a manner
the director or executive officer reasonably believed to be in or not opposed to the best interests of the Company, and with respect
to any criminal proceeding, had no reasonable cause to believe the director or executive officer&rsquo;s conduct was unlawful; (ii) all
expenses actually and reasonably incurred by a director or executive officer, or on their behalf, in connection with a proceedings by
or in the right of the Company if the director or executive officer acted in good faith and in a manner the director or executive officer
reasonably believed to be in or not opposed to the best interests of the Company, provided that if applicable law so provides, no indemnification
against such expenses shall be made in respect of any claim, issue or matter in such proceeding as to which the director or executive
officer shall have been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware
shall determine that such indemnification may be made; (iii) to the extent that a director or executive officer is, by reason of the
director or executive officer&rsquo;s director or executive officer status, a party to and is successful, on the merits or otherwise,
in any proceeding, including by dismissal of such proceeding with or without prejudice, then the director or executive officer shall
be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all expenses actually and reasonably
incurred by the director or executive officer or on the director or executive officer&rsquo;s behalf in connection therewith; and (iv)
all expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by a director or executive
officer or on a director or executive officer&rsquo;s behalf if, by reason of the director or executive officer&rsquo;s status as a director
or executive officer, the director or executive officer is, or is threatened to be made, a party to or participant in any proceeding
(including a proceeding by or in the right of the Company), including, without limitation, all liability arising out of the negligence
or active or passive wrongdoing of the director or executive officer, except where the payment is finally determined (under the procedures,
and subject to the presumptions, set forth in the indemnification agreements) to be unlawful. The Company shall also advance all such
expenses incurred by or on behalf of each director or executive officer in connection with any of the above proceedings by reason of
the director or executive officer&rsquo;s director or executive officer status within 30 days after the receipt by the Company of a statement
or statements from the director or executive officer requesting such advance or advances from time to time, whether prior to or after
final disposition of such proceeding. Such statement or statements shall reasonably evidence the expenses incurred by the director or
executive officer and shall include or be preceded or accompanied by a written undertaking by or on behalf of the director or executive
officer to repay any expenses advanced if it shall ultimately be determined that the director or executive officer is not entitled to
be indemnified against such expenses. Any advances and undertakings to repay shall be unsecured and interest free. The indemnification
agreements also provide for payments by the Company for the entire amount of any judgment or settlement of any action, suit or proceeding
in which it is liable or would be liable if joined in such action, subject to the other terms and provisions of the indemnification agreements,
and certain other indemnification and payment obligations. The indemnification agreements also provide that if we maintain a directors&rsquo;
and officers&rsquo; liability insurance policy, that each director and executive officer will be covered by the policy to the maximum
extent of the coverage available for any of the Company&rsquo;s directors or executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have obtained standard directors and officers
liability insurance under which coverage is provided (a)&nbsp;to our directors and officers against loss rising from claims made by reason
of breach of duty or other wrongful act, and (b)&nbsp;to us with respect to payments which we may make to such officers and directors
pursuant to the indemnification agreements described above or otherwise as a matter of&nbsp;law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriting agreement, filed as Exhibit&nbsp;1.1
to&nbsp;the registration statement of which this prospectus forms a part, will provide for indemnification, under certain circumstances,
by the underwriter of us and our officers and directors for certain liabilities arising under the Securities Act or&nbsp;otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to directors, officers or persons controlling us under the foregoing provisions, we have been
informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore
unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_012"></A>EXECUTIVE
COMPENSATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Summary Compensation Table - Years Ended December 31, 2022 and
2021</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth information concerning
all cash and non-cash compensation awarded to, earned by or paid to the named persons for services rendered in all capacities during
the noted periods.&nbsp;No other executive officers received total compensation in excess of $100,000 during the fiscal year ended December
31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><B>Name
                                            and Principal Position</B></P></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Salary</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Bonus</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Stock
                                            Awards</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Option
                                            Awards</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>All
                                            Other Compensation</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Total</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>($)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 20%; text-align: left">Daniel D. Nelson, Chief Executive Officer<SUP>(1)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 6%; text-align: center">2022</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">108,500 </TD><TD STYLE="width: 1%; text-align: left"><SUP>(2)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">108,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Dennis Gile, former President and Chief Executive&nbsp;Officer<SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">-</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108,500 </TD><TD STYLE="text-align: left"><SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: center"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">240,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD STYLE="font-style: italic; text-align: right">-</TD><TD STYLE="font-style: italic; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">240,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">John Dorsey, former Chief Executive Officer<SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">120,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">120,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: center"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">240,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">240,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">David O&rsquo;Hara, Chief Operating Officer<SUP>(6)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">194,993</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">186,000</TD><TD STYLE="text-align: left"><SUP>(7)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">186,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: center"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Daniel D. Nelson became Chief Executive Officer in
                                            November 2022. Mr. Nelson was not a named executive officer in 2021.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Daniel D. Nelson was granted options to purchase
                                            a total of 35,000 shares of common stock on September 28, 2022. A portion of the options
                                            is subject to certain vesting conditions. The aggregate grant date fair value was computed
                                            in accordance with FASB ASC Topic 718 based on the assumptions described in footnotes 1 and
                                            12 to the Company&rsquo;s financial statements included with this prospectus.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Dennis Gile was Chief Executive Officer from January
                                            2019 to April 2021 and from July 2022 to November 2022 and was President from November 2022
                                            to March 2023. See also &ldquo;<I>Certain Relationships and Related Party Transactions &ndash;
                                            Transactions with Related Persons</I>&rdquo;.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: justify">Dennis Gile was granted options to purchase a total
                                            of 35,000 shares of common stock on September 28, 2022. The options may be exercised at a
                                            price per share equal to $3.10 per share. A portion of the options is subject to certain
                                            vesting conditions. The aggregate grant date fair value was computed in accordance with FASB
                                            ASC Topic 718 based on the assumptions described in footnotes 1 and 12 to the Company&rsquo;s
                                            financial statements included with this prospectus.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(5)</TD><TD STYLE="text-align: justify">John Dorsey was Chief Executive Officer from April
                                            2021 to June 2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(6)</TD><TD STYLE="text-align: justify">David O&rsquo;Hara was General Manager from April
                                            2021 to September 2021, Chief Administrative Officer from September 2021 to July 2022; interim
                                            Chief Executive Officer from July 5, 2022 to July 31, 2022; and Chief Financial Officer from
                                            July 8, 2022 to July 31, 2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(7)</TD><TD STYLE="text-align: justify">David O&rsquo;Hara was granted options to purchase
                                            30,000 shares of common stock on each of September 9, 2022 and September 28, 2022. The options
                                            may be exercised at $3.10 per share. A portion of the options is subject to certain vesting
                                            conditions. The aggregate grant date fair value was computed in accordance with FASB ASC
                                            Topic 718 based on the assumptions described in footnotes 1 and 12 to the Company&rsquo;s
                                            financial statements included with this prospectus.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Management Employment and Consulting Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our employment letter agreement with John
Dorsey, a former Chief Executive Officer of the Company, dated January 13, 2022, Mr. Dorsey was employed on an at-will basis until his
resignation on June 28, 2022. Under the agreement, Mr. Dorsey&rsquo;s base salary was $240,000 per year paid according to the Company&rsquo;s
normal payroll cycle. The agreement provided for a grant of a non-statutory stock option to purchase shares of common stock equal to
1% of the Company&rsquo;s equity on a fully-diluted basis as of the date of grant within three months of the date of the agreement, at
an exercise price equal to the fair market value of a share of common stock determined consistent with Section 409A of the U.S. Internal
Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), and subject to vesting and other terms and conditions. Mr. Dorsey was eligible
for an annual cash incentive between 50% and 200% of base salary, based on the achievement of certain written performance goals established
by the Company&rsquo;s board of directors, and subject to the board&rsquo;s certification of achievement of such goals. Mr. Dorsey was
eligible for standard benefit and vacation plans. The agreement contained standard provisions for non-solicitation of customers or employees,
non-competition, confidentiality, and non-disparagement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under an employment letter agreement with George
Weathers, a former Chief Financial Officer of the Company, dated October 8, 2021, Mr. Weathers&rsquo; salary was $175,000 per year. Mr.
Weathers was also provided health care coverage, flexible paid time off, and eligibility to participate in the Company&rsquo;s employee
stock option plan for up to 60,000 shares. Mr. Weathers resigned on July 7, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under an employment contract with David O&rsquo;Hara,
our Chief Operating Officer and former General Manager, dated March 30, 2021 (the &ldquo;Original O&rsquo;Hara Employment Contract&rdquo;),
Mr. O&rsquo;Hara was employed as General Manager on an at-will basis beginning April 5, 2021. Mr. O&rsquo;Hara&rsquo;s salary was $200,000
per year. Mr. O&rsquo;Hara was entitled to available standard employee benefits, which are subject to change without compensation. Mr.
O&rsquo;Hara was also entitled to a $25,000 bonus dependent upon performance review once every 90 days. The agreement contained non-competition,
non-solicitation, and confidentiality provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under an amended and restated employment offer
letter agreement with Mr. O&rsquo;Hara, dated March 14, 2022 (the &ldquo;Amended O&rsquo;Hara Agreement&rdquo;), Mr. O&rsquo;Hara agreed
to continue to be responsible for duties customary for a Chief Operating Officer. Effective March 14, 2023, Mr. O&rsquo;Hara&rsquo;s
salary was changed to $170,000 per year. Upon the consummation of the Company&rsquo;s initial public offering, Mr. O&rsquo;Hara&rsquo;s
salary will be $185,000 per year. Mr. O&rsquo;Hara will also receive an initial cash bonus of $35,000. Under the agreement, on March
14, 2023, Mr. O&rsquo;Hara was granted 90,000 shares of restricted stock, which vested as to 45,000 shares on March 29, 2023, and will
vest as to 11,250 shares on March 29, 2024, 937 shares at the end of each of the following 35 calendar months, and 955 shares of common
stock at the end of the 36th calendar month following the anniversary of the grant date, provided that he remains in continuous service
with the Company. Mr. O&rsquo;Hara will be eligible to participate in standard employee benefits plans. The Amended O&rsquo;Hara Agreement
contains customary confidentiality requirements. Mr. O&rsquo;Hara was also required to sign an Employee Confidential Information and
Inventions Assignment Agreement, which prohibits unauthorized use or disclosure of the Company&rsquo;s proprietary information and related
provisions, and contains customary non-competition and non-disparagement provisions during the term of employment and non-solicitation
terms for one year after the end of employment, and which was fully executed and dated as of April 3, 2023. The Amended O&rsquo;Hara
Agreement supersedes the Original O&rsquo;Hara Employment Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under an Executive Employment Agreement with
Richard Symington, dated as of April 5, 2023, the Company agreed to employ Mr. Symington as its President and Chief Marketing Officer.
Mr. Symington&rsquo;s base salary will be $200,000 per year. Mr. Symington may receive any comprehensive benefits plans offered by the
Company, including medical, dental and life insurance options. In addition, pursuant to the agreement, Mr. Symington was granted a stock
option to purchase 100,000 shares of common stock of the Company under the Equity Incentive Plan. One-third (1/3) of the option will
vest on each of the six-month anniversary, the 18-month anniversary, and the 30-month anniversary of the date of the consummation of
the Company&rsquo;s initial public offering, provided that Mr. Symington remains in continuous service with the Company, and will have
an exercise price of $2.50 per share. In addition, during the employment, Mr. Symington will be considered for an additional performance-based
award under the Plan on a quarterly basis within the sole discretion of the board of directors or the Compensation Committee. The agreement
provides that Mr. Symington&rsquo;s employment is on an at-will basis, and may be terminated by the board of directors of the Company
at any time for any or no reason, upon written notice to Mr. Symington.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have also separately entered into an indemnification
agreement with each of our directors and executive officers. Each indemnification agreement provides for indemnification to the fullest
extent permitted by law, including: (i) all expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably
incurred by an executive officer, or on their behalf, in connection with any proceeding other than proceedings by or in the right of
the Company or any claim, issue or matter therein, if the executive officer acted in good faith and in a manner the executive officer
reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal proceeding, had no
reasonable cause to believe the executive officer&rsquo;s conduct was unlawful; (ii) all expenses actually and reasonably incurred by
an executive officer, or on their behalf, in connection with a proceedings by or in the right of the Company if the executive officer
acted in good faith and in a manner the executive officer reasonably believed to be in or not opposed to the best interests of the Company,
provided that if applicable law so provides, no indemnification against such expenses shall be made in respect of any claim, issue or
matter in such proceeding as to which the executive officer shall have been adjudged to be liable to the Company unless and to the extent
that the Court of Chancery of the State of Delaware shall determine that such indemnification may be made; (iii) to the extent that a
executive officer is, by reason of the executive officer&rsquo;s executive officer status, a party to and is successful, on the merits
or otherwise, in any proceeding, including by dismissal of such proceeding with or without prejudice, then the executive officer shall
be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all expenses actually and reasonably
incurred by the executive officer or on the executive officer&rsquo;s behalf in connection therewith; and (iv) all expenses, judgments,
penalties, fines and amounts paid in settlement actually and reasonably incurred by an executive officer or on an executive officer&rsquo;s
behalf if, by reason of the executive officer&rsquo;s status as an executive officer, the executive officer is, or is threatened to be
made, a party to or participant in any proceeding (including a proceeding by or in the right of the Company), including, without limitation,
all liability arising out of the negligence or active or passive wrongdoing of the executive officer, except where the payment is finally
determined (under the procedures, and subject to the presumptions, set forth in the indemnification agreements) to be unlawful. The Company
shall also advance all such expenses incurred by or on behalf of each executive officer in connection with any of the above proceedings
by reason of the executive officer&rsquo;s executive officer status within 30 days after the receipt by the Company of a statement or
statements from the executive officer requesting such advance or advances from time to time, whether prior to or after final disposition
of such proceeding. Such statement or statements shall reasonably evidence the expenses incurred by the executive officer and shall include
or be preceded or accompanied by a written undertaking by or on behalf of the executive officer to repay any expenses advanced if it
shall ultimately be determined that the executive officer is not entitled to be indemnified against such expenses. Any advances and undertakings
to repay shall be unsecured and interest free. The indemnification agreements also provide for payments by the Company for the entire
amount of any judgment or settlement of any action, suit or proceeding in which it is liable or would be liable if joined in such action,
subject to the other terms and provisions of the indemnification agreements, and certain other indemnification and payment obligations.
The indemnification agreements also provide that if we maintain a directors&rsquo; and officers&rsquo; liability insurance policy, that
each director and executive officer will be covered by the policy to the maximum extent of the coverage available for any of the Company&rsquo;s
directors or executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have obtained standard directors and officers
liability insurance under which coverage is provided (a)&nbsp;to our directors and officers against loss rising from claims made by reason
of breach of duty or other wrongful act, and (b)&nbsp;to us with respect to payments which we may make to such officers and directors
pursuant to the indemnification agreements described above or otherwise as a matter of&nbsp;law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Outstanding Equity Awards at Fiscal Year-End
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The executive officers named above had the following
unexercised options, stock that has not vested or equity incentive plan awards outstanding as of December 31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="17" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Option Awards</B></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Stock Awards</B></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-size: 8pt"><B>Name</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Number of Securities
    Underlying Unexercised Options (#) Exercisable</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Number of securities<BR>
    underlying<BR> unexercised<BR> options<BR> (#) unexercisable</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Equity<BR> incentive<BR>
    plan awards: Number of<BR> securities<BR> underlying<BR> unexercised<BR> unearned<BR> options<BR> (#)</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Option<BR> exercise
    price<BR>
    ($)</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Option Expiration Date</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Number of shares<BR>
    or units<BR>
    of stock<BR>
    that have<BR>
    not vested<BR> (#)</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Market<BR>
    value of<BR>
    shares of<BR>
    units of<BR>
    stock that<BR>
    have not<BR>
    vested<BR> ($)</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Equity <BR>incentive
    <BR>plan awards: Number of <BR>unearned <BR>shares, units or<BR>
    other <BR>
    rights that<BR>
    have not<BR>
    vested <BR>(#)</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 8pt"><B>Equity <BR>incentive
    <BR>plan awards: Market or payout value of <BR>unearned <BR>shares, units or other rights that have not vested <BR>($)</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-size: 8pt">Daniel D. Nelson, Chief Executive
    Officer<SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">17,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">18,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">3.10</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-size: 8pt">September 28, 2032</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-size: 8pt">Dennis Gile, former President
    and Chief Executive Officer<SUP>(2)</SUP></FONT></TD><TD></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">17,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">18,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3.10</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">September 28, 2032</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-size: 8pt">David O&rsquo;Hara, Chief
    Operating Officer<SUP>(3)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">7,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">22,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3.10</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">September 9, 2032</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-size: 8pt">David O&rsquo;Hara, Chief
    Operating Officer<SUP>(4)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">7,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">22,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">3.10</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">September 28, 2032</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-size: 8pt">John Dorsey, former Chief
    Executive Officer</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 8pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Daniel D. Nelson was granted options to purchase
                                            a total of 35,000 shares of common stock on September 28, 2022. The options vested as to
                                            11,000 shares in aggregate immediately upon grant. As of December 31, 2022, one of the options
                                            remained subject to vesting as to 18,000 shares, which vest in 6,000-share increments on
                                            a quarterly basis for one year ending September 28, 2023. No other options, shares of stock
                                            or equity incentive plan awards subject to vesting were held by Mr. Nelson on December 31,
                                            2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Dennis Gile was granted options to purchase a total
                                            of 35,000 shares of common stock on September 28, 2022. The options vested as to 11,000 shares
                                            in aggregate immediately upon grant. As of December 31, 2022, one of the options remained
                                            subject to vesting as to 18,000 shares, which vest in 6,000-share increments on a quarterly
                                            basis for one year ending September 28, 2023. No other options, shares of stock or equity
                                            incentive plan awards subject to vesting were held by Mr. Gile on December 31, 2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">David O&rsquo;Hara was granted an option to purchase
                                            30,000 shares of common stock on September 9, 2022. The option vested as to 7,500 shares
                                            immediately upon grant. As of December 31, 2022, the option remained subject to vesting as
                                            to 22,500 shares, of which 5,625 shares vest on September 9, 2023, with the balance vesting
                                            in 36 equal monthly increments of approximately 468 shares each (subject to rounding adjustments).
                                            Other than as described in the following footnote, no other options, shares of stock or equity
                                            incentive plan awards subject to vesting were held by Mr. O&rsquo;Hara on December 31, 2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: justify">David O&rsquo;Hara was granted an option to purchase
                                            30,000 shares of common stock on September 28, 2022. The option vested as to 7,500 shares
                                            immediately upon grant. As of December 31, 2022, the option remained subject to vesting as
                                            to 22,500 shares, of which 5,625 shares vest on September 28, 2023, with the balance vesting
                                            in 36 equal monthly increments of approximately 468 shares each (subject to rounding adjustments).
                                            Other than as described in the preceding footnote, no other options, shares of stock or equity
                                            incentive plan awards subject to vesting were held by Mr. O&rsquo;Hara on December 31, 2022.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Additional Narrative to Named Executive Officer Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Retirement Benefits</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have not maintained, and do not currently
maintain, a defined benefit pension plan, nonqualified deferred compensation plan or other retirement benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Potential Payments Upon Termination or
Change in Control</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">None of our named executive officers was entitled
to severance compensation during the fiscal year ended December 31, 2022, except as described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the Settlement Agreement with Dennis Gile,
a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, dated as of May 12, 2022, we and Mr. Gile
agreed, among other things, to a general release and discharge of claims against us, our officers and directors, certain other affiliates
and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to
Mr. Gile&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Mr. Gile&rsquo;s direct or indirect
ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
that nothing in the Settlement Agreement was intended to release any rights that any party or Mr. Gile may have under the terms of that
certain Severance General Waiver and Release Agreement between Mr. Gile and the Company, dated March 22, 2022, including the releases
of any and all claims against the Company and certain related parties as contained therein, Mr. Gile&rsquo;s agreement to be terminated
effective on January 1, 2022 and receive a severance payment of $53,500 pursuant to Section 1 of the Severance Agreement, paid in March
2022, all of which terms were to remain in force notwithstanding the provisions of the Settlement Agreement. Further, Mr. Gile irrevocably,
unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions,
payments, or other amounts that Mr. Gile believed should have been paid or were owed to Mr. Gile by SDS LLC &ndash; AZ, SDS LLC &ndash;
DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding regarding
the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF
LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Mr. Gile owned 2,816,377 shares of common stock pursuant to the Settlement Agreement. Mr. Gile also
irrevocably covenanted that he would not sue us or the other released parties in respect of any of the matters released and discharged.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the terms of the Repurchase Agreement,
on March 31, 2023, we paid an aggregate purchase price of $800,000 for 600,000 shares of common stock formerly held by Dennis Gile, a
former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, at approximately $1.33 per share. Pursuant
to the Repurchase Agreement, the Dorsey/Gile Settlement Payment was made to John Dorsey as part of the settlement of the Dorsey/Gile
Lawsuit under the Dorsey/Gile Settlement Agreement. Pursuant to the Repurchase Agreement, the balance of the aggregate purchase price
was paid to the attorneys for Mr. Gile. Pursuant to the Repurchase Agreement, Mr. Gile agreed to resign his position as Chairman and
every other director and officer position he held with the Company effective as of March 21, 2023. Prior to such date, on March 20, 2023,
Mr. Gile delivered notice of resignation from such positions, which stated that it was effective March 19, 2023. Pursuant to the Repurchase
Agreement, Mr. Gile will not receive any severance payments in connection with any other agreement with the Company as a result of his
resignation. The Repurchase was also conditioned on the Company&rsquo;s prior review of and consent to the Dorsey/Gile Settlement Agreement
prior to its execution, and receipt of the CFO Certificate. Under the Repurchase Agreement, the Dorsey/Gile Settlement Agreement was
required to fully resolve, settle and dismiss the Gile/Dorsey Lawsuit and contain a general release of claims by all the plaintiffs in
the Dorsey/Gile Lawsuit in favor of Mr. Gile, the Company, the Company&rsquo;s affiliates, stockholders, and certain other Company releasees.
Under the Repurchase Agreement, Mr. Gile agreed to indemnify the Company for claims arising out of based upon the Repurchase Agreement.
Pursuant to the Repurchase Agreement, a copy of the Dorsey/Gile Settlement Agreement was reviewed and consented to by the Company and
entered into as of March 20, 2023. Under the Dorsey/Gile Settlement Agreement, between Mr. Gile, Mr. Dorsey, and Dorsey LLC, Mr. Gile
agreed to pay the Dorsey/Gile Settlement Payment, transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile, Mr. Dorsey and Dorsey
LLC agreed to mutual releases of all claims relating to the Dorsey/Gile Lawsuit and to dismiss the Dorsey/Gile Lawsuit. Although the
Dorsey/Gile Settlement Agreement did not contain a release of the Company and did not contain releases by the plaintiffs of Mr. Gile
other than with respect to the Lawsuit, the Company waived any related requirements under the Repurchase Agreement in light of the expected
execution of the Mutual Release Agreement. The CFO Certificate was received as of March 21, 2023. The repurchased shares were cancelled
as of March 31, 2023. The transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023, after waiver of the board of
directors of the repurchase rights and purchase rights provided for under the Shareholder Agreement by resolutions adopted on March 24,
2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Director Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors of the Company during the fiscal
year ended December 31, 2022 were compensated for services as directors as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Fees<BR>
    Earned or<BR>
    Paid</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Stock</B></TD><TD><B>&nbsp;</B></TD><TD></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Option</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Non-Equity<BR>
    Incentive <BR>
    Plan</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Nonqualified<BR>
    Deferred<BR>
    Compensation</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>All Other</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><B>Name</B></TD><TD STYLE="padding-bottom: 1.5pt"></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>in Cash</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Awards</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Awards</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Compensation</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Earnings</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Compensation</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Total</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 16%">Clayton Adams<SUP>(1)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">93,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">93,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Glen Kim<SUP>(2)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">15,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">15,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Martin Lanphere<SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">83,700</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">83,700</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Roger Mason Jr.<SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">74,400</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">74,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Noah (Jed) Smith<SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">15,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">15,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Clayton Adams was a director of the Company from
                                            July 2022 to April 2023. Mr. Adams was granted options to purchase a total of 30,000 shares
                                            of common stock on September 28, 2022. The options may be exercised at $3.10 per share. The
                                            aggregate grant date fair value was computed in accordance with FASB ASC Topic 718 based
                                            on the assumptions described in footnotes 1 and 12 to the Company&rsquo;s financial statements
                                            included with this prospectus. The options vested as to 10,000 shares in aggregate immediately
                                            upon grant. As of December 31, 2022, one of the options remained subject to vesting as to
                                            15,000 shares, in 5,000-share increments on a quarterly basis for one year ending September
                                            28, 2023. No other options, shares of stock or equity incentive plan awards subject to vesting
                                            were held by Mr. Adams on December 31, 2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Glen Kim was granted an option to purchase 5,000
                                            shares of common stock on September 28, 2022. The option may be exercised at $3.10 per share.
                                            The aggregate grant date fair value was computed in accordance with FASB ASC Topic 718 based
                                            on the assumptions described in footnotes 1 and 12 to the Company&rsquo;s financial statements
                                            included with this prospectus. The option vested immediately upon grant. No other options,
                                            shares of stock or equity incentive plan awards subject to vesting were held by Mr. Kim on
                                            December 31, 2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Martin Lanphere was granted an option to purchase
                                            27,000 shares of common stock on September 28, 2022. The option may be exercised at $3.10
                                            per share. The aggregate grant date fair value was computed in accordance with FASB ASC Topic
                                            718 based on the assumptions described in footnotes 1 and 12 to the Company&rsquo;s financial
                                            statements included with this prospectus. The option remains subject to vesting as to 16,200
                                            shares as of December 31, 2022, which vest in 5,400-share increments on each subsequent quarter
                                            following September 28, 2022. No other options, shares of stock or equity incentive plan
                                            awards subject to vesting were held by Mr. Lanphere on December 31, 2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: justify">Roger Mason Jr. was granted an option to purchase
                                            24,000 shares of common stock on September 9, 2022. The option may be exercised at $3.10
                                            per share. The aggregate grant date fair value was computed in accordance with FASB ASC Topic
                                            718 based on the assumptions described in footnotes 1 and 12 to the Company&rsquo;s financial
                                            statements included with this prospectus. The option remains subject to vesting as to 22,000
                                            shares as of December 31, 2022, which vest in 2,000-share increments over three years on
                                            each subsequent 9th of March, June, September, and December. No other options, shares of
                                            stock or equity incentive plan awards subject to vesting were held by Mr. Mason on December
                                            31, 2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(5)</TD><TD STYLE="text-align: justify">Noah (Jed) Smith was a director of the Company from
                                            July 2022 to April 2023. Mr. Smith was granted an option to purchase 5,000 shares of common
                                            stock on September 28, 2022. The option may be exercised at $3.10 per share. The aggregate
                                            grant date fair value was computed in accordance with FASB ASC Topic 718 based on the assumptions
                                            described in footnotes 1 and 12 to the Company&rsquo;s financial statements included with
                                            this prospectus. The option vested immediately upon grant. No other options, shares of stock
                                            or equity incentive plan awards subject to vesting were held by Mr. Smith on December 31,
                                            2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Additional Narrative to Director Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each of the Company&rsquo;s independent directors,
Roger Mason Jr., Glen Kim, Greg Economou, and Martin Lanphere, has entered into an independent director agreement. In accordance with
their independent director agreements, we have granted equity awards to each independent director. During 2022, an option to purchase
24,000 shares of common stock was awarded to Mr. Mason, an option to purchase 5,000 shares of common stock was awarded to Mr. Kim, and
an option to purchase 27,000 shares of common stock was awarded to Mr. Lanphere, each at a price $3.10 per share. A portion of Mr. Mason
and Mr. Lanphere&rsquo;s options are subject to certain vesting conditions. In addition, during 2022, we granted an option to purchase
30,000 shares of common stock to former director Clayton Adams and an option to purchase 5,000 shares of common stock to former director
Noah (Jed) Smith. A portion of Mr. Adams&rsquo; option was subject to certain vesting conditions and terminated as to such portion at
the time of Mr. Adams&rsquo; resignation. We will also reimburse each independent director for pre-approved reasonable business-related
expenses incurred in good faith in connection with the performance of the independent director&rsquo;s duties for us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with our independent director agreements,
we have separately entered into an indemnification agreement with each of our current independent directors. Each indemnification agreement
provides for indemnification to the fullest extent permitted by law, including: (i) all expenses, judgments, penalties, fines and amounts
paid in settlement actually and reasonably incurred by a director, or on their behalf, in connection with any proceeding other than proceedings
by or in the right of the Company or any claim, issue or matter therein, if the director acted in good faith and in a manner the director
reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal proceeding, had no
reasonable cause to believe the director&rsquo;s conduct was unlawful; (ii) all expenses actually and reasonably incurred by a director,
or on their behalf, in connection with a proceedings by or in the right of the Company if the director acted in good faith and in a manner
the director reasonably believed to be in or not opposed to the best interests of the Company, provided that if applicable law so provides,
no indemnification against such expenses shall be made in respect of any claim, issue or matter in such proceeding as to which the director
shall have been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware shall
determine that such indemnification may be made; (iii) to the extent that a director is, by reason of the director&rsquo;s director status,
a party to and is successful, on the merits or otherwise, in any proceeding, including by dismissal of such proceeding with or without
prejudice, then the director shall be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against
all expenses actually and reasonably incurred by the director or on the director&rsquo;s behalf in connection therewith; and (iv) all
expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by a director or on a director&rsquo;s
behalf if, by reason of the director&rsquo;s status as a director, the director is, or is threatened to be made, a party to or participant
in any proceeding (including a proceeding by or in the right of the Company), including, without limitation, all liability arising out
of the negligence or active or passive wrongdoing of the director, except where the payment is finally determined (under the procedures,
and subject to the presumptions, set forth in the indemnification agreements) to be unlawful. The Company shall also advance all such
expenses incurred by or on behalf of each director in connection with any of the above proceedings by reason of the director&rsquo;s
director status within 30 days after the receipt by the Company of a statement or statements from the director requesting such advance
or advances from time to time, whether prior to or after final disposition of such proceeding. Such statement or statements shall reasonably
evidence the expenses incurred by the director and shall include or be preceded or accompanied by a written undertaking by or on behalf
of the director to repay any expenses advanced if it shall ultimately be determined that the director is not entitled to be indemnified
against such expenses. Any advances and undertakings to repay shall be unsecured and interest free. The indemnification agreements also
provide for payments by the Company for the entire amount of any judgment or settlement of any action, suit or proceeding in which it
is liable or would be liable if joined in such action, subject to the other terms and provisions of the indemnification agreements, and
certain other indemnification and payment obligations. The indemnification agreements also provide that if we maintain a directors&rsquo;
and officers&rsquo; liability insurance policy, that each director and executive officer will be covered by the policy to the maximum
extent of the coverage available for any of the Company&rsquo;s directors or executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Directors and Officers Liability Insurance</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have obtained standard directors and officers
liability insurance under which coverage is provided (a)&nbsp;to our directors and officers against loss rising from claims made by reason
of breach of duty or other wrongful act, and (b)&nbsp;to us with respect to payments which we may make to such officers and directors
pursuant to the indemnification agreements described above or otherwise as a matter of&nbsp;law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>2022 Equity Incentive Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 31, 2022, we established the Signing
Day Sports, Inc. 2022 Equity Incentive Plan. The Plan was established to advance our interests and the interests of our stockholders
by providing an incentive to attract, retain and reward persons performing services for us and by motivating such persons to contribute
to our growth and profitability. Under the Plan, we may grant restricted stock, stock options and other forms of incentive compensation
to our officers, employees, directors and consultants. The maximum number of shares of common stock that may be issued pursuant to awards
granted under the Plan is 750,000 shares. Cancelled and forfeited stock options and stock awards may again become available for grant
under the Plan. As of the date of this prospectus, 139,550 shares remain available for issuance under the Plan. The Plan and all awards
granted under the Plan are intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum
extent permitted, the Plan and all awards agreements shall be interpreted and administered to be in compliance therewith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following summary briefly describes the principal
features of the Plan and is qualified in its entirety by reference to the full text of the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Awards that may be granted include: (a)&nbsp;Incentive
Stock Options, (b)&nbsp;Non-qualified&nbsp;Stock Options, (c)&nbsp;Stock Appreciation Rights, (d)&nbsp;Restricted Awards, (e)&nbsp;Performance
Share Awards, and (f)&nbsp;Performance Compensation Awards. These awards offer our officers, employees, consultants and directors the
possibility of future value, depending on the long-term&nbsp;price appreciation of our common stock and the award holder&rsquo;s continuing
service with our company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock options give the option holder the right
to acquire from us a designated number of shares of common stock at a purchase price that is fixed upon the grant of the option. The
exercise price generally will not be less than the market price of the common stock on the date of grant. Stock options granted may be
either incentive&nbsp;stock options or non-statutory&nbsp;stock options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock appreciation rights, or SARs, may be granted
alone or in tandem with options, and have an economic value similar to that of options. When a SAR for a particular number of shares
is exercised, the holder receives a payment equal to the difference between the fair market value of the shares on the date of exercise
and the exercise price of the shares under the SAR. The exercise price for SARs is normally the market price of the shares on the date
the SAR is granted. Under the Plan, holders of SARs may receive this payment&nbsp;&mdash; the appreciation value&nbsp;&mdash; either
in cash or shares of common stock valued at the fair market value on the date of exercise. The form of payment will be determined by
the administrator.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Restricted awards are awards of shares of common
stock or rights to shares of common stock to participants at no cost. Restricted stock awards represent issued and outstanding shares
of common stock which may be subject to vesting criteria under the terms of the award within the discretion of the administrator. Restricted
stock units represent the right to receive shares of common stock which may be subject to satisfaction of vesting criteria under the
terms of the award within the discretion of the administrator. Restricted stock and the rights under restricted stock units are forfeitable
and non-transferable&nbsp;until they vest. The vesting date or dates and other conditions for vesting are established when the shares
are awarded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Plan also provides for performance compensation
awards, representing the right to receive a payment, which may be in the form of cash, shares of common stock, or a combination, based
on the attainment of pre-established&nbsp;goals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All of the permissible types of awards under
the Plan are described in more detail as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Purposes of Plan:</I></B>&nbsp;&nbsp;&nbsp;&nbsp;The
purposes of the Plan are (a) to enable the Company and any affiliate company to attract and retain the types of employees, consultants
and directors who will contribute to the Company&rsquo;s long-term success; (b) provide incentives that align the interests of employees,
consultants and directors with those of the stockholders of the Company; and (c) promote the success of the Company&rsquo;s business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Administration of the Plan:</I></B>&nbsp;&nbsp;&nbsp;&nbsp;The
Plan is currently administered by our board of directors and will be administered by the Compensation Committee effective the date of
this prospectus. In this summary, we refer to the board of directors or the Compensation Committee, as applicable, as the administrator.
Among other things, the administrator has the authority to select persons who will receive awards, determine the types of awards and
the number of shares to be covered by awards, and to establish the terms, conditions, performance criteria, restrictions and other provisions
of awards. The administrator has authority to establish, amend and rescind rules and regulations relating to the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Eligible Recipients:</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Persons
eligible to receive awards under the Plan are employees (including officers or directors who are also treated as employees); consultants,
i.e., persons engaged to provide consulting or advisory services to the Company; and directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Shares Available Under the Plan:</I></B>&nbsp;&nbsp;&nbsp;&nbsp;The
maximum number of shares of our common stock that may be delivered to participants under the Plan is 750,000, subject to adjustment for
certain corporate changes affecting the shares, such as stock splits. Shares subject to an award under the Plan which is canceled, forfeited
or expires again become available for grants under the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><B><I>Stock Options:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-indent: 0.25in; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>General.</I>&nbsp;Subject to the provisions
of the Plan, the administrator has the authority to determine all grants of stock options. That determination will include: (i)&nbsp;the
number of shares subject to any option; (ii)&nbsp;the exercise price per share; (iii)&nbsp;the expiration date of the option; (iv)&nbsp;the
manner, time and date of permitted exercise; (v)&nbsp;other restrictions, if any, on the option or the shares underlying the option;
and (vi)&nbsp;any other terms and conditions as the administrator may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Option Price</I>. The exercise price for stock
options will be determined at the time of grant. Normally, the exercise price will not be less than the fair market value on the date
of grant. As a matter of tax law, the exercise price for any incentive stock option awarded may not be less than the fair market value
of the shares on the date of grant. However, incentive stock option grants to any person owning more than 10% of our voting stock must
have an exercise price of not less than 110% of the fair market value on the grant date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Exercise of Options.</I> An option may be
exercised only in accordance with the terms and conditions of the option agreement as established by the administrator at the time of
the grant. The option must be exercised by notice to us, accompanied by payment of the exercise price. Payments may be made in cash or,
at the option of the administrator, by actual or constructive delivery of shares of common stock based upon the fair market value of
the shares on the date of exercise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Expiration or Termination.</I> Options, if
not previously exercised, will expire on the expiration date established by the administrator at the time of grant. In the case of incentive
stock options, such term cannot exceed ten years provided that in the case of holders of more than 10% of our voting stock, such term
cannot exceed five years. Options will terminate before their expiration date if the holder&rsquo;s service with the Company or an affiliate
company terminates before the expiration date. The option may remain exercisable for specified periods after certain terminations of
employment, including terminations as a result of death, disability or retirement, with the precise period during which the option may
be exercised to be established by the administrator and reflected in the grant evidencing the award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Incentive and Non-Statutory&nbsp;Options.</I>&nbsp;As
described elsewhere in this summary, an incentive stock option is an option that is intended to qualify under certain provisions of the
Code for more favorable tax treatment than applies to non-statutory&nbsp;stock options. Only employees may be granted incentive stock
options. Any option that does not qualify as an incentive stock option will be a non-statutory&nbsp;stock option. Under the Code, certain
restrictions apply to incentive stock options. For example, the exercise price for incentive stock options may not be less than the fair
market value of the shares on the grant date and the term of the option may not exceed ten years. In addition, an incentive stock option
may not be transferred, other than by will or the laws of descent and distribution, and is exercisable during the holder&rsquo;s lifetime
only by the holder. In addition, no incentive stock options may be granted to a holder that is first exercisable in a single year if
that option, together with all incentive stock options previously granted to the holder that also first become exercisable in that year,
relate to shares having an aggregate market value in excess of $100,000, measured at the grant date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Stock Appreciation Rights:</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Awards
of SARs may be granted alone or in tandem with stock options. SARs provide the holder with the right, upon exercise, to receive a payment,
in cash or shares of stock, having a value equal to the excess of the fair market value on the exercise date of the shares covered by
the award over the exercise price of those shares. Essentially, a holder of a SAR benefits when the market price of the common stock
increases, to the same extent that the holder of an option does, but, unlike an option holder, the SAR holder need not pay an exercise
price upon exercise of the award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Restricted Stock Awards</I></B>. A restricted
stock award is a grant of shares of common stock. These awards may be subject to such vesting conditions, restrictions and contingencies
as the administrator shall determine at the date of grant. Those may include requirements for continuous service and/or the achievement
of specified performance goals. Restricted stock is forfeitable and generally non-transferable&nbsp;until it vests. The vesting date
or dates and other conditions for vesting are established when the shares are awarded. The administrator may remove any vesting or other
restrictions from restricted stock whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances
arising after the date of grant, such action is appropriate. Holders of restricted stock otherwise generally have the rights of stockholders
of the Company, including voting and dividend rights, to the same extent as other stockholders of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Restricted Stock Units</I></B>.&nbsp;A
restricted stock unit is a right to receive stock on a future date, at which time the restricted stock unit will be settled and the stock
to which it granted rights will be issued to the restricted stock unit holder.&nbsp; These awards may be subject to such vesting conditions,
restrictions and contingencies as the administrator shall determine at the date of grant. Restricted stock units are forfeitable and
generally non-transferable&nbsp;until they vest. The administrator may remove any vesting or other restrictions from a restricted stock
unit whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date
of grant, such action is appropriate. A restricted stock unit holder has no rights as a stockholder. The administrator may exercise discretion
to credit a restricted stock unit with cash and stock dividends, with or without interest, and distribute such credited amounts upon
settlement of a restricted stock unit, and if the restricted stock unit is forfeited, such dividend equivalents will also be forfeited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Performance Share Awards and Performance
Compensation Awards:</I></B>&nbsp;&nbsp;&nbsp;&nbsp;The administrator may grant performance share awards and performance compensation
awards. A performance share means the grant of a right to receive a number of actual shares of common stock or share units based upon
the performance of the Company during a performance period, as determined by the administrator. The administrator may determine the number
of shares subject to the performance share award, the performance period, the conditions to be satisfied to warn an award, and the other
terms, conditions and restrictions of the award. No payout of a performance share award will be made except upon written certification
by the administrator that the minimum threshold performance goal(s) have been achieved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The administrator may also designate any of the
other awards described above as a performance compensation award (other than stock options and SARs granted with an exercise price equal
to or greater than the fair market value per share of common stock on the grant date). In addition, the administrator shall have the
authority to make an award of a cash bonus to any participant and designate such award as a performance compensation award. The participant
must be employed by the Company on the last day of the performance period to be eligible for payment in respect of a performance compensation
award unless otherwise provided in the applicable award agreement. A performance compensation award will be paid only to the extent that
the administrator certifies in writing whether and the extent to which the applicable performance goals for the performance period have
been achieved and the applicable performance formula determines that the performance compensation award has been earned. A performance
formula means, for a performance period, the one or more objective formulas applied against the relevant performance goal to determine,
with regard to the performance compensation award of a particular participant, whether all, some portion but less than all, or none of
the performance compensation award has been earned for the performance period. The administrator will not have the discretion to grant
or provide payment in respect of a performance compensation award for a performance period if the performance goals for such performance
period have not been attained.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The administrator will establish performance
goals for each performance compensation award based upon the performance criteria that it has selected. The performance criteria shall
be based on the attainment of specific levels of performance of the Company and may include the following: (a) net earnings or net income
(before or after taxes); (b) basic or diluted earnings per share (before or after taxes); (c) net revenue or net revenue growth; (d)
gross revenue; (e) gross profit or gross profit growth; (f) net operating profit (before or after taxes); (g) return on assets, capital,
invested capital, equity, or sales; (h) cash flow (including, but not limited to, operating cash flow, free cash flow, and cash flow
return on capital); (i) earnings before or after taxes, interest, depreciation and/or amortization; (j) gross or operating margins; (k)
improvements in capital structure; (l) budget and expense management; (m) productivity ratios; (n) economic value added or other value
added measurements; (o) share price (including, but not limited to, growth measures and total stockholder return); (p) expense targets;
(q) margins; (r) operating efficiency; (s) working capital targets; (t) enterprise value; (u) safety record; (v) completion of acquisitions
or business expansion; (w) achieving research and development goals and milestones; (x) achieving product commercialization goals; and
(y) other criteria as may be set by the administrator from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The administrator will also determine the performance
period for the achievement of the performance goals under a performance compensation award. At any time during the first 90 days of a
performance period (or such longer or shorter time period as the administrator shall determine) or at any time thereafter, in its sole
and absolute discretion, to adjust or modify the calculation of a performance goal for such performance period in order to prevent the
dilution or enlargement of the rights of participants based on the following events: (a) asset write-downs; (b) litigation or claim judgments
or settlements; (c) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results;
(d) any reorganization and restructuring programs; (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion
No. 30 (or any successor or pronouncement thereto) and/or in management&rsquo;s discussion and analysis of financial condition and results
of operations appearing in the Company&rsquo;s annual report to stockholders for the applicable year; (f) acquisitions or divestitures;
(g) any other specific unusual or nonrecurring events, or objectively determinable category thereof; (h) foreign exchange gains and losses;
and (i) a change in the Company&rsquo;s fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any one or more of the performance criteria may
be used on an absolute or relative basis to measure the performance of our company, as the administrator may deem appropriate, or as
compared to the performance of a group of comparable companies, or published or special index that the administrator deems appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In determining the actual size of an individual
performance compensation award, the administrator may reduce or eliminate the amount of the award through the use of negative discretion
if, in its sole judgment, such reduction or elimination is appropriate. The administrator shall not have the discretion to (i)&nbsp;grant
or provide payment in respect of performance compensation awards if the performance goals have not been attained or (ii)&nbsp;increase
a performance compensation award above the maximum amount payable under the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Other Material Provisions:</I></B>&nbsp;&nbsp;&nbsp;&nbsp;Awards
will be evidenced by a written agreement, in such form as may be approved by the administrator. In the event of various changes to the
capitalization of our company, such as stock splits, stock dividends and similar re-capitalizations, an appropriate adjustment will be
made by the administrator to the number of shares covered by outstanding awards or to the exercise price of such awards. <FONT STYLE="font-family: Times New Roman, Times, Serif">The
administrator generally has the power to accelerate the exercise or vesting period of an award. The administrator is also permitted to
include in the written agreement provisions that provide for certain changes in the award in the event of a change of control of our
company, including acceleration of vesting or payment of the value of the award in cash or stock. Except as otherwise determined by the
administrator at the date of grant, awards will generally not be transferable, other than by will or the laws of descent and distribution.
Prior to any award distribution, to the extent provided by the terms of an award agreement and subject to the discretion of the administrator,
a participant may satisfy any employee withholding tax requirements relating to the exercise or acquisition of common stock under an
award by tendering a cash payment authorizing the Company to withhold shares of common stock otherwise issuable to the participant as
a result of the exercise or acquisition of common stock under the award (in addition to the Company&rsquo;s right to withhold from any
compensation paid to the participant by the Company). Our board has the authority, at any time, to discontinue the granting of awards.
The board also has the authority to alter or amend the Plan or any outstanding award or may terminate the Plan as to further grants,
provided that no amendment to the Plan will be made, without the approval of our stockholders, to the extent that such approval is required
by law or the rules of an applicable securities exchange, or such alteration or amendment would change the number of shares available
under the Plan or change the persons eligible for awards under the Plan. No amendment to an outstanding award made under the Plan that
would adversely affect the award may be made without the consent of the holder of such award.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_013"></A>CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Transactions with Related Persons</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following includes a summary of transactions
since the beginning of our fiscal year ended December 31, 2020, or any currently proposed transaction, in which we were or are to be
a participant and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of our total assets at
year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest
(other than compensation described under &ldquo;<I>Executive Compensation</I>&rdquo; above). We believe the terms obtained or consideration
that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the
amounts that would be paid or received, as applicable, in arm&rsquo;s-length transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">On April 10, 2023, the Company issued
                                            Richard Symington, our President and Chief Marketing Officer and a director, an 8% unsecured
                                            promissory note in the amount of $250,000 and a warrant to purchase 100,000 shares of common
                                            stock at an exercise price of $2.50 per share in a private placement. The promissory note
                                            bears interest at 8% annually and will mature on the earlier to occur of March 17, 2025 or
                                            a Liquidity Event. If a Liquidity Event occurs before March 17, 2025, the warrant will be
                                            automatically exercised as to the unexercised portion of the warrant, the outstanding balance
                                            due under the 8% unsecured promissory note will be deemed repaid in the amount of the unexercised
                                            portion of the warrant from the automatic exercise of the unexercised portion of the warrant,
                                            and any remaining balance outstanding under the promissory note must be repaid in cash. If
                                            a Liquidity Event does not occur before March 17, 2025, then both principal and interest
                                            outstanding under the note must be repaid in cash. The warrant may be voluntarily exercised
                                            for cash prior to the maturity date of the promissory note or, as indicated above, will be
                                            automatically exercised for shares of common stock upon the consummation of a Liquidity Event.
                                            The warrant has a five-year term. Mr. Symington also entered into a subscription agreement
                                            which provided certain registration rights with respect to the shares underlying the warrant.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under the terms of the Repurchase Agreement,
                                            on March 31, 2023, we paid an aggregate purchase price of $800,000 for 600,000 shares of
                                            common stock formerly held by Dennis Gile, our largest stockholder and a former Chief Executive
                                            Officer, President, Secretary, Chairman, and director of the Company, at approximately $1.33
                                            per share. Pursuant to the Repurchase Agreement, the Dorsey/Gile Settlement Payment was made
                                            to John Dorsey as part of the settlement of the Dorsey/Gile Lawsuit under the Dorsey/Gile
                                            Settlement Agreement. Pursuant to the Repurchase Agreement, the balance of the aggregate
                                            purchase price was paid to the attorneys for Mr. Gile. Pursuant to the Repurchase Agreement,
                                            Mr. Gile agreed to resign his position as Chairman and every other director and officer position
                                            he held with the Company effective as of March 21, 2023. Prior to such date, on March 20,
                                            2023, Mr. Gile delivered notice of resignation from such positions, which stated that it
                                            was effective March 19, 2023. Pursuant to the Repurchase Agreement, Mr. Gile will not receive
                                            any severance payments in connection with any other agreement with the Company as a result
                                            of his resignation. The Repurchase was also conditioned on the Company&rsquo;s prior review
                                            of and consent to the Dorsey/Gile Settlement Agreement prior to its execution, and receipt
                                            of the CFO Certificate. Under the Repurchase Agreement, the Dorsey/Gile Settlement Agreement
                                            was required to fully resolve, settle and dismiss the Gile/Dorsey Lawsuit and contain a general
                                            release of claims by all the plaintiffs in the Dorsey/Gile Lawsuit in favor of Mr. Gile,
                                            the Company, the Company&rsquo;s affiliates, stockholders, and certain other Company releasees.
                                            Under the Repurchase Agreement, Mr. Gile agreed to indemnify the Company for claims arising
                                            out of based upon the Repurchase Agreement. Pursuant to the Repurchase Agreement, a copy
                                            of the Dorsey/Gile Settlement Agreement was reviewed and consented to by the Company and
                                            entered into as of March 20, 2023. Under the Dorsey/Gile Settlement Agreement, between Mr.
                                            Gile, Mr. Dorsey, and Dorsey LLC, Mr. Gile agreed to pay the Dorsey/Gile Settlement Payment,
                                            transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile, Mr. Dorsey and Dorsey LLC
                                            agreed to mutual releases of all claims relating to the Dorsey/Gile Lawsuit and to dismiss
                                            the Dorsey/Gile Lawsuit. Although the Dorsey/Gile Settlement Agreement did not contain a
                                            release of the Company and did not contain releases by the plaintiffs of Mr. Gile other than
                                            with respect to the Lawsuit, the Company waived any related requirements under the Repurchase
                                            Agreement in light of the expected execution of the Mutual Release Agreement. The CFO Certificate
                                            was received as of March 21, 2023. The repurchased shares were cancelled as of March 31,
                                            2023. The transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023,
                                            after waiver of the board of directors of the repurchase rights and purchase rights provided
                                            for under the Shareholder Agreement by resolutions adopted on March 24, 2023.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under the Mutual Release Agreement, as
                                            of March 29, 2023, Mr. Dorsey agreed to a general release of claims against and covenant
                                            not to sue the Company, the Company&rsquo;s affiliates, stockholders, and certain other Company
                                            releasees, and the Company agreed to a general release of claims against and covenant not
                                            to sue Mr. Dorsey, Mr. Dorsey&rsquo;s affiliates, and certain other releasees, subject to
                                            payment of the Dorsey/Gile Settlement Payment, which, as indicated above, was made on March
                                            31, 2023. The releases of claims and covenants not to sue under the Mutual Release Agreement
                                            do not apply to breach of the Dorsey/Gile Settlement Agreement or to the January 2023 Dorsey
                                            Settlement Agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under our Settlement Agreement with Dennis
                                            Gile, our largest stockholder and a former Chief Executive Officer, President, Secretary,
                                            Chairman, and director of the Company, dated as of May 12, 2022, the parties agreed, among
                                            other things, to a general release and discharge of claims against us, our officers and directors,
                                            certain other affiliates and related parties, and our stockholders as listed on an exhibit
                                            to the agreement, including without limitation, claims relating to Mr. Gile&rsquo;s direct
                                            or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Mr. Gile&rsquo;s
                                            direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash;
                                            DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
                                            Agreement was intended to release any rights that any party or Mr. Gile may have under the
                                            terms of that certain Severance General Waiver and Release Agreement between Mr. Gile and
                                            the Company, dated March 22, 2022, including the releases of any and all claims against the
                                            Company and certain related parties as contained therein, Mr. Gile&rsquo;s agreement to be
                                            terminated effective on January 1, 2022 and receive a severance payment of $53,500 pursuant
                                            to Section 1 of the Severance Agreement, paid in March 2022, all of which terms were to remain
                                            in force notwithstanding the provisions of the Settlement Agreement. Further, Mr. Gile irrevocably,
                                            unconditionally, voluntarily, knowingly, fully, finally, and completely forever released
                                            and waived their rights to any claim, distributions, payments, or other amounts that Mr.
                                            Gile believed should have been paid or were owed to Mr. Gile by SDS LLC &ndash; AZ, SDS LLC
                                            &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order
                                            to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash;
                                            DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
                                            to forever release and waive any claims that they may have had with respect to ownership
                                            interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash;
                                            DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not
                                            own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table
                                            attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr.
                                            Gile owned 2,816,377 shares of common stock pursuant to the Settlement Agreement. Mr. Gile
                                            also irrevocably covenanted that he would not sue us or the other released parties in respect
                                            of any of the matters released and discharged. Notwithstanding the Severance Agreement referenced
                                            above, Mr. Gile has not had a written employment agreement with the Company, has not been
                                            terminated, and has not received a salary since 2021, but has continued to receive standard
                                            employee benefits on a monthly basis.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under our Settlement Agreement with Dorsey
                                            LLC, John Dorsey, in his individual capacity, and who was formerly Chief Executive Officer
                                            and a director of the Company, and his spouse, Elena Dorsey, to the extent of such spouse&rsquo;s
                                            community property interest, if any (together, &ldquo;Dorsey&rdquo;), dated as of April 25,
                                            2022, the parties agreed, among other things, (1) that Dorsey had held 959,940 shares of
                                            SDS Inc. &ndash; DE&rsquo;s common stock at that time, (2) that prior to the anticipated
                                            redomestication of SDS LLC &ndash; AZ to Delaware as a Delaware limited liability company
                                            and conversion to a Delaware corporation, Dorsey was a member of SDS LLC &ndash; AZ and was
                                            a party to SDS LLC &ndash; AZ&rsquo;s Fourth Amended Limited Liability Company Operating
                                            Agreement dated July 16, 2021 (the &ldquo;SDS LLC &ndash; AZ Operating Agreement&rdquo;),
                                            (3) that the SDS LLC &ndash; AZ Operating Agreement provided Dorsey, among other things,
                                            certain anti-dilution protections whereby SDS LLC &ndash; AZ would have been required to
                                            issue additional equity to Dorsey if SDS LLC &ndash; AZ were to have issued additional equity
                                            which would have the effect of reducing Dorsey&rsquo;s ownership below 11% of SDS LLC &ndash;
                                            AZ&rsquo;s outstanding equity (the &ldquo;Dorsey Anti-Dilution Provision&rdquo;), (4) that
                                            on April 25, 2022, Dorsey LLC would receive a total of 350,000 shares of common stock of
                                            SDS Inc. &ndash; DE in exchange for Dorsey&rsquo;s cancellation, waiver, and release of all
                                            of Dorsey&rsquo;s rights under the Dorsey Anti-Dilution Provision in the SDS LLC &ndash;
                                            AZ Operating Agreement, (5) to a general release and discharge of claims against us, our
                                            officers and directors, certain other affiliates and related parties, and our stockholders
                                            as listed on an exhibit to the agreement, including without limitation, claims relating to
                                            the Dorsey Anti-Dilution Provision, Dorsey&rsquo;s direct or indirect ownership of shares
                                            of SDS Inc. &ndash; DE&rsquo;s capital stock, or Dorsey&rsquo;s direct or indirect ownership
                                            of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC,
                                            as applicable, provided, however, that nothing in the Settlement Agreement was intended to
                                            release any rights that any party or Dorsey may have under the terms of that certain Offer
                                            of Employment between John Dorsey and SDS LLC &ndash; AZ, dated January 13, 2022, or that
                                            certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of
                                            the date of this prospectus, the Company has no agreements with Dorsey otherwise relating
                                            to, and has not issued to Dorsey, any simple agreement for future equity or convertible note.
                                            Further, Dorsey irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and
                                            completely forever released and waived their rights to any claim, distributions, payments,
                                            or other amounts that Dorsey believed should have been paid or were owed to Dorsey by SDS
                                            LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party
                                            also agreed, in order to make sure there was a clear understanding regarding the capitalization
                                            of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
                                            and completely to forever release and waive any claims that they may have had with respect
                                            to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or
                                            SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he,
                                            she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the
                                            capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
                                            agreed that Dorsey LLC owned 1,309,940 shares of common stock pursuant to the Settlement
                                            Agreement. Dorsey also irrevocably covenanted that they would not sue us or the other released
                                            parties in respect of any of the matters released and discharged. Mr. Dorsey is deemed to
                                            beneficially own the shares of common stock owned by Dorsey LLC and has sole voting and dispositive
                                            powers over its shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">On or about November 29, 2022, John Dorsey,
                                            a former Chief Executive Officer and director of the Company, through his counsel, sent the
                                            Company a letter demanding full payment on the Alleged Loan in connection with the Loan Dispute.
                                            Under the January 2023 Dorsey Settlement Agreement, Mr. Dorsey agreed to a discharge of the
                                            Alleged Loan and waiver and release of claims relating to the Alleged Loan and Loan Dispute
                                            and covenant not to sue on the basis of such claims or otherwise commence any action or proceeding
                                            that would be inconsistent with the release of such claims. The Company agreed to pay Mr.
                                            Dorsey $10,000 and issue a promissory note to Mr. Dorsey in the principal amount of $40,000
                                            payable on the earlier of ten business days following the successful closing of an initial
                                            public offering of the Company&rsquo;s common stock that generates at least $1 million in
                                            net proceeds to the Company or July 1, 2023.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under our Settlement Agreement with Noah
                                            (Jed) Smith, a former director and a beneficial owner of more than 5% of the outstanding
                                            common stock of the Company, and his spouse, Glory Smith, to the extent of such spouse&rsquo;s
                                            community property interest, if any (together, &ldquo;Smith&rdquo;), dated as of May 13,
                                            2022, the parties agreed, among other things, (1) that Dennis Gile, the founder of SDS LLC
                                            &ndash; AZ, our largest stockholder, and a former Chief Executive Officer, President, Secretary,
                                            and Chairman of the Company, agreed and contracted to fulfill certain obligations to Smith,
                                            including, but not limited to, granting a profits interest that was intended to be a membership
                                            interest in SDS LLC &ndash; AZ as well as a percentage of future profits from the operations
                                            or sale of SDS LLC &ndash; AZ, pursuant to that certain Contribution and Profit-Sharing Agreement
                                            between Mr. Gile and Smith, dated April 5, 2019, as amended by that certain First Amendment
                                            to Contribution and Profit-Sharing Agreement dated December 9, 2019, and that certain Second
                                            Amendment to Contribution and Profit-Sharing Agreement dated August 21, 2020, all attached
                                            as an exhibit to the Settlement Agreement (collectively, the &ldquo;Smith Contribution and
                                            Profit-Sharing Agreement&rdquo;), (2) that Mr. Smith held 300,000 shares of common stock
                                            in SDS Inc. &ndash; DE in exchange for Smith&rsquo;s previous contributions to SDS LLC &ndash;
                                            AZ, (3) that on May 13, 2022, Mr. Smith would receive an additional 100,000 shares of common
                                            stock of SDS Inc. &ndash; DE in exchange for the termination of Smith&rsquo;s rights under
                                            the Smith Contribution and Profit-Sharing Agreement, (4) that following such receipt of such
                                            additional shares, Mr. Smith would have a total of 400,000 shares of common stock, and (5)
                                            to a general release and discharge of claims against us, our officers and directors, certain
                                            other affiliates and related parties, and our stockholders as listed on an exhibit to the
                                            agreement, including without limitation, claims relating to the Smith Contribution and Profit-Sharing
                                            Agreement, Smith&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s
                                            capital stock, or Smith&rsquo;s direct or indirect ownership of membership interests of SDS
                                            LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
                                            that nothing in the Settlement Agreement was intended to release any rights that any party
                                            or Smith may have under that certain Simple Agreement for Future Equity and/or Convertible
                                            Note, as applicable. As of the date of this prospectus, the Company has no agreements with
                                            Smith otherwise relating to, and has not issued to Smith, any simple agreement for future
                                            equity or convertible note. Further, Smith irrevocably, unconditionally, voluntarily, knowingly,
                                            fully, finally, and completely forever released and waived their rights to any claim, distributions,
                                            payments, or other amounts that Smith believed should have been paid or were owed to Smith
                                            by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each
                                            party also agreed, in order to make sure there was a clear understanding regarding the capitalization
                                            of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
                                            and completely to forever release and waive any claims that they may have had with respect
                                            to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or
                                            SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he,
                                            she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the
                                            capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
                                            agreed that Mr. Smith owned 400,000 shares of common stock pursuant to the Settlement Agreement.
                                            Smith also irrevocably covenanted that they would not sue us or the other released parties
                                            in respect of any of the matters released and discharged.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under our Settlement Agreement with Virginia
                                            Byrd, an individual, and Byrd Enterprises of Arizona, Inc., an Arizona corporation (&ldquo;Byrd
                                            Enterprises&rdquo;), dated as of May 13, 2022 (together, &ldquo;Byrd&rdquo;), the parties
                                            agreed, among other things, to a general release and discharge of claims against us, our
                                            officers and directors, certain other affiliates and related parties, and our stockholders
                                            as listed on an exhibit to the agreement, including without limitation, claims relating to
                                            Byrd&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital
                                            stock, or Byrd&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash;
                                            AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing
                                            in the Settlement Agreement was intended to release any rights that any party or Byrd may
                                            have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable.
                                            As of the date of this prospectus, the Company has no agreements with Byrd otherwise relating
                                            to, and has not issued to Byrd, any simple agreement for future equity or convertible note.
                                            Further, Byrd irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
                                            forever released and waived their rights to any claim, distributions, payments, or other
                                            amounts that Byrd believed should have been paid or were owed to Byrd by SDS LLC &ndash;
                                            AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed,
                                            in order to make sure there was a clear understanding regarding the capitalization of SDS
                                            Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and
                                            completely to forever release and waive any claims that they may have had with respect to
                                            ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS
                                            Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she,
                                            or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization
                                            table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that
                                            Byrd Enterprises owned 767,785 shares of common stock pursuant to the Settlement Agreement.
                                            Byrd also irrevocably covenanted that they would not sue us or the other released parties
                                            in respect of any of the matters released and discharged.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">On November 15, 2021, the Company issued
                                            a 6% convertible unsecured promissory note in the amount of $565,000 to Zone Right in a private
                                            placement. Glen Kim, a director of the Company and the managing member of Zone Right, is
                                            deemed to beneficially own the shares of common stock owned by Zone Right and has sole voting
                                            and dispositive powers over its shares. The convertible note bears interest at 6% annually
                                            and matures on November 15, 2024. The convertible note contains provisions for optional and
                                            mandatory conversion and conversion price adjustments. In the event that the Company&rsquo;s
                                            initial public offering occurs prior to such convertible note&rsquo;s maturity date or optional
                                            conversion, 282,500 shares of common stock will be issuable upon the automatic conversion
                                            of such convertible note, based on the assumed initial public offering price of $4.00 per
                                            share, which is the low point of the price range set forth on the cover page of this prospectus.
                                            The purchaser also entered into a subscription agreement and investor rights and lockup agreement
                                            which provided information and inspection rights, registration rights, lock-up provisions,
                                            participation rights in subsequent securities offerings and private placements, and typical
                                            &ldquo;drag along&rdquo; and &ldquo;tag along&rdquo; rights. See &ldquo;<I>Description of
                                            Securities &ndash; 6% Convertible Unsecured Promissory Notes</I>&rdquo; for a further description
                                            of the terms of the convertible note and related agreements.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under our Settlement Agreement with Zone
                                            Right, Mr. Kim, a director of the Company, and his spouse, Jessica Lee, to the extent of
                                            such spouse&rsquo;s community property interest, if any, dated as of April 26, 2022 (the
                                            &ldquo;Zone Right Parties&rdquo;), the parties agreed, among other things, to a general release
                                            and discharge of claims against us, our officers and directors, certain other affiliates
                                            and related parties, and our stockholders as listed on an exhibit to the agreement, including
                                            without limitation, claims relating to the Zone Right Parties&rsquo; direct or indirect ownership
                                            of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or the Zone Right Parties&rsquo;
                                            direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash;
                                            DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
                                            Agreement was intended to release any rights that any party or the Zone Right Parties may
                                            have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable.
                                            As of the date of this prospectus, other than as otherwise disclosed above, the Company has
                                            no agreements with the Zone Right Parties otherwise relating to, and has not issued to the
                                            Zone Right Parties, any Simple Agreement for Future Equity or convertible note. Further,
                                            the Zone Right Parties irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
                                            and completely forever released and waived their rights to any claim, distributions, payments,
                                            or other amounts that the Zone Right Parties believed should have been paid or were owed
                                            to the Zone Right Parties by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC,
                                            or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding
                                            regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily,
                                            knowingly, fully, finally, and completely to forever release and waive any claims that they
                                            may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE,
                                            SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent,
                                            and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond
                                            that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
                                            The parties therefore agreed that Zone Right owned 483,833 shares of common stock pursuant
                                            to the Settlement Agreement. The Zone Right Parties also irrevocably covenanted that they
                                            would not sue us or the other released parties in respect of any of the matters released
                                            and discharged. Glen Kim is deemed to beneficially own the shares of common stock owned by
                                            Zone Right and has sole voting and dispositive powers over its shares.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under a lease agreement dated as of October
                                            7, 2021 and an addendum dated the same date, we leased our former corporate offices consisting
                                            of approximately 7,800 square feet for a term of five years beginning January 1, 2022 and
                                            ending December 31, 2026 for a monthly rent of $20,800 plus tax and certain operating expenses,
                                            with an increase of 3% at the beginning of every calendar year following the first year of
                                            the term of the lease agreement through January 2026. As of December 31, 2021, a security
                                            deposit was paid in the amount of $23,411. The office space was owned by John Dorsey, a former
                                            chief executive officer and director of the Company. On August 31, 2022, we entered into
                                            a Lease Termination Agreement in which both parties agreed to terminate the lease and release
                                            each other from all future obligations. The total approximate dollar value of this transaction
                                            was $420,992 plus tax and certain operating expenses. The approximate dollar value of the
                                            interest of Mr. Dorsey in this transaction was $420,992.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">On August 7, 2021, SDS LLC &ndash; AZ
                                            agreed to issue Clayton Adams, a former director and a beneficial owner of more than 5% of
                                            the common stock of the Company, 4.3% of its membership interests in a private placement
                                            for total proceeds of $250,000 under a membership interest purchase agreement. The agreement
                                            stated that SDS LLC &ndash; AZ intended to convert into a corporation in connection with
                                            a going public transaction by way of an initial public offering or reverse merger (&ldquo;Going
                                            Public Transaction&rdquo;), and that the membership interest would be converted into or exchanged
                                            for shares of common stock in connection with the Public Transaction. The agreement indicates
                                            that the number of shares of common stock that Mr. Adams would hold upon an initial public
                                            offering would be 363,274 shares of common stock. Under the agreement, SDS LLC &ndash; AZ
                                            reserved the right to reduce Mr. Adams&rsquo; membership interest from the pre-Public Transaction
                                            valuation of our most recent SAFE round of $42,000,000. The parties also agreed that, notwithstanding
                                            the foregoing, the membership interest would not be adjusted based on the final capital structure
                                            following a Public Transaction.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under our Settlement Agreement with Clayton
                                            Adams, a former director and a beneficial owner of more than 5% of the common stock of the
                                            Company, dated as of May 3, 2022, the parties agreed, among other things, to a general release
                                            and discharge of claims against us, our officers and directors, certain other affiliates
                                            and related parties, and our stockholders as listed on an exhibit to the agreement, including
                                            without limitation, claims relating to Mr. Adams&rsquo; direct or indirect ownership of shares
                                            of SDS Inc. &ndash; DE&rsquo;s capital stock, or Mr. Adams&rsquo; direct or indirect ownership
                                            of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC,
                                            as applicable, provided, however, that nothing in the Settlement Agreement was intended to
                                            release any rights that any party or Mr. Adams may have under that certain Simple Agreement
                                            for Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus,
                                            the Company has no agreements with Mr. Adams otherwise relating to, and has not issued to
                                            Mr. Adams, any simple agreement for future equity or convertible note. Further, Mr. Adams
                                            irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
                                            released and waived their rights to any claim, distributions, payments, or other amounts
                                            that Mr. Adams believed should have been paid or were owed to Mr. Adams by SDS LLC &ndash;
                                            AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed,
                                            in order to make sure there was a clear understanding regarding the capitalization of SDS
                                            Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and
                                            completely to forever release and waive any claims that they may have had with respect to
                                            ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS
                                            Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she,
                                            or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization
                                            table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that
                                            Mr. Adams owned 363,274 shares of common stock pursuant to the Settlement Agreement. Mr.
                                            Adams also irrevocably covenanted that they would not sue us or the other released parties
                                            in respect of any of the matters released and discharged.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">On July 21, 2022, the date that Clayton
                                            Adams, a former director and a beneficial owner of more than 5% of the common stock of the
                                            Company, was appointed as a member of our board of directors, Mr. Adams agreed to provide
                                            $100,000 in financing to the Company. The Company has not borrowed any funds from Mr. Adams
                                            and does not expect that it will need to do so as of the date of this prospectus. Mr. Adams
                                            resigned from his position on the board of directors effective April 27, 2023.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">On August 9, 2021, SDS LLC &ndash; AZ
                                            agreed to issue Matthew Atkinson, a former director and a beneficial owner of more than five
                                            percent (5%) of the issued and outstanding shares of the Company, 4.3% of its membership
                                            interests in a private placement for total proceeds of $250,000 under a membership interest
                                            purchase agreement. The agreement stated that SDS LLC &ndash; AZ intended to convert into
                                            a corporation in connection with a going public transaction by way of an initial public offering
                                            or reverse merger (&ldquo;Going Public Transaction&rdquo;), and that the membership interest
                                            would be converted into or exchanged for shares of common stock in connection with the Public
                                            Transaction. The agreement indicates that the number of shares of common stock that Mr. Atkinson
                                            would hold upon an initial public offering would 363,274 shares of common stock. Under the
                                            agreement, SDS LLC &ndash; AZ reserved the right to reduce Mr. Atkinson&rsquo;s membership
                                            interest from the pre-Public Transaction valuation of the Company&rsquo;s most recent SAFE
                                            round of $42,000,000. The parties also agreed that, notwithstanding the foregoing, the membership
                                            interest would not be adjusted based on the final capital structure following a Public Transaction.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under our Settlement Agreement with Mr.
                                            Atkinson and his spouse, Penny Atkinson, to the extent of such spouse&rsquo;s community property
                                            interest, if any (together, &ldquo;Atkinson&rdquo;), dated as of May 13, 2022, the parties
                                            agreed, among other things, to a general release and discharge of claims against us, our
                                            officers and directors, certain other affiliates and related parties, and our stockholders
                                            as listed on an exhibit to the agreement, including without limitation, claims relating to
                                            Atkinson&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital
                                            stock, or Atkinson&rsquo;s direct or indirect ownership of membership interests of SDS LLC
                                            &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
                                            that nothing in the Settlement Agreement was intended to release any rights that any party
                                            or Atkinson may have under that certain Simple Agreement for Future Equity and/or Convertible
                                            Note, as applicable. As of the date of this prospectus, the Company has no agreements with
                                            Atkinson otherwise relating to, and has not issued to Atkinson, any simple agreement for
                                            future equity or convertible note. Further, Atkinson irrevocably, unconditionally, voluntarily,
                                            knowingly, fully, finally, and completely forever released and waived their rights to any
                                            claim, distributions, payments, or other amounts that Atkinson believed should have been
                                            paid or were owed to Atkinson by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC,
                                            or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding
                                            regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily,
                                            knowingly, fully, finally, and completely to forever release and waive any claims that they
                                            may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE,
                                            SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent,
                                            and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond
                                            that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
                                            The parties therefore agreed that Mr. Atkinson owned 383,274 shares of common stock pursuant
                                            to the Settlement Agreement. Atkinson also irrevocably covenanted that they would not sue
                                            us or the other released parties in respect of any of the matters released and discharged.</TD></TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Under our Settlement Agreement with 35&rsquo;sNextChapters,
                                            LLC (&ldquo;35&rsquo;sNextChapters&rdquo;), dated as of May 13, 2022, the parties agreed,
                                            among other things, to a general release and discharge of claims against us, our officers
                                            and directors, certain other affiliates and related parties, and our stockholders as listed
                                            on an exhibit to the agreement, including without limitation, claims relating to 35&rsquo;sNextChapters&rsquo;
                                            direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or 35&rsquo;sNextChapters&rsquo;
                                            direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash;
                                            DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
                                            Agreement was intended to release any rights that any party or 35&rsquo;sNextChapters may
                                            have under the terms of that certain Invitation to Join the Board of Directors between Ronald
                                            Saslow and the Company or that certain Simple Agreement for Future Equity and/or Convertible
                                            Note, as applicable. As of the date of this prospectus, the Company has no agreements with
                                            35&rsquo;sNextChapters otherwise relating to, and has not issued to 35&rsquo;sNextChapters,
                                            any convertible note or Invitation to Join the Board of Directors between Ronald Saslow and
                                            the Company. Further, 35&rsquo;sNextChapters irrevocably, unconditionally, voluntarily, knowingly,
                                            fully, finally, and completely forever released and waived their rights to any claim, distributions,
                                            payments, or other amounts that 35&rsquo;sNextChapters believed should have been paid or
                                            were owed to 35&rsquo;sNextChapters by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC,
                                            SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was
                                            a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally,
                                            voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims
                                            that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC
                                            &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or
                                            contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash;
                                            DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement
                                            Agreement. The parties therefore agreed that 35&rsquo;sNextChapters owned 150,000 shares
                                            of common stock pursuant to the Settlement Agreement. 35&rsquo;sNextChapters also irrevocably
                                            covenanted that they would not sue us or the other released parties in respect of any of
                                            the matters released and discharged. Ronald Saslow, a former director of the Company, as
                                            Manager of 35&rsquo;sNextChapters, is deemed to beneficially own the shares of common stock
                                            owned by 35&rsquo;sNextChapters and has sole voting and dispositive powers over its shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">In July 2021, we issued a SAFE to 35&rsquo;snextchapters,
                                            LLC, whose Manager, Ronald Saslow, is a former director of the Company, and is deemed to
                                            beneficially own the securities and interests in securities owned by 35&rsquo;sNextChapters
                                            and has sole voting and dispositive powers over its securities. In October 2022, we entered
                                            into a cancellation and exchange agreement with 35&rsquo;snextchapters, LLC in which we agreed
                                            to cancel its SAFE in exchange for the issuance of 74,627 shares of common stock. The number
                                            of shares was equal to the purchase amount under the SAFE divided by approximately $3.35,
                                            based on a $25 million valuation for the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">In April 2021, we issued a SAFE to The
                                            Nelson Revocable Living Trust (the &ldquo;Nelson Trust&rdquo;), one of whose co-trustees
                                            is Daniel D. Nelson, our Chief Executive Officer, Chairman, and a director of the Company,
                                            in exchange for a payment of $100,000. See &ldquo;<I>Description of Securities &ndash; SAFEs</I>&rdquo;
                                            for a further description of the terms of the SAFE. In October 2022, we entered into a cancellation
                                            and exchange agreement with the Nelson Trust in which we agreed to cancel its SAFE in exchange
                                            for the issuance of 29,851 shares of common stock. The number of shares was equal to the
                                            purchase amount under the SAFE divided by approximately $3.35, based on a $25 million valuation
                                            for the Company.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">On October 15, 2021, the Company issued
                                            a 6% convertible unsecured promissory note in a private placement in the amount of $1,500,000
                                            to the Nelson Trust, whose co-trustees are Daniel D. Nelson, our Chief Executive Officer,
                                            Chairman, and a director of the Company, and Jodi B. Nelson. The convertible note bears interest
                                            at 6% annually and matures on October 15, 2024. The convertible note contains provisions
                                            for optional and mandatory conversion and conversion price adjustments. In the event that
                                            the Company&rsquo;s initial public offering occurs prior to such convertible note&rsquo;s
                                            maturity date or optional conversion, 750,000 shares of common stock will be issuable upon
                                            the automatic conversion of such convertible note, based on the assumed initial public offering
                                            price of $4.00 per share, which is the low point of the price range set forth on the cover
                                            page of this prospectus. The purchaser also entered into a subscription agreement and investor
                                            rights and lockup agreement which provided information and inspection rights, registration
                                            rights, lock-up provisions, participation rights in subsequent securities offerings and private
                                            placements, and typical &ldquo;drag along&rdquo; and &ldquo;tag along&rdquo; rights. See
                                            &ldquo;<I>Description of Securities &ndash; 6% Convertible Unsecured Promissory Notes</I>&rdquo;
                                            for a further description of the terms of the convertible note and related agreements.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">In April 2022, Nelson Financial Services
                                            Inc. became the insurance agent providing group benefits for the Company. Total dollar benefits
                                            provided to the Company under the group benefits plan in 2022 were approximately $48,374.
                                            Total dollar payments to Nelson Financial Services Inc. in 2022 under the group benefits
                                            plan were approximately $2,790. As Chief Executive Officer and sole owner of Nelson Financial
                                            Services Inc., the approximate dollar value of Mr. Nelson&rsquo;s interest in this transaction
                                            was approximately $2,790.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Promoters and Certain Control Persons </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each of Dennis Gile, our largest stockholder
and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, and John Dorsey, a former Chief Executive
Officer and director of the Company, may be deemed a &ldquo;promoter&rdquo; as defined by Rule 405 of the Securities Act. For information
regarding compensation and other items of value that have been provided or that may be provided to these individuals, please refer to
&ldquo;<I>Executive Compensation</I>&rdquo; and &ldquo;<I>Certain Relationships and Related Party Transactions &ndash; Transactions with
Related Persons</I>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_014"></A>PRINCIPAL
STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth certain information
with respect to the beneficial ownership of our common stock as of the date of this prospectus for (i) each of our named executive officers,
other executive officers, directors and director nominees; (ii) all of our executive officers and directors as a group; and (iii) each
other stockholder known by us to be the beneficial owner of more than 5% of our outstanding common stock. The following table assumes
that the underwriters do not exercise the over-allotment option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Beneficial ownership is determined in accordance
with SEC rules and generally includes voting or investment power with respect to securities. For purposes of this table, a person or
group of persons is deemed to have &ldquo;beneficial ownership&rdquo; of any shares of common stock that such person or any member of
such group has the right to acquire within sixty (60) days of the date of this prospectus. For purposes of computing the percentage of
outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons has
the right to acquire within sixty (60) days of the date of this prospectus are deemed to be outstanding for such person, but not deemed
to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed
as beneficially owned does not constitute an admission of beneficial ownership by any person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless otherwise indicated, the address of each
beneficial owner listed in the table below is c/o Signing Day Sports, Inc., 8355 East Hartford Rd., Suite 100, Scottsdale, AZ 85255.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Prior to the Company&rsquo;s Initial
    Public Offering</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">After the Company&rsquo;s Initial
    Public Offering</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Title of Class</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Name of Beneficial Owner</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount and<BR>
    Nature of Beneficial Ownership</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percent
    of Class (%)<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount and <BR>
    Nature of Beneficial Ownership</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percent
    of Class (%) <SUP>(2)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>

<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 13%; text-align: justify">Common Stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 46%; text-align: left">Daniel D. Nelson, Chief Executive Officer, Chairman, and Director</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">658,851</TD><TD STYLE="width: 1%; text-align: left">(3)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">8.0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">808,851</TD><TD STYLE="width: 1%; text-align: left">(3)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">4.7</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center">-</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Damon Rich, Interim Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Richard Symington, President, Chief Marketing Officer, and Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">(4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">(4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">David O&rsquo;Hara, Chief Operating Officer and Secretary</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">105,000</TD><TD STYLE="text-align: left">(5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.4</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">105,000</TD><TD STYLE="text-align: left">(5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.6</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Glen Kim, Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">714,833</TD><TD STYLE="text-align: left">(6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">771,333</TD><TD STYLE="text-align: left">(6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.7</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Martin Lanphere, Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,600</TD><TD STYLE="text-align: left">(7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,600</TD><TD STYLE="text-align: left">(7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Roger Mason Jr., Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,000</TD><TD STYLE="text-align: left">(8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,000</TD><TD STYLE="text-align: left">(8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Greg Economou, Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">(9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">(9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Common Stock</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">All directors and executive officers (8 persons)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,614,284</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">18.8</TD><TD STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,720,784</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">10.5</TD><TD STYLE="font-weight: bold; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Dennis Gile</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,205,377</TD><TD STYLE="text-align: left">(10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28.9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,205,377</TD><TD STYLE="text-align: left">(10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Dorsey Family Holdings, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,309,940</TD><TD STYLE="text-align: left">(11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17.3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,309,940</TD><TD STYLE="text-align: left">(11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.1</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">John Dorsey</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,349,940</TD><TD STYLE="text-align: left">(12)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17.8</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,349,940</TD><TD STYLE="text-align: left">(12)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.3</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Byrd Enterprises of Arizona, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">767,785</TD><TD STYLE="text-align: left">(13)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">767,785</TD><TD STYLE="text-align: left">(13)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.7</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Zone Right, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">709,833</TD><TD STYLE="text-align: left">(14)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">766,333</TD><TD STYLE="text-align: left">(14)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.7</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">The Nelson Revocable Living Trust</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">629,851</TD><TD STYLE="text-align: left">(15)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.7</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">779,851</TD><TD STYLE="text-align: left">(15)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.6</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">Jodi B. Nelson</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">658,851</TD><TD STYLE="text-align: left">(16)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">808,851</TD><TD STYLE="text-align: left">(16)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.7</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Noah (Jed) Smith</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">405,000</TD><TD STYLE="text-align: left">(17)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">405,000</TD><TD STYLE="text-align: left">(17)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Clayton Adams</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">383,274</TD><TD STYLE="text-align: left">(18)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,000</TD><TD STYLE="text-align: left">(18)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.1</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Matthew Atkinson<SUP>(19)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">383,274</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">383,274</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.4</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Non-officer director beneficially owning less than
                                            1% of the shares of the Company&rsquo;s common stock.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify">Based on 7,591,152 shares of common stock issued and outstanding as
                                  of the date of this prospectus.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(2)</TD><TD STYLE="text-align: justify">Based on 16,256,727 shares of common stock issued and outstanding after
                                  the Company&rsquo;s initial public offering, assuming no exercise of the underwriters&rsquo; over-allotment
                                  option and assuming an initial public offering price of $4.00 per share (which is the low point of
                                  the estimated range of the initial public offering price shown on the cover page of this prospectus),
                                  and further assuming, at the time of the initial public offering, the automatic conversion of the Company&rsquo;s
                                  6% convertible unsecured promissory notes into a total of 3,152,500 shares of common stock, the automatic
                                  conversion of the Company&rsquo;s 8% convertible unsecured promissory notes into a total of 732,500
                                  shares of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares
                                  of common stock. Immediately after the consummation of the initial public offering, we intend to file
                                  a Registration Statement on Form S-8 with the SEC to register common stock and options to purchase
                                  stock that were issued to certain of our employees, consultants, officers and directors pursuant to
                                  the Equity Incentive Plan. See &ldquo;<I>Corporate History and Structure</I>&rdquo; and &ldquo;<I>Executive
                                  Compensation &ndash; Management Employment and Consulting Agreements</I>&rdquo;.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(3)</TD><TD STYLE="text-align: justify">Consists of (i) 29,851 shares of common stock held by the Nelson Trust,
                                  (ii) prior to the Company&rsquo;s initial public offering, 600,000 shares of common stock issuable
                                  upon the conversion of a 6% convertible unsecured promissory note held by the Nelson Trust at the option
                                  of the Nelson Trust, otherwise, following the initial public offering, assuming no prior occurrence
                                  of an Alternative Liquidity Event (as defined in &ldquo;<I>Description of Securities &ndash; 6% Convertible
                                  Unsecured Promissory Notes</I>&rdquo;), in the event that the initial public offering occurs prior
                                  to such convertible note&rsquo;s maturity date, 750,000 shares of common stock issuable upon the automatic
                                  conversion of such convertible note, based on the assumed initial public offering price of $4.00 per
                                  share, which is the low point of the price range set forth on the cover page of this prospectus, (iii)
                                  5,000 shares of common stock issuable upon the exercise of an option, and (iv) 24,000 shares of common
                                  stock issuable upon the exercise of an option within 60 days of the date of this prospectus. Daniel
                                  D. Nelson is a co-trustee of the Nelson Trust. Jodi B. Nelson is a co-trustee of the Nelson Trust and
                                  is Mr. Nelson&rsquo;s spouse. Mr. Nelson is deemed to beneficially own the shares of common stock beneficially
                                  owned by the Nelson Trust and have shared voting and dispositive powers with Ms. Nelson over its shares.
                                  Mr. Nelson also has shared voting and dispositive powers with Ms. Nelson over the shares of common
                                  stock that may be purchased by exercise of Mr. Nelson&rsquo;s stock options.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(4)</TD><TD STYLE="text-align: justify">Consists of 100,000 shares of common stock that may be purchased upon
                                  exercise of a warrant prior to the Company&rsquo;s initial public offering. The shares underlying the
                                  warrant are being registered for resale contemporaneously with the Company&rsquo;s initial public offering,
                                  and it has been assumed that such shares will be sold after the initial public offering. See &ldquo;<I>Selling
                                  Stockholders</I>&rdquo; in the resale prospectus filed contemporaneously with this prospectus.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(5)</TD><TD STYLE="text-align: justify">Consists of (i) 90,000 shares of common stock, (ii) 7,500 shares of
                                  common stock issuable upon exercise within 60 days of the date of this prospectus, and (iii) 7,500
                                  shares of common stock issuable upon exercise within 60 days of the date of this prospectus.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(6)</TD><TD STYLE="text-align: justify">Consists of (i) 483,833 shares of common stock held by Zone Right,
                                  (ii) prior to the Company&rsquo;s initial public offering, 226,000 shares of common stock issuable
                                  upon the conversion of a 6% convertible unsecured promissory note held by Zone Right at the option
                                  of Zone Right, otherwise, following the initial public offering, assuming no prior occurrence of an
                                  Alternative Liquidity Event (as defined in &ldquo;<I>Description of Securities &ndash; 6% Convertible
                                  Unsecured Promissory Notes</I>&rdquo;), in the event that the initial public offering occurs prior
                                  to such convertible note&rsquo;s maturity date, 282,500 shares of common stock issuable upon the automatic
                                  conversion of such convertible note, based on the assumed initial public offering price of $4.00 per
                                  share, which is the low point of the price range set forth on the cover page of this prospectus, and
                                  (iii) 5,000 shares of common stock issuable upon exercise of an option. Mr. Kim is the managing member
                                  of Zone Right. Mr. Kim is deemed to beneficially own the shares of common stock beneficially owned
                                  by Zone Right and has sole voting and dispositive powers over its shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(7)</TD><TD STYLE="text-align: justify">Consists of (i) 3,000 shares of common stock issuable upon the exercise
                                  of an option and (ii) 21,600 shares of common stock issuable upon the exercise of an option within
                                  60 days of the date of this prospectus.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(8)</TD><TD STYLE="text-align: justify">Consists of 6,000 shares of common stock issuable upon the exercise
                                  of an option within 60 days of the date of this prospectus.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(9)</TD><TD STYLE="text-align: justify">A stock option granted to Mr. Economou is not exercisable within 60
                                  days of the date of this prospectus.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(10)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Consists
                                            of (i) 2,176,377 shares of common stock, (ii) 5</FONT>,000 <FONT STYLE="font-family: Times New Roman, Times, Serif">shares
                                            of common stock issuable upon the exercise of an option, and (iii) 24,000 shares of common
                                            stock issuable upon the exercise of an option within 60 days of the date of this prospectus.
                                            Dennis Gile&rsquo;s last known address is 4010 E. Leland St., Mesa, AZ 85215.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(11)</TD><TD STYLE="text-align: justify">John Dorsey, a former officer and director of the Company, is the
                                   manager of Dorsey LLC. Mr. Dorsey is deemed to beneficially own the shares of common stock beneficially
                                   owned by Dorsey LLC and has sole voting and dispositive powers over its shares. Dorsey LLC&rsquo;s
                                   last known address is 18690 N. 101st Pl., Scottsdale, AZ 85255.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in">(12)</TD><TD STYLE="text-align: justify">Consists of 1,309,940 shares of common stock held by Dorsey LLC and
                                   40,000 shares of common stock held by John Dorsey. John Dorsey, a former officer and director of the
                                   Company, is the manager of Dorsey LLC. Mr. Dorsey is deemed to beneficially own the shares of common
                                   stock beneficially owned by Dorsey LLC and has sole voting and dispositive powers over its shares.
                                   Mr. Dorsey&rsquo;s last known address is 18690 N. 101st Pl., Scottsdale, AZ 85255.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(13)</TD><TD STYLE="text-align: justify">Consists of 767,785 shares of common stock.
                                            Byrd Enterprises is an Arizona corporation. Virginia Byrd, its partner, is deemed to beneficially
                                            own the shares of common stock beneficially owned by Byrd Enterprises and has sole voting
                                            and dispositive powers over its shares. Byrd Enterprises&rsquo; business address is 500 Polk
                                            Street, Suite 37, Greenwood, IN 46143.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(14)</TD><TD STYLE="text-align: justify">Consists of (i) 483,833 shares of common
                                            stock and (ii) prior to the Company&rsquo;s initial public offering, 226,000 shares of common
                                            stock issuable upon the conversion of a 6% convertible unsecured promissory note at the option
                                            of Zone Right, otherwise, following the initial public offering, assuming no prior occurrence
                                            of an Alternative Liquidity Event (as defined in &ldquo;<I>Description of Securities &ndash;
                                            6% Convertible Unsecured Promissory Notes</I>&rdquo;), in the event that the initial public
                                            offering occurs prior to such convertible note&rsquo;s maturity date, 282,500 shares of common
                                            stock issuable upon the automatic conversion of such convertible note, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus. Zone Right&rsquo;s managing member, Glen
                                            Kim, a director, is deemed to beneficially own the shares of common stock beneficially owned
                                            by Zone Right and has sole voting and dispositive powers over its shares. Zone Right&rsquo;s
                                            business address is 8840 Warner Ave, Suite 200B, Fountain Valley, CA 92708.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(15)</TD><TD STYLE="text-align: justify">Consists of (i) 29,851 shares of common
                                            stock and (ii) prior to the Company&rsquo;s initial public offering, 600,000 shares of common
                                            stock issuable upon the conversion of a 6% convertible unsecured promissory note at the option
                                            of the Nelson Trust, otherwise, following the initial public offering, assuming no prior
                                            occurrence of an Alternative Liquidity Event (as defined in &ldquo;<I>Description of Securities
                                            &ndash; 6% Convertible Unsecured Promissory Notes</I>&rdquo;), in the event that the initial
                                            public offering occurs prior to such convertible note&rsquo;s maturity date, 750,000 shares
                                            of common stock issuable upon the automatic conversion of such convertible note, based on
                                            the assumed initial public offering price of $4.00 per share, which is the low point of the
                                            price range set forth on the cover page of this prospectus. The Nelson Trust is an Arizona
                                            trust provided for by the Nelson Revocable Living Trust Agreement established on March 9,
                                            1999 and amended and restated on November 21, 2005. Daniel D. Nelson, Chief Executive Officer
                                            and a director of the Company, and Jodi B. Nelson, who is the spouse of Mr. Nelson, are the
                                            co-trustees of the Nelson Trust, and are deemed to beneficially own the shares of common
                                            stock beneficially owned by the Nelson Trust and have shared voting and dispositive powers
                                            over its shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(16)</TD><TD STYLE="text-align: justify">Consists of (i) 29,851 shares of common
                                            stock held by the Nelson Trust, (ii) prior to the Company&rsquo;s initial public offering,
                                            600,000 shares of common stock issuable upon the conversion of a 6% convertible unsecured
                                            promissory note held by the Nelson Trust at the option of the Nelson Trust, otherwise, following
                                            the initial public offering, assuming no prior occurrence of an Alternative Liquidity Event
                                            (as defined in &ldquo;<I>Description of Securities &ndash; 6% Convertible Unsecured Promissory
                                            Notes</I>&rdquo;), in the event that the initial public offering occurs prior to such convertible
                                            note&rsquo;s maturity date, 750,000 shares of common stock issuable upon the automatic conversion
                                            of such convertible note, based on the assumed initial public offering price of $4.00 per
                                            share, which is the low point of the price range set forth on the cover page of this prospectus,
                                            (iii) 5,000 shares of common stock issuable upon the exercise of an option, and (iv) 24,000
                                            shares of common stock issuable upon the exercise of an option within 60 days of the date
                                            of this prospectus. Jodi B. Nelson is a co-trustee of the Nelson Trust and is the spouse
                                            of Mr. Nelson, and is deemed to beneficially own the shares of common stock beneficially
                                            owned by each of the Nelson Trust and Mr. Nelson and have shared voting and dispositive powers
                                            over such shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(17)</TD><TD STYLE="text-align: justify">Consists of (i) 400,000 shares of common
                                            stock and (ii) 5,000 shares of common stock issuable upon the exercise of an option. Noah
                                            (Jed) Smith&rsquo;s business address is 225 Fig Tree Lane, Anthony, NM, 88021.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(18)</TD><TD STYLE="text-align: justify">Consists of (i) 363,274 shares of common
                                            stock prior to the Company&rsquo;s initial public offering, (ii) 5,000 shares of common stock
                                            issuable upon the exercise of an option, and (iii) 15,000 shares of common stock issuable
                                            upon the exercise of an option within 60 days of the date of this prospectus. The shares
                                            of common stock are being registered for resale contemporaneously with the Company&rsquo;s
                                            initial public offering, and it has been assumed that such shares will be sold after the
                                            Company&rsquo;s initial public offering. See &ldquo;<I>Selling Stockholders</I>&rdquo; in
                                            the resale prospectus filed contemporaneously with this prospectus. Clayton Adams&rsquo;
                                            business address is 1904 S. 183rd Circle, Omaha, Nebraska, 68130.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(19)</TD><TD STYLE="text-align: justify">Matthew Atkinson&rsquo;s business address
                                            is 255 Calamus Circle, Medina, MN 55340.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not currently have any arrangements which
if consummated may result in a change of control of our company.</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_015"></A>DESCRIPTION
OF SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>General </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our authorized capital stock currently consists
of 150,000,000 shares of common stock, $0.0001 par value per share. No other classes of securities are authorized under our Certificate
of Incorporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following description summarizes important
terms of the common stock and securities that may converted into or exercised to purchase the common stock. This summary does not purport
to be complete and is qualified in its entirety by the provisions of our Certificate of Incorporation and Amended and Restated Bylaws
which have been filed as exhibits to the registration statement of which this prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this prospectus, there were
7,591,152 shares of common stock issued and outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Common Stock </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The holders of common stock are entitled to one
vote for each share held of record on all matters submitted to a vote of the stockholders. Under our Certificate of Incorporation and
Amended and Restated Bylaws, any corporate action to be taken by vote of stockholders other than for election of directors shall be authorized
by the affirmative vote of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on
the matter. Directors are elected by a plurality of votes. Stockholders entitled to vote in an election of directors may remove any director
from office at any time, with or without cause, by the affirmative vote of a majority in voting power thereof. Stockholders do not have
cumulative voting rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders of common stock are entitled to receive
ratably those dividends, if any, as may be declared from time to time by the board of directors out of legally available funds. In the
event of our liquidation, dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally
available for distribution to stockholders after the payment of all of our debts and other liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Holders of common stock have no preemptive, conversion
or subscription rights and there are no redemption or sinking fund provisions applicable to the common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Representative&rsquo;s Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the closing of the Company&rsquo;s initial
public offering, there will be up to 301,875 shares of common stock issuable upon exercise of the representative&rsquo;s warrants, based
on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover page
of this prospectus. See &ldquo;<I>Underwriting&mdash;Representative&rsquo;s Warrants</I>&rdquo; below for a description of the representative&rsquo;s
warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Options</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 31, 2022, we established the Signing
Day Sports, Inc. 2022 Equity Incentive Plan. The purpose of the Plan is to grant restricted stock, stock options and other forms of incentive
compensation to our officers, employees, directors and consultants. The maximum number of shares of common stock that may be issued pursuant
to awards granted under the Plan is 750,000 shares. Cancelled and forfeited stock options and stock awards may again become available
for grant under the Plan. As of the date of this prospectus, 139,550 shares remain available for issuance under the Plan. For a further
description of the terms of the Plan, please see &ldquo;<I>Executive Compensation &mdash; 2022 Equity Incentive Plan</I>&rdquo; in this
prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In September 2022, we granted incentive stock
options to certain employees that may be exercised to purchase a total of 59,000 shares of common stock and non-statutory&nbsp;stock
options to certain employees, consultants, officers, and directors that may be exercised to purchase a total of 175,000 shares of common
stock, not including stock options or portions of stock options that subsequently terminated due to employee and director departures.
The options have an exercise price equal to $3.10 per share, and are subject to various vesting conditions. The options will expire in
September 2032.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2023, we granted incentive stock options
to certain employees that are exercisable to purchase a total of 43,450 shares of common stock, not including stock options or portions
of stock options that subsequently terminated due to employee and director departures. The options have an exercise price equal to $3.10
per share, and are subject to various vesting conditions. The options will expire in March 2033. In April 2023, we granted an incentive
stock option to an employee, officer and director to purchase a total of 100,000 shares of common stock with an exercise price equal
to $2.50 per share, which is subject to certain vesting conditions. In April 2023, we also granted a non-statutory&nbsp;stock option
to a director to purchase a total of 3,000 shares of common stock with an exercise price equal to $3.10 per share, which is subject to
certain vesting conditions. In May 2023, we granted a non-statutory&nbsp;stock option to a director to purchase a total of 24,000 shares
of common stock with an exercise price equal to $2.50 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Immediately after the consummation of the initial
public offering, we intend to file a Registration Statement on Form S-8 with the SEC to register the potential exercise of these options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>6% Convertible Unsecured Promissory Notes
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From September 2021 to December 2021, we conducted
a private placement of 6% convertible unsecured promissory notes due three years from the date of execution and entered into related
subscription agreements and investor rights and lockup agreements with a number of accredited investors. Pursuant to the agreements,
we issued 27 convertible notes for aggregate loans of $6,305,000. The convertible notes bear interest at 6% annually. The convertible
notes will mature on October 15, 2024 as to the principal amount of $3,300,000; November 15, 2024 as to the principal amount of $1,205,000;
and December 23, 2024 as to the principal amount of $1,800,000, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 6% convertible unsecured promissory notes
contain both optional and mandatory conversion provisions allowing for the conversion of the outstanding balance under the notes to be
converted into shares of common stock, subject to waiver of all accrued interest on the principal subject to such conversion. The convertible
notes will be convertible at the holders&rsquo; option at a conversion price per share equal to the price per share determined by dividing
$50 million by the total number of outstanding shares of the Company, subject to adjustment as described below. In connection with an
initial public offering and listing of the common stock on Nasdaq, NYSE American, the New York Stock Exchange, or the OTCQX platform
of the OTC Markets, the notes will automatically be converted under a mandatory conversion provision into shares of common stock of the
Company at the conversion price per share equal to 60% of the public offering price per share of the common stock offered to the public
in the Company&rsquo;s initial public offering, subject to adjustment as described below. In the event of a sale of all or substantially
all of the capital stock or assets of the Company to an unaffiliated third person, or Sale of Control, an acquisition by a special purpose
acquisition corporation listed on Nasdaq or the New York Stock Exchange, or a SPAC, or an acquisition or merger of the Company by a publicly-reporting
company under the Exchange Act without significant business activities and is trading on certain qualified markets, or a Reverse Merger,
or collectively, an Alternative Liquidity Event, the note holders will have the option to convert the notes at the conversion price per
share equal to 60% of the aggregate transaction consideration divided by the total number of outstanding shares of common stock of the
acquiror resulting from such event, subject to adjustment as described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The 6% convertible unsecured promissory notes
further provided that the above conversion prices will be adjusted to reflect the applicable price per share, or conversion or exercise
price per share, of shares of common stock or securities convertible or exercisable for common stock in a subsequent private placement,
initial public offering or Alternative Liquidity Event, that is lower than the convertible notes&rsquo; optional conversion price. As
described below (see &ldquo;&mdash;<I>8% Convertible Unsecured Promissory Notes</I>&rdquo;), from August 2022 to January 2023, we issued
8% unsecured convertible promissory notes with an optional conversion price per share equal to $25 million divided by the total number
of outstanding shares of the Company&rsquo;s common stock, which is 50% lower than the initial optional conversion price per share of
the convertible notes issued in 2021. In addition, the 8% unsecured convertible promissory notes provide that they will automatically
convert upon the occurrence of an initial public offering and each of the events defined as an Alternative Liquidity Event at 50% of
the price applicable to such transactions. As a result, the optional conversion price of the convertible notes was adjusted to equal
the optional conversion price per share of the convertible notes issued in 2022, equal to $25 million divided by the total number of
outstanding shares of the Company&rsquo;s common stock, and the automatic conversion price of the convertible notes was adjusted to equal
50% of an initial public offering price or price applicable to an Alternative Liquidity Event price. Subsequently, as described below,
in March 2023 and April 2023 we conducted one private placement and in May 2023 we commenced a subsequent private placement which will
be completed prior to the commencement of our initial public offering. In these private placements, we issued 8% unsecured promissory
notes with accompanying warrants with an exercise price per share equal to $2.50, which is lower than the prior as-adjusted optional
conversion price. As a result, the optional conversion price of the notes was adjusted to equal the exercise price of such warrants,
or $2.50 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each note holder may not convert the 6% convertible
unsecured promissory note to the extent that the note holder (together with its affiliates) would beneficially own in excess of 9.99%
of the number of shares of common stock outstanding. The note holder may increase or decrease the beneficial ownership limit to any other
percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days following notice
from the convertible note holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, in the event that by the maturity
date, the Company has not consummated an initial public offering of its common stock and the listing or trading of its common stock on
Nasdaq, the New York Stock Exchange, NYSE American, or the OTCQX platform of OTC Markets, and has not consummated an Alternative Liquidity
Event, the Company may elect either (a) upon thirty (30) days prior written notice to the holder, to prepay all or a portion of the principal
amount of each note and accrued interest hereon, subject to the holder&rsquo;s right to convert the note into common stock during such
thirty (30) day period, or (b) if the Company does not prepay the entire principal amount of the note or the remaining principal amount
of the note, the note will automatically increase to 110% of the original or unpaid portion of the outstanding principal amount. Each
note may also either be prepaid by the Company in whole or in part without penalty, fees or premium upon not less than 20 business days
prior written notice to the holder, subject to the Holder&rsquo;s right to convert all or any portion of the note into conversion shares
at the optional conversion price prior to the prepayment date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The subscription agreements and investor rights
and lockup agreements further provided for typical &ldquo;drag along&rdquo; and &ldquo;tag along&rdquo; rights. Each note holder may
sell a portion of the holder&rsquo;s note or note&rsquo;s conversion shares pursuant to a Sale of Control transaction equal to the percentage
of the common stock that stockholders holding a majority of the outstanding voting equity of the Company will sell in the Sale of Control
transaction. Each note holder may also be required to sell their note or note&rsquo;s conversion shares to the proposed acquiror in the
Sale of Control transaction. Each note holder also has the participation rights in subsequent securities offerings, including the initial
public offering, up to 50% of the amount originally invested. Additionally, the agreements provided that until the 180th day after the
first to occur of (i) consummation of an initial public offering, (ii) consummation of a transaction with a SPAC, or (iii) consummation
of a Reverse Merger, as applicable, the holder agreed not to sell, transfer or otherwise dispose of any shares of common stock received
upon conversion of the convertible notes, subject to certain exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The convertible note holders entered into related
subscription agreements and investor rights and lockup agreements which provided the following registration rights. Within 30 business
days following the consummation of the first to occur of an initial public offering, a Sale of Control or a Reverse Merger, as applicable,
the Company will file a registration statement on Form S-1 or Form S-3, as available, or Resale Registration Statement, in order to register
for resale all of the shares of common stock of the Company or common stock of any successor-in-interest to the Company issued to all
holders of the notes upon automatic conversion of the notes, and will use its bests efforts to cause such Resale Registration Statement
to be declared effective by the SEC within 90 business days from the date of its initial filing; provided, that such conversion shares
will continue to be subject to restrictions on resale for a period of six (6) months following completion of either the initial public
offering, Sale of Control or Reverse Merger, as applicable. In the event that, for any reason, the Company is unable to comply with the
above registration requirement, note holders holding the majority of the outstanding notes have a one-time right, at any time after one
hundred eighty (180) days from the effective date of the registration statement in connection with its initial public offering, to request
that the Company file a Resale Registration Statement with respect to the notes&rsquo; underlying conversion shares then outstanding
having an anticipated aggregate offering price, net of selling expenses, of at least five million dollars ($5,000,000), in which event
the Company shall (x) within ten (10) days after the date such request is given, give notice thereof to all other note holders; and (y)
as soon as practicable, and in any event within sixty (60) days after the date such request, file a Resale Registration Statement covering
all the notes&rsquo; underlying conversion shares that were requested to be registered and any additional conversion shares requested
to be included in such registration by any other note holders, subject to certain limitations and exceptions. In addition, the Company
provided &ldquo;piggyback&rdquo; registration rights to the note holders, so as to require us to include, at the option of the note holders,
the shares of common stock underlying their securities in any registration statement to register other shares of common stock that the
Company determines to file after its initial public offering. The Company must generally keep any required or requested registration
statement effective for a period of at least 180 days after the expiration of the lockup requirements described above, subject to extensions
under certain circumstances. The Company also provided customary indemnification to the note holders relating to any damages to the holders
arising from such registrations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The investor rights and lockup agreements also
provided access rights to audited annual financial statements within 120 days of the end of each fiscal year, unaudited monthly financial
statements, and unaudited quarterly financial statements, an annual budget, tax filing-related information, and daily access to the Company&rsquo;s
books and records.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The shares of common stock underlying the notes
are subject to certain lockup provisions until 180 days after the commencement of trading of our common stock, subject to certain exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>8% Convertible Unsecured Promissory Notes
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From August 2022 to January 2023, we conducted
a private placement of the Company&rsquo;s 8% convertible unsecured promissory notes to a number of accredited investors under subscription
agreements. Pursuant to the agreements, we issued convertible notes for aggregate loans of $1,465,000. The convertible notes bear interest
at 8% annually. The convertible notes are due on the one-year anniversary from the date of the initial closing of the private placement,
or August 8, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The convertible notes contain both optional and
mandatory conversion provisions allowing for the conversion of the outstanding balance under the notes to be converted into shares of
common stock, subject to waiver of all accrued interest on the principal subject to such conversion. The convertible notes will be convertible
at the holders&rsquo; option at a conversion price per share equal to the price per share determined by dividing $25 million by the total
number of outstanding shares of the Company. In connection with an initial public offering and listing of the common stock on Nasdaq,
NYSE American, or the New York Stock Exchange, the notes will automatically be converted under a mandatory conversion provision into
shares of common stock of the Company at the conversion price per share equal to 50% of the public offering price per share of the common
stock offered to the public in the initial public offering, or the IPO Conversion Price. In the event of an &ldquo;Alternative Liquidity
Event,&rdquo; which is defined in a substantially similar manner as in the 6% convertible unsecured promissory notes, the note holders
will have the option to convert the notes at the conversion price per share equal to 50% of the aggregate transaction consideration divided
by the total number of outstanding shares of common stock of the acquiror resulting from such an event, or the Alternative Liquidity
Event Conversion Price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each note holder may not convert the 8% convertible
unsecured promissory note to the extent that the note holder (together with its affiliates) would beneficially own in excess of 9.99%
of the number of shares of common stock outstanding, not including remaining shares issuable to the note holder upon conversion of the
note or conversion or exercise of any other securities subject to an equivalent beneficial ownership limit. The note holder may waive
or raise the beneficial ownership limit, effective 61 days following notice from the convertible note holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, in the event that by the maturity
date, the Company has not consummated an initial public offering of its common stock and the listing or trading of its common stock on
Nasdaq, the New York Stock Exchange, or NYSE American, and has not consummated an Alternative Liquidity Event, the Company may elect
either (a) upon thirty (30) days prior written notice to the holder, elect to prepay all or a portion of the principal amount of the
note and accrued interest hereon, subject to the holder&rsquo;s right to convert the note into common stock during such thirty (30) day
period, or (b) if the Company does not prepay the entire principal amount of the note or the remaining principal amount of the note,
the note will automatically increase to 110% of the original or unpaid portion of the outstanding principal amount. The note may otherwise
not be prepaid.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the Company provided &ldquo;piggyback&rdquo;
registration rights to the note holders, so as to require us to include, at the option of the note holders, the shares of common stock
underlying their securities in any registration statement to register other shares of common stock that the Company determines to file
after its initial public offering. The Company must generally keep such registration statement effective until all shares underlying
the convertible notes are sold. The Company also provided customary indemnification to the note holders relating to any damages to the
holders arising from such registrations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The shares of common stock underlying the notes
are subject to certain lockup provisions until 365 days after the commencement of trading of our common stock, subject to certain exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>8% Unsecured Promissory Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2023 and April 2023 we completed one
private placement, and in May 2023 we conducted a subsequent private placement, in which we entered into subscription agreements with
accredited investors pursuant to which we issued 8% unsecured promissory notes. The total aggregate principal amount under the notes
outstanding is $2,350,000. The notes bear interest at the annual rate of 8%. The amount outstanding under the 8% unsecured promissory
notes must be repaid upon the earlier to occur of the consummation of a Liquidity Event or the second anniversary of the initial closing
date of the respective private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000 principal). If a Liquidity
Event occurs before the second anniversary of the initial closing date of the applicable private placement, the warrants will be automatically
exercised as to the unexercised portion of the warrants, the outstanding balance due under the 8% unsecured promissory notes will be
deemed repaid in the amount of the exercise price for the automatic exercise of the unexercised portion of the related warrants (see
&ldquo;&mdash; <I>Warrants &ndash; Investor Warrants</I>&rdquo; below), and any remaining balance outstanding must be repaid in cash.
If a Liquidity Event does not occur before the second anniversary of the initial closing date of the applicable private placement, then
both principal and interest outstanding under the notes must be repaid in cash. The notes may be prepaid at the discretion of the Company.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the subscription agreements with the investors
in the first private placement of the 8% unsecured promissory notes, the Company was required to use the first $450,000 of the net proceeds
from the private placement to expand its current operations, including its technology and intellectual property portfolio, and to fund
the costs of its initial public offering. The Company was required to use the next $800,000 of the net proceeds from the private placement
to repurchase up to 600,000 shares of common stock that were held by Dennis Gile, our largest stockholder and a former officer and director
of the Company, at a price equal to approximately $1.35 per share. The repurchase was required to be consummated only to the extent that
it does not impair the Company&rsquo;s capital within the meaning of Section 160 of the DGCL or the Company&rsquo;s ability to pay down
its debts as they become due. The Company was required to enter into an agreement with Mr. Gile providing that Mr. Gile will use the
proceeds of the repurchase to settle an existing lawsuit filed against Mr. Gile by John Dorsey, a former officer and director of the
Company, subject to a full release of Mr. Gile and the Company, and that Mr. Gile will resign from the board of directors of the Company
and from any officer position with the Company upon the repurchase. The Company was required to use any remaining net proceeds from the
private placement, which consisted of $250,000 less placement agent fees and expenses, for working capital and other general corporate
purposes. Subsequently, the Company used the net proceeds as required. For discussion of related recent developments, see &ldquo;<I>Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations &ndash; Recent Developments &ndash;Repurchase of Shares, Settlement
and Release</I>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Investor Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From August 2022 to January 2023, we conducted
a private placement in which we issued warrants to a number of accredited investors. Following an initial public offering or Alternative
Liquidity Event, each warrant will be automatically exercisable for the amount of shares of common stock equal to the original principal
amount of the accompanying convertible note divided by the IPO Conversion Price or the Alternative Liquidity Event Conversion Price,
as applicable. The warrants have a five-year term. The shares of common stock underlying the warrants are subject to certain lockup provisions
until 365 days after the commencement of trading of our common stock, subject to certain exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with our private placements of
8% unsecured promissory notes (see &ldquo;&mdash;<I>8% Unsecured Promissory Notes</I>&rdquo; above), in March 2023, April 2023 and May
2023, we issued warrants to purchase an aggregate of 940,000&nbsp;shares of common stock exercisable at $2.50 per share. The warrants
may be voluntarily exercised for cash prior to the maturity date of the related 8% unsecured promissory notes (see &ldquo;&mdash;<I>8%
Unsecured Promissory Notes</I>&rdquo; above), or will be automatically exercised as to any unexercised portion for shares of common stock
upon the occurrence of a Liquidity Event-based maturity of the related 8% unsecured promissory notes in exchange for the Company&rsquo;s
deemed repayment of the notes in the amount of the exercise price for the automatic exercise of the unexercised portion of the related
warrants, with any remaining balance owed on the promissory notes to be repaid in cash. The warrants have a five-year term. The Company
agreed to register the resale all of the shares of common stock that such warrants may or shall be exercised to purchase with the shares
being registered for sale in the registration statement of which this prospectus forms a part. The Company must generally keep the registration
statement effective for a period as shall be required to permit the investors to complete the offer and sale of their shares. The Company
and the investors also provided customary mutual indemnification relating to any damages arising from such registration.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Placement Agent&rsquo;s Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Boustead acted as placement agent in our private
placements of the convertible promissory notes, promissory notes, and warrants described above. Pursuant to our engagement letter agreement
with Boustead, in addition to a commission equal to 7% of the gross proceeds raised in the private placements, a non-accountable expense
allowance equal to 1% of the gross proceeds raised in the private placements, and payment of certain other expenses, we agreed to issue
Boustead five-year warrants to purchase a number of shares of common stock at an exercise price equal to the conversion price as defined
in the notes in an amount equal to 7% of the common stock underlying the securities sold in the private placements. Accordingly, a warrant
to purchase common stock was issued in December 2021 in connection with our private placement of 6% convertible unsecured promissory
notes, exercisable to purchase 7% of the original principal amount of the Company&rsquo;s 6% convertible unsecured promissory notes divided
by the convertible notes&rsquo; applicable conversion price, at an exercise price equal to the convertible notes&rsquo; applicable per-share
conversion price. Warrants to purchase shares of common stock were also issued to Boustead in March 2023, April 2023 and May 2023 in
connection with our private placements of 8% unsecured promissory notes and accompanying investor warrants. The warrants may be exercised
to purchase an aggregate of 7% of the common stock underlying the warrants that were issued to the initial 8% unsecured promissory note
holders at an exercise price equal to the exercise price as defined in such warrants. Each of the placement agent&rsquo;s warrants will
terminate five years after issuance. Boustead has informally waived its rights to warrants to purchase shares of common stock in connection
with our private placement of 8% convertible unsecured promissory notes and accompanying investor warrants. Under the engagement letter
with Boustead, its placement agent&rsquo;s warrants must be registered for resale with the Company&rsquo;s initial public offering. However,
Boustead has informally deferred these registration rights with respect to the registration statement for the initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>SAFEs</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From March 2021 to July 2021, the Company raised
$1,980,000 from investors in exchange for securities called Simple Agreements for Future Equity (collectively, the &ldquo;SAFEs&rdquo;).
The SAFEs were subject to different conversion calculations depending on the event triggering conversions as described in the SAFE, including
an equity financing, a liquidity event such as the Company&rsquo;s initial public offering, or an automatic conversion at the end of
18 months because no other conversion-triggering event has occurred. The terms of the SAFEs are discussed below. As also discussed below,
all of the SAFEs have been cancelled and exchanged for common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>SAFEs &ndash;
General</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">A SAFE is an agreement
between an investor and a company in which an investor invests cash into a company and the company in turn issues a SAFE contract that
will automatically convert into cash, equity in the company, or other future repayment if certain trigger events occur. SAFE instruments
were developed for startup companies seeking substantial funds quickly. SAFEs like those we issued convert into cash, equity in the company,
or other future repayment upon the occurrence of agreed-upon events indicating that the company has reached sufficient maturity to be
accurately valued. At that point the amount contributed by the investor will automatically convert into an amount of cash, equity in
the company, or other future repayment represented by the dollar amount contributed divided by the agreed expected company valuation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Unlike common or preferred
stock, SAFEs do not represent a current equity stake and do not entitle investors to typical equity rights such as rights to dividends
or voting on major corporate matters.&nbsp; Instead, the terms of the SAFE must be met in order for an investor to receive an equity
stake with these kinds of rights. Also, unlike debt, SAFEs do not represent a right to interest payments or any current legal obligation
by the SAFE issuer for the outstanding amount of a loan. If a SAFE issuer is dissolved or otherwise non-operative, SAFE holders typically
have no rights to demand or receive any portion of any remaining assets, unlike debtholders and equity holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>SAFEs &ndash; Specific Conversion Terms</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From March 2021 to July 2021, our predecessor
entity SDS LLC &ndash; AZ issued eight SAFEs to investors for total gross proceeds of $1,980,000. The SAFEs had the following conversion
terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon an Equity Financing (defined as a bona fide
transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells preferred
stock at a fixed pre-money valuation) before the expiration or termination of these instruments, on the initial closing of such Equity
Financing, the SAFEs would have automatically converted into preferred stock in an amount of shares equal to the SAFE Purchase Amount
divided by the Equity Financing&rsquo;s offering price per share multiplied by 80%, or the SAFE Conversion Price Per Share, and with
identical rights as the preferred stock in such offering except for per share liquidation preference, the initial conversion price for
purposes of price-based anti-dilution protection and <FONT STYLE="font-size: 10pt">the basis for any dividend or distribution rights,
which will be based on the </FONT>SAFE Conversion Price Per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon a SAFE Liquidity Event (defined as any of
certain changes of voting control or disposition of substantially all assets of the Company, a listing of the Company&rsquo;s equity
securities in connection with an effective resale registration statement on Form S-1, or an initial public offering of the Company),
the SAFEs would have automatically been entitled to receive a portion of proceeds from the SAFE Liquidity Event due and payable to the
investors immediately prior to, or concurrent with the consummation of the initial public offering, equal to the greater of (i) the SAFE
Purchase Amount or (ii) an amount equal to a percentage of the proceeds from the initial public offering with such percentage calculated
by dividing the SAFE Purchase Amount by $20,000,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If there had been a Dissolution Event (defined
as (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the Company&rsquo;s creditors or (iii) any
other liquidation, dissolution or winding up of the Company, excluding a SAFE Liquidity Event), whether voluntary or involuntary), the
SAFE investors would have automatically been entitled to receive a portion of the cash or other proceeds equal to the SAFE Purchase Amount,
due and payable to the investors immediately prior to the consummation of the Dissolution Event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If after 18 months, there had been no Equity
Financing, SAFE Liquidity Event, or Dissolution Event where the SAFE investors have received equity interests in the Company or other
payment as contemplated above, then the SAFEs would have automatically converted to the number of shares of common stock of the Company
equal to the SAFE Purchase Amount divided by the issued and outstanding shares of common stock of the Company on a fully-diluted basis
divided by $20,000,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>SAFE Cancellations and Exchanges</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From September 22, 2022 to October 11, 2022,
we entered into cancellation and exchange agreements with the holders of the SAFEs. Under these agreements, each SAFE holder agreed to
cancel and exchange the holder&rsquo;s SAFE for a number of shares of common stock equal to the purchase amount under the SAFE divided
by approximately $3.35, based on a $25 million valuation for the Company. As a result, SAFEs that were purchased in the aggregate amount
of $1,980,000 were cancelled and exchanged for a total of 591,048 shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Anti-Takeover Provisions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Section&nbsp;203&nbsp;of the Delaware General Corporation Law</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to&nbsp;Section&nbsp;203&nbsp;of
the DGCL, which&nbsp;prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a
period of three&nbsp;years after the date that such stockholder became an interested stockholder, with the following exceptions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">before such date, the Board of the
                                            corporation approved either the business combination or the transaction that resulted in
                                            the stockholder becoming an interested stockholder;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">upon completion of the transaction
                                            that resulted in the stockholder becoming an interested stockholder, the interested stockholder
                                            owned at least 85% of the voting stock of the corporation outstanding at the time the transaction
                                            began, excluding for purposes of determining the voting stock outstanding (but not the outstanding
                                            voting stock owned by the interested stockholder) those&nbsp;shares owned (i)&nbsp;by persons
                                            who are directors and also officers and (ii)&nbsp;employee stock plans in which employee
                                            participants do not have the right to determine confidentially whether shares held subject
                                            to the plan will be tendered in a tender or exchange offer; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">on or after such date, the business
                                            combination is approved by the Board and authorized at an annual or special meeting of the
                                            stockholders, and not by written consent, by the affirmative vote of at least 662&#8725;3%
                                            of the outstanding voting stock that is not owned by the interested stockholder.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general,&nbsp;Section&nbsp;203&nbsp;defines
a &ldquo;business combination&rdquo; to include the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">any merger or consolidation involving
                                            the corporation and the interested stockholder;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">any sale, transfer, pledge or other
                                            disposition of 10% or more of the assets of the corporation involving the interested stockholder;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">subject to certain exceptions, any
                                            transaction that results in the issuance or transfer by the corporation of any stock of the
                                            corporation to the interested stockholder;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">any transaction involving the corporation
                                            that has the effect of increasing the proportionate share of the stock or any class or series
                                            of the corporation beneficially owned by the interested stockholder; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the receipt by the interested stockholder
                                            of the benefit of any loans, advances, guarantees, pledges or other financial benefits by
                                            or through the corporation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general,&nbsp;Section&nbsp;203&nbsp;defines
an &ldquo;interested stockholder&rdquo; as an entity or person who, together with the person&rsquo;s affiliates and associates, beneficially
owns, or within three&nbsp;years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding
voting stock of the corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The statute could prohibit or delay mergers or
other takeover or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may
offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A Delaware corporation may &ldquo;opt out&rdquo;
of these provisions with an express provision in its certificate of incorporation. We have not opted out of these provisions, which may,
as a result, discourage or prevent mergers or other takeover or change of control attempts of us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Amended and Restated Bylaws</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Amended and Restated Bylaws contain certain
provisions that may have anti-takeover&nbsp;effects, making it more difficult for or preventing a third party from acquiring control
of our company or changing our board of directors and management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Amended and Restated Bylaws permit the board
of directors to establish the number of directors and fill any vacancies and newly created directorships. These provisions will prevent
a stockholder from increasing the size of our board of directors and gaining control of our board of directors by filling the resulting
vacancies with its own nominees. In addition, our Amended and Restated Bylaws provide that in addition to any other vote required by
law, no member of our board of directors may be removed from office by our stockholders without the approval of not less than the majority
of the total voting power of all of our outstanding voting stock then entitled to vote in the election of directors. Our Amended and
Restated Bylaws also do not provide our stockholders with the power to call a special meeting of stockholders and contain certain advance
notice provisions for the submission and presentation of stockholder meeting proposals or director nominations at a stockholder meeting,
which may limit the ability of stockholders to influence the composition and business decisions of our management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Amended and Restated Bylaws expressly provide for a right of first refusal of the Company for any proposed sale or transfer of stock
by a stockholder. As provided, any stockholder may only sell or transfer stock after first giving written notice of the proposed terms
of the transfer and a 30-day option to the Company or any designee(s) to purchase the shares on such terms. To the extent that the Company
and any designee(s) do not exercise the right of first refusal, the stockholder will have 60 days to sell or transfer the shares as proposed.
Certain transfers are exempt from the right of first refusal, including to immediate family, pledges of shares, or to another stockholder
or an officer or director of the Company. </FONT>However, this right of first refusal will terminate upon the date securities of the
Company are first offered to the public pursuant to a registration statement or offering statement filed with, and declared effective
or qualified by, as applicable, the SEC under the Securities Act. It is expected that upon the completion of the Company&rsquo;s initial
public offering, the right of first refusal under the Amended and Restated Bylaws will terminate in accordance with its terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Amended and Restated Bylaws also provide that the Company may also agree with any stockholders to restrict the sale or other disposal
of the stock of the Company owned by such stockholders. Our Amended and Restated Bylaws are expressly subject to the restrictions set
forth in the Shareholder Agreement. As discussed in &ldquo;<I>Corporate History and Structure &ndash; Shareholder Agreement</I>&rdquo;
and &ldquo;<I>Shares Eligible For Future Sale &ndash; </I></FONT><I>Shareholder Agreement</I>&rdquo;, the Shareholder Agreement provides
certain restrictions, rights and obligations relating to the proposed sale, transfer or other disposition of the shares of the Company.
These restrictions, rights and obligations include certain provisions that may have anti-takeover effects and prevent a third party from
acquiring control of the Company, including the Company&rsquo;s right of first refusal for proposed sales of shares by any stockholder;
each of the stockholder parties&rsquo; right to purchase up to their relative percentage ownership of the Company&rsquo;s common stock
of any common stock or securities convertible into or exercisable to purchase common stock that the Company may from time to time issue,
including in an initial public offering, at the proposed price and other offering terms; and tag-along rights of the stockholder parties
to a proposed Change of Control, which may limit the Company&rsquo;s ability to negotiate a Change of Control transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Shareholder Agreement provides that it will
terminate on the earliest of (i) the written consent of the board of directors and vote of two-thirds of the holders of the outstanding
common stock of the Company; (ii) the Company&rsquo;s dissolution, filing of a petition in bankruptcy under Chapter 7 of the United States
Bankruptcy Code or insolvency of the Company; (iii) upon the closing of the Company&rsquo;s first underwritten public offering of its
common stock on Nasdaq, the New York Stock Exchange or other exchange or marketplace approved by the board of directors; or (iv) at such
time as only one stockholder party remains. Similarly, our Amended and Restated Bylaws provide that the right of first refusal date securities
of the Corporation are first offered to the public pursuant to a registration statement or offering statement filed with, and declared
effective or qualified by, as applicable, the SEC under the Securities Act of 1933. It is expected that upon the completion of the initial
public offering, the Shareholder Agreement will terminate in accordance with its terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The holders of our common stock do not have cumulative
voting rights in the election of our directors. The combination of the present ownership by a few stockholders of a significant portion
of our issued and outstanding common stock and lack of cumulative voting makes it more difficult for other stockholders to replace our
board of directors or for a third party to obtain control of our company by replacing its board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Transfer Agent and Registrar </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have appointed Securities Transfer Corporation,
telephone (469) 633-0101, as the transfer agent for our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Trading Symbol and Market</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
connection with the </FONT>Company&rsquo;s <FONT STYLE="font-family: Times New Roman, Times, Serif">initial public offering, we are in
the process of applying for the listing of our common stock </FONT>on NYSE American <FONT STYLE="font-family: Times New Roman, Times, Serif">under
the symbol &ldquo;</FONT>SDS<FONT STYLE="font-family: Times New Roman, Times, Serif">&rdquo;.</FONT></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_016"></A>SHARES
ELIGIBLE FOR FUTURE SALE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Before the Company&rsquo;s initial public offering,
there has not been a public market for shares of our common stock. Future sales of substantial amounts of shares of our common stock,
including shares issued upon the conversion of convertible notes, the exercise of outstanding options and warrants, in the public market
after the initial public offering, or the possibility of these sales occurring, could cause the prevailing market price for our common
stock to fall or impair our ability to raise equity capital in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Immediately following the closing of the initial
public offering, there will be 16,256,727 shares of common stock issued and outstanding, assuming, at the time of the initial public
offering, the automatic conversion of the Company&rsquo;s 6% convertible unsecured promissory notes into a total of 3,152,500 shares
of common stock, the automatic conversion of the Company&rsquo;s 8% convertible unsecured promissory notes into a total of 732,500 shares
of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares of common stock. In the event the underwriters
exercise the over-allotment option in full, there will be 16,819,227 shares of common stock issued and outstanding, subject to the same
assumptions stated above. The common stock sold in the initial public offering and by the selling stockholders named in the resale prospectus
filed contemporaneously with this prospectus will be freely tradable without restriction or further registration or qualification under
the Securities Act.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Previously issued shares of common stock that
were not offered and sold in the initial public offering or by the selling stockholders named in the resale prospectus, as well as shares
issuable upon the exercise of warrants, stock options, or pursuant to the terms of other agreements or instruments, are, or will be upon
issuance, &ldquo;restricted securities,&rdquo; as that term is defined in Rule 144 under the Securities Act. These restricted securities
are eligible for public sale only if such public resale is registered under the Securities Act or if the resale qualifies for an exemption
from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Rule 144</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, a person who has beneficially owned
restricted shares of our common stock for at least 12 months, or at least six months in the event we have been a reporting company under
the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided that such person
is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the ninety (90)
days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such
person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">1% of the number of shares of our
                                            common stock then outstanding; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">1% of the average weekly trading
                                            volume of our common stock during the four calendar weeks preceding the filing by such person
                                            of a notice on Form 144 with respect to the sale;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">provided that, in each case, we are subject to
the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the
manner of sale, notice and other provisions of Rule 144, to the extent applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Rule 701</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, Rule 701 allows a stockholder who
purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate
of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being required to comply
with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 shares, however,
are required to wait until ninety (90) days after the date of this prospectus before selling shares pursuant to Rule 701.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Lock-Up Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>2021 Private Placement Lock-Up Period</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From September 2021 to December 2021, we conducted
a private placement of 6% convertible unsecured promissory notes due three years from the date of execution and entered into related
subscription agreements and investor rights and lockup agreements with a number of accredited investors. The shares of common stock underlying
the notes are subject to certain lockup provisions until 180 days after the commencement of trading of our common stock, subject to certain
exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>2022 Private Placement Lock-Up Period</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From August 2022 to January 2023, we conducted
a private placement of the Company&rsquo;s 8% convertible unsecured promissory notes and accompanying warrants under subscription agreements
with a number of accredited investors. The shares of common stock underlying the notes and warrants are subject to certain lockup provisions
until 365 days after the commencement of trading of our common stock, subject to certain exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Company Lock-Up</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We, all of our directors and officers and stockholders
holding 5% or more of our shares have agreed with the underwriters, subject to certain exceptions, not to sell, transfer or dispose of,
directly or indirectly, any of our common stock or securities convertible into or exercisable or exchangeable for our common stock for
a period of 12 months after the closing of the Company&rsquo;s initial public offering. The underwriters have agreed to waive the lock-up
requirement for shares of common stock being sold by the selling stockholders named in the resale prospectus filed contemporaneously
with this prospectus. See &ldquo;<I>Underwriting&mdash;Company Lock-Up</I>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Registration Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Registration Rights of 6% Convertible Unsecured
Promissory Notes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the private placement of 6%
convertible unsecured promissory notes, the note holders entered into related subscription agreements and investor rights and lockup
agreements which provided the following registration rights. Within 30 business days following the consummation of the first to occur
of an initial public offering, a Sale of Control or a Reverse Merger, as applicable, the Company will file a Resale Registration Statement
in order to register for resale all of the shares of common stock of the Company or common stock of any successor-in-interest to the
Company issued to all holders of the notes upon automatic conversion of the notes, and will use its bests efforts to cause such Resale
Registration Statement to be declared effective by the SEC within 90 business days from the date of its initial filing; provided, that
such conversion shares will continue to be subject to restrictions on resale for a period of six (6) months following completion of either
the initial public offering, Sale of Control or Reverse Merger, as applicable. In the event that, for any reason, the Company is unable
to comply with the above registration requirement, note holders holding the majority of the outstanding notes have a one-time right,
at any time after one hundred eighty (180) days from the effective date of the registration statement in connection with its initial
public offering, to request that the Company file a Resale Registration Statement with respect to the notes&rsquo; underlying conversion
shares then outstanding having an anticipated aggregate offering price, net of selling expenses, of at least five million dollars ($5,000,000),
in which event the Company shall (x) within ten (10) days after the date such request is given, give notice thereof to all other note
holders; and (y) as soon as practicable, and in any event within sixty (60) days after the date such request, file a Resale Registration
Statement covering all the notes&rsquo; underlying conversion shares that were requested to be registered and any additional conversion
shares requested to be included in such registration by any other note holders, subject to certain limitations and exceptions. In addition,
the Company provided &ldquo;piggyback&rdquo; registration rights to the note holders, so as to require us to include, at the option of
the note holders, the shares of common stock underlying their securities in any registration statement to register other shares of common
stock that the Company determines to file after its initial public offering. The Company must generally keep any required or requested
registration statement effective for a period of at least 180 days after the expiration of the lockup requirements described above, subject
to extensions under certain circumstances. The Company also provided customary indemnification to the note holders relating to any damages
to the holders arising from such registrations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Registration Rights of 8% Convertible Unsecured
Promissory Notes and Related Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the private placement of 8%
convertible unsecured promissory notes and accompanying warrants, the Company provided &ldquo;piggyback&rdquo; registration rights to
the investors in such private placement, so as to require us to include, at the option of the investors, the shares of common stock underlying
their securities in any registration statement to register other shares of common stock that the Company determines to file after the
Company&rsquo;s initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Registration Rights of Warrants Related
to 8% Unsecured Promissory Notes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the private placement of warrants
issued with the 8% unsecured promissory notes, the Company agreed to register the resale all of the shares of common stock that such
warrants may or shall be exercised to purchase with the shares being registered for sale in the registration statement of which this
prospectus forms a part. The Company must generally keep the registration statement of which this prospectus forms a part effective for
a period as shall be required to permit the investors to complete the offer and sale of their shares, unless the shares may be resold
pursuant to Rule 144 promulgated under the Securities Act. The Company and the investors also provided customary mutual indemnification
relating to any damages arising from such registration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Registration Rights of the Placement Agent&rsquo;s
Warrants</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our engagement letter with Boustead, its
placement agent&rsquo;s warrants must be registered for resale with the Company&rsquo;s initial public offering. However, Boustead has
informally deferred these registration rights with respect to the registration statement for the initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Shareholder Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 17, 2022, the Shareholder Agreement was
entered into by and among the Company and the stockholders of the Company. The Shareholder Agreement provides certain restrictions, rights
and obligations relating to the proposed sale, transfer or other disposition of the shares of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Rights of First Refusal</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a stockholder party proposes to sell their
shares, or the ownership of the shares would change as a result of a marital divorce or separation, death, bankruptcy or similar proceeding,
or the stockholder party engages in fraud, a felony or bad-faith violation of the implied contractual covenant of good faith and fair
dealing, the Company may repurchase the shares within a certain period, subject to certain restrictions. If the Company does not repurchase
the shares within the prescribed period, the other stockholder parties may then purchase the shares within a certain period. The purchase
price would be the seller&rsquo;s proposed price, or, in the event of a purchase pursuant to a change in the ownership of the shares
for one of the reasons stated above, at the Company or other stockholder party buyer&rsquo;s proposed price, and if not accepted by the
disposing stockholder or their spouse, representative or successor, as applicable, then the fair market value of the shares. The purchase
price must be paid at the proposed price for proposed sales; in cash as to dispositions pursuant to marital divorce or separation; and
for the other events described above, must be paid in cash or with a 5-year nonnegotiable promissory note bearing interest at the rate
per annum equal to <I>The Wall Street Journal</I> prime rate of interest as quoted in the Money Rates section of <I>The Wall Street Journal</I>,
compounded annually on each anniversary of the note. These purchase rights are subject to certain notice, timing and other provisions
set forth in the Shareholder Agreement. The board of directors of the Company may waive the application of the repurchase rights of the
Company and the purchase rights of the other stockholder parties described above. Dispositions subject to the tag-along right or drag-along
rights described below are not subject to these purchase rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Drag-Along Right and Tag-Along Rights</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Company proposes a Change of Control,
the Company may require the other stockholders to transfer all of their shares to the proposed transferee for the same consideration
and otherwise on the same terms and conditions upon which the Company is arranging for the sale of shares. Likewise, in the event of
such a proposed transaction or series of transactions, subject to the Company&rsquo;s repurchase rights described above, any stockholder
party may cause the Company to effect a disposition of such stockholder&rsquo;s shares in the transaction. The drag-along right and tag-along
rights are subject to certain notice, timing, payment, and other provisions set forth in the Shareholder Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Participation Rights</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each of the stockholder parties generally has
the right to purchase up to their relative percentage ownership of the Company&rsquo;s common stock of any common stock or securities
convertible into or exercisable to purchase common stock that the Company may from time to time issue, including in an initial public
offering, at the proposed price and other offering terms. These purchase rights are subject to certain notice and timing provisions set
forth in the Shareholder Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Other Provisions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The stockholder parties are subject to certain
confidentiality requirements. The Shareholder Agreement will terminate on the earliest of (i) the written consent of the board of directors
and vote of two-thirds of the holders of the outstanding common stock of the Company; (ii) the Company&rsquo;s dissolution, filing of
a petition in bankruptcy under Chapter 7 of the United States Bankruptcy Code or insolvency of the Company; (iii) upon the closing of
the Company&rsquo;s first underwritten public offering of its common stock on Nasdaq, the New York Stock Exchange or other exchange or
marketplace approved by the board of directors; or (iv) at such time as only one stockholder party remains.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_017"></A>MATERIAL
U.S. FEDERAL TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF OUR COMMON STOCK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a summary of the material U.S.
federal income and estate tax consequences of the ownership and disposition of our common stock that is being issued pursuant to the
Company&rsquo;s initial public offering. This summary is limited to Non-U.S. Holders (as defined below) that hold our common stock as
a capital asset (generally, property held for investment) for U.S. federal income tax purposes. This summary does not discuss all of
the aspects of U.S. federal income and estate taxation that may be relevant to a non-U.S. Holder in light of the Non-U.S. Holder&rsquo;s
particular investment or other circumstances. Accordingly, all prospective Non-U.S. Holders should consult their own tax advisors with
respect to the U.S. federal, state, local and non-U.S. tax consequences of the ownership and disposition of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This summary is based on provisions of the Code,
applicable U.S. Treasury regulations, and administrative and judicial interpretations, all as in effect or in existence on the date of
this prospectus. Subsequent developments in U.S. federal income or estate tax law, including changes in law or differing interpretations,
which may be applied retroactively, could alter the U.S. federal income and estate tax consequences of owning and disposing of our common
stock as described in this summary. There can be no assurance that the Internal Revenue Service, or IRS, will not take a contrary position
with respect to one or more of the tax consequences described herein and we have not obtained, nor do we intend to obtain, a ruling from
the IRS with respect to the U.S. federal income or estate tax consequences of the ownership or disposition of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As used in this summary, the term &ldquo;Non-U.S.
Holder&rdquo; means a beneficial owner of our common stock that is not, for U.S. federal income tax purposes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">an individual who is a citizen or
                                            resident of the United States;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
                                            corporation (or other entity treated as a corporation) created or organized in or under the
                                            laws of the United States, any state thereof, or the District of Columbia;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">an
                                            entity or arrangement treated as a domestic partnership;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">an estate whose income is includible
                                            in gross income for U.S. federal income tax purposes regardless of its source; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
                                            trust, if (1)&nbsp;a U.S. court is able to exercise primary supervision over the trust&rsquo;s
                                            administration and one or more &ldquo;United States persons&rdquo; (within the meaning of
                                            the Code) has the authority to control all of the trust&rsquo;s substantial decisions, or
                                            (2)&nbsp;the trust has a valid election in effect under applicable U.S. Treasury regulations
                                            to be treated as a United States person.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If an entity or arrangement treated as a partnership
for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in such a partnership generally will depend
upon the status of the partner, the activities of the partnership and certain determinations made at the partner level. Partnerships,
and partners in partnerships, that hold our common stock should consult their own tax advisors as to the particular U.S. federal income
and estate tax consequences of owning and disposing of our common stock that are applicable to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This summary does not consider any specific facts
or circumstances that may apply to a Non-U.S. Holder and does not address any special tax rules that may apply to particular Non-U.S.
Holders, such as:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
                                            Non-U.S. Holder that is a financial institution, insurance company, tax-exempt organization,
                                            pension plan, broker, dealer or trader in securities, dealer in currencies, U.S. expatriate,
                                            controlled foreign corporation or passive foreign investment company;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
                                            non-U.S. Holder holding our common stock as part of a conversion transaction, constructive
                                            sale, wash sale or other integrated transaction or a hedge, straddle or synthetic security;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">a Non-U.S. Holder that holds or
                                            receives our common stock pursuant to the exercise of any employee stock option or otherwise
                                            as compensation; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">a non-U.S. Holder that at any time
                                            owns, directly, indirectly or constructively, 5% or more of our outstanding common stock.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, this summary does not address any
U.S. state or local, or non-U.S. or other tax consequences, or any U.S. federal income or estate tax consequences for beneficial owners
of a Non-U.S. Holder, including stockholders of a controlled foreign corporation or passive foreign investment company that holds our
common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Each Non-U.S. Holder should consult its own
tax advisor regarding the U.S. federal, state, local and non-U.S. income and other tax consequences of owning and disposing of our common
stock.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Distributions on Our Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not currently expect to pay any cash dividends
on our common stock. If we make distributions of cash or property (other than certain pro rata distributions of our common stock) with
respect to our common stock, any such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent
paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax rules. If a distribution exceeds
our current and accumulated earnings and profits, the excess will be treated as a nontaxable return of capital to the extent of the Non-U.S.
Holder&rsquo;s adjusted tax basis in our common stock and will reduce (but not below zero) such Non-U.S. Holder&rsquo;s adjusted tax
basis in our common stock. Any remaining excess will be treated as gain from a disposition of our common stock subject to the tax treatment
described below in &ldquo;<I>&mdash; Dispositions of Our Common Stock</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Distributions on our common stock that are treated
as dividends and that are effectively connected with a Non-U.S. Holder&rsquo;s conduct of a trade or business in the United States will
be taxed on a net income basis at the regular graduated rates and in the manner applicable to United States persons. An exception may
apply if the Non-U.S. Holder is eligible for, and properly claims, the benefit of an applicable income tax treaty and the dividends are
not attributable to a permanent establishment or fixed base maintained by the Non-U.S. Holder in the United States. In such case, the
Non-U.S. Holder may be eligible for a lower rate under an applicable income tax treaty between the United States and its jurisdiction
of tax residence. Dividends that are effectively connected with a Non-U.S. Holder&rsquo;s conduct of a trade or business in the United
States will not be subject to U.S. withholding tax if the Non-U.S. Holder provides to the applicable withholding agent a properly executed
IRS Form W-8ECI (or other applicable form) in accordance with the applicable certification and disclosure requirements. A Non-U.S. Holder
treated as a corporation for U.S. federal income tax purposes may also be subject to a &ldquo;branch profits tax&rdquo; at a 30% rate
(unless the Non-U.S. Holder is eligible for a lower rate under an applicable income tax treaty) on the Non-U.S. Holder&rsquo;s earnings
and profits (attributable to dividends on our common stock or otherwise) that are effectively connected with the Non-U.S. Holder&rsquo;s
conduct of a trade or business within the United States. The amount of taxable earnings and profits is generally reduced by amounts reinvested
in the operations of the U.S. trade or business and increased by any decline in its equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The certifications described above must be provided
to the applicable withholding agent prior to the payment of dividends and must be updated periodically. A Non-U.S. Holder may obtain
a refund or credit of any excess amounts withheld by timely filing an appropriate claim for a refund with the IRS. Non-U.S. Holders should
consult their own tax advisors regarding their eligibility for benefits under any relevant income tax treaty and the manner of claiming
such benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing discussion is subject to the discussions
below under &ldquo;<I>&mdash;Backup Withholding and Information Reporting</I>&rdquo; and &ldquo;<I>&mdash;FATCA Withholding</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Dispositions of Our Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A Non-U.S. Holder generally will not be subject
to U.S. federal income tax (including U.S. withholding tax) on gain recognized on any sale or other disposition of our common stock unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            gain is effectively connected with the Non-U.S. Holder&rsquo;s conduct of a trade or business
                                            in the United&nbsp;States (and, if required by an applicable income tax treaty, is attributable
                                            to a permanent establishment or fixed base maintained by the Non-U.S. Holder in the United&nbsp;States);
                                            in such case, the gain would be subject to U.S. federal income tax on a net income basis
                                            at the regular graduated rates and in the manner applicable to United&nbsp;States&nbsp;persons
                                            (unless an applicable income tax treaty provides otherwise) and, if the Non-U.S. Holder is
                                            treated as a corporation for U.S. federal income tax purposes, the &ldquo;branch profits
                                            tax&rdquo; described above may also apply;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            Non-U.S. Holder is an individual who is present in the United&nbsp;States for 183&nbsp;days
                                            or more in the taxable year of the disposition and meets certain other requirements; in such
                                            case, except as otherwise provided by an applicable income tax treaty, the gain, which may
                                            be offset by certain U.S. source capital losses, generally will be subject to a flat 30%
                                            U.S. federal income tax, even if the Non-U.S. Holder is not treated as a resident of the
                                            United&nbsp;States under the Code; or</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">we
                                            are or have been a &ldquo;United States real property holding corporation,&rdquo; or USRPHC,
                                            for U.S. federal income tax purposes at any time during the shorter of (i) the five-year
                                            period ending on the date of disposition and (ii) the period that the Non-U.S. Holder held
                                            our common stock.</FONT></TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Generally, a corporation is a USRPHC, if the
fair market value of its &ldquo;United States real property interests&rdquo; equals or exceeds 50% of the sum of the fair market value
of its worldwide real property interests plus its other assets used or held for use in a trade or business. We believe that we are not
currently, and we do not anticipate becoming in the future, a USRPHC. However, because the determination of whether we are a USRPHC is
made from time to time and depends on the relative fair market values of our assets, there can be no assurance in this regard. If we
were a USRPHC, the tax relating to disposition of stock in a USRPHC generally will not apply to a Non-U.S. Holder whose holdings, direct,
indirect and constructive, constituted 5% or less of our common stock at all times during the applicable period, provided that our common
stock is &ldquo;regularly traded on an established securities market&rdquo; (as provided in applicable U.S. Treasury regulations) at
any time during the calendar year in which the disposition occurs. However, no assurance can be provided that our common stock will be
regularly traded on an established securities market for purposes of the rules described above. Non-U.S.&nbsp;Holders should consult
their own tax advisors regarding any possible adverse U.S. federal income tax consequences to them if we are, or were to become, a USRPHC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing discussion is subject to the discussions
below under &ldquo;<I>&mdash;Backup Withholding and Information Reporting</I>&rdquo; and &ldquo;<I>&mdash;FATCA Withholding</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Federal Estate Tax</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any shares of our common stock that are owned
(or treated as owned) by an individual who is not a U.S. citizen or resident of the United States (as specially defined for U.S. federal
estate tax purposes) at the time of his or her death will be included in that individual&rsquo;s gross estate for U.S. federal estate
tax purposes, unless an applicable estate tax or other treaty provides otherwise, and therefore may be subject to U.S. federal estate
tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Backup Withholding and Information Reporting</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Backup withholding (currently at a rate of 24%)
may apply to dividends paid by U.S. corporations in some circumstances, but will not apply to payments of dividends on our common stock
to a Non-U.S. Holder if the Non-U.S. Holder provides to the applicable withholding agent a properly executed IRS Form&nbsp;W-8BEN or
W-8BEN-E (or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United&nbsp;States person
or is otherwise entitled to an exemption. However, the applicable withholding agent generally will be required to report to the IRS (and
to such Non-U.S. Holder) payments of dividends on our common stock and the amount of U.S. federal income tax, if any, withheld from those
payments. In accordance with applicable treaties or agreements, the IRS may provide copies of such information returns to the tax authorities
in the country in which the Non-U.S. Holder resides.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The gross proceeds from sales or other dispositions
of our common stock may be subject, in certain circumstances discussed below, to U.S. backup withholding and information reporting. If
a Non-U.S. Holder sells or otherwise disposes of any of our common stock outside the United States through a non-U.S. office of a non-U.S.
broker and the disposition proceeds are paid to the Non-U.S. Holder outside the United States, the U.S. backup withholding and information
reporting requirements generally will not apply to that payment. However, U.S. information reporting, but not U.S. backup withholding,
will apply to a payment of disposition proceeds, even if that payment is made outside the United States, if a Non-U.S. Holder sells our
common stock through a non-U.S. office of a broker that is a United States person or has certain enumerated connections with the United
States, unless the broker has documentary evidence in its files that the Non-U.S. Holder is not a United States person and certain other
conditions are met or the Non-U.S. Holder otherwise qualifies for an exemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a Non-U.S. Holder receives payments of the
proceeds of a disposition of our common stock to or through a U.S. office of a broker, the payment will be subject to both U.S. backup
withholding and information reporting unless the Non-U.S. Holder provides to the broker a properly executed IRS Form W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person, or the Non-U.S.
Holder otherwise qualifies for an exemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Backup withholding is not an additional tax.
Any amounts withheld under the backup withholding rules may be credited against the Non-U.S. Holder&rsquo;s U.S. federal income tax liability
(which may result in the Non-U.S. Holder being entitled to a refund), provided that the required information is timely furnished to the
IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>FATCA Withholding</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Foreign Account Tax Compliance Act and related
Treasury guidance (commonly referred to as FATCA) impose U.S. federal withholding tax at a rate of 30% on payments to certain foreign
entities of (i)&nbsp;U.S.-source dividends (including dividends paid on our common stock) and (ii)&nbsp;the gross proceeds from the sale
or other disposition of property that produces U.S.-source dividends (including sales or other dispositions of our common stock). This
withholding tax applies to a foreign entity, whether acting as a beneficial owner or an intermediary, unless such foreign entity complies
with (i)&nbsp;certain information reporting requirements regarding its U.S. account holders and its U.S. owners and (ii)&nbsp;certain
withholding obligations regarding certain payments to its account holders and certain other persons. Accordingly, the entity through
which a Non-U.S. Holder holds its common stock will affect the determination of whether such withholding is required. While withholding
under FATCA would have also applied to payments of gross proceeds from the sale or other disposition of our common stock on or after
January 1, 2019, U.S. Treasury regulations proposed in December, 2018 eliminate such withholding on payments of gross proceeds entirely.
Taxpayers generally may rely on these proposed U.S. Treasury regulations until final U.S. Treasury regulations are issued. Non-U.S. Holders
are encouraged to consult their tax advisors regarding the possible application of FATCA in their particular circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; text-transform: uppercase">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_018"></A>UNDERWRITING</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect to enter an underwriting agreement
with Boustead Securities, LLC (who we refer to as the representative), as representative of the underwriters named in this prospectus,
with respect to the shares of common stock in the Company&rsquo;s initial public offering. Under the terms and subject to the conditions
contained in the underwriting agreement, the representative will agree to purchase from us on a firm commitment basis the respective
number of shares of common stock at the public price less the underwriting discounts set forth on the cover page of this prospectus,
and each of the underwriters has severally agreed to purchase, and we have agreed to sell to the underwriters, the number of shares of
common stock listed next to its name in the following table.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 84%; padding-bottom: 2.25pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Underwriter</B></P></TD>
    <TD STYLE="white-space: nowrap; width: 1%; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 15%; padding-bottom: 2.25pt; text-align: center"><B>Number of Shares</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-bottom: 2.25pt; padding-left: 10pt; text-indent: -10pt">Boustead Securities, LLC</TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.25pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 1.5pt; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-bottom: 2.25pt">Total</TD>
    <TD STYLE="white-space: nowrap; padding-bottom: 2.25pt">&nbsp;</TD>
    <TD STYLE="text-align: right; border-bottom: Black 4pt double; vertical-align: bottom">&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The shares of common stock sold by the underwriters
to the public will initially be offered at the initial public offering price range set forth on the cover page of this prospectus. Any
shares of common stock sold by the underwriters to securities dealers may be sold at a discount from the initial public offering price
not to exceed $ per share. If all of the shares are not sold at the initial offering price, the representative may change the offering
price and the other selling terms. The representative has advised us that the underwriters do not intend to make sales to discretionary
accounts. The underwriting agreement will provide that the obligations of the underwriters to pay for and accept delivery of the shares
of common stock are subject to the passing upon certain legal matters by counsel and certain conditions such as confirmation of the accuracy
of representations and warranties by us about our financial condition and operations and other matters. The obligation of the underwriters
to purchase the shares of common stock is conditioned upon our receiving approval to list the shares of common stock on NYSE American.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the underwriters sell more shares of common
stock than the total number set forth in the table above, we have granted to the representative an option, exercisable for 45 days from
the date of this prospectus, to purchase up to 562,500 additional shares of common stock at the assumed public offering price less the
underwriting discount, constituting 15% of the total number of shares of common stock to be offered in the initial public offering (excluding
shares subject to this option). The representative may exercise this option solely for the purpose of covering over-allotments in connection
with the initial public offering. The initial public offering is being conducted on a firm commitment basis.&nbsp; Any shares of common
stock issued or sold under the option will be issued and sold on the same terms and conditions as the other shares of common stock that
are the subject of the initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the initial public offering,
the underwriters may engage in stabilizing transactions, over-allotment transactions, syndicate covering transactions and penalty bids
in compliance with Regulation M under the Exchange Act, as described below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Stabilizing transactions permit
                                            bids to purchase securities so long as the stabilizing bids do not exceed a specified maximum.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Over-allotment transactions involve
                                            sales by the underwriters of securities in excess of the number of securities the underwriters
                                            are obligated to purchase, which creates a syndicate short position. The short position may
                                            be either a covered short position or a naked short position. In a covered short position,
                                            the number of securities over-allotted by the underwriters is not greater than the number
                                            of securities that they may purchase in the over-allotment option. In a naked short position,
                                            the number of securities involved is greater than the number of securities in the over-allotment
                                            option. The underwriters may close out any covered short position by either exercising their
                                            over-allotment option and/or purchasing securities in the open market.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Syndicate covering transactions
                                            involve purchases of securities in the open market after the distribution has been completed
                                            in order to cover syndicate short positions. In determining the source of securities to close
                                            out the short position, the underwriters will consider, among other things, the price of
                                            securities available for purchase in the open market as compared to the price at which they
                                            may purchase securities through the over-allotment option. A naked short position occurs
                                            if the underwriters sell more securities than could be covered by the over-allotment option.
                                            This position can only be closed out by buying securities in the open market. A naked short
                                            position is more likely to be created if the underwriters are concerned that there could
                                            be downward pressure on the price of the securities in the open market after pricing that
                                            could adversely affect investors who purchase in the initial public offering.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Penalty bids permit the underwriters
                                            to reclaim a selling concession from a syndicate member when securities originally sold by
                                            the syndicate member are purchased in a stabilizing or syndicate covering transaction to
                                            cover syndicate short positions.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These stabilizing transactions, syndicate covering
transactions and penalty bids may have the effect of raising or maintaining the market price of our securities or preventing or retarding
a decline in the market price of the securities. As a result, the price of our shares of common stock may be higher than the price that
might otherwise exist in the open market. These transactions may be discontinued at any time.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Discounts and Expenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table shows the underwriting discounts,
commissions, and non-accountable expense allowance payable to the underwriters by us in connection with the Company&rsquo;s initial public
offering (assuming both the exercise and non-exercise of the over-allotment option that we have granted to the representative):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: bottom"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><B>Per Share</B></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><B>Without Option</B></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center"><B>With Option</B></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: bottom; width: 55%">Public offering price</TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">$</TD>
    <TD STYLE="vertical-align: top; width: 13%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: right">$</TD>
    <TD STYLE="vertical-align: bottom; width: 13%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: right">$</TD>
    <TD STYLE="vertical-align: bottom; width: 13%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">Underwriting discounts and commissions (7%)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">$</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">$</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">$</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: bottom">Non-accountable expense allowance (1%)</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">$</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">$</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">$</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">Proceeds, before expenses, to us</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">$</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.5in; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">$</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.5in; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">$</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to pay a non-accountable expense
allowance to the representative equal to 1.0% of the gross proceeds received at the closing of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to pay the representative the
reasonable out-of-pocket expenses incurred by the representative in connection with the initial public offering up to $255,000. The representative
out-of-pocket expenses include but are not limited to: (i) reasonable fees of representative&rsquo;s legal counsel up to $125,000, (ii)
due diligence and other expenses incurred prior to completion of the initial public offering up to $75,000, (iii) road show, travel,
platform on-boarding fees, and other reasonable out-of-pocket accountable expenses up to $50,000, and (iv) $5,000 for background checks
on our officers, directors and major stockholders and due diligence expenses. As of the date of this prospectus, we have paid the representative
advances of $75,000 for its anticipated out-of-pocket costs. Such advance payments will be returned to us to the extent such out-of-pocket
expenses are not actually incurred in accordance with FINRA Rule 5110(g)(4)(A).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Representative&rsquo;s Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to issue warrants to the
representative to purchase a number of shares of common stock equal to 7% of the total number of shares sold in the Company&rsquo;s
initial public offering at an exercise price equal to 100% of the public offering price of the shares sold in the initial public
offering. The representative&rsquo;s warrants will be exercisable upon issuance, will have a cashless exercise provision and will
terminate on the fifth anniversary of the effective date of the registration statement of which this prospectus forms a part. The
representative&rsquo;s warrants also provide for customary anti-dilution provisions and immediate &ldquo;piggyback&rdquo;
registration rights with respect to the registration of the shares of common stock underlying the warrants, which registration
rights shall terminate on the fifth anniversary of the effective date of the registration statement of which this prospectus forms a
part. We have registered the representative&rsquo;s warrants and the shares underlying the representative&rsquo;s warrants in the
initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The representative&rsquo;s warrants and the underlying
shares may be deemed to be compensation by FINRA, and therefore will be subject to FINRA Rule 5110(e)(1). In accordance with FINRA Rule
5110(e)(1), neither the representative&rsquo;s warrants nor any of our shares of common stock issued upon exercise of the representative&rsquo;s
warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or
call transaction that would result in the effective economic disposition of such securities by any person, for a period of 180 days immediately
following the commencement date of sales in the initial public offering, subject to certain exceptions. The representative&rsquo;s warrants
to be received by the representative and related persons in connection with the initial public offering: (i) fully comply with lock-up
restrictions pursuant to FINRA Rule 5110(e)(1); and (ii) fully comply with transfer restrictions pursuant to FINRA Rule 5110(e)(2).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Determination of Offering Price</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In determining the Company&rsquo;s initial public
offering price, we and the representative have considered a number of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the information set forth in this
                                            prospectus and otherwise available to the representative;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our prospects and the history and
                                            prospects for the industry in which we compete;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">an assessment of our management;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our prospects for future revenue
                                            and earnings;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the recent prices of, and demand
                                            for, shares sold by us prior to the initial public offering;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the general condition of the securities
                                            markets at the time of the initial public offering;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the recent market prices of, and
                                            demand for, publicly traded securities of generally comparable companies; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">other factors deemed relevant by
                                            the Representative and us.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The assumed initial public offering price set
forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions and other factors. Neither
we nor the representative can assure investors that an active trading market will develop for our shares of common stock, or that the
shares will trade in the public market at or above the initial public offering price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to indemnify the representative
and the other underwriters against certain liabilities, including liabilities under the Securities Act. If we are unable to provide this
indemnification, we will contribute to payments that the representative and the other underwriters may be required to make for these
liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Right of First Refusal</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to provide the representative
the right of first refusal for eighteen (18) months following the consummation of the Company&rsquo;s initial public offering or the
termination or expiration of the engagement with the representative to act as financial advisor or to act as joint financial advisor
on or at least equal economic terms on any public or private financing (debt or equity), merger, business combination,
recapitalization or sale of some or all of our equity or our assets.&nbsp; In the event that we engage the representative to provide
such services, the representative will be compensated consistent with our engagement agreement with the representative, unless we
mutually agree otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Tail Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following the termination or expiration of our
engagement agreement with the representative, the representative shall be entitled to a cash fee (&ldquo;Tail Fee&rdquo;) equal to seven
percent (7.0%) of the gross proceeds received by the Company from the sale of shares of common stock to any investor which became aware
of the Company or which became known to the Company prior to such termination or expiration within the twelve (12) month period (&ldquo;Tail
Period&rdquo;) following the termination or expiration of the engagement agreement with the representative, or Identified Party, provided
that no party shall be an Identified Party unless such person is contained on a list of Identified Parties to be provided by the representative
to the Company at the time of termination or expiration of the engagement agreement with the representative (and which such list must
be agreed to by the Company in its reasonable discretion). Notwithstanding the foregoing, in the event the engagement agreement is terminated
for &ldquo;Cause,&rdquo; which shall mean a material breach by the representative of the engagement agreement, and which such material
breach is not cured, no Tail Fee shall be due during the Tail Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>No Sales of Similar Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed not to offer, issue, sell, contract
to sell, encumber, grant any option for the sale of or otherwise dispose of any shares of our common stock or other securities convertible
into or exercisable or exchangeable for shares of common stock at a price per share that is less than the price per share of common stock
in the Company&rsquo;s initial public offering, or modify the terms of any existing securities, whether in conjunction with another broker-dealer
or on the Company&rsquo;s own volition for a period of 12 months following the date on which the&nbsp;shares of common stock are trading
on NYSE American, without the prior written consent of the representative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Company Lock-Up</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will not, without the prior written consent
of the representative, from the date of execution of the Underwriting Agreement and continuing for a period of 12 months from the date
on which the trading of our common stock commences (the &ldquo;Lock-Up Period&rdquo;), (i) offer, pledge, announce the intention to sell,
sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, change the terms of or grant
any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, or file with the Commission a registration
statement under the Securities Act relating to, our common stock or any securities convertible into or exercisable or exchangeable for
our common stock, or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences
of ownership of the common stock or any such other securities, whether any such transaction described in clause (i) or (ii) above is
to be settled by delivery of common stock or such other securities, in cash or otherwise. We will agree not to accelerate the vesting
of any option or warrant or the lapse of any repurchase right prior to the expiration of the Lock-Up Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our executive officers, directors and current
stockholders (as well as holders of convertible or exercisable securities which convert into or are exercisable into common stock) have
also agreed to a 12-month &ldquo;lock-up,&rdquo; during which, without the prior written consent of the representative, they shall not,
directly or indirectly, subject to certain exceptions, (i) offer, pledge, assign, encumber, announce the intention to sell, sell, contract
to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase,
or otherwise transfer or dispose of, any shares of common stock or any securities convertible into or exercisable or exchangeable for
common stock, owned either of record or beneficially by any signatory of the lock-up agreement on the date of the prospectus or thereafter
acquired; (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership
of the common stock or any securities convertible into or exercisable or exchangeable for common stock, whether any such transaction described
in clauses (i) or (ii) above is to be settled by delivery of common stock or such other securities, in cash or otherwise, or publicly
announce an intention to do any of the foregoing; and (iii) make any demand for or exercise any right with respect to, the registration
of any shares of common stock or any security convertible into or exercisable or exchangeable for common stock. The underwriters have
agreed to waive the lock-up requirement for shares of common stock being sold by the selling stockholders named in the resale prospectus
filed contemporaneously with this prospectus.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Electronic Offer, Sale and Distribution of
Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A prospectus in electronic format may be made
available on the websites maintained by the representative. In addition, shares of common stock may be sold by the representative to
securities dealers who resell shares of common stock to online brokerage account holders. Other than the prospectus in electronic format,
the information on the representative&rsquo;s website and any information contained in any other website maintained by the representative
is not part of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed
by us or the representative in its capacity as representative and should not be relied upon by investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Selling Restrictions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No action has been taken in any jurisdiction
(except in the United States) that would permit a public offering of the shares of common stock, or the possession, circulation or distribution
of this prospectus or any other material relating to us or the shares of common stock, where action for that purpose is required. Accordingly,
the shares of common stock may not be offered or sold, directly or indirectly, and neither this prospectus nor any other offering material
or advertisements in connection with the shares of common stock may be distributed or published, in or from any country or jurisdiction
except in compliance with any applicable rules and regulations of any such country or jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Offer Restrictions Outside the United States</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other than in the United States, no action has
been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction
where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly,
nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities
be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules
and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and
to observe any restrictions relating to the Company&rsquo;s initial public offering and the distribution of this prospectus. This prospectus
does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction
in which such an offer or a solicitation is unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Company Securities Acquired by Underwriters
in Connection with Private Placements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From October 2021 to December 2021, we conducted
a private placement of 6% convertible unsecured promissory notes due three years from the date of execution and entered into related
subscription agreements and investor rights and lockup agreements with a number of accredited investors. Pursuant to the agreements,
we issued 27 convertible notes for aggregate loans of $6,305,000. The convertible notes bear interest at 6% annually. For a further description
of the terms of these convertible notes, see &ldquo;<I>Description of Securities &ndash; 6% Convertible Unsecured Promissory Notes</I>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">From August 2022 to January 2023, we conducted
a private placement of the Company&rsquo;s 8% convertible unsecured promissory notes and accompanying warrants under subscription agreements
with a number of accredited investors. Pursuant to the agreements, we issued 15 convertible notes and accompanying warrants for aggregate
loans of $1,465,000. The convertible notes bear interest at 8% annually and are due August 8, 2023 unless converted in accordance with
their terms. For a further description of the terms of these convertible notes and warrants, see &ldquo;<I>Description of Securities
&ndash; 8% Convertible Unsecured Promissory Notes</I>&rdquo; and &ldquo;<I>Description of Securities &ndash; Warrants &ndash; Investor
Warrants</I>&rdquo;, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2023 and April 2023 we completed one
private placement, and in May 2023 we conducted a subsequent private placement, in which we entered into subscription agreements with
a number of accredited investors, pursuant to which we issued 8% unsecured promissory notes in the aggregate principal amount of $2,350,000,
which bear interest at the annual rate of 8%, and accompanying warrants to purchase an aggregate of 940,000&nbsp;shares of common stock
exercisable at $2.50 per share. The convertible notes bear interest at 8% annually. For a further description of the private placement
and the terms of these notes and warrants, see &ldquo;<I>Description of Securities &ndash; 8% Unsecured Promissory Notes</I>&rdquo;,
and &ldquo;<I>Description of Securities &ndash; Warrants &ndash; Investor Warrants</I>&rdquo;.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Boustead acted as placement agent in our private
placements of the convertible notes, promissory notes, and warrants described above. Pursuant to our engagement letter agreement with
Boustead, in addition to a commission equal to 7% of the gross proceeds raised in the private placements, a non-accountable expense allowance
equal to 1% of the gross proceeds raised in the private placements, and payment of certain other expenses, we agreed to issue Boustead
five-year warrants to purchase a number of shares of common stock at an exercise price equal to the conversion price as defined in the
notes in an amount equal to 7% of the common stock underlying the securities sold in the private placements. Accordingly, a warrant to
purchase common stock was issued in December 2021 in connection with our private placement of 6% convertible unsecured promissory notes,
exercisable to purchase 7% of the original principal amount of the Company&rsquo;s 6% convertible unsecured promissory notes divided
by the convertible notes&rsquo; applicable conversion price, at an exercise price equal to the convertible notes&rsquo; applicable per-share
conversion price. Warrants to purchase shares of common stock were also issued to Boustead in March 2023, April 2023 and May 2023 in
connection with our private placement of 8% unsecured promissory notes and accompanying investor warrants. The warrants may be exercised
to purchase an aggregate of 7% of the common stock underlying the warrants that were issued to the initial 8% unsecured promissory note
holders at an exercise price equal to the exercise price as defined in such warrants. Each of the placement agent&rsquo;s warrants will
terminate five years after issuance. Boustead has informally waived its rights to warrants to purchase shares of common stock in connection
with our private placement of 8% convertible unsecured promissory notes and accompanying investor warrants. Under the engagement letter
with Boustead, its placement agent&rsquo;s warrants must be registered for resale with the Company&rsquo;s initial public offering. However,
Boustead has informally deferred these registration rights with respect to the registration statement for the initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Boustead agreed to waive its success fee and
expense allowance for any Company-introduced investors in the private placement of the Company&rsquo;s 8% convertible unsecured promissory
notes and accompanying warrants and in consideration of such waiver Boustead will receive a number of shares of common stock of the Company
that is equal to 8% of the number of shares of common stock issuable to the Company-introduced investors upon conversion or exercise,
as applicable, of their securities. A total of $965,000 were invested by Company-introduced investors in that private placement. Accordingly,
Boustead will receive a total of up to 77,200 shares of common stock based on the number of shares of common stock that will be issued
upon the automatic conversion of the 8% convertible promissory notes and issuable to the holders of the related warrants upon the initial
public offering, based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set
forth on the cover page of the prospectus. Further, Boustead agreed to defer 50% of its total success fee and 50% of its expense allowance
for the other investors in the private placement of the Company&rsquo;s 8% convertible unsecured promissory notes and accompanying warrants
until the closing of the initial public offering. Based on a total of $500,000 invested by non-Company-introduced investors in that private
placement, such deferred fees and non-accountable expense allowance total $20,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_019"></A>LEGAL
MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The validity of the securities covered by this
prospectus&nbsp;will be passed upon for us by Bevilacqua PLLC. Anthony L.G., PLLC is acting as counsel to the underwriters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
of the date of this prospectus, Bevilacqua PLLC owns </FONT>15,000 shares of common stock. <FONT STYLE="font-family: Times New Roman, Times, Serif">Bevilacqua
PLLC received these shares as partial consideration for legal services previously provided to us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_020"></A>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The financial statements of the Company as of
and for the fiscal year ended December 31, 2022 appearing elsewhere in this prospectus have been included herein in reliance upon the
report of BARTON CPA, an independent registered public accounting firm, appearing elsewhere herein (which contains an explanatory paragraph
describing conditions that raise substantial doubt about our ability to continue as a&nbsp;going&nbsp;concern&nbsp;as disclosed in Note
1 to the consolidated financial statements), and upon the authority of said firm as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The financial statements of the Company as of
and for the fiscal year ended December 31, 2021 appearing elsewhere in this prospectus have been included herein in reliance upon the
report of Marcum LLP, an independent registered public accounting firm, appearing elsewhere herein&nbsp;(which contains an explanatory
paragraph describing conditions that raise substantial doubt about our ability to continue as a&nbsp;going&nbsp;concern&nbsp;as disclosed
in Note 1 to the consolidated financial statements), and upon the authority of said firm as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_021"></A>WHERE
YOU CAN FIND MORE INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have filed with the SEC a registration statement
on Form S-1 under the Securities Act with respect to the securities we are offering by this prospectus. This prospectus does not contain
all of the information included in the registration statement. For further information about us and our securities, you should refer
to the registration statement and the exhibits and schedules filed with the registration statement. Whenever we make reference in this
prospectus to any of our contracts, agreements or other documents, the references are materially complete but may not include a description
of all aspects of such contracts, agreements or other documents, and you should refer to the exhibits attached to the registration statement
for copies of the actual contract, agreement or other document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the effectiveness of the registration statement
of which this prospectus forms a part, we will be subject to the informational requirements of the Exchange Act, and, in accordance with
the Exchange Act, will file reports, proxy and information statements and other information with the SEC. Such annual, quarterly and
special reports, proxy and information statements and other information can be inspected and copied at the locations set forth above.
We also anticipate making these documents publicly available, free of charge, on our website at https:// www.signingdaysports.com/ as
soon as reasonably practicable after filing such documents with the SEC. Information on, or accessible through, our website is not part
of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><FONT STYLE="text-transform: uppercase">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="a_022"></A>FINANCIAL
STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 90%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1.5pt solid; width: 10%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Page</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Audited Consolidated Financial Statements for the Years Ended December
    31, 2022 and December 31, 2021</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>F-1</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><A HREF="#fin_001">Report of Independent Registered Public Accounting
    Firm (PCAOB ID: 6968)</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">F-2</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><A HREF="#fin_002">Report of Independent Registered Public Accounting
    Firm (PCAOB ID: 688)</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">F-4</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><A HREF="#fin_003">Consolidated Balance Sheets as of December 31, 2022
    and December 31, 2021</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">F-5</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><A HREF="#fin_004">Consolidated Statements of Operations for the Years
    Ended December 31, 2022 and December 31, 2021</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">F-6</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A HREF="#fin_005">Consolidated
    Statements of Stockholders&rsquo; and Members&rsquo; Equity (Deficit) for the Years Ended December 31, 2022 and December 31, 2021</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">F-7</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A HREF="#fin_006">Consolidated Statements
    of Cash Flows for the Years Ended December 31, 2022 and December 31, 2021</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">F-8</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A HREF="#fin_007">Notes to Consolidated
    Financial Statements</A></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">F-9</FONT></TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_002.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I><A NAME="fin_001"></A>Certified Public Accountants
and Advisors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>A PCAOB Registered Firm</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>713-489-5635 bartoncpafirm.com Cypress,
Texas</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>Report of Independent Registered Public Accounting
Firm</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the Board of Directors of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Signing Day Sports, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">7272 E. Indian School Road, STE 101</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Scottsdale, Arizona 85251</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Opinion on the Financial Statements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">We have audited the accompanying balance sheet
of Signing Day Sports, Inc., (the &ldquo;Company&rdquo;), as of December 31, 2022, and the related statements of operations, stockholders&rsquo;
equity, and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements). In our
opinion, the financial statements present fairly, in all material respects, the financial position of Signing Day Sports, Inc. as of
December 31, 2022, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting
principles generally accepted in the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Basis for Opinion</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">These financial statements are the responsibility
of the entity&rsquo;s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are
a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (&ldquo;PCAOB&rdquo;) and are
required to be independent with respect to Signing Day Sports, Inc. in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. Signing Day Sports, Inc. is not required to have, nor were
we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity&rsquo;s
internal control over financial reporting. Accordingly, we express no such opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">Our audits included performing procedures to
assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Substantial Doubt About the Entity&rsquo;s Ability to Continue
as a Going Concern</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company
has suffered recurring losses from operations and has a net capital deficiency, and therefore a substantial doubt exists about the Company&rsquo;s
ability to continue as a going concern. Management&rsquo;s evaluation of the events and conditions and management&rsquo;s plans regarding
these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome
of this uncertainty. Our opinion is not modified with respect to this matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Other Matter &ndash; Prior Year Financial Statements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">The accompanying balance sheet of Signing Day
Sports, Inc. as of December 31, 2021, and the related statements of operations and cash flows for the year then ended were not audited,
reviewed, or compiled by us and, accordingly, we do not express an opinion or any other form of assurance on them, with the exception
of the reverse stock split mentioned below. They were audited by other auditors whose report dated January 24, 2023, expressed an unmodified
opinion on those statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">As part of our audit of the December 31, 2022
financial statements, we also audited the 2021 change in common stock related to the reverse stock split that has been reflected in the
financial statements as if it had occurred at the beginning of the first period presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Critical Audit Matters</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">The are no critical audit matters matters arising
from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee
and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective, or complex judgments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as Signing Day Sports, Inc.&rsquo;s auditor since 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ BARTON CPA</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">BARTON CPA</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cypress, Texas</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">April 27, 2023</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<!-- Field: Split-Segment; Name: 003 -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_003.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="fin_002"></A>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 27.75pt 0pt 26.95pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the Shareholders and Board of Directors of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Signing Day Sports, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Opinion on the Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited, before the effects of the adjustments
to retroactively apply the reverse stock split described in Note 12, the accompanying consolidated balance sheet of Signing Day Sports,
Inc. (the &ldquo;Company&rdquo;) as of December 31, 2021, the related consolidated statements of operations, stockholders&rsquo; and
members&rsquo; equity (deficit) and cash flows for the year then ended, and the related notes (collectively referred to as the &ldquo;financial
statements&rdquo;). In our opinion, the financial statements present fairly, in all material respects, the financial position of the
Company as of December 31, 2021, and the results of its operations and its cash flows for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We were not engaged to audit, review, or apply
any procedures to the adjustments to retroactively apply the effects of the reverse stock split described in Note 12, accordingly, we
do not express an opinion or any other form of assurance about whether such adjustments are appropriate and have been properly applied.
Those adjustments were audited by Barton CPA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Explanatory Paragraph &ndash; Going Concern</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 1, the Company has suffered
significant losses and negative cash flows from operations and is dependent on debt and equity financing to fund its operations. These
conditions raise substantial doubt about the Company&rsquo;s ability to continue as a going concern. Management&rsquo;s plans in regard
to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result
from the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Basis for Opinion</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These financial statements are the responsibility
of the Company&rsquo;s management. Our responsibility is to express an opinion on the Company&rsquo;s financial statements based on our
audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (&ldquo;PCAOB&rdquo;)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audit in accordance with the
standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial
reporting but not for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s internal control over financial
reporting. Accordingly, we express no such opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audit included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">/s/ Marcum LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Marcum LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We served as the Company&rsquo;s auditor from
2021 (such date takes into account the acquisition of Rotenberg Meril Solomon Bertiger &amp; Guttilla, P.C., by Marcum LLP effective
February 1, 2022) through 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Saddle Brook, New Jersey</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">January 24, 2023</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 27.75pt 0pt 26.95pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 27.75pt 0pt 26.95pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 27.75pt 0pt 26.95pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="fin_003"></A>Signing
Day Sports, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Consolidated Balance
Sheets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">December&nbsp;31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">December&nbsp;31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B><U>ASSETS</U></B></TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt"><U>Current assets</U></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -0.125in; padding-left: 0.25in">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">254,409</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,687,550</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accounts receivable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,670</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,840</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Prepaid expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,841</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">162,833</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">17,412</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Total current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">301,332</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,855,223</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,302</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,070</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Intellectual property</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Software development &amp; intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,529</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Deferred tax asset</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Other assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">48,902</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Total assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">454,163</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,916,195</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: underline; font-weight: bold; text-align: center; padding-left: 10pt">LIABILITIES AND STOCKHOLDERS&rsquo;
    DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-decoration: underline; text-indent: -0.125in; padding-left: 0.125in"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: underline; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">614,158</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">182,947</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">512,688</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">197,417</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Deferred revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,073</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,549</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Deferred rent</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,894</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,960</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,924</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,785</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Tenant deposit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,894</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,894</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Convertible notes - current maturities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,315,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Loans Payable</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">120,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Total current liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,639,631</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">532,552</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: underline; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Non-current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Convertible notes - net of current maturities,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">less unamortized debt issuance costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,917,080</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,809,993</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">SAFE Agreements</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,134,635</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Total liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8,556,711</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8,477,180</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-decoration: underline; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Stockholders&rsquo; deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">Common stock: par value $0.0001 per share; 150,000,000 authorized shares,
    8,086,152 and 7,495,104 shares issued and outstanding as of December 31, 2022 and 2021, respectively.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">809</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,377,459</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,245,267</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(11,480,816</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,807,002</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Total stockholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,102,548</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,560,985</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Total liabilities and stockholders&rsquo;
    deficit</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">454,163</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,916,195</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part of
these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="fin_004"></A>Signing Day Sports, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Statements of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Year Ended<BR> December&nbsp;31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Year Ended<BR> December&nbsp;31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Revenues, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">78,336</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">340,984</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">783,064</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">504,342</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Gross profit (loss)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(704,728</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(163,358</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: underline; text-align: left">Operating cost and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Advertising and marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,842,666</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,104,939</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,025,223</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,027,820</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Impairment charge</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">820,951</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,276,159</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,688,840</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8,408,918</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net income (loss) from operations</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,393,568</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,572,276</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-decoration: underline; text-align: left">Other income (expense)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(597,747</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(78,503</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Interest income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,187</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Deferred tax income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Change in fair value of SAFE Agreements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">154,635</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(154,635</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Other expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(53,640</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Other Income</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">115,406</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total other income (expense)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(280,246</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(231,951</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(6,673,814</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(8,804,227</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Weighted average common shares outstanding - basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,614,070</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,495,104</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per common share - basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">0.88</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1.17</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part of
these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="fin_005"></A>Signing Day Sports, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Statements of Changes In Stockholders&rsquo;
Deficit</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: center"><B>Member&rsquo;s Equity</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Common Stock</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: center"><B>Additional Paid-in</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: center"><B>Accumulated Equity</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: center"><B>Total Stockholders&rsquo;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Amount</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Shares</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Amount</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Capital</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>(Deficit)</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Deficit</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%">Balance at December 31, 2020</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,556,242</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,556,242</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Member contributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,437,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,437,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Member distributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(750,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(750,000</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Net loss attributable to LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,997,225</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,997,225</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Conversion from LLC to Corp</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,246,017</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,495,104</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,245,267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,807,002</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,807,002</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Balance at December 31, 2021</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,495,104</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">750</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,245,267</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(4,807,002</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(3,560,985</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
  <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Issuance of Common Stock in exchange for SAFEs cancelation</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD STYLE="text-align: right">-</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD STYLE="text-align: right">591,048</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD STYLE="text-align: right">59</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD STYLE="text-align: right">1,979,941</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD STYLE="text-align: right">-</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD STYLE="text-align: right">1,980,000</TD>
  <TD>&nbsp;</TD>
</TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Stock based compensation expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">152,251</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">152,251</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,673,814</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,673,814</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Balance at December 31, 2022</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">8,086,152</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">809</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,377,459</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">11,480,816</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">8,102,548</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part of
these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="fin_006"></A>Signing
Day Sports, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Consolidated Statements
of Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><U>Cash flows from operating activities</U></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(6,673,814</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(8,804,227</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.25in">Adjustments to reconcile net income to net cash&nbsp;used
    in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,768</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">372,852</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Bad debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,660</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Change in fair value of future equity obligations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(154,635</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">154,635</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Interest expense attributable to amortization of debt issuance
    cost</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">191,287</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,559</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Impairment loss on software development costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">820,951</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,276,159</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">152,251</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">(Increase) decrease in assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,490</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,840</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Prepaid and other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">172,482</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(172,621</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Deferred tax asset</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(100,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Increase (decrease) in liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">746,482</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">378,040</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Deferred revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,476</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,719</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Due to related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,066</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(29,861</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,785</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.25in; padding-left: 0.375in">Tenant deposit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">9,894</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.25in; padding-left: 0.25in">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,928,461</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,729,483</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-decoration: underline; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Cash flows from investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Development of internal software</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(833,480</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,073,898</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Purchase of intellectual property</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.25in; padding-left: 0.375in">Purchase of property and equipment</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(12,380</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.25in; padding-left: 0.25in">Net cash used in investing activates</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(855,480</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,086,278</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-decoration: underline; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Cash flows from financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Proceeds from issuance of convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,230,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,305,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Payment of debt issuance cost</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(519,566</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Proceeds from loans</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">120,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Proceeds from SAFE agreements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,980,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Proceeds from member contributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,437,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">Distribution to member</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(750,000</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.25in; padding-left: 0.25in">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,350,800</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">10,452,434</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.25in">Net increase (decrease) in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,433,141</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,636,673</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.25in; padding-left: 0.25in">Cash and cash equivalents, beginning
    of period</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">4,687,550</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,050,877</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -0.25in; padding-left: 0.25in">Cash and cash equivalents, end of period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">254,409</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,687,550</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.25in">Supplemental cash flow information</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -0.25in; padding-left: 0.375in">Cash paid for interest expense</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">695</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.25in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Supplemental disclosure of non-cash financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.25in; padding-left: 0.375in">SAFEs cancelation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,980,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Issuance of common stock in exchange for SAFEs cancelation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,980,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">The accompanying notes are an integral part of
these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="fin_007"></A>Signing Day Sports, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Notes to Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 165.85pt 0pt 0"><B>Note 1 - Principal Business Activity and Significant
Accounting Policies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 165.85pt 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 165.85pt 0pt 0"><B>Principal Business Activity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 165.85pt 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Signing Day Sports, Inc. (formerly known as Signing
Day Sports, LLC) (&ldquo;Company&rdquo;) was formed and began operations in January 2019 and provides a digital ecosystem to help high
school athletes get discovered and recruited by college coaches across the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s website and mobile phone
application provides an opportunity for athletes to create a personal profile by uploading measurables, videos of key drills, testing
stats, academics and demographic information. Coaches can evaluate a prospect&rsquo;s video, watch two separate prospects side by side
simultaneously, and perform other actions with the video to visually evaluate talent. Intangible assets consist of development software,
patented technology, customer lists, trademarks, software IP, and customer data in the form of verifiable video uploads, player statistics,
and academic records.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.35pt 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Principles of Consolidation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial statements
(sometimes referred to herein as &ldquo;financial statements&rdquo;) include the accounts of Signing Day Sports, Inc. and its subsidiaries
(collectively, the &ldquo;Company&rdquo;). All significant intercompany <FONT STYLE="font-weight: normal">balances and transactions have
been eliminated.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Going Concern Considerations</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our financial statements have been prepared on
a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course
of business. We sustained significant losses and negative cash flows from operations and are dependent on debt and equity financing to
fund operations. We incurred a net loss of approximately $6.6 million and $8.8 million for the years ended December 31, 2022, and 2021,
respectively. We had cash used in operating activities of approximately $4.9 million and $5.7 million for the years ended December 31,
2022, and 2021, respectively, and have cumulative losses of approximately $18.1 million and $11.5 million as of December 31, 2022, and
2021, respectively. These conditions raise substantial doubt about our ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is continuing its path to profitability
through increased business development, marketing and sales of the Company&rsquo;s multiple lines of subscriptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Failure to successfully continue to grow operational
revenues could harm our profitability and adversely affect our financial condition and results of operations. We face all of the risks
inherent in a new business, including the need for significant additional capital, management&rsquo;s potential underestimation of initial
and ongoing costs, and potential delays and other problems in connection with establishing sales channels.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are continuing our plan to further grow and
expand operations and seek sources of capital to pay our contractual obligations as they come due. Management believes that its current
operating strategy will provide the opportunity for us to continue as a going concern as long as we are able to obtain additional financing;
however, there is no assurance this will occur. The accompanying financial statements do not include any adjustments that might be necessary
if we are unable to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Basis of Presentation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of America (&ldquo;U.S. GAAP&rdquo;) and the rules and
regulations of the Securities and Exchange Commission (&ldquo;SEC&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Concentrations of Credit Risk</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company maintains its cash account in several
deposit accounts, the balances of which are periodically more than federally insured limits. At December 31, 2022 and 2021, the uninsured
amounts approximated $0 and $4,000,000, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Receivables and Credit Policy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company estimates an allowance for doubtful
accounts based upon an evaluation of the status of receivables, historical experience, and other factors as necessary. It is reasonably
possible that the Company&rsquo;s estimate of the allowance for doubtful accounts will change. There were approximately $16,000 of open
receivables at December 31, 2022 and $5,000 at December 31, 2021. At December 31, 2022 and 2021 the Company believes the accounts receivable
are fully collectable and has no reserve established.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payment Terms</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Payments from individuals and organizations are
required prior to providing access to the Company&rsquo;s website and application. If not paid in advance, payments are required from
organizations on a monthly basis. If a payment is not made, access to the Company&rsquo;s website and application is suspended until
the required payment is received.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Property and Equipment</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Property and equipment is recorded at cost. Expenditures
for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized.
Expenditures for maintenance and repairs are charged to expense. When equipment is retired or sold, the cost and related accumulated
depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation is provided using the straight-line
method, based on useful lives of the assets which range from three to five years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews the carrying value of property
and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from
the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future
cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds
the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends
and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors.
Based on this assessment there was no impairment at December 31, 2022 and 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Internally Developed Software</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Software consists of an internally developed
information system for use by the Company in matching athletes with qualified coaches. The Company has capitalized costs incurred with
development and upgrades of the information systems in accordance with applicable accounting standards. Costs incurred up to and including
the feasibility stage of development as well as maintenance costs are expensed as incurred. The Company amortizes these capitalized costs
on a straight-line basis over the estimated useful life of the asset of five years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company periodically performs reviews of
the recoverability of such capitalized technology costs. At the time a determination is made that capitalized amounts are not recoverable
based on estimated cash flows to be generated from technology; any remaining capitalized amounts are written off. During the years ended
December 31, 2022, and 2021, the Company wrote off net capitalized software development costs of $820,951 and $2,276,159 respectively.
An impairment charge for this write-off is reflected in the operating expenses in the accompanying statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intangible Assets</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Intangible assets consist of development software,
patented technology, customer lists, trademarks, software IP, and customer data in the form of verifiable video uploads, player statistics,
and academic records. Intangible assets are stated at cost less accumulated amortization. For intangible assets that have finite lives,
the assets are amortized using the straight-line method over the estimated useful lives of the related assets. For intangible assets
with indefinite lives, the assets are tested periodically for impairment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Fair Value Measurements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company values its &ldquo;Simple Agreement
for Future Equity&rdquo; Agreements (&ldquo;SAFE Agreements&rdquo;) under the provisions of FASB ASC 820, &ldquo;<I>Fair Value Measurements
and Disclosures</I>,&rdquo; which defines fair value under U.S. GAAP, establishes a framework for measuring fair value and enhances disclosures
about fair value measurements. U.S. GAAP establishes a fair value hierarchy, which required an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. The asset or liability&rsquo;s fair value measurement level
within the fair value hierarchy is based up the lowest level of any input that is significant to the fair value measurement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A fair value hierarchy has been established,
which prioritizes the valuation inputs into three broad levels. Level 1 inputs consist of quoted prices in active markets for identical
assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than
quoted prices included within Level 1 that are observable for the related asset or liability. Level 3 inputs are unobservable inputs
related to the asset or liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SAFE Agreements are valued using market conditions
to estimate the fair value of the agreements. These are classified within Level 3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Income Taxes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Income taxes are provided for the tax effects
of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences
between the basis of internally developed software and net operating loss and research and development tax credit carry forwards for
financial and income tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences,
which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets are reduced
by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax
assets will not be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company converted to a C corporation in August
of 2021. As a limited liability company for the 2020 year and through the date of conversion in 2021, the Company&rsquo;s taxable loss
was allocated to members in accordance with their respective percentage of ownership. Therefore, no provision for income taxes has been
included in the financial statements for the period prior to the Company&rsquo;s conversion to a corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company evaluates its tax positions that
have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions.
As of December 31, 2022 and 2021, the unrecognized tax benefits accrual was zero. The Company will recognize future accrued interest
and penalties related to unrecognized tax benefits in income tax expense if incurred. As of December 31, 2022, the 2020 through 2022
tax years generally remain subject to examination by federal and state authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Deferred Revenue</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deferred revenues are contract liabilities for
collections on subscription agreements in excess of revenue recognized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Revenue Recognition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for revenue under the guidance
of FASB ASC 606, &ldquo;Revenue from Contracts from Customers&rdquo; (&ldquo;ASC 606&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ASC 606 prescribes a five-step model that focuses
on transfer of control and entitlement to payment when determining the amount of revenue to be recognized. Under the ASC 606 guidance,
an entity is required to perform the following five steps:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(1) identify the contract(s) with a customer;
(2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to
the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue from performance obligations satisfied
at a point in time consist of sales to individuals representing a one-month subscription and are recognized at the end of the subscription.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue from performance obligations satisfied
over time consists of the sale of subscription agreements to individual organizations or customers that are more than one month in duration
and are recognized on a monthly basis over the life of the subscription agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Debt Issuance Costs</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Debt issuance costs are amortized over the period
the related obligation is outstanding using the straight-line method. The straight-line method is a reasonable estimate of the effective
interest method due to the relatively short maturities of the related debt. Debt issuance costs are included within long-term debt on
the balance sheet. Amortization of debt issuance costs is included in interest expense in the accompanying financial statements. As of
December 31, 2022 and 2021, unamortized debt issuance costs are $387,920 and $495,007, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Advertising Costs</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Advertising and marketing costs are expensed
as incurred. Such costs amounted to $1,842,666 and $1,104,939 for the years ended December 31, 2022 and 2021, respectively. Advertising
costs are included in advertising and marketing expenses in the statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Estimates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of the financial statements in
conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Contract Costs</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Incremental costs of obtaining a contract are
expensed as incurred as the amortization period of the asset that otherwise would have been recognized is estimated to be one year or
less.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock-Based Compensation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for stock-based compensation
costs under the provisions of ASC 718, Compensation&mdash;Stock Compensation, which requires the measurement and recognition of compensation
expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. Stock-based compensation expense
recognized includes the compensation cost for all stock-based payments granted to employees, officers, and directors based on the grant
date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled
during the periods reported. Stock-based compensation is recognized as expense over the employee&rsquo;s requisite vesting period and
over the nonemployee&rsquo;s period of providing goods or services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic and Diluted Net Loss per Common Share</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Basic loss per common share is computed by dividing
the net loss by the weighted average number of shares of common stock outstanding for each period. Diluted loss per share is computed
by dividing the net loss by the weighted average number of shares of common stock outstanding plus the dilutive effect of shares issuable
through the common stock equivalents. The weighted-average number of common shares outstanding excludes common stock equivalents because
their inclusion would be anti-dilutive. As of December 31, 2022, and 2021, 253,000 and 0 stock options, respectively, were excluded from
dilutive earnings per share as their effects were anti-dilutive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Recent Accounting Guidance</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued Accounting
Standards Update No. 2016-02, Leases (Topic 842), which requires lessees to recognize leases on the balance sheet and disclose key information
about leasing arrangements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and
lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating,
with classification affecting the pattern and classification of the expense recognition in the income statement. The Company has implemented
the new standard and it does not have an impact on its assets, liabilities and results of operations or cash flows.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Leases</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the inception or modification of a contract,
the Company determines whether a lease exists and classifies its leases as an operating or finance lease at commencement. Right-of-use
(&ldquo;ROU&rdquo;) assets represent the Company&rsquo;s right to use an underlying asset for the lease term and lease liabilities represent
their obligation to make lease payments arising from the lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As most of the Company&rsquo;s leases do not
provide an implicit interest rate, the lease liability is calculated at lease commencement as the present value of unpaid lease payments
using the Company&rsquo;s estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that the
Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined
using a portfolio approach based on information available at the commencement date of the lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The lease asset also reflects any prepaid rent,
initial direct costs incurred and lease incentives received. The Company&rsquo;s lease terms may include optional extension periods when
it is reasonably certain that those options will be exercised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Leases with an initial expected term of 12 months
or less are not recorded in the Balance Sheet and the related lease expense is recognized on a straight-line basis over the lease term.
For certain classes of underlying assets, the Company has elected to not separate fixed lease components from the fixed non-lease components.
As of December 31, 2022 and 2021, there were no leases with an expected term greater than 12 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Reclassifications</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain amounts in the 2021 consolidated financial
statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or
equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 2 - Revenue</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table disaggregates the Company&rsquo;s
revenue based on the timing of satisfaction of performance obligations for the years ended December 31, 2022 and 2021:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2022</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2021</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Revenue recognized over time</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">33,229</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">340,984</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Revenue recognized at a point in time</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">45,107</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 4pt">Total revenue from contracts with customers</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">78,336</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">340,984</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The beginning and ending balances for deferred revenue were as follows
for the years ended December 31, 2022 and 2021:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2022</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt"><B>Deferred revenue</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>January 1</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>December&nbsp;31</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">66,549</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">44,073</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2021</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt"><B>Deferred revenue</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>January
                                            1</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>December&nbsp;31</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">74,268</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">66,549</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognized revenue of $66,549 in
2022 that was included in the deferred revenue balance as of December 31, 2021. The Company expects to recognize the December 31, 2022
balance fully in the year ending December 31, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Note 3 - Property, Plant and Equipment</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s fixed assets include the following on December
31, 2022 and 2021:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Accum.</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost Basis</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Net</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2022</B></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: justify; padding-bottom: 1.5pt">Office Furniture</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">12,380</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">(2,078</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">10,302</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2021</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Office Furniture</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">12,380</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(310</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">12,070</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Note 4 - Internally Developed Software</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Internally developed software asset consists of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="14" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2022</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Accumulated</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Cost</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Amortization</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Impairment</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Net</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 52%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Internally developed software</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">820,951</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(820,951</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="14" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2021</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Accumulated</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Cost</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Amortization</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Impairment</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Net</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 52%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Internally developed software</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,769,984</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(493,825</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,276,159</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During the years ended December 31, 2022 and 2021, the Company recognized
impairment loss on its internally developed software amounting to $820,951 and $2,276,159, respectively due to a decrease in projected
revenues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Amortization expense for the years ended December 31, 2022 and 2021,
was $0 and $372,542, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Note 5 - Intangible Assets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s intangible assets include the following on December
31, 2022:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Accumulated</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Cost</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Amortization</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Net</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Intellectual Property</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">22,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">22,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Proprietary technology</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">18,700</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,171</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">12,529</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 4pt">Total intangible assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">40,700</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(6,171</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">34,529</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Amortization expense for the years ended December 31, 2022 and 2021
was $6,171 and $0, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Note 6 - Fair Value of Assets and Liabilities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are three general valuation techniques
that may be used to measure fair value, as described below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify; padding-right: 7.35pt">Market approach
                                            &ndash; Uses prices and other relevant information generated by market transactions involving
                                            identical or comparable assets or liabilities. Prices may be indicated by pricing guides,
                                            sale transactions, market trades, or other sources;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify; padding-right: 7.4pt">Cost approach &ndash;
                                            Based on the amount that currently would be required to replace the service capacity of an
                                            asset (replacement cost); and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">3.</TD><TD STYLE="text-align: justify; padding-right: 7.35pt">Income approach
                                            &ndash; Uses valuation techniques to convert future amounts to a single present amount based
                                            on current market expectations about the future amounts (includes present value techniques
                                            and option-pricing models). Net present value is an income approach where a stream of expected
                                            cash flows is discounted at an appropriate market interest rate.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of the SAFE Agreements was determined
using the market approach with an option pricing model discounted to present value. Significant assumptions used in the option pricing
model included current equity value of the Company, risk free rate, maturity and volatility resulting in a future value of $0 and $2,134,635,
as of December 31, 2022 and 2021, respectively. A discount rate of 11.8% was applied to the future value to arrive at the estimated fair
value. In 2022, the SAFEs were converted to common stock through agreements made with all SAFE holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Liabilities measured at fair value as of December
31, 2022 is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Quoted Prices in Active</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Other Observable</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Unobservable</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Markets</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Inputs</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Inputs</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">(Level 1)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">(Level 2)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">(Level 3)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; width: 52%">SAFE Agreements</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; width: 9%">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; width: 9%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; width: 9%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; width: 1%">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; width: 9%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; width: 1%">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Liabilities measured at fair value as of December 31, 2021 is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Quoted Prices in Active</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Other Observable</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Unobservable</B></TD><TD><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Markets</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Inputs</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Inputs</B></TD><TD><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Total</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>(Level 1)</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>(Level 2)</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>(Level 3)</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 52%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">SAFE Agreements</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,134,635</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,134,635</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following are transfers into and out of Level 3 of the fair value
hierarchy and purchases and issues of Level 3 assets and liabilities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">Transfers into Level 3</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Transfers out of Level 3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Purchases</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Issuances</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,980,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Change in fair value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">154,635</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Balance at December 31, 2021</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,134,635</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Transfers into Level 3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Transfers out of Level 3</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Purchases</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Issuances</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Conversion to stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,980,000</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Change in fair value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(154,635</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Balance at December 31, 2022</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Note 7 - Convertible Notes Payable</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Convertible notes payable consists of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>2022</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2021</B></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: justify; text-indent: -0.125in; padding-left: 0.125in">9 convertible notes payable, bear interest
    at 6%, &nbsp; &nbsp; no monthly payments, unsecured, notes automatically convert at 50% of fair value (less any accrued interest)
    upon initial public offering (IPO) or other &ldquo;sale of control&rdquo; as defined in the agreement. If IPO or sale of control
    is not consummated by March 31, 2022, the Company &nbsp; has the option to repay notes at anytime prior to maturity date of October
    15, 2024</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3,300,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3,300,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">12 convertible notes payable, bear interest at 6%,
    &nbsp; no monthly payments, unsecured, notes automatically convert at 50% of fair value (less any accrued interest) upon IPO or other
    &ldquo;sale of control&rdquo; as defined in the agreement. If IPO or sale of control is not consummated by March 31, 2022 the company
    has the option to repay notes at anytime prior to maturity date of November 15, 2024 &nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,205,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,205,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">6 convertible notes payable, bear interest at 6%, &nbsp;
    &nbsp; no monthly payments, unsecured, notes automatically &nbsp;convert at 50% of fair value (less any accrued interest) upon &nbsp;IPO
    or other &ldquo;sale of control&rdquo; as defined in the agreement. If IPO or sale of control is not consummated by March 31, 2022
    the company has the option to repay notes at anytime prior to maturity date of December 23, 2024 &nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,800,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,800,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: justify; text-indent: -0.125in; padding-left: 0.125in">13 convertible notes payable,
    bear interest at 8%, &nbsp; no monthly payments, unsecured, notes automatically convert at 50% of fair value (less any accrued interest)
    upon IPO or other &ldquo;sale of control&rdquo; as defined in the agreement. Notes may only be&nbsp;&nbsp;prepaid by the Company
    with the written consent of the holder prior to the maturity &nbsp; date of August 8, 2023 &nbsp; &nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,315,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,620,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,305,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Less unamortized debt issuance
    costs &nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(387,920</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(495,007</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Long-term debt, less unamortized
    debt issuance costs</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,232,080</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">5,809,993</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Future maturities of convertible notes payable are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: justify"><B>Years Ending December 31,</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Amount</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">2022</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>-</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 88%; text-align: left">2023</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,315,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">2024</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6,305,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,620,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 8 - SAFE Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During March 2021 through July 2021, the Company
entered into 8 agreements consisting of a &ldquo;Simple Agreement for Future Equity&rdquo; (SAFE agreements) totaling $1,980,000. The
SAFE agreements provide a right to the holder to future equity in the Company in the form of these notes payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Company receives Equity Financing, the
SAFE agreement will automatically convert into the number of Preferred Shares equal to the Purchase Amount (as defined in the SAFE agreements)
divided by the conversion price per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If there is a Liquidity Event (as defined in
the SAFE agreements), the holder of the SAFE Agreement will be automatically entitled to receive a portion of the proceeds equal to the
greater of (i) the Purchase Amount/Cash-out Amount or (ii) an amount equal to a percentage of the proceeds to be received in a Liquidity
Event with such percentage calculated by dividing the Purchase Amount by the Liquidity Event Amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If there is a Dissolution Event (as defined in
the SAFE agreements), the holder of the SAFE agreement will automatically receive a portion of the Proceeds equal to the Purchase Amount/Cash-out
Amount, due and payable immediately prior to the consummation of the Dissolution Event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If after eighteen months, there has been no Equity
Financing, Liquidity Event, or Dissolution Event, the SAFE agreement will automatically convert into the number of Common Shares equal
to the Purchase Amount divided by the Valuation Discount Price Per Share resulting in an approximate 20% discount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2021, none of the above described
events have occurred. In 2022, the SAFE Agreements were voluntarily canceled through agreements with the SAFE holders and a total of
591,048 share of common stock were issued in exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SAFE Agreements were not mandatorily redeemable,
and they could require the Company to issue a variable number of shares. Management of the Company determined that the SAFE Agreements
contained a liquidity event provision that embodied an obligation indexed to the fair value of the equity shares and could require the
Company to settle the SAFE obligation by transferring assets or cash. The SAFE Agreements represented a recurring measurement that is
classified within Level 3, disclosed and defined in Note 5 of the financial statements of the fair value hierarchy wherein fair value
is estimated using significant unobservable inputs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On initial recognition, the Company measured
the fair value of the liability at an amount equal to the aggregate proceeds of $1,980,000 that was received from investors in exchange
for the SAFE agreements. As of December 31, 2022 and 2021, the Company estimated the fair value to be $0 and $2,134,635. See Note 5 for
Fair Value related disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The SAFE Agreements are shown as long-term on the accompanying balance
sheet in 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company elected to offer safe holders the
option for voluntary conversion. At the time of offering the company proposed a $25 million valuation offering to the current SAFE holders.
All SAFE holders voluntarily converted into common stock in 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 9 - Leases</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company leases office space under a long-term
operating lease from a third party expiring on May 31, 2023. Monthly rent is $12,075 and includes annual escalations. Total rental expense
to non-related parties in 2021 was $174,437. In December 2021, the Company entered into an agreement to sublease their office space to
an unrelated party under an operating lease agreement. The sublease ends on May 31, 2023 and includes fixed rent of $9,894. As a result
of the sublease, the Company incurred a loss on the transaction of $43,785 during the year ended December 31, 2021, which is shown as
lease liability in the accompanying balance sheet. The lease liability will be amortized over the remainder of the lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In November 2022, the company signed a 6-month
short-term lease for office space expiring on April 30, 2023. Monthly rent is $7,491 per month plus rental tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During 2021, the Company entered into a lease
for office space with a related party with the lease commencing in January 2022. The office space is owned by John Dorsey. The lease
agreement requires monthly payments of approximately $20,800 plus tax, with an increase of three percent every year on each anniversary
date until January 2026. As of December 31, 2021, a security deposit was paid in the amount of $23,411.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2022, the Company entered into a lease
termination agreement whereby both parties agreed to terminate the lease and release each other from all future obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total rental expense to non-related parties in
2022 and 2021 was $158,621 and $174,437 , respectively. Total rental expense to related parties in 2022 and 2021 was $148,876 and $0
respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of December 31, 2022, there are no future maturities of uncancelable
leases with a term longer than one year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Note 10 - Income Taxes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There was no current tax expense for the year ended December 31, 2022
and 2021. Deferred tax income was $100,000 and $0 as of December 31, 2022 and 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Deferred tax assets consist of the following components as of December
31, 2022 and 2021:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2022</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2021</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">Deferred Tax Asset (Liabilities)</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net operating loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,040,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">800,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Internally developed software</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">470,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Furniture and fixtures</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,000</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">R&amp;D Tax Credit Carryforwards</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">AZ Refundable R&amp;D Tax Credit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net deferred tax assets before valuation allowance</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,767,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">857,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Less valuation allowance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,667,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(857,000</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net deferred tax assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">100,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has a valuation allowance against
the full amount of its net deferred tax assets due to the uncertainty of realization of the deferred tax assets due to the operating
loss history of the Company. The Company currently provides a valuation allowance against deferred taxes when it is more likely than
not that some portion, or all of its deferred tax assets will not be realized. The valuation allowance could be reduced or eliminated
based on future earnings and future estimates of taxable income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">The Company&rsquo;s effective income tax rate
is lower than what would be expected if the federal statutory rate were applied to income from continuing operations primarily because
of expenses deductible for financial reporting purposes that are not deductible for tax purposes and tax-exempt income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 and 2021, the Company
had approximately $7,900,000 and $3,100,000, respectively, of federal net operating loss carryforwards available to offset future taxable
income. Under current tax law, the federal net operating losses generated do not expire and may be carried forward indefinitely. As of
December 31, 2022 and 2021, the Company has approximately $260,000 and $60,000, respectively, of federal and state research and development
credits. The 2022 Arizona credit of $100,000 is refundable, and the remaining federal credit from 2022 will expire in 2042, and the 2021
credits expire in 2041.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 11 - Recapitalization</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At inception, the Company was organized as a
limited liability company (LLC). During 2020, The LLC formed two wholly- owned subsidiaries, Signing Day Sports Football, LLC (SDSF LLC)
and Signing Day Sports Baseball, LLC (SDSB LLC).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Signing Day Sports, LLC, an Arizona limited liability
company (&ldquo;SDS LLC &ndash; AZ&rdquo;), was formed on January 21, 2019. SDS LLC &ndash; AZ formed two wholly-owned subsidiaries,
Signing Day Sports Football, LLC, an Arizona limited liability company (&ldquo;SDSF LLC&rdquo;), and Signing Day Sports Baseball, LLC,
an Arizona limited liability company (&ldquo;SDSB LLC&rdquo;), on September 29, 2020 and November 25, 2020, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 5, 2020, a process to change SDS LLC
&ndash; AZ into a Delaware corporation was initiated. On that date, a certificate of formation for Signing Day Sports, LLC, a Delaware
limited liability company (&ldquo;SDS LLC &ndash; DE&rdquo;), and a certificate of conversion of SDS LLC &ndash; AZ into SDS LLC &ndash;
DE, were filed with the Delaware Secretary of State. On September 9, 2021, a certificate of incorporation for Signing Day Sports, Inc.,
a Delaware corporation (&ldquo;SDS Inc. &ndash; DE&rdquo; or the &ldquo;Company&rdquo;), and a certificate of conversion of SDS LLC &ndash;
DE into SDS Inc. &ndash; DE were filed with the Delaware Secretary of State. From September 9, 2021 to July 11, 2022, SDS Inc. &ndash;
DE operated as the successor entity to SDS LLC &ndash; AZ, and SDS LLC &ndash; AZ continued to be registered as an active entity with
the Arizona Corporation Commission while its conversion into SDS LLC &ndash; DE pended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 11, 2022, an Agreement and Plan of Merger
was entered into between SDS LLC &ndash; AZ, SDSF LLC, SDSB LLC, and SDS Inc. &ndash; DE (the &ldquo;Merger Agreement&rdquo;). On the
same date, pursuant to the Merger Agreement, a certificate of merger was filed with the Delaware Secretary of State and a statement of
merger was filed with the Arizona Secretary of State effecting the merger of SDS LLC &ndash; AZ, SDSF LLC, and SDSB LLC with and into
SDS Inc. &ndash; DE, and SDS Inc. &ndash; DE succeeded to the rights, property, obligations, and liabilities of each of SDS LLC &ndash;
AZ, SDSF LLC, and SDSB LLC. In anticipation of the Merger Agreement and its consummation, in April 2022 and May 2022, SDS LLC &ndash;
AZ, SDS Inc. &ndash; DE, and each of the members or stockholders of SDS LLC &ndash; AZ, SDSF LLC, SDSB LLC, and SDS Inc. &ndash; DE,
entered into Settlement Agreement and Releases (collectively, the &ldquo;Settlement Agreements&rdquo;), which provided, among other things,
for the mutual general release of all claims by the parties against and relating to SDS LLC &ndash; AZ, SDSF LLC, SDSB LLC, and SDS Inc.
&ndash; DE, and confirmed the owners and related amounts of all outstanding shares of common stock of SDS Inc. represented by the capitalization
table exhibit to the Settlement Agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">SDS Inc. &ndash; DE has 150,000,000 shares authorized.
No shares were formally issued as of December 31, 2021. On July 11, 2022, it was agreed that all previous members in SDS LLC -AZ owned
7,495,104 common shares of SDS Inc. &ndash; DE at the date of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying balance sheet and statement
of stockholders&rsquo; and members&rsquo; equity (deficit) retrospectively present the shares as if they were issued as of December 31,
2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 12 - Stockholder&rsquo;s Deficit</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Common Stock</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is authorized to issue 150,000,000
shares of $0.0001 par value common stock as of December 31, 2022 and 2021, respectively. The Company has 8,086,152 and 7,495,104 shares
issued and outstanding as of December 31, 2022 and 2021, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During 2021, 7,495,104 shares were issued as
part of the recapitalization from an LLC to a Corporation. See note 11. In 2022, 591,048 shares of common stock were issued in exchange
for the cancelation of the SAFE agreements. See note 8.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.5pt 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Reverse Stock Split</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 14, 2023 (the &ldquo;Effective Date&rdquo;),
the Company filed a Certificate of Amendment with the Secretary of State of the State of Delaware.&nbsp;Upon the filing and effectiveness,
April 14, 2023,&nbsp; pursuant to the Delaware General Corporation Law of this Certificate of Amendment to the Certificate of Incorporation
of the Corporation, each five (5) shares of Common Stock issued and outstanding immediately prior to the Effective Date shall, automatically
and without any action on the part of the respective holder thereof, be combined and converted into one (1) share of Common Stock (the
&ldquo;Reverse Stock Split&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Certificate of Amendment
effected a 1-for-5 Reverse Stock Split on the Effective Date and was approved by shareholders on April 4, 2023, and the Board of Directors
on April 11, 2023. Accordingly, all share and per share amounts for all periods presented in the accompanying financial statements and
notes thereto have been adjusted retroactively, where applicable, to reflect this&nbsp;reverse&nbsp;stock split.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Equity Incentive Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2022, the Board of Directors adopted
the Company&rsquo;s 2022 Equity Incentive Plan (the &ldquo;2022 Plan&rdquo;), effective as of August 31, 2022. Awards that may be granted
under the 2022 Plan include: (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stock Appreciation Rights, (d) Restricted
Awards, (e)Performance Share Awards, and (f) Performance Compensation Awards. The persons eligible to receive Awards are the Employees,
Consultants and Directors of the Company and its Affiliates and such other individuals designated by the Committee who are reasonably
expected to become Employees, Consultants and Directors after the receipt of Awards. The purpose of the 2022 Plan is to attract and retain
the types of Employees, Consultants and Directors who will contribute to the Company&rsquo;s long-term success; (b) provide incentives
that align the interests of Employees, Consultants and Directors with those of the stockholders of the Company; and (c) promote the success
of the Company&rsquo;s business. The 2022 Plan shall be administered by the Committee or, in the Board&rsquo;s sole discretion, by the
Board. Subject to the terms of the Plan and the provisions of Section 409A of the Code (if applicable), the Committee&rsquo;s charter
and Applicable Laws, and in addition to other express powers and authorization conferred by the Plan. The Board reserved 750,000 shares
of common stock issuable upon the grant of awards. Stock options comprise all of the awards granted since the 2022 Plan&rsquo;s inception.
As of December 31, 2022, there were 488,000 shares available for grant under the 2022 Plan and the Company had granted 262,000 stock
options to purchase common stock with an exercise price of $3.10 that expire ten years from the date of grant.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A summary of information related to stock options
for the year ended December 31, 2022 is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.5pt 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.5pt 0pt 0; text-align: justify">The summary of activity under the plan
as of December 31, 2022, and changes during the year then ended is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.5pt 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Weighted</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Average Exercise</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Intrinsic</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Options</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Value</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Outstanding at December 31, 2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 64%">Granted</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">262,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3.10</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Forfeited or expired</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Outstanding at December 31, 2022</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">262,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3.10</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">$</TD><TD STYLE="padding-bottom: 4pt; text-align: right">42,402</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Exercisable at December 31, 2022</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">92,390</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3.10</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">$</TD><TD STYLE="padding-bottom: 4pt; text-align: right">21,848</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Year Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">December&nbsp;31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Weighted average grant-date fair value of
    options granted during year</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1.74</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Weighted average duration (years) to expiration of outstanding
    options at year-end</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.73</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">The following table presents, on a weighted average
basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0; text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Year Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0; text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">December&nbsp;31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0; text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: justify; padding-left: 0">Risk-free interest rate</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3.88</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0">Expected term (in years)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.42</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-left: 0">Expected volatility</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-left: 0">Expected dividend yield</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The total grant-date fair value of the options
granted during the year ended December 31, 2022, was $440,726. Stock-based compensation expense of $152,251 was recognized for the year
ended December 31, 2022. Total unrecognized compensation cost related to non-vested stock option awards amounted to $288,475 as of December
31, 2022, which will be recognized over a weighted average period of 1.1 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 13 - Commitments and Contingencies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify"><B>Legal</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company may be a party to various legal actions
arising from the normal course of business. In management&rsquo;s opinion, the Company has adequate legal defenses and/or insurance coverage
and does not believe the outcome of such legal actions will materially affect the Company&rsquo;s operation and/or financial position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Betterdays Media, Inc. v. Signing Day Sports,
LLC,</I> Case No. 2:21-cv-07442-DMG-JDE (United States District Court for the Central District of California, September 17, 2021)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The plaintiff, Betterdays Media, Inc. commenced
this case in the Superior Court of California for Los Angeles County. Thereafter, the defendant, SDS LLC &ndash; AZ, removed the case
to U.S. District Court for the Central District of California on September 17, 2021. The plaintiff&rsquo;s complaint in the case alleges
that it entered into a contract with the defendant pursuant to which the plaintiff was to perform film production work on a sports documentary
for the defendant and that the defendant breached that contract by failing to pay the full amount owed under the contract to the plaintiff.
The plaintiff claimed damages in the amount of $138,062.97 plus interest. In its answer to the complaint, SDS LLC &ndash; AZ denied the
plaintiff&rsquo;s allegations. On February 1, 2022, the parties filed a joint notice stating that they had agreed to settle the case,
were preparing a written settlement agreement and stipulation of dismissal, and that by February 28, 2022 they would file such stipulated
dismissal or a report why such stipulated dismissal was not filed. On February 4, 2022, the court entered an order providing that, by
March 1, 2022, the parties were to file either (1) a stipulation and proposed order for dismissal of the action or judgment, or (2) a
motion to reopen if settlement has not been consummated and that upon the failure to timely comply with this order, the action would
be deemed to be dismissed as of March 2, 2022. That was the last docket entry in the case. Therefore, pursuant to that order, the case
was deemed dismissed as neither a stipulation and proposed order of dismissal nor a motion to reopen was filed by March 1, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Claim of John Dorsey</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On or about November 29, 2022, John Dorsey, a
former Chief Executive Officer and director of the Company, through his counsel, sent the Company a letter demanding full payment on
the Alleged Loan in connection with the Loan Dispute. Under the January 2023 Dorsey Settlement Agreement, Mr. Dorsey agreed to a discharge
of the Alleged Loan and waiver and release of claims relating to the Alleged Loan and Loan Dispute and covenant not to sue on the basis
of such claims or otherwise commence any action or proceeding that would be inconsistent with the release of such claims. The Company
agreed to pay Mr. Dorsey $10,000 and issue a promissory note to Mr. Dorsey in the principal amount of $40,000 payable on the earlier
of ten business days following the successful closing of an initial public offering of the Company&rsquo;s common stock that generates
at least $1 million in net proceeds to the Company or July 1, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>Collaborative Arrangements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The company has entered into collaborative arrangements
with various parties for the cross promotion of technologies and services within certain geographical areas. These arrangements do not
commit the Company or the counterpart to any financial obligation. If these arrangements result in a formal project, the Company and
the counterparties will receive certain equity consideration in the project or be given first right of refusal to provide their products
or services to the projects, as defined by the respective agreements. To date, these arrangements have not resulted in any formal projects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 14 - Related Party Transactions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">See leases note 9 for related party
disclosure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 10, 2023, the Company issued Richard
Symington, our President and Chief Marketing Officer and a director, an 8% unsecured promissory note in the amount of $250,000 and a
warrant to purchase 100,000 shares of common stock at an exercise price of $2.50 per share in a private placement. The promissory note
bears interest at 8% annually and will mature on the earlier to occur of March 17, 2025 or a Liquidity Event. If a Liquidity Event occurs
before March 17, 2025, the warrant will be automatically exercised as to the unexercised portion of the warrant, the outstanding balance
due under the 8% unsecured promissory note will be deemed repaid in the amount of the unexercised portion of the warrant from the automatic
exercise of the unexercised portion of the warrant, and any remaining balance outstanding under the promissory note must be repaid in
cash. If a Liquidity Event does not occur before March 17, 2025, then both principal and interest outstanding under the note must be
repaid in cash. The warrant may be voluntarily exercised for cash prior to the maturity date of the promissory note or, as indicated
above, will be automatically exercised for shares of common stock upon the consummation of a Liquidity Event. The warrant has a five-year
term. Mr. Symington also entered into a subscription agreement which provided certain registration rights with respect to the shares
underlying the warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the terms of the Repurchase Agreement,
on March 31, 2023, we paid an aggregate purchase price of $800,000 for 600,000 shares of common stock formerly held by Dennis Gile, our
largest stockholder and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, at approximately
$1.33 per share. Pursuant to the Repurchase Agreement, the Dorsey/Gile Settlement Payment was made to John Dorsey as part of the settlement
of the Dorsey/Gile Lawsuit under the Dorsey/Gile Settlement Agreement. Pursuant to the Repurchase Agreement, the balance of the aggregate
purchase price was paid to the attorneys for Mr. Gile. Pursuant to the Repurchase Agreement, Mr. Gile agreed to resign his position as
Chairman and every other director and officer position he held with the Company effective as of March 21, 2023. Prior to such date, on
March 20, 2023, Mr. Gile delivered notice of resignation from such positions, which stated that it was effective March 19, 2023. Pursuant
to the Repurchase Agreement, Mr. Gile will not receive any severance payments in connection with any other agreement with the Company
as a result of his resignation. The Repurchase was also conditioned on the Company&rsquo;s prior review of and consent to the Dorsey/Gile
Settlement Agreement prior to its execution, and receipt of the CFO Certificate. Under the Repurchase Agreement, the Dorsey/Gile Settlement
Agreement was required to fully resolve, settle and dismiss the Gile/Dorsey Lawsuit and contain a general release of claims by all the
plaintiffs in the Dorsey/Gile Lawsuit in favor of Mr. Gile, the Company, the Company&rsquo;s affiliates, stockholders, and certain other
Company releasees. Under the Repurchase Agreement, Mr. Gile agreed to indemnify the Company for claims arising out of based upon the
Repurchase Agreement. Pursuant to the Repurchase Agreement, a copy of the Dorsey/Gile Settlement Agreement was reviewed and consented
to by the Company and entered into as of March 20, 2023. Under the Dorsey/Gile Settlement Agreement, between Mr. Gile, Mr. Dorsey, and
Dorsey LLC, Mr. Gile agreed to pay the Dorsey/Gile Settlement Payment, transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile,
Mr. Dorsey and Dorsey LLC agreed to mutual releases of all claims relating to the Dorsey/Gile Lawsuit and to dismiss the Dorsey/Gile
Lawsuit. Although the Dorsey/Gile Settlement Agreement did not contain a release of the Company and did not contain releases by the plaintiffs
of Mr. Gile other than with respect to the Lawsuit, the Company waived any related requirements under the Repurchase Agreement in light
of the expected execution of the Mutual Release Agreement. The CFO Certificate was received as of March 21, 2023. The repurchased shares
were cancelled as of March 31, 2023. The transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023, after waiver
of the board of directors of the repurchase rights and purchase rights provided for under the Shareholder Agreement by resolutions adopted
on March 24, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">Under the Mutual Release Agreement,
as of March 29, 2023, Mr. Dorsey agreed to a general release of claims against and covenant not to sue the Company, the Company&rsquo;s
affiliates, stockholders, and certain other Company releasees, and the Company agreed to a general release of claims against and covenant
not to sue Mr. Dorsey, Mr. Dorsey&rsquo;s affiliates, and certain other releasees, subject to payment of the Dorsey/Gile Settlement Payment,
which, as indicated above, was made on March 31, 2023. The releases of claims and covenants not to sue under the Mutual Release Agreement
do not apply to breach of the Dorsey/Gile Settlement Agreement or to the January 2023 Dorsey Settlement Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our Settlement Agreement with Dennis Gile,
our largest stockholder and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, dated as of
May 12, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers and directors,
certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation,
claims relating to Mr. Gile&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Mr. Gile&rsquo;s
direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable,
provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or Mr. Gile may have under
the terms of that certain Severance General Waiver and Release Agreement between Mr. Gile and the Company, dated March 22, 2022, including
the releases of any and all claims against the Company and certain related parties as contained therein, Mr. Gile&rsquo;s agreement to
be terminated effective on January 1, 2022 and receive a severance payment of $53,500 pursuant to Section 1 of the Severance Agreement,
paid in March 2022, all of which terms were to remain in force notwithstanding the provisions of the Settlement Agreement. Further, Mr.
Gile irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to
any claim, distributions, payments, or other amounts that Mr. Gile believed should have been paid or were owed to Mr. Gile by SDS LLC
&ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a
clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC
&ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed
that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an
exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Gile owned 2,816,377 shares of common stock pursuant to the
Settlement Agreement. Mr. Gile also irrevocably covenanted that he would not sue us or the other released parties in respect of any of
the matters released and discharged. Notwithstanding the Severance Agreement referenced above, Mr. Gile has not had a written employment
agreement with the Company, has not been terminated, and has not received a salary since 2021, but has continued to receive standard
employee benefits on a monthly basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our Settlement Agreement with Dorsey LLC,
John Dorsey, in his individual capacity, and who was formerly Chief Executive Officer and a director of the Company, and his spouse,
Elena Dorsey, to the extent of such spouse&rsquo;s community property interest, if any (together, &ldquo;Dorsey&rdquo;), dated as of
April 25, 2022, the parties agreed, among other things, (1) that Dorsey had held 959,940 shares of SDS Inc. &ndash; DE&rsquo;s common
stock at that time, (2) that prior to the anticipated redomestication of SDS LLC &ndash; AZ to Delaware as a Delaware limited liability
company and conversion to a Delaware corporation, Dorsey was a member of SDS LLC &ndash; AZ and was a party to SDS LLC &ndash; AZ&rsquo;s
Fourth Amended Limited Liability Company Operating Agreement dated July 16, 2021 (the &ldquo;SDS LLC &ndash; AZ Operating Agreement&rdquo;),
(3) that the SDS LLC &ndash; AZ Operating Agreement provided Dorsey, among other things, certain anti-dilution protections whereby SDS
LLC &ndash; AZ would have been required to issue additional equity to Dorsey if SDS LLC &ndash; AZ were to have issued additional equity
which would have the effect of reducing Dorsey&rsquo;s ownership below 11% of SDS LLC &ndash; AZ&rsquo;s outstanding equity (the &ldquo;Dorsey
Anti-Dilution Provision&rdquo;), (4) that on April 25, 2022, Dorsey LLC would receive a total of 350,000 shares of common stock of SDS
Inc. &ndash; DE in exchange for Dorsey&rsquo;s cancellation, waiver, and release of all of Dorsey&rsquo;s rights under the Dorsey Anti-Dilution
Provision in the SDS LLC &ndash; AZ Operating Agreement, (5) to a general release and discharge of claims against us, our officers and
directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without
limitation, claims relating to the Dorsey Anti-Dilution Provision, Dorsey&rsquo;s direct or indirect ownership of shares of SDS Inc.
&ndash; DE&rsquo;s capital stock, or Dorsey&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC
&ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release
any rights that any party or Dorsey may have under the terms of that certain Offer of Employment between John Dorsey and SDS LLC &ndash;
AZ, dated January 13, 2022, or that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date
of this prospectus, the Company has no agreements with Dorsey otherwise relating to, and has not issued to Dorsey, any simple agreement
for future equity or convertible note. Further, Dorsey irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
forever released and waived their rights to any claim, distributions, payments, or other amounts that Dorsey believed should have been
paid or were owed to Dorsey by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed,
in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Dorsey LLC owned 1,309,940 shares of common
stock pursuant to the Settlement Agreement. Dorsey also irrevocably covenanted that they would not sue us or the other released parties
in respect of any of the matters released and discharged. Mr. Dorsey is deemed to beneficially own the shares of common stock owned by
Dorsey LLC and has sole voting and dispositive powers over its shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On or about November 29, 2022, John Dorsey, a
former Chief Executive Officer and director of the Company, through his counsel, sent the Company a letter demanding full payment on
the Alleged Loan in connection with the Loan Dispute. Under the January 2023 Dorsey Settlement Agreement, Mr. Dorsey agreed to a discharge
of the Alleged Loan and waiver and release of claims relating to the Alleged Loan and Loan Dispute and covenant not to sue on the basis
of such claims or otherwise commence any action or proceeding that would be inconsistent with the release of such claims. The Company
agreed to pay Mr. Dorsey $10,000 and issue a promissory note to Mr. Dorsey in the principal amount of $40,000 payable on the earlier
of ten business days following the successful closing of an initial public offering of the Company&rsquo;s common stock that generates
at least $1 million in net proceeds to the Company or July 1, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our Settlement Agreement with Noah (Jed)
Smith, a former director and a beneficial owner of more than 5% of the outstanding common stock of the Company, and his spouse, Glory
Smith, to the extent of such spouse&rsquo;s community property interest, if any (together, &ldquo;Smith&rdquo;), dated as of May 13,
2022, the parties agreed, among other things, (1) that Dennis Gile, the founder of SDS LLC &ndash; AZ, our largest stockholder, and a
former Chief Executive Officer, President, Secretary, and Chairman of the Company, agreed and contracted to fulfill certain obligations
to Smith, including, but not limited to, granting a profits interest that was intended to be a membership interest in SDS LLC &ndash;
AZ as well as a percentage of future profits from the operations or sale of SDS LLC &ndash; AZ, pursuant to that certain Contribution
and Profit-Sharing Agreement between Mr. Gile and Smith, dated April 5, 2019, as amended by that certain First Amendment to Contribution
and Profit-Sharing Agreement dated December 9, 2019, and that certain Second Amendment to Contribution and Profit-Sharing Agreement dated
August 21, 2020, all attached as an exhibit to the Settlement Agreement (collectively, the &ldquo;Smith Contribution and Profit-Sharing
Agreement&rdquo;), (2) that Mr. Smith held 300,000 shares of common stock in SDS Inc. &ndash; DE in exchange for Smith&rsquo;s previous
contributions to SDS LLC &ndash; AZ, (3) that on May 13, 2022, Mr. Smith would receive an additional 100,000 shares of common stock of
SDS Inc. &ndash; DE in exchange for the termination of Smith&rsquo;s rights under the Smith Contribution and Profit-Sharing Agreement,
(4) that following such receipt of such additional shares, Mr. Smith would have a total of 400,000 shares of common stock, and (5) to
a general release and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our
stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the Smith Contribution and Profit-Sharing
Agreement, Smith&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Smith&rsquo;s direct
or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided,
however, that nothing in the Settlement Agreement was intended to release any rights that any party or Smith may have under that certain
Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus, the Company has no agreements
with Smith otherwise relating to, and has not issued to Smith, any simple agreement for future equity or convertible note. Further, Smith
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any
claim, distributions, payments, or other amounts that Smith believed should have been paid or were owed to Smith by SDS LLC &ndash; AZ,
SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding
regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash;
DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not
own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Mr. Smith owned 400,000 shares of common stock pursuant to the Settlement Agreement. Smith also irrevocably
covenanted that they would not sue us or the other released parties in respect of any of the matters released and discharged.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our Settlement Agreement with Virginia
Byrd, an individual, and Byrd Enterprises of Arizona, Inc., an Arizona corporation (&ldquo;Byrd Enterprises&rdquo;), dated as of May
13, 2022 (together, &ldquo;Byrd&rdquo;), the parties agreed, among other things, to a general release and discharge of claims against
us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement,
including without limitation, claims relating to Byrd&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital
stock, or Byrd&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB
LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or
Byrd may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus,
the Company has no agreements with Byrd otherwise relating to, and has not issued to Byrd, any simple agreement for future equity or
convertible note. Further, Byrd irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released
and waived their rights to any claim, distributions, payments, or other amounts that Byrd believed should have been paid or were owed
to Byrd by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make
sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily,
knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests
in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent,
and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached
as an exhibit to the Settlement Agreement. The parties therefore agreed that Byrd Enterprises owned 767,785 shares of common stock pursuant
to the Settlement Agreement. Byrd also irrevocably covenanted that they would not sue us or the other released parties in respect of
any of the matters released and discharged.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 15, 2021, the Company issued a 6%
convertible unsecured promissory note in the amount of $565,000 to Zone Right in a private placement. Glen Kim, a director of the Company
and the managing member of Zone Right, is deemed to beneficially own the shares of common stock owned by Zone Right and has sole voting
and dispositive powers over its shares. The convertible note bears interest at 6% annually and matures on November 15, 2024. The convertible
note contains provisions for optional and mandatory conversion and conversion price adjustments. In the event that the Company&rsquo;s
initial public offering occurs prior to such convertible note&rsquo;s maturity date or optional conversion, 282,500 shares of common
stock will be issuable upon the automatic conversion of such convertible note, based on the assumed initial public offering price of
$4.00 per share, which is the low point of the price range set forth on the cover page of this prospectus. The purchaser also entered
into a subscription agreement and investor rights and lockup agreement which provided information and inspection rights, registration
rights, lock-up provisions, participation rights in subsequent securities offerings and private placements, and typical &ldquo;drag along&rdquo;
and &ldquo;tag along&rdquo; rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our Settlement Agreement with Zone Right,
Mr. Kim, a director of the Company, and his spouse, Jessica Lee, to the extent of such spouse&rsquo;s community property interest, if
any, dated as of April 26, 2022 (the &ldquo;Zone Right Parties&rdquo;), the parties agreed, among other things, to a general release
and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as
listed on an exhibit to the agreement, including without limitation, claims relating to the Zone Right Parties&rsquo; direct or indirect
ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or the Zone Right Parties&rsquo; direct or indirect ownership of membership
interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
Agreement was intended to release any rights that any party or the Zone Right Parties may have under that certain Simple Agreement for
Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus, other than as otherwise disclosed above, the
Company has no agreements with the Zone Right Parties otherwise relating to, and has not issued to the Zone Right Parties, any Simple
Agreement for Future Equity or convertible note. Further, the Zone Right Parties irrevocably, unconditionally, voluntarily, knowingly,
fully, finally, and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that
the Zone Right Parties believed should have been paid or were owed to the Zone Right Parties by SDS LLC &ndash; AZ, SDS LLC &ndash; DE,
SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding regarding the
capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF
LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Zone Right owned 483,833 shares of common stock pursuant to the Settlement Agreement. The Zone Right
Parties also irrevocably covenanted that they would not sue us or the other released parties in respect of any of the matters released
and discharged. Glen Kim is deemed to beneficially own the shares of common stock owned by Zone Right and has sole voting and dispositive
powers over its shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under a lease agreement dated as of October 7,
2021 and an addendum dated the same date, we leased our former corporate offices consisting of approximately 7,800 square feet for a
term of five years beginning January 1, 2022 and ending December 31, 2026 for a monthly rent of $20,800 plus tax and certain operating
expenses, with an increase of 3% at the beginning of every calendar year following the first year of the term of the lease agreement
through January 2026. As of December 31, 2021, a security deposit was paid in the amount of $23,411. The office space was owned by John
Dorsey, a former chief executive officer and director of the Company. On August 31, 2022, we entered into a Lease Termination Agreement
in which both parties agreed to terminate the lease and release each other from all future obligations. The total approximate dollar
value of this transaction was $420,992 plus tax and certain operating expenses. The approximate dollar value of the interest of Mr. Dorsey
in this transaction was $420,992.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 7, 2021, SDS LLC &ndash; AZ agreed
to issue Clayton Adams, a former director and a beneficial owner of more than 5% of the common stock of the Company, 4.3% of its membership
interests in a private placement for total proceeds of $250,000 under a membership interest purchase agreement. The agreement stated
that SDS LLC &ndash; AZ intended to convert into a corporation in connection with a going public transaction by way of an initial public
offering or reverse merger (&ldquo;Going Public Transaction&rdquo;), and that the membership interest would be converted into or exchanged
for shares of common stock in connection with the Public Transaction. The agreement indicates that the number of shares of common stock
that Mr. Adams would hold upon an initial public offering would be 363,274 shares of common stock. Under the agreement, SDS LLC &ndash;
AZ reserved the right to reduce Mr. Adams&rsquo; membership interest from the pre-Public Transaction valuation of our most recent SAFE
round of $42,000,000. The parties also agreed that, notwithstanding the foregoing, the membership interest would not be adjusted based
on the final capital structure following a Public Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our Settlement Agreement with Clayton Adams,
a former director and a beneficial owner of more than 5% of the common stock of the Company, dated as of May 3, 2022, the parties agreed,
among other things, to a general release and discharge of claims against us, our officers and directors, certain other affiliates and
related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to Mr.
Adams&rsquo; direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Mr. Adams&rsquo; direct or indirect
ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
that nothing in the Settlement Agreement was intended to release any rights that any party or Mr. Adams may have under that certain Simple
Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus, the Company has no agreements
with Mr. Adams otherwise relating to, and has not issued to Mr. Adams, any simple agreement for future equity or convertible note. Further,
Mr. Adams irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights
to any claim, distributions, payments, or other amounts that Mr. Adams believed should have been paid or were owed to Mr. Adams by SDS
LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was
a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC
&ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed
that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an
exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Adams owned 363,274 shares of common stock pursuant to the
Settlement Agreement. Mr. Adams also irrevocably covenanted that they would not sue us or the other released parties in respect of any
of the matters released and discharged.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 21, 2022, the date that Clayton Adams,
a former director and a beneficial owner of more than 5% of the common stock of the Company, was appointed as a member of our board of
directors, Mr. Adams agreed to provide $100,000 in financing to the Company. The Company has not borrowed any funds from Mr. Adams and
does not expect that it will need to do so as of the date of this prospectus. Mr. Adams resigned from his position on the board of directors
effective April 27, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 9, 2021, SDS LLC &ndash; AZ agreed
to issue Matthew Atkinson, a former director and a beneficial owner of more than five percent (5%) of the issued and outstanding shares
of the Company, 4.3% of its membership interests in a private placement for total proceeds of $250,000 under a membership interest purchase
agreement. The agreement stated that SDS LLC &ndash; AZ intended to convert into a corporation in connection with a going public transaction
by way of an initial public offering or reverse merger (&ldquo;Going Public Transaction&rdquo;), and that the membership interest would
be converted into or exchanged for shares of common stock in connection with the Public Transaction. The agreement indicates that the
number of shares of common stock that Mr. Atkinson would hold upon an initial public offering would 363,274 shares of common stock. Under
the agreement, SDS LLC &ndash; AZ reserved the right to reduce Mr. Atkinson&rsquo;s membership interest from the pre-Public Transaction
valuation of the Company&rsquo;s most recent SAFE round of $42,000,000. The parties also agreed that, notwithstanding the foregoing,
the membership interest would not be adjusted based on the final capital structure following a Public Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our Settlement Agreement with Mr. Atkinson
and his spouse, Penny Atkinson, to the extent of such spouse&rsquo;s community property interest, if any (together, &ldquo;Atkinson&rdquo;),
dated as of May 13, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers
and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including
without limitation, claims relating to Atkinson&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital
stock, or Atkinson&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC,
or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party
or Atkinson may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of
this prospectus, the Company has no agreements with Atkinson otherwise relating to, and has not issued to Atkinson, any simple agreement
for future equity or convertible note. Further, Atkinson irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
forever released and waived their rights to any claim, distributions, payments, or other amounts that Atkinson believed should have been
paid or were owed to Atkinson by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also
agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Atkinson owned 383,274 shares of common
stock pursuant to the Settlement Agreement. Atkinson also irrevocably covenanted that they would not sue us or the other released parties
in respect of any of the matters released and discharged.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under our Settlement Agreement with 35&rsquo;sNextChapters,
LLC (&ldquo;35&rsquo;sNextChapters&rdquo;), dated as of May 13, 2022, the parties agreed, among other things, to a general release and
discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed
on an exhibit to the agreement, including without limitation, claims relating to 35&rsquo;sNextChapters&rsquo; direct or indirect ownership
of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or 35&rsquo;sNextChapters&rsquo; direct or indirect ownership of membership interests
of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement
was intended to release any rights that any party or 35&rsquo;sNextChapters may have under the terms of that certain Invitation to Join
the Board of Directors between Ronald Saslow and the Company or that certain Simple Agreement for Future Equity and/or Convertible Note,
as applicable. As of the date of this prospectus, the Company has no agreements with 35&rsquo;sNextChapters otherwise relating to, and
has not issued to 35&rsquo;sNextChapters, any convertible note or Invitation to Join the Board of Directors between Ronald Saslow and
the Company. Further, 35&rsquo;sNextChapters irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
released and waived their rights to any claim, distributions, payments, or other amounts that 35&rsquo;sNextChapters believed should
have been paid or were owed to 35&rsquo;sNextChapters by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash;
DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE,
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they
may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE,
whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond
that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that 35&rsquo;sNextChapters
owned 150,000 shares of common stock pursuant to the Settlement Agreement. 35&rsquo;sNextChapters also irrevocably covenanted that they
would not sue us or the other released parties in respect of any of the matters released and discharged. Ronald Saslow, a former director
of the Company, as Manager of 35&rsquo;sNextChapters, is deemed to beneficially own the shares of common stock owned by 35&rsquo;sNextChapters
and has sole voting and dispositive powers over its shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In July 2021, we issued a SAFE to 35&rsquo;snextchapters,
LLC, whose Manager, Ronald Saslow, is a former director of the Company, and is deemed to beneficially own the securities and interests
in securities owned by 35&rsquo;sNextChapters and has sole voting and dispositive powers over its securities. In October 2022, we entered
into a cancellation and exchange agreement with 35&rsquo;snextchapters, LLC in which we agreed to cancel its SAFE in exchange for the
issuance of 74,627 shares of common stock. The number of shares was equal to the purchase amount under the SAFE divided by approximately
$3.35, based on a $25 million valuation for the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In April 2021, we issued a SAFE to The Nelson
Revocable Living Trust (the &ldquo;Nelson Trust&rdquo;), one of whose co-trustees is Daniel D. Nelson, our Chief Executive Officer, Chairman,
and a director of the Company, in exchange for a payment of $100,000. In October 2022, we entered into a cancellation and exchange agreement
with the Nelson Trust in which we agreed to cancel its SAFE in exchange for the issuance of 29,851 shares of common stock. The number
of shares was equal to the purchase amount under the SAFE divided by approximately $3.35, based on a $25 million valuation for the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On October 15, 2021, the Company issued a 6%
convertible unsecured promissory note in a private placement in the amount of $1,500,000 to the Nelson Trust, whose co-trustees are Daniel
D. Nelson, our Chief Executive Officer, Chairman, and a director of the Company, and Jodi B. Nelson. The convertible note bears interest
at 6% annually and matures on October 15, 2024. The convertible note contains provisions for optional and mandatory conversion and conversion
price adjustments. In the event that the Company&rsquo;s initial public offering occurs prior to such convertible note&rsquo;s maturity
date or optional conversion, 750,000 shares of common stock will be issuable upon the automatic conversion of such convertible note,
based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover
page of this prospectus. The purchaser also entered into a subscription agreement and investor rights and lockup agreement which provided
information and inspection rights, registration rights, lock-up provisions, participation rights in subsequent securities offerings and
private placements, and typical &ldquo;drag along&rdquo; and &ldquo;tag along&rdquo; rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In April 2022, Nelson Financial Services Inc.
became the insurance agent providing group benefits for the Company. Total dollar benefits provided to the Company under the group benefits
plan in 2022 were approximately $48,374. Total dollar payments to Nelson Financial Services Inc. in 2022 under the group benefits plan
were approximately $2,790. As Chief Executive Officer and sole owner of Nelson Financial Services Inc., the approximate dollar value
of Mr. Nelson&rsquo;s interest in this transaction was approximately $2,790.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 15 - Restatement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has restated its previously issued
financial statements to appropriately reflect the December 31, 2021 internally developed software and impairment loss on the statement
of operations for the year ended December 31, 2021, as well as to properly reflect the impact of the conversion of the Company from a
limited liability company to a corporation on the statement of stockholders&rsquo; and members&rsquo; equity (deficit) for the year ended
December 31, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The statement of stockholders&rsquo; and member&rsquo;s
equity (deficit) also reflects an opening balance reclassification of accumulated deficit to total members&rsquo; equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a summary of the effects of
the restatement in the Company&rsquo;s December 31, 2021 Balance Sheet:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>As previously reported</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Adjustment</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>As restated</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: justify">Internally developed software, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,276,159</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(2,276,159</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,192,354</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,276,159</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,916,195</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,870,793</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,628,524</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,242,269</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Accumulated deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,159,367</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,352,365</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,807,002</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Total stockholders&rsquo; (deficit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,284,826</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,276,159</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,560,985</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Total liabilities and stockholders&rsquo; (deficit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,192,354</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,276,159</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,916,195</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a summary of the effects of
the restatement in the Company&rsquo;s December 31, 2021 Statement of Operations:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>As previously reported</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Adjustment</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>As restated</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: justify">Impairment loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,276,159</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,276,159</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,528,068</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,276,159</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,804,227</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a summary of the effects of
the restatement in the Company&rsquo;s December 31, 2021, Statement of Cash Flows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>As previously reported</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Adjustment</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>As restated</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: justify">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,528,068</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,276,159</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">8,804,227</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Impairment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,276,159</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,276,159</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Note 16 - Subsequent Events</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to December 31, 2022, the Company
issued two 8% convertible unsecured promissory notes and accompanying warrants to accredited investors under subscription agreements
for aggregate loans of $150,000. The convertible notes bear interest at 8% annually, and are due August 8, 2023 unless converted in accordance
with their terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to December 31, 2022, a grant of 90,000
shares of common stock to an executive officer under the Company&rsquo;s Equity Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to December 31, 2022, an issuance
of 15,000 shares of common stock as partial payment for legal services occurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2023, the Company entered into a settlement
agreement with its former Chief Executive Officer whereby it agreed to pay $10,000 and issue a promissory note in the amount of $40,000.
The note bears no interest, and is payable on the earlier of (a) ten business days after the successful initial public offering of the
Company&rsquo;s stock that generates at least $1 million in net proceeds to the Company, or (b) July 1, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">In March 2023 and April 2023 we completed one
private placement, and in May 2023 &nbsp;we conducted a subsequent private placement in which we entered into subscription agreements
with a number of accredited investors, pursuant to which we issued 8% unsecured promissory notes in the aggregate principal amount of
$2,350,000, which bear interest at the annual rate of 8%, and accompanying warrants to purchase an aggregate of 940,000&nbsp;shares of
common stock exercisable at $2.50 per share. The warrants may be voluntarily exercised for cash prior to the maturity date of the promissory
notes or will be automatically exercised as described below. The amount outstanding under the 8% unsecured promissory notes must be repaid
upon the earlier to occur of the consummation of a Liquidity Event or the second anniversary of the initial closing date of the respective
private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000 principal). If a Liquidity Event occurs before
the second anniversary of the initial closing date of the applicable private placement, the warrants will be automatically exercised
as to the unexercised portion of the warrants, the outstanding balance under the 8% unsecured promissory notes will be deemed repaid
in the amount of the exercise price for the automatic exercise of the unexercised portion of the related warrants, with any remaining
balance owed on the promissory notes to be repaid in cash. If a Liquidity Event does not occur before the second anniversary of the initial
closing date of the applicable private placement, then both principal and interest outstanding under the notes must be repaid in cash.
The Company agreed to register the resale all of the shares of common stock that such warrants may or shall be exercised to purchase
with the shares being registered for sale in the registration statement of which this prospectus forms a part. The Company must generally
keep the registration statement effective for a period as shall be required to permit the investors to complete the offer and sale of
their shares. The Company and the investors also provided customary mutual indemnification relating to any damages arising from such
registration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Boustead has acted as placement agent in these
private placements. Pursuant to our engagement letter agreement with Boustead, in addition to a commission equal to 7% of the gross proceeds
raised in the private placements, a non-accountable expense allowance equal to 1% of the gross proceeds raised in the private placements,
and payment of certain other expenses, we agreed to issue Boustead five-year warrants to purchase a number of shares of common stock
equal to 7% of the common stock underlying the warrants accompanying the 8% unsecured promissory notes at an exercise price equal to
the exercise price as defined in such warrants. Under the engagement letter with Boustead, its placement agent&rsquo;s warrants must
be registered for resale with the Company&rsquo;s initial public offering. However, Boustead has informally deferred these registration
rights with respect to the registration statement for the initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the subscription agreements with the investors
in the first of these two private placements, the Company was required to use the first $450,000 of the net proceeds from the private
placement to expand its current operations, including its technology and intellectual property portfolio, and to fund the costs of its
initial public offering. The Company was required to use the next $800,000 of the net proceeds from the private placement to repurchase
up to 600,000 shares of common stock that were held by Dennis Gile, our largest stockholder and a former officer and director of the
Company, at a price equal to approximately $1.35 per share. The repurchase was required to be consummated only to the extent that it
does not impair the Company&rsquo;s capital within the meaning of Section 160 of the DGCL or the Company&rsquo;s ability to pay down
its debts as they become due. The Company was required to enter into an agreement with Mr. Gile providing that Mr. Gile will use the
proceeds of the repurchase to settle an existing lawsuit filed against Mr. Gile by John Dorsey, a former officer and director of the
Company, subject to a full release of Mr. Gile and the Company, and that Mr. Gile will resign from the board of directors of the Company
and from any officer position with the Company upon the repurchase. The Company was required to use any remaining net proceeds from the
private placement, which consisted of $250,000 less placement agent fees and expenses, for working capital and other general corporate
purposes. Subsequently, the Company used the net proceeds as required.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 31, 2023, under the terms of a Repurchase
and Resignation Agreement, dated March 21, 2023, with Dennis Gile (the &ldquo;Repurchase Agreement&rdquo;), we paid an aggregate purchase
price of $800,000 for the repurchase (the &ldquo;Repurchase&rdquo;) of 600,000 shares of common stock from Dennis Gile, our largest stockholder
and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, at approximately $1.33 per share.
Pursuant to the Repurchase Agreement, $695,000 of the $800,000 payment was made to the attorneys for John Dorsey, a former officer and
director of the Company (the &ldquo;Dorsey/Gile Settlement Payment&rdquo;), as part of the settlement of a private lawsuit under a settlement
agreement between Mr. Gile and Mr. Dorsey (the &ldquo;Dorsey/Gile Lawsuit&rdquo;) between these individuals and Dorsey LLC (the &ldquo;Dorsey/Gile
Settlement Agreement&rdquo;). Pursuant to the Repurchase Agreement, the balance of the aggregate purchase price was paid to the attorneys
for Mr. Gile. Pursuant to the Repurchase Agreement, Mr. Gile agreed to resign his position as Chairman and every other director and officer
position he held with the Company effective as of March 21, 2023. Prior to such date, on March 20, 2023, Mr. Gile delivered notice of
resignation from such positions, which stated that it was effective March 19, 2023. Pursuant to the Repurchase Agreement, Mr. Gile will
not receive any severance payments in connection with any other agreement with the Company as a result of his resignation. The Repurchase
was also conditioned on the Company&rsquo;s prior review of and consent to the Dorsey/Gile Settlement Agreement prior to its execution,
and receipt of a certificate from the Chief Financial Officer of the Company that the Repurchase will not impair the Company&rsquo;s
capital within the meaning of Section 160 of the DGCL or the Company&rsquo;s ability to pay down its debts as they become due (the &ldquo;CFO
Certificate&rdquo;). Under the Repurchase Agreement, the Dorsey/Gile Settlement Agreement was required to fully resolve, settle and dismiss
the Gile/Dorsey Lawsuit and contain a general release of claims by all the plaintiffs in the Dorsey/Gile Lawsuit in favor of Mr. Gile,
the Company, the Company&rsquo;s affiliates, stockholders, and certain other Company releasees. Under the Repurchase Agreement, Mr. Gile
agreed to indemnify the Company for claims arising out of based upon the Repurchase Agreement. Pursuant to the Repurchase Agreement,
a copy of the Dorsey/Gile Settlement Agreement was reviewed and consented to by the Company and entered into as of March 20, 2023. Under
the Dorsey/Gile Settlement Agreement, between Mr. Gile, Mr. Dorsey, and Dorsey LLC, Mr. Gile agreed to pay the Dorsey/Gile Settlement
Payment, transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile, Mr. Dorsey and Dorsey LLC agreed to mutual releases of all claims
relating to the Dorsey/Gile Lawsuit and to dismiss the Dorsey/Gile Lawsuit. Although the Dorsey/Gile Settlement Agreement did not contain
a release of the Company and did not contain releases by the plaintiffs of Mr. Gile other than with respect to the Lawsuit, the Company
waived any related requirements under the Repurchase Agreement in light of the expected execution of the Mutual Release Agreement (as
defined below). The CFO Certificate was received as of March 21, 2023. The repurchased shares were cancelled as of March 31, 2023. The
transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023, after waiver of the board of directors of the repurchase
rights and purchase rights provided for under the Shareholder Agreement by resolutions adopted on March 24, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective March 29, 2023, a Confidential Mutual
General Release and Covenant Not to Sue Agreement was entered into between the Company and Mr. Dorsey (the &ldquo;Mutual Release Agreement&rdquo;).
Under the Mutual Release Agreement, Mr. Dorsey agreed to a general release of claims against and covenant not to sue the Company, the
Company&rsquo;s affiliates, stockholders, and certain other Company releasees, and the Company agreed to a general release of claims
against and covenant not to sue Mr. Dorsey, Mr. Dorsey&rsquo;s affiliates, and certain other releasees, subject to payment of the Dorsey/Gile
Settlement Payment, which, as indicated above, was made on March 31, 2023. The releases of claims and covenants not to sue under the
Mutual Release Agreement do not apply to breach of the Dorsey/Gile Settlement Agreement or to the January 2023 Dorsey Settlement Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2023, we granted incentive stock options
to certain employees to purchase a total of 53,800 shares of common stock. The options have an exercise price equal to $3.10 per share,
and are subject to various vesting conditions. The options will expire in March 2033. In April 2023, we granted an incentive stock option
to an employee, officer and director to purchase a total of 100,000 shares of common stock with an exercise price equal to $2.50 per
share, which is subject to certain vesting conditions. In April 2023, we also granted a non-statutory&nbsp;stock option to a director
to purchase a total of 3,000 shares of common stock with an exercise price equal to $3.10 per share, which is subject to certain vesting
conditions. In May 2023, we granted a non-statutory&nbsp;stock option to a director to purchase a total of 24,000 shares of common stock
with an exercise price equal to $2.50 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">Immediately after the consummation of the initial
public offering, we intend to file a Registration Statement on Form S-8 with the SEC to register the potential exercise of these options.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">On May 1, 2023, the Company entered into a lease
agreement with M4 Perimeter, LLC for a period of 39 months from the commencement date of May 4, 2023. The term of the current lease shall
expire on May 3, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">Base Monthly Rent. From and after the Extension
Term Commencement Date, the Base Monthly Rent schedule is hereby amended as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">Months 1 &ndash; 12 $7,359.00 per month, plus
applicable rental taxes**</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">Months 13 &ndash; 24 $7,580.00 per month, plus
applicable rental taxes</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">Months 25 &ndash; 36 $7,808.00 per month, plus
applicable rental taxes</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">Months 37 &ndash; 39 $8,042.00 per month, plus
applicable rental taxes</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">**</TD><TD STYLE="text-align: justify">Base Monthly Rent for
                                            Months 1 &ndash; 3 shall be 100% abated</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See Note 12 for reverse stock split subsequent
event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_001.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Signing Day Sports, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>3,750,000</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>Prospectus</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Boustead Securities, LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 27pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2023</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Until and including &nbsp; &nbsp; , 2023 (the
25th day after the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in
this offering, may be required to deliver a prospectus.&nbsp; This is in addition to a dealer&rsquo;s obligation to deliver a prospectus
when acting as an underwriter and with respect to an unsold allotment or subscription.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="color: Red"><B>The
information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and
it is not soliciting offers to buy these securities in any jurisdiction where the offer or sale is not permitted.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><FONT STYLE="color: Red">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="color: Red"><B>SUBJECT
TO COMPLETION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Red"><B>PRELIMINARY PROSPECTUS
DATED MAY 15, 2023</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_001.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Signing Day Sports, Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">2,346,548 Shares of Common Stock</P>






















<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin: 0 auto; width: 50%"><DIV STYLE="border-top: Black 1.5pt solid; font-size: 1pt">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus relates to the resale of up to
2,346,548 shares of common stock, $0.0001 par value per share (the &ldquo;common stock&rdquo;), of Signing Day Sports, Inc. that may
be sold from time to time by the selling stockholders named in this prospectus, which includes:</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">746,548
                                            shares of common stock issued to the selling stockholders;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">410,000
                                            shares of common stock issuable upon the conversion of 6% convertible unsecured promissory
                                            notes issued to the selling stockholders;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">250,000
                                            shares of common stock issuable upon the conversion of 8% convertible unsecured promissory
                                            notes issued to the selling stockholders; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">940,000
                                            shares of common stock issuable upon the exercise of warrants issued to the selling stockholders.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
will not receive any proceeds from the sales of common stock by the selling stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prior
to this offering, there has been no public market for our shares.&nbsp; We are in the process of applying to list our shares of common
stock on NYSE American under the symbol &ldquo;SDS&rdquo;. NYSE American might not approve such application, and if our application is
not approved, the Company&rsquo;s initial public offering cannot be completed and this resale offering will not proceed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are an &ldquo;emerging growth company&rdquo;, as defined in the Jumpstart Our Business Startups Act of 2012, under applicable U.S. federal
securities laws, and are eligible for reduced public company reporting requirements. See &ldquo;<I>Prospectus Summary &ndash; Implications
of Being an Emerging Growth Company</I>&rdquo; for more information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders may offer and sell the
common stock being offered by this prospectus from time to time in public or private transactions, or both. These sales will occur at
an assumed fixed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover page
of initial public offering prospectus being filed contemporaneously with this prospectus, until our common stock is listed on NYSE American.
Thereafter, these sales will occur at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market
prices, or at negotiated prices. The selling stockholders may sell shares to or through underwriters, broker-dealers or agents, who may
receive compensation in the form of discounts, concessions or commissions from the selling stockholders, the purchasers of the shares,
or both. Any participating broker-dealers and any selling stockholders who are affiliates of broker-dealers may be deemed to be &ldquo;underwriters&rdquo;
within the meaning of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), and any commissions or discounts given
to any such broker-dealer or affiliates of a broker-dealer may be regarded as underwriting commissions or discounts under the Securities
Act. The selling stockholders have informed us that they do not have any agreement or understanding, directly or indirectly, with any
person to distribute their common stock. See &ldquo;<I>Plan of Distribution</I>&rdquo; for a more complete description of the ways in
which the shares may be sold.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Investing
in our securities is highly speculative and involves a high degree of risk.&nbsp; See &ldquo;<I>Risk Factors</I>&rdquo; beginning on
page 15 for a discussion of information that should be considered in connection with an investment in our securities.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Neither
the U.S. Securities and Exchange Commission nor any state or provincial securities commission has approved or disapproved of these securities
or determined if this prospectus is truthful or complete.&nbsp; Any representation to the contrary is a criminal offense.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>The
date of this prospectus is , 2023.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>


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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<!-- Field: Split-Segment; Name: 004 -->
<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0"><B>[Alternate Page for Resale Prospectus]</B></P>

<P STYLE="margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>The
Offering</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.75pt 0.75pt 10pt; width: 26%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common
    stock offered by the selling stockholders:</FONT></TD>
    <TD STYLE="padding: 0.75pt 0.75pt 10pt; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.75pt; width: 72%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
                                            prospectus relates to 2,346,548 shares of common stock that may be sold from time to time
                                            by the selling stockholders named in this prospectus, which includes:</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;746,548
    shares of common stock issued to the selling stockholders;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;410,000
    shares of common stock issuable upon the conversion of 6% convertible unsecured promissory notes issued to the selling stockholders;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250,000
    shares of common stock issuable upon the conversion of 8% convertible unsecured promissory notes issued to the selling stockholders;
    and</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;940,000
    shares of common stock issuable upon the exercise of warrants issued to the selling stockholders.</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.75pt 0.75pt 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares outstanding
    at commencement of the offering<SUP>(1)</SUP>:</FONT></TD>
    <TD STYLE="padding: 0.75pt 0.75pt 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.75pt 0.75pt 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11,341,152
    shares of common stock (or 11,903,652 shares if the underwriters in the Company&rsquo;s initial public offering exercise the over-allotment
    option in full, based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range
    set forth on the cover page of the initial public offering prospectus filed contemporaneously with this prospectus).</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.75pt 0.75pt 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of proceeds:</FONT></TD>
    <TD STYLE="padding: 0.75pt 0.75pt 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.75pt 0.75pt 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
    will not receive any proceeds from the sales of outstanding common stock by the selling stockholders.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.75pt 0.75pt 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk factors:</FONT></TD>
    <TD STYLE="padding: 0.75pt 0.75pt 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding: 0.75pt 0.75pt 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investing
    in our common stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment.
    You should carefully consider the information set forth in the &ldquo;<I>Risk Factors</I>&rdquo; section beginning on page&nbsp;15
    before deciding to invest in our Class B Common Stock.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0.75pt 0.75pt 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trading market
    and symbol:</FONT></TD>
    <TD STYLE="padding: 0.75pt 0.75pt 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-top: 0.75pt; padding-right: 0.75pt; padding-left: 0.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
    are in the process of applying to list our common stock on NYSE American under the symbol &ldquo;SDS&rdquo;. We believe that upon
    the completion of the Company&rsquo;s initial public offering, we will meet the standards for listing on NYSE American.&nbsp;&nbsp;The
    closing of the initial public offering is contingent upon the successful listing of our common stock on NYSE American.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)
The number of shares of common stock outstanding at the commencement of the offering assumes the issuance by us of shares of common stock
pursuant to the initial public offering prospectus filed contemporaneously with this prospectus, is based on 7,591,152 shares of common
stock outstanding as of the date of this prospectus or that may be outstanding before the commencement of the initial public offering,
and excludes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,152,500
                                            shares of common stock issuable upon conversion of 6% convertible unsecured promissory notes
                                            at a conversion price of $2.00 per share assuming that all are converted at the mandatory
                                            conversion price at the time of the initial public offering, based on the assumed initial
                                            public offering price of $4.00 per share, which is the low point of the price range set forth
                                            on the cover page of the initial public offering prospectus being filed contemporaneously
                                            with this prospectus, or up to 2,522,000 shares of common stock issuable upon the optional
                                            conversion of 6% convertible unsecured promissory notes at their optional conversion price
                                            of $2.50 per share;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">732,500
                                            shares of common stock issuable upon conversion of 8% convertible unsecured promissory notes
                                            at a conversion price of $2.00 per share assuming that all are converted at the mandatory
                                            conversion price at the time of the initial public offering, based on the assumed initial
                                            public offering price of $4.00 per share, which is the low point of the price range set forth
                                            on the cover page of initial public offering prospectus being filed contemporaneously with
                                            this prospectus, or up to 444,842 shares of common stock issuable upon the optional conversion
                                            of 8% convertible unsecured promissory notes at their optional conversion price of approximately
                                            $3.29 per share;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[Alternate
Page for Resale Prospectus]</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">732,500
                                            shares of common stock issuable upon exercise of warrants at an exercise price of $2.00 per
                                            share, based on the assumed initial public offering price of $4.00 per share, which is the
                                            low point of the price range set forth on the cover page of initial public offering prospectus
                                            being filed contemporaneously with this prospectus;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">940,000
                                            shares of common stock issuable upon exercise of warrants at an exercise price of $2.50 per
                                            share;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">220,675
                                            shares of common stock issuable to Boustead as placement agent upon exercise of placement
                                            agent&rsquo;s warrants issued to Boustead at an exercise price of $2.00 per share with respect
                                            to outstanding 6% convertible unsecured promissory notes issued to private placement investors
                                            assuming that all such private placement securities are converted at the 6% convertible unsecured
                                            promissory notes&rsquo; mandatory conversion price at the time of the initial public offering,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of initial public offering prospectus being
                                            filed contemporaneously with this prospectus, or 176,540 shares of common stock issuable
                                            upon exercise of such placement agent&rsquo;s warrants at an exercise price of $2.50 per
                                            share upon the optional conversion of outstanding 6% convertible unsecured promissory notes
                                            at their optional conversion price of $2.50 per share;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Up
                                            to 77,200 shares of common stock issuable to Boustead as placement agent in consideration
                                            for the waiver of its success fee and expense allowance for Company-introduced investors
                                            in the private placement of the Company&rsquo;s 8% convertible unsecured promissory notes
                                            and accompanying warrants equal to 8% of the number of shares of common stock issuable to
                                            the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of initial public offering prospectus being
                                            filed contemporaneously with this prospectus;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">65,800
                                            shares of common stock issuable to Boustead as placement agent upon exercise of placement
                                            agent&rsquo;s warrants issued to Boustead at an exercise price of $2.50 per share with respect
                                            to warrants issued or that may be issued to private placement investors in our 8% unsecured
                                            promissory notes;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,375
                                            shares of common stock upon the completion of the initial public offering assuming the offering
                                            is completed by November 15, 2023, based on the assumed initial public offering price of
                                            $4.00 per share, which is the low point of the price range set forth on the cover page of
                                            initial public offering prospectus being filed contemporaneously with this prospectus, otherwise
                                            the number of shares of common stock equal to the number of shares derived by dividing $53,500
                                            by the Fair Market Value, as defined by certain service provider agreements, of the common
                                            stock of the Company on November 15, 2023, pursuant to such service provider agreements;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">277,450
                                            total shares of common stock issuable upon the exercise of stock options at an exercise price
                                            per share equal to $3.10 per share and 243,000 total shares of common stock issuable upon
                                            the exercise of stock options at an exercise price per share equal to $2.50 per share which
                                            were granted to certain employees, consultants, officers, and directors under the Signing
                                            Day Sports, Inc. 2022 Equity Incentive Plan, or the Equity Incentive Plan, or the Plan;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">750,000
                                            shares of common stock that are reserved for issuance under the Plan, which is inclusive
                                            of the 520,450 shares issuable upon the exercise of stock options that are granted under
                                            the Plan; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">301,875
                                            shares of common stock issuable upon exercise of representative&rsquo;s warrants to be issued
                                            to the underwriters in connection with the initial public offering, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of initial public offering prospectus being filed contemporaneously
                                            with this prospectus, and assuming full exercise by the underwriters of the over-allotment
                                            option.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[Alternate
Page for Resale Prospectus]</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>USE
OF PROCEEDS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will not receive any proceeds from the sale of common stock by the selling stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
selling stockholders will pay any underwriting discounts and commissions and expenses incurred by them for brokerage, accounting, tax
or legal services or any other expenses incurred by them in disposing of the shares. We will bear all other costs, fees and expenses
incurred in effecting the registration of the shares covered by this prospectus, including, without limitation, all registration and
filing fees and fees and expenses of our counsel and our accountants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[Alternate
Page for Resale Prospectus]</B></FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SELLING
STOCKHOLDERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
common stock being offered by the selling stockholders are those held by the selling stockholders or issuable to the selling stockholders
upon the automatic exercise of certain warrants to purchase shares of common stock or automatic conversion of certain convertible notes
into shares of common stock held by the selling stockholders. We are registering the shares of common stock in order to permit the selling
stockholders to offer the shares for resale from time to time. Except for the ownership of these securities or as otherwise disclosed
below, the selling stockholders have not had any position, office, or other material relationship with us or any of our predecessors
or affiliates within the past three years, and based on the information provided to us by the selling stockholders, no selling stockholder
is a broker-dealer or an affiliate of a broker-dealer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficial
ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities.
For purposes of this table, a person or group of persons is deemed to have &ldquo;beneficial ownership&rdquo; of any shares of common
stock that such person or any member of such group has the right to acquire within 60 days of the date of this prospectus. For purposes
of computing the percentage of outstanding shares of our common stock held by each person or group of persons named below, any shares
that such person or persons has the right to acquire within 60 days of the date of this prospectus are deemed to be outstanding for such
person, but not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein
of any shares listed as beneficially owned does not constitute an admission of beneficial ownership by any person.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below lists the selling stockholders and other information regarding the beneficial ownership of the shares of common stock by
each of the selling stockholders. The second column lists the number of shares of common stock beneficially owned by each selling stockholder,
based on its ownership of shares of common stock, shares of common stock issuable upon the automatic conversion of 6% convertible unsecured
promissory notes upon the consummation of the Company&rsquo;s initial public offering, shares of common stock issuable upon the automatic
conversion of 8% convertible promissory notes upon the consummation of the Company&rsquo;s initial public offering, or shares of common
stock issuable upon the exercise of warrants issued to initial holders of 8% unsecured promissory notes, and assuming the automatic conversion
of the 6% convertible unsecured promissory notes upon the consummation of the Company&rsquo;s initial public offering, the automatic
conversion of the 8% convertible unsecured promissory notes upon the consummation of the Company&rsquo;s initial public offering, and
the exercise prior to or upon the consummation of the Company&rsquo;s initial public offering of the warrants issued to the initial holders
of 8% unsecured promissory notes, without regard to any limitations on conversions and exercises. The third column lists the shares of
common stock being offered by this prospectus by the selling stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with the terms of the registration provisions of subscription agreements entered into with the initial holders of the warrants
issued to the initial holders of our 8% unsecured promissory notes, this prospectus generally covers the resale of the sum of the maximum
number of shares of common stock issuable upon the exercise of all shares of common stock, without regard to any limitations on the exercise
of these securities. The other shares of common stock that are included below were included based on discussions with the underwriter
of the Company&rsquo;s initial public offering, which is being conducted simultaneously with this resale offering. The fourth column
of the table below assumes the sale of all of the shares offered by the selling stockholders pursuant to this prospectus. The fifth column
is based on the assumptions described in the first footnote to the table.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
selling stockholder whose shares being offered are issuable upon conversion of a 6% convertible unsecured promissory note holder may
not convert the note to the extent that the note holder (together with its affiliates) would beneficially own in excess of 9.99% of the
number of shares of common stock outstanding. The selling stockholder may increase or decrease the beneficial ownership limit to any
other percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days following
notice from the selling stockholder. Each selling stockholder whose shares being offered are issuable upon conversion of an 8% convertible
unsecured promissory note may not convert the note to the extent that the selling stockholder (together with its affiliates) would beneficially
own in excess of 9.99% of the number of shares of common stock outstanding, not including remaining shares issuable to the selling stockholder
upon conversion of the note or conversion or exercise of any other securities subject to an equivalent beneficial ownership limit. The
selling stockholder may waive or raise the beneficial ownership limit, effective 61 days following notice from the selling stockholder.
The number of shares in the table below do not reflect these limitations. The selling stockholders may sell all, some or none of their
shares in this offering. See &ldquo;<I>Plan of Distribution</I>.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[Alternate
Page for Resale Prospectus]</B></FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Except
as otherwise indicated in the table below, the selling stockholders may sell all, some or none of the shares of common stock being offered.
See &ldquo;<I>Plan of Distribution</I>.&rdquo; We therefore have no way of determining the number of shares of common stock each selling
stockholder will hold after this offering. Therefore, the fourth and fifth columns assume that each selling stockholder will sell all
shares of common stock covered by this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-weight: bold; text-align: left"></TD><TD STYLE="white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Amount
                                            of <BR>
                                            Shares of <BR>
                                            Common <BR>
                                            Stock <BR>
                                            Beneficially <BR>
                                            Owned<BR>
                                            </B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Prior
                                            to this<BR> </B></FONT></P></TD><TD STYLE="white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&nbsp;</SUP></FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amount
    of<BR>
    Shares of <BR>
    Common <BR>
    Stock Being<BR></FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&nbsp;</SUP></FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amount
    of Shares of <BR>
    Common Stock Beneficially <BR>
    Owned After this Offering</FONT></TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 1.5pt; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name
    of Selling Stockholder</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Offering</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&nbsp;</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Offered</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&nbsp;</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percent<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BaseStones,
    Inc.</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Brick Lane Asset Management</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(3)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(3)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Candice Nicholson</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(4)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(4)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Charles Holbrook</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(5)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(5)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chris Etherington</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(6)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(6)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clayton Adams</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">383,273</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(7)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">363,274</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(7)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Confluence Global Capital</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(8)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(8)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Eternal Horizon International
    Company Limited</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(9)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(9)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gilbert Lam</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(10)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(10)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John Dodero</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(11)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(11)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John Nicholson</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(12)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">12,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(12)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Matthew Atkinson<SUP>(13)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">383,273</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">383,273</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Oleta Investments, LLC</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(14)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(14)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Roger Beasley</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(15)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(15)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rui Wu</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">225,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(16)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">175,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(16)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Herbert Irvine and Sandra
    Irvine</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">57,964</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(17)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(17)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">17,964</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John M Stroud and Melissa
    J Stroud Revocable Trust</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">320,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(18)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">320,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(18)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Martin De Rito</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(19)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(19)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Paul Rutkowski</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(20)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(20)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Richard Symington</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(21)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(21)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Todd Bazucki</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000
                                            </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(22)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000
                                            </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(22)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James Tewell</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000
                                            </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(23)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40,000
                                            </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(23)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>

<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Keith Zacher</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">100,000</TD><TD STYLE="width: 1%; text-align: left"><SUP>(24)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">100,000</TD><TD STYLE="width: 1%; text-align: left"><SUP>(24)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Mayurkumar Bhakta</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,000</TD><TD STYLE="text-align: left"><SUP>(25)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,000</TD><TD STYLE="text-align: left"><SUP>(25)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Chris Lane</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80,000</TD><TD STYLE="text-align: left"><SUP>(26)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">80,000</TD><TD STYLE="text-align: left"><SUP>(26)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cory Lane</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,000</TD><TD STYLE="text-align: left"><SUP>(27)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,000</TD><TD STYLE="text-align: left"><SUP>(27)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less
                                            than 1%.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Applicable
                                            percentage ownership after this offering is based on 7,591,152 shares of common stock deemed
                                            to be outstanding as of the date of this prospectus and 16,256,727 shares of common stock
                                            issued and outstanding after the Company&rsquo;s initial public offering which will occur
                                            contemporaneously with the resale offering, assuming no exercise of the underwriters&rsquo;
                                            over-allotment option and assuming an initial public offering price of $4.00 per share (which
                                            is the low point of the estimated range of the initial public offering price shown on the
                                            cover page of the initial public offering prospectus filed contemporaneously with this prospectus),
                                            and further assuming, at the time of the initial public offering, the automatic conversion
                                            of the Company&rsquo;s 6% convertible unsecured promissory notes into a total of 3,152,500
                                            shares of common stock, the automatic conversion of the Company&rsquo;s 8% convertible unsecured
                                            promissory notes into a total of 732,500 shares of common stock, and the exercise of certain
                                            warrants of the Company to purchase 940,000 shares of common stock. As noted above, for purposes
                                            of computing percentage ownership after this offering, we have assumed that any shares of
                                            common stock being offered will be sold in this offering, and any shares of common stock
                                            issuable upon exercise of a warrant or conversion of a convertible note that are being offered
                                            will be sold immediately following the automatic exercise or conversion of the warrant or
                                            convertible note under which such common stock is issuable.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[Alternate
Page for Resale Prospectus]</B></FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficially
                                            owned shares of common stock consist of (i) 50,000 shares of common stock issuable upon conversion
                                            of an 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering and (ii) 50,000 shares of common stock issuable upon exercise of a warrant. The
                                            shares of common stock being offered consist of 50,000 shares of common stock issuable upon
                                            conversion of the 8% convertible unsecured promissory note.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 50,000 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 12,500 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 12,500 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 12,500 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficially
                                            owned shares of common stock consist of (i) 363,274 shares of common stock, (ii) 5,000 shares
                                            of common stock issuable upon the exercise of an option, and (iii) 15,000 shares of common
                                            stock issuable upon the exercise of an option within 60 days of the date of this prospectus.
                                            The shares of common stock being offered consist of 363,274 shares of common stock. Clayton
                                            Adams is a former director of the Company and beneficially owns more than 5% of the outstanding
                                            common stock. Mr. Adams has had no other material relationship with the Company.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 100,000 shares of common stock issuable upon conversion of a 6% convertible unsecured
                                            promissory note upon the consummation of the initial public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(9)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficially
                                            owned shares of common stock consist of (i) 50,000 shares of common stock issuable upon conversion
                                            of an 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering and (ii) 50,000 shares of common stock issuable upon exercise of a warrant. The
                                            shares of common stock being offered consist of 50,000 shares of common stock issuable upon
                                            conversion of the 8% convertible unsecured promissory note upon the consummation of the initial
                                            public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(10)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficially
                                            owned shares of common stock consist of (i) 50,000 shares of common stock issuable upon conversion
                                            of an 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering and (ii) 50,000 shares of common stock issuable upon exercise of a warrant. The
                                            shares of common stock being offered consist of 50,000 shares of common stock issuable upon
                                            conversion of the 8% convertible unsecured promissory note upon the consummation of the initial
                                            public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[Alternate
Page for Resale Prospectus]</B></FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(11)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 10,000 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(12)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 12,500 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(13)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Matthew
                                            Atkinson beneficially owns more than 5% of the outstanding common stock as of the date of
                                            this prospectus.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(14)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficially
                                            owned shares of common stock consist of (i) 50,000 shares of common stock issuable upon conversion
                                            of an 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering and (ii) 50,000 shares of common stock issuable upon exercise of a warrant. The
                                            shares of common stock being offered consist of 50,000 shares of common stock issuable upon
                                            conversion of the 8% convertible unsecured promissory note upon the consummation of the initial
                                            public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(15)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 50,000 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(16)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficially
                                            owned shares of common stock consist of (i) 125,000 shares of common stock issuable upon
                                            conversion of a 6% convertible unsecured promissory note, (ii) 50,000 shares of common stock
                                            issuable upon conversion of an 8% convertible unsecured promissory note upon the consummation
                                            of the initial public offering, and (iii) 50,000 shares of common stock issuable upon exercise
                                            of a warrant. The shares of common stock being offered consist of (i) 125,000 shares of common
                                            stock issuable upon conversion of the 6% convertible unsecured promissory note upon the consummation
                                            of the initial public offering, and (ii) 50,000 shares of common stock issuable upon conversion
                                            of the 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(17)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of (i) 17,964 shares of common stock and (ii) 40,000 shares of common stock issuable upon
                                            exercise of a warrant. The shares of common stock being offered consist of 40,000 shares
                                            of common stock issuable upon exercise of a warrant.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(18)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 320,000 shares of common stock issuable upon exercise of a warrant. John Stroud and Melissa
                                            Stroud are the co-trustees of the John M Stroud and Melissa J Stroud Revocable Trust (the
                                            &ldquo;Stroud Trust&rdquo;) and have shared voting and dispositive powers over the securities
                                            held by the Stroud Trust.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(19)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 100,000 shares of common stock issuable upon exercise of a warrant.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(20)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 40,000 shares of common stock issuable upon exercise of a warrant.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(21)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 100,000 shares of common stock issuable upon exercise of a warrant. Richard Symington
                                            is a director, executive officer and employee of the Company.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(22)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 40,000 shares of common stock issuable upon exercise of a warrant.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(23)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists
                                            of 40,000 shares of common stock issuable upon exercise of a warrant.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(24)</TD><TD STYLE="text-align: justify">Consists of 100,000 shares of common stock
                                            issuable upon exercise of a warrant.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(25)</TD><TD STYLE="text-align: justify">Consists of 40,000 shares of common stock
                                            issuable upon exercise of a warrant.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(26)</TD><TD STYLE="text-align: justify">Consists of 80,000 shares of common stock
                                            issuable upon exercise of a warrant.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">(27)</TD><TD STYLE="text-align: justify">Consists of 40,000 shares of common stock
                                            issuable upon exercise of a warrant.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[Alternate
Page for Resale Prospectus]</B></FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PLAN
OF DISTRIBUTION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
selling stockholder and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their
securities covered hereby on any stock exchange, market or trading facility on which the securities are traded or in private transactions.
These sales will occur at a fixed price of $4.00 per share until our common stock is listed on NYSE American. Thereafter, these sales
will occur at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated
prices. A selling stockholder may use any one or more of the following methods when selling securities:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ordinary
                                            brokerage transactions and transactions in which the broker-dealer solicits purchasers;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">block
                                            trades in which the broker-dealer will attempt to sell the securities as agent but may position
                                            and resell a portion of the block as principal to facilitate the transaction;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">purchases
                                            by a broker-dealer as principal and resale by the broker-dealer for its account;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
                                            exchange distribution in accordance with the rules of the applicable exchange;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">privately
                                            negotiated transactions;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">settlement
                                            of short sales;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in
                                            transactions through broker-dealers that agree with the selling stockholders to sell a specified
                                            number of such securities at a stipulated price per security;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">through
                                            the writing or settlement of options or other hedging transactions, whether through an options
                                            exchange or otherwise;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            combination of any such methods of sale; or</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
                                            other method permitted pursuant to applicable law.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
selling stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act, if available,
rather than under this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Broker-dealers
engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser)
in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in
excess of a customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or
markdown in compliance with FINRA Rule 2121.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the sale of the securities or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they
assume. The selling stockholders may also sell securities short and deliver these securities to close out their short positions, or loan
or pledge the securities to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option
or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the
delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer
or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
selling stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be &ldquo;underwriters&rdquo;
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each selling stockholder has informed us that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are required to pay certain fees and expenses incurred by us incident to the registration of the securities. We have agreed to indemnify
the selling stockholders of shares issued upon exercise of the warrants that were issued with our 8% unsecured promissory notes against
certain losses, claims, damages and liabilities relating to the registration of their shares, including liabilities under the Securities
Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>[Alternate
Page for Resale Prospectus]</B></FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.35pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
agreed to keep the registration statement of which this prospectus forms a part effective for a period as shall be required to permit
the investors to complete the offer and sale of their shares, unless the shares may be resold pursuant to Rule 144 promulgated under
the Securities Act. The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable
state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is
complied with.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously
engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the
Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the
common stock by the selling stockholders or any other person. We will make copies of this prospectus available to the selling stockholders
and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including
by compliance with Rule 172 under the Securities Act).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">[Alternate Page for Resale
Prospectus]<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LEGAL
MATTERS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
validity of the shares of common stock covered by this prospectus will be passed upon by Bevilacqua PLLC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this prospectus, Bevilacqua
PLLC owns 15,000 shares of common stock. Bevilacqua PLLC received these shares as partial consideration for legal services previously
provided to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><B>PART&nbsp;II<BR>
INFORMATION NOT REQUIRED IN THE PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Unless
the context indicates otherwise, &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Signing Day Sports,&rdquo; &ldquo;the
Company,&rdquo; &ldquo;our company&rdquo; and similar references in this </I>&ldquo;<I>Part II. Information Not Required in the Prospectus</I>&rdquo;
<I>refer to the consolidated operations of Signing Day Sports, Inc., a Delaware corporation.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
13. Other Expenses of Issuance and Distribution</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth the costs and expenses, other than underwriting discounts, commissions and non-accountable expense allowance,
payable by us in connection with the sale of shares of common stock being registered. All amounts, other than the SEC registration fee,
NYSE American listing fee and FINRA filing fee, are estimates. We will pay all these expenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: justify">SEC registration fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,602.56</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">NYSE American listing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">FINRA filing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,764.83</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">300,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">275,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Transfer agent fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Printing and related fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Miscellaneous fees and expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">350,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify; padding-bottom: 1.5pt">Total</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,031,367.39</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
14. Indemnification of Directors and Officers </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Section
145 of the DGCL provides that a corporation has the power to indemnify a director, officer, employee or agent of the corporation, or
a person serving at the request of the corporation for another corporation, partnership, joint venture, trust or other enterprise in
related capacities against expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by the person in connection with an action, suit or proceeding to which he was or is a party or is threatened to be made a party
to any threatened, ending or completed action, suit or proceeding by reason of such position, if such person acted in good faith and
in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and, in any criminal action or proceeding,
had no reasonable cause to believe such person&rsquo;s conduct was unlawful, except that, in the case of actions brought by or in the
right of the corporation, no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have
been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or other adjudicating court determines
that, despite the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Certificate of Incorporation authorizes the Company to indemnify, and advance expenses to, to the fullest extent permitted by law, any
person who was or is a party to or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative by reason of the fact that the person is or was a director, officer, employee
or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Amended and Restated Bylaws require that we indemnify our directors and executive officers to the fullest extent permitted by law, provided
that we may modify the extent of such indemnification by individual contracts with directors and executive officers, and also provided&nbsp;that
we are not required to indemnify any director or executive officer in connection with any proceeding (or part thereof) initiated by such
person unless (i) such indemnification is expressly required to be made by law, (ii)&nbsp;the proceeding was authorized by the our board
of directors, (iii)&nbsp;such indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested in the
Company under the DGCL or any other applicable law, or (iv) such indemnification is required to be made under the indemnification rights
enforcement provision of the Amended and Restated Bylaws. Our obligation, if any, to indemnify any person pursuant to our Amended and
Restated Bylaws who was or is serving at its request as a director, officer, employee, or agent of another corporation, partnership,
joint venture, trust, enterprise, or nonprofit entity shall be reduced by any amount such person may collect as indemnification from
such other corporation, partnership, joint venture, trust, enterprise, or nonprofit entity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Amended and Restated Bylaws also provide for advancement of expenses to any person who was or is a party or is threatened to be made
a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative,
by reason of the fact that the person is or was a director or executive officer of the Company, or is or was serving at the request of
the Company as a director or executive officer of another corporation, partnership, joint venture, trust or other enterprise, prior to
the final disposition of the proceeding, promptly following request therefor, all expenses actually and reasonably incurred by any director
or executive officer in defending such proceeding, upon receipt of an undertaking by or on behalf of such person to repay all amounts
advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal that such person
is not entitled to be indemnified for such expenses. Notwithstanding the foregoing, generally no advance shall be made by the Company
to an executive officer of the Company (except by reason of the fact that such executive officer is or was a director of the Company)
in any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly
made (i)&nbsp;by a majority vote of a quorum consisting of directors who were not parties to the proceeding, even if not a quorum, or
(ii)&nbsp;by a committee of such directors designated by a majority of such directors, even though less than a quorum, or (iii) if there
are no such directors, or such directors so direct, by independent legal counsel in a written opinion, that the facts known to the decision-making
party at the time such determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner
that such person did not believe to be in or not opposed to the Company&rsquo;s interest. The Company&rsquo;s obligation, if any, to
indemnify any person pursuant to the Amended and Restated Bylaws who was or is serving at its request as a director, officer, employee,
or agent of another corporation, partnership, joint venture, trust, enterprise, or nonprofit entity shall be reduced by any amount such
person may collect as indemnification from such other corporation, partnership, joint venture, trust, enterprise, or nonprofit entity.
Our Amended and Restated Bylaws also permit the Company to indemnity its other officers, employees and other agents as set forth in the
DGCL. The board of directors has the power to delegate the determination of whether indemnification shall be given to any such person
except executive officers to such officers or other persons as the board of directors shall determine.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have also separately entered into an indemnification agreement with each of our directors and executive officers. Each indemnification
agreement provides for indemnification to the fullest extent permitted by law, including: (i) all expenses, judgments, penalties, fines
and amounts paid in settlement actually and reasonably incurred by a director or executive officer, or on their behalf, in connection
with any proceeding other than proceedings by or in the right of the Company or any claim, issue or matter therein, if the director or
executive officer acted in good faith and in a manner the director or executive officer reasonably believed to be in or not opposed to
the best interests of the Company, and with respect to any criminal proceeding, had no reasonable cause to believe the director or executive
officer&rsquo;s conduct was unlawful; (ii) all expenses actually and reasonably incurred by a director or executive officer, or on their
behalf, in connection with a proceedings by or in the right of the Company if the director or executive officer acted in good faith and
in a manner the director or executive officer reasonably believed to be in or not opposed to the best interests of the Company, provided
that if applicable law so provides, no indemnification against such expenses shall be made in respect of any claim, issue or matter in
such proceeding as to which the director or executive officer shall have been adjudged to be liable to the Company unless and to the
extent that the Court of Chancery of the State of Delaware shall determine that such indemnification may be made; (iii) to the extent
that a director or executive officer is, by reason of the director or executive officer&rsquo;s director or executive officer status,
a party to and is successful, on the merits or otherwise, in any proceeding, including by dismissal of such proceeding with or without
prejudice, then the director or executive officer shall be indemnified to the maximum extent permitted by law, as such may be amended
from time to time, against all expenses actually and reasonably incurred by the director or executive officer or on the director or executive
officer&rsquo;s behalf in connection therewith; and (iv) all expenses, judgments, penalties, fines and amounts paid in settlement actually
and reasonably incurred by a director or executive officer or on a director or executive officer&rsquo;s behalf if, by reason of the
director or executive officer&rsquo;s status as a director or executive officer, the director or executive officer is, or is threatened
to be made, a party to or participant in any proceeding (including a proceeding by or in the right of the Company), including, without
limitation, all liability arising out of the negligence or active or passive wrongdoing of the director or executive officer, except
where the payment is finally determined (under the procedures, and subject to the presumptions, set forth in the indemnification agreements)
to be unlawful. The Company shall also advance all such expenses incurred by or on behalf of each director or executive officer in connection
with any of the above proceedings by reason of the director or executive officer&rsquo;s director or executive officer status within
30 days after the receipt by the Company of a statement or statements from the director or executive officer requesting such advance
or advances from time to time, whether prior to or after final disposition of such proceeding. Such statement or statements shall reasonably
evidence the expenses incurred by the director or executive officer and shall include or be preceded or accompanied by a written undertaking
by or on behalf of the director or executive officer to repay any expenses advanced if it shall ultimately be determined that the director
or executive officer is not entitled to be indemnified against such expenses. Any advances and undertakings to repay shall be unsecured
and interest free. The indemnification agreements also provide for payments by the Company for the entire amount of any judgment or settlement
of any action, suit or proceeding in which it is liable or would be liable if joined in such action, subject to the other terms and provisions
of the indemnification agreements, and certain other indemnification and payment obligations. The indemnification agreements also provide
that if we maintain a directors&rsquo; and officers&rsquo; liability insurance policy, that each director and executive officer will
be covered by the policy to the maximum extent of the coverage available for any of the Company&rsquo;s directors or executive officers.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have obtained standard directors and officers liability insurance under which coverage is provided (a)&nbsp;to our directors and officers
against loss rising from claims made by reason of breach of duty or other wrongful act, and (b)&nbsp;to us with respect to payments which
we may make to such officers and directors pursuant to the indemnification agreements described above or otherwise as a matter of&nbsp;law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have obtained standard directors and officers liability insurance under which coverage is provided (a)&nbsp;to our directors and officers
against loss rising from claims made by reason of breach of duty or other wrongful act, and (b)&nbsp;to us with respect to payments which
we may make to such officers and directors pursuant to the indemnification agreements described above or otherwise as a matter of&nbsp;law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriting agreement, filed as Exhibit&nbsp;1.1 to&nbsp;this registration statement, will provide for indemnification, under certain
circumstances, by the underwriter of us and our officers and directors for certain liabilities arising under the Securities Act of 1933,
as amended (the &ldquo;Securities Act&rdquo;) or&nbsp;otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us
under the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as
expressed in the Securities Act and is therefore unenforceable.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
15. Recent Sales of Unregistered Securities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
the past three years, we issued or agreed to issue the following securities, which issuances were not, and are not expected to be, registered
under the Securities Act. Unless otherwise noted, the share and per share information in this &ldquo;Part II. <I>Information Not Required
in the Prospectus &ndash; Item 15. Recent Sales of Unregistered Securities</I>&rdquo; have been adjusted to give effect to the one-for-five
(1-for-5) reverse stock split of the outstanding common stock which became effective on April 14, 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Settlement
Agreements with Stockholders</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Dennis Gile, our largest stockholder and a former Chief Executive Officer, President, Secretary, Chairman,
and director of the Company, dated as of May 12, 2022, the parties agreed, among other things, to a general release and discharge of
claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit
to the agreement, including without limitation, claims relating to Mr. Gile&rsquo;s direct or indirect ownership of shares of the capital
stock of Signing Day Sports, Inc., a Delaware corporation (&ldquo;SDS Inc. &ndash; DE&rdquo;), or Mr. Gile&rsquo;s direct or indirect
ownership of membership interests of Signing Day Sports, LLC, an Arizona limited liability company (&ldquo;SDS LLC &ndash; AZ&rdquo;),
Signing Day Sports, LLC, a Delaware limited liability company (&ldquo;SDS LLC &ndash; DE&rdquo;), Signing Day Sports Football, LLC, an
Arizona limited liability company (&ldquo;SDSF LLC&rdquo;), or Signing Day Sports Baseball, LLC, an Arizona limited liability company
(&ldquo;SDSB LLC&rdquo;), as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights
that any party or Mr. Gile may have under the terms of that certain Severance General Waiver and Release Agreement between Mr. Gile and
the Company, dated March 22, 2022, including the releases of any and all claims against the Company and certain related parties as contained
therein, Mr. Gile&rsquo;s agreement to be terminated effective on January 1, 2022 and receive a severance payment of $53,500 pursuant
to Section 1 of the Severance Agreement, paid in March 2022, all of which terms were to remain in force notwithstanding the provisions
of the Settlement Agreement. Further, Mr. Gile irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
released and waived their rights to any claim, distributions, payments, or other amounts that Mr. Gile believed should have been paid
or were owed to Mr. Gile by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed,
in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Gile owned 2,816,377 shares of common
stock pursuant to the Settlement Agreement. Mr. Gile also irrevocably covenanted that he would not sue us or the other released parties
in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Dorsey Family Holdings, LLC, an Arizona limited liability company (&ldquo;Dorsey LLC&rdquo;), John Dorsey,
in his individual capacity, and who was formerly Chief Executive Officer and a director of the Company, and his spouse, Elena Dorsey,
to the extent of such spouse&rsquo;s community property interest, if any (together, &ldquo;Dorsey&rdquo;), dated as of April 25, 2022,
the parties agreed, among other things, (1) that Dorsey had held 959,940 shares of SDS Inc. &ndash; DE&rsquo;s common stock at that time,
(2) that prior to the anticipated redomestication of SDS LLC &ndash; AZ to Delaware as a Delaware limited liability company and conversion
to a Delaware corporation, Dorsey was a member of SDS LLC &ndash; AZ and was a party to SDS LLC &ndash; AZ&rsquo;s Fourth Amended Limited
Liability Company Operating Agreement dated July 16, 2021 (the &ldquo;SDS LLC &ndash; AZ Operating Agreement&rdquo;), (3) that the SDS
LLC &ndash; AZ Operating Agreement provided Dorsey, among other things, certain anti-dilution protections whereby SDS LLC &ndash; AZ
would have been required to issue additional equity to Dorsey if SDS LLC &ndash; AZ were to have issued additional equity which would
have the effect of reducing Dorsey&rsquo;s ownership below 11% of SDS LLC &ndash; AZ&rsquo;s outstanding equity (the &ldquo;Dorsey Anti-Dilution
Provision&rdquo;), (4) that on April 25, 2022, Dorsey LLC would receive a total of 350,000 shares of common stock of SDS Inc. &ndash;
DE in exchange for Dorsey&rsquo;s cancellation, waiver, and release of all of Dorsey&rsquo;s rights under the Dorsey Anti-Dilution Provision
in the SDS LLC &ndash; AZ Operating Agreement, (5) to a general release and discharge of claims against us, our officers and directors,
certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation,
claims relating to the Dorsey Anti-Dilution Provision, Dorsey&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s
capital stock, or Dorsey&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF
LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that
any party or Dorsey may have under the terms of that certain Offer of Employment between John Dorsey and SDS LLC &ndash; AZ, dated January
13, 2022, or that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration
statement, the Company has no agreements with Dorsey otherwise relating to, and has not issued to Dorsey, any simple agreement for future
equity or convertible note. Further, Dorsey irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
released and waived their rights to any claim, distributions, payments, or other amounts that Dorsey believed should have been paid or
were owed to Dorsey by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in
order to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Dorsey LLC owned 1,309,940 shares of common
stock pursuant to the Settlement Agreement. Dorsey also irrevocably covenanted that they would not sue us or the other released parties
in respect of any of the matters released and discharged. Mr. Dorsey is deemed to beneficially own the shares of common stock owned by
Dorsey LLC and has sole voting and dispositive powers over its shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Joshua A. Donaldson Revocable Trust and Joshua Donaldson, an individual (together, &ldquo;Donaldson&rdquo;),
dated as of May 17, 2022, the parties agreed, among other things, (1) that Donaldson had held 210,000 shares of SDS Inc. &ndash; DE&rsquo;s
common stock at that time, (2) that prior to the anticipated redomestication of SDS LLC &ndash; AZ to Delaware as a Delaware limited
liability company and conversion to a Delaware corporation, Donaldson was a member of SDS LLC &ndash; AZ and was a party to the SDS LLC
&ndash; AZ Operating Agreement, (3) that the SDS LLC &ndash; AZ Operating Agreement provided Donaldson, among other things, certain anti-dilution
protections whereby SDS LLC &ndash; AZ would have been required to issue additional equity to Donaldson if SDS LLC &ndash; AZ were to
have issued additional equity which would have the effect of reducing Donaldson&rsquo;s ownership below 3.5% of SDS LLC &ndash; AZ&rsquo;s
outstanding equity (the &ldquo;Donaldson Anti-Dilution Provision&rdquo;), (4) that on April 25, 2022, Donaldson would receive a total
of 60,000 shares of common stock of SDS Inc. &ndash; DE in exchange for Donaldson&rsquo;s cancellation, waiver, and release of all of
Donaldson&rsquo;s rights under the Donaldson Anti-Dilution Provision in the SDS LLC &ndash; AZ Operating Agreement, (5) we and Donaldson
agreed that the Celebrity Endorsement / Licensing Agreement between SDSB LLC and JDRAINMAN20 INC., a Florida limited liability company,
dated March 1, 2021 (the &ldquo;Endorsement Agreement&rdquo;), remains in full force and effect, that Donaldson confirmed that Donaldson
received 1% ownership in SDS LLC &ndash; AZ in consideration for the licenses granted under the Endorsement Agreement, which 1% interest
converted into 60,000 shares, or 1% of the outstanding shares of SDS Inc. &ndash; DE at the time of the conversion of SDS LLC &ndash;
DE into SDS Inc. &ndash; DE, (6) to a general release and discharge of claims against us, our officers and directors, certain other affiliates
and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to
the Donaldson Anti-Dilution Provision, Donaldson&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital
stock, or Donaldson&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC,
or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party
or Donaldson may have under the terms of the Endorsement Agreement. Further, Donaldson irrevocably, unconditionally, voluntarily, knowingly,
fully, finally, and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that
Donaldson believed should have been paid or were owed to Donaldson by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or
SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS
Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any
claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS
Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc.
&ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
agreed that Joshua Donaldson, Trustee of the Joshua A. Donaldson Revocable Trust, owned 270,000 shares of common stock pursuant to the
Settlement Agreement. Donaldson also irrevocably covenanted that they would not sue us or the other released parties in respect of any
of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Noah (Jed) Smith, a former director and a beneficial owner of more than 5% of the common stock of the Company,
and his spouse, Glory Smith, to the extent of such spouse&rsquo;s community property interest, if any (together, &ldquo;Smith&rdquo;),
dated as of May 13, 2022, the parties agreed, among other things, (1) that Dennis Gile, the founder of SDS LLC &ndash; AZ, our largest
stockholder, and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, agreed and contracted
to fulfill certain obligations to Smith, including, but not limited to, granting a profits interest that was intended to be a membership
interest in SDS LLC &ndash; AZ as well as a percentage of future profits from the operations or sale of SDS LLC &ndash; AZ, pursuant
to that certain Contribution and Profit-Sharing Agreement between Mr. Gile and Smith, dated April 5, 2019, as amended by that certain
First Amendment to Contribution and Profit-Sharing Agreement dated December 9, 2019, and that certain Second Amendment to Contribution
and Profit-Sharing Agreement dated August 21, 2020, all attached as an exhibit to the Settlement Agreement (collectively, the &ldquo;Smith
Contribution and Profit-Sharing Agreement&rdquo;), (2) that Mr. Smith held 300,000 shares of common stock in SDS Inc. &ndash; DE in exchange
for Smith&rsquo;s previous contributions to SDS LLC &ndash; AZ, (3) that on May 13, 2022, Mr. Smith would receive an additional 100,000
shares of common stock of SDS Inc. &ndash; DE in exchange for the termination of Smith&rsquo;s rights under the Smith Contribution and
Profit-Sharing Agreement, (4) that following such receipt of such additional shares, Mr. Smith would have a total of 400,000 shares of
common stock, and (5) to a general release and discharge of claims against us, our officers and directors, certain other affiliates and
related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the
Smith Contribution and Profit-Sharing Agreement, Smith&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s
capital stock, or Smith&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF
LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that
any party or Smith may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date
of this registration statement, the Company has no agreements with Smith otherwise relating to, and has not issued to Smith, any simple
agreement for future equity or convertible note. Further, Smith irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that Smith believed should
have been paid or were owed to Smith by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party
also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably,
unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had
with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past,
present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth
on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Smith owned 400,000
shares of common stock pursuant to the Settlement Agreement. Smith also irrevocably covenanted that they would not sue us or the other
released parties in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Midwestern Interactive, LLC (&ldquo;Midwestern&rdquo;), dated as of May 2, 2022, the parties agreed, among
other things, (1) that Dennis Gile, the founder of SDS LLC &ndash; AZ, our largest stockholder and a former Chief Executive Officer,
President, Secretary, Chairman, and director of the Company, agreed and contracted to fulfill certain obligations to Midwestern, including,
but not limited to, granting a profits interest that was intended to be a membership interest in SDS LLC &ndash; AZ as well as a percentage
of future profits from the operations or sale of SDS LLC &ndash; AZ, in exchange for Midwestern&rsquo;s contribution of $250,000 in-kind
investment, pursuant to the terms of that certain Contribution and Profit-Sharing Agreement between Mr. Gile and Midwestern dated August
23, 2019, attached as an exhibit to the Settlement Agreement (the &ldquo;Midwestern Contribution and Profit-Sharing Agreement&rdquo;),
(2) that (i) the only outstanding shares of capital stock of SDS Inc. &ndash; DE that Midwestern owned were as set forth on the capitalization
table attached as an exhibit to the Settlement Agreement, (ii) such shares were issued to Midwestern pursuant to the Midwestern Contribution
and Profit-Sharing Agreement, and (iii) as a result of the issuance of such shares, Midwestern&rsquo;s rights under the Midwestern Contribution
and Profit-Sharing Agreement were thereby terminated and the Midwestern Contribution and Profit-Sharing Agreement was of no further force
or effect, and (3) to a general release and discharge of claims against us, our officers and directors, certain other affiliates and
related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the
Midwestern Contribution and Profit-Sharing Agreement, Midwestern&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s
capital stock, or Midwestern&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE,
SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights
that any party or Midwestern may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As
of the date of this registration statement, the Company has no agreements with Midwestern otherwise relating to, and has not issued to
Midwestern, any simple agreement for future equity or convertible note. Further, Midwestern irrevocably, unconditionally, voluntarily,
knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments, or other amounts
that Midwestern believed should have been paid or were owed to Midwestern by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC,
or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of
SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive
any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC,
or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS
Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
agreed that Midwestern owned 80,000 shares of common stock pursuant to the Settlement Agreement. Midwestern also irrevocably covenanted
that they would not sue us or the other released parties in respect of any of the matters released and discharged.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Virginia Byrd, an individual, and Byrd Enterprises of Arizona, Inc., an Arizona corporation, dated as of
May 13, 2022 (together, &ldquo;Byrd&rdquo;), the parties agreed, among other things, to a general release and discharge of claims against
us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement,
including without limitation, claims relating to Byrd&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital
stock, or Byrd&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB
LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or
Byrd may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration
statement, the Company has no agreements with Byrd otherwise relating to, and has not issued to Byrd, any simple agreement for future
equity or convertible note. Further, Byrd irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
released and waived their rights to any claim, distributions, payments, or other amounts that Byrd believed should have been paid or
were owed to Byrd by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order
to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily,
knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests
in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent,
and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached
as an exhibit to the Settlement Agreement. The parties therefore agreed that Byrd Enterprises of Arizona, Inc. owned 767,785 shares of
common stock pursuant to the Settlement Agreement. Byrd also irrevocably covenanted that they would not sue us or the other released
parties in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Zone Right, LLC, a California limited liability company (&ldquo;Zone Right&rdquo;), Glen Kim, a director
of the Company, and his spouse, Jessica Lee, to the extent of such spouse&rsquo;s community property interest, if any, dated as of April
26, 2022 (the &ldquo;Zone Right Parties&rdquo;), the parties agreed, among other things, to a general release and discharge of claims
against us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to
the agreement, including without limitation, claims relating to the Zone Right Parties&rsquo; direct or indirect ownership of shares
of SDS Inc. &ndash; DE&rsquo;s capital stock, or the Zone Right Parties&rsquo; direct or indirect ownership of membership interests of
SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement
was intended to release any rights that any party or the Zone Right Parties may have under that certain Simple Agreement for Future Equity
and/or Convertible Note, as applicable. As of the date of this registration statement, other than as otherwise disclosed above, the Company
has no agreements with the Zone Right Parties otherwise relating to, and has not issued to the Zone Right Parties, any Simple Agreement
for Future Equity or convertible note. Further, the Zone Right Parties irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that the Zone Right Parties
believed should have been paid or were owed to the Zone Right Parties by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC,
or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of
SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive
any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC,
or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS
Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
agreed that Zone Right owned 483,833 shares of common stock pursuant to the Settlement Agreement. The Zone Right Parties also irrevocably
covenanted that they would not sue us or the other released parties in respect of any of the matters released and discharged. Glen Kim
is deemed to beneficially own the shares of common stock owned by Zone Right and has sole voting and dispositive powers over its shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Clayton Adams, a former director and a beneficial owner of more than 5% of the common stock of the Company,
dated as of May 3, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers
and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including
without limitation, claims relating to Mr. Adams&rsquo; direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital
stock, or Mr. Adams&rsquo; direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC,
or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party
or Mr. Adams may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of
this registration statement, the Company has no agreements with Mr. Adams otherwise relating to, and has not issued to Mr. Adams, any
simple agreement for future equity or convertible note. Further, Mr. Adams irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that Mr. Adams
believed should have been paid or were owed to Mr. Adams by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash;
DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE,
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they
may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE,
whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond
that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr.
Adams owned 363,274 shares of common stock pursuant to the Settlement Agreement. Mr. Adams also irrevocably covenanted that he would
not sue us or the other released parties in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Matthew Atkinson, a former director and a beneficial owner of more than 5% of the common stock of the Company,
and his spouse, Penny Atkinson, to the extent of such spouse&rsquo;s community property interest, if any (together, &ldquo;Atkinson&rdquo;),
dated as of May 13, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers
and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including
without limitation, claims relating to Atkinson&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital
stock, or Atkinson&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC,
or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party
or Atkinson may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of
this registration statement, the Company has no agreements with Atkinson otherwise relating to, and has not issued to Atkinson, any simple
agreement for future equity or convertible note. Further, Atkinson irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that Atkinson believed
should have been paid or were owed to Atkinson by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE.
Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably,
unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had
with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past,
present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth
on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Atkinson owned
383,274 shares of common stock pursuant to the Settlement Agreement. Atkinson also irrevocably covenanted that they would not sue us
or the other released parties in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Bayston Family Limited Partnership, Brett Bayston, an individual, and his/her spouse, Shari L. Bayston,
to the extent of such spouse&rsquo;s community property interest, if any (together, &ldquo;Bayston&rdquo;), dated as of April 26, 2022,
the parties agreed, among other things, to a general release and discharge of claims against us, our officers and directors, certain
other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims
relating to Bayston&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Bayston&rsquo;s direct
or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided,
however, that nothing in the Settlement Agreement was intended to release any rights that any party or Bayston may have under that certain
Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration statement, the Company
has no agreements with Bayston otherwise relating to, and has not issued to Bayston, any simple agreement for future equity or convertible
note. Further, Bayston irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived
their rights to any claim, distributions, payments, or other amounts that Bayston believed should have been paid or were owed to Bayston
by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure
there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly,
fully, finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in
SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and
affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached
as an exhibit to the Settlement Agreement. The parties therefore agreed that Bayston Family Limited Partnership owned 150,000 shares
of common stock pursuant to the Settlement Agreement. Bayston also irrevocably covenanted that they would not sue us or the other released
parties in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with DeWayne L. Corvin and his/her spouse, Becky Corvin, to the extent of such spouse&rsquo;s community property
interest, if any (together, &ldquo;Corvin&rdquo;), dated as of May 4, 2022, the parties agreed, among other things, to a general release
and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as
listed on an exhibit to the agreement, including without limitation, claims relating to Corvin&rsquo;s direct or indirect ownership of
shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Corvin&rsquo;s direct or indirect ownership of membership interests of SDS LLC
&ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was
intended to release any rights that any party or Corvin may have under that certain Simple Agreement for Future Equity and/or Convertible
Note, as applicable. As of the date of this registration statement, the Company has no agreements with Corvin otherwise relating to,
and has not issued to Corvin, any simple agreement for future equity or convertible note. Further, Corvin irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that Corvin believed should have been paid or were owed to Corvin by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC,
SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization
of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive
any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC,
or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS
Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
agreed that Mr. Corvin owned 11,976 shares of common stock pursuant to the Settlement Agreement. Corvin also irrevocably covenanted that
they would not sue us or the other released parties in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with 35&rsquo;sNextChapters, LLC (&ldquo;35&rsquo;sNextChapters&rdquo;), dated as of May 13, 2022, the parties
agreed, among other things, to a general release and discharge of claims against us, our officers and directors, certain other affiliates
and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to
35&rsquo;sNextChapters&rsquo; direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or 35&rsquo;sNextChapters&rsquo;
direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable,
provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or 35&rsquo;sNextChapters
may have under the terms of that certain Invitation to Join the Board of Directors between Ronald Saslow and the Company or that certain
Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration statement, the Company
has no agreements with 35&rsquo;sNextChapters otherwise relating to, and has not issued to 35&rsquo;sNextChapters, any convertible note
or Invitation to Join the Board of Directors between Ronald Saslow and the Company. Further, 35&rsquo;sNextChapters irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that 35&rsquo;sNextChapters believed should have been paid or were owed to 35&rsquo;sNextChapters by SDS LLC &ndash;
AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding
regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash;
DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not
own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that 35&rsquo;sNextChapters owned 150,000 shares of common stock pursuant to the Settlement Agreement. 35&rsquo;sNextChapters
also irrevocably covenanted that they would not sue us or the other released parties in respect of any of the matters released and discharged.
Ronald Saslow, a former director of the Company, as Manager of 35&rsquo;sNextChapters, is deemed to beneficially own the shares of common
stock owned by 35&rsquo;sNextChapters and has sole voting and dispositive powers over its shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with William Greene, dated as of May 1, 2022, the parties agreed, among other things, to a general release and
discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed
on an exhibit to the agreement, including without limitation, claims relating to Mr. Greene&rsquo;s direct or indirect ownership of shares
of SDS Inc. &ndash; DE&rsquo;s capital stock, or Mr. Greene&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash;
AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended
to release any rights that any party or Mr. Greene may have under that certain Simple Agreement for Future Equity and/or Convertible
Note, as applicable. As of the date of this registration statement, the Company has no agreements with Mr. Greene otherwise relating
to, and has not issued to Mr. Greene, any simple agreement for future equity or convertible note. Further, Mr. Greene irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that Mr. Greene believed should have been paid or were owed to Mr. Greene by SDS LLC &ndash; AZ, SDS LLC &ndash; DE,
SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding regarding the
capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF
LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Mr. Greene owned 15,000 shares of common stock pursuant to the Settlement Agreement. Mr. Greene also
irrevocably covenanted that he would not sue us or the other released parties in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Herbert and Sandra Irvine, as Joint Tenants with Right of Survivorship (&ldquo;Irvine&rdquo;), dated as
of May 3, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers and directors,
certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation,
claims relating to Irvine&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Irvine&rsquo;s
direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable,
provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or Irvine may have under
that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration statement,
the Company has no agreements with Irvine otherwise relating to, and has not issued to Irvine, any simple agreement for future equity
or convertible note. Further, Irvine irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released
and waived their rights to any claim, distributions, payments, or other amounts that Irvine believed should have been paid or were owed
to Irvine by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to
make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily,
knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests
in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent,
and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached
as an exhibit to the Settlement Agreement. The parties therefore agreed that Irvine owned 17,964 shares of common stock pursuant to the
Settlement Agreement. Irvine also irrevocably covenanted that Irvine would not sue us or the other released parties in respect of any
of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Jonathan Byrd, an individual, and his/her spouse, Abigail R. Byrd, to the extent of such spouse&rsquo;s
community property interest, if any (together, the &ldquo;Byrds&rdquo;), dated as of May 13, 2022, the parties agreed, among other things,
to a general release and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and
our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the Byrds&rsquo; direct or
indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or the Byrds&rsquo; direct or indirect ownership of membership
interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
Agreement was intended to release any rights that any party or the Byrds may have under that certain Simple Agreement for Future Equity
and/or Convertible Note, as applicable. As of the date of this registration statement, the Company has no agreements with the Byrds otherwise
relating to, and has not issued to the Byrds, any simple agreement for future equity or convertible note. Further, the Byrds irrevocably,
unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions,
payments, or other amounts that the Byrds believed should have been paid or were owed to the Byrds by SDS LLC &ndash; AZ, SDS LLC &ndash;
DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding regarding
the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF
LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Jonathan Byrd owned 7,408 shares of common stock pursuant to the Settlement Agreement. The Byrds also
irrevocably covenanted that they would not sue us or the other released parties in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Jeffrey L. Smith, Trustee of the Jeffrey L. Smith Living Trust (the &ldquo;Smith Trust&rdquo;), dated as
of April 27, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers and
directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without
limitation, claims relating to the Smith Trust&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital
stock, or the Smith Trust&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF
LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that
any party or the Smith Trust may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As
of the date of this registration statement, the Company has no agreements with the Smith Trust otherwise relating to, and has not issued
to the Smith Trust, any simple agreement for future equity or convertible note. Further, the Smith Trust irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that the Smith Trust believed should have been paid or were owed to the Smith Trust by SDS LLC &ndash; AZ, SDS LLC &ndash;
DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding regarding
the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF
LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that the Smith Trust owned 37,037 shares of common stock pursuant to the Settlement Agreement. The Smith
Trust also irrevocably covenanted that it would not sue us or the other released parties in respect of any of the matters released and
discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Shawn Olson and Jill Olson (the &ldquo;Olsons&rdquo;), dated as of April 29, 2022, the parties agreed,
among other things, to a general release and discharge of claims against us, our officers and directors, certain other affiliates and
related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the
Olsons&rsquo; direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or the Olsons&rsquo; direct or indirect
ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
that nothing in the Settlement Agreement was intended to release any rights that any party or the Olsons may have under that certain
Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration statement, the Company
has no agreements with the Olsons otherwise relating to, and has not issued to the Olsons, any simple agreement for future equity or
convertible note. Further, the Olsons irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released
and waived their rights to any claim, distributions, payments, or other amounts that the Olsons believed should have been paid or were
owed to the Olsons by SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in
order to make sure there was a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that the Olsons owned 59,702 shares of common
stock pursuant to the Settlement Agreement. The Olsons also irrevocably covenanted that they would not sue us or the other released parties
in respect of any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with John and Valerie Russell, as Trustees of the Valerie P. Russell Revocable Trust (the &ldquo;Russell Trust&rdquo;),
dated as of May 3, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers
and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including
without limitation, claims relating to the Russell Trust&rsquo;s direct or indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s
capital stock, or the Russell Trust&rsquo;s direct or indirect ownership of membership interests of SDS LLC &ndash; AZ, SDS LLC &ndash;
DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights
that any party or the Russell Trust may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable.
As of the date of this registration statement, the Company has no agreements with the Russell Trust otherwise relating to, and has not
issued to the Russell Trust, any simple agreement for future equity or convertible note. Further, the Russell Trust irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that the Russell Trust believed should have been paid or were owed to the Russell Trust by SDS LLC &ndash; AZ, SDS LLC
&ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a clear understanding
regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC &ndash; AZ, SDS LLC &ndash;
DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not
own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that the Russell Trust owned 5,988 shares of common stock pursuant to the Settlement Agreement. The Russell
Trust also irrevocably covenanted that it would not sue us or the other released parties in respect of any of the matters released and
discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Spencer Bayston, an individual, dated as of April 26, 2022, the parties agreed, among other things, to
a general release and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our
stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to Mr. Bayston&rsquo;s direct or
indirect ownership of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Mr. Bayston&rsquo;s direct or indirect ownership of membership
interests of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
Agreement was intended to release any rights that any party or Mr. Bayston may have under that certain Simple Agreement for Future Equity
and/or Convertible Note, as applicable. As of the date of this registration statement, the Company has no agreements with Mr. Bayston
otherwise relating to, and has not issued to Mr. Bayston, any simple agreement for future equity or convertible note. Further, Mr. Bayston
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any
claim, distributions, payments, or other amounts that Mr. Bayston believed should have been paid or were owed to Mr. Bayston by SDS LLC
&ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was a
clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC
&ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed
that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an
exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Bayston owned 120,000 shares of common stock pursuant to the
Settlement Agreement. Mr. Bayston also irrevocably covenanted that he would not sue us or the other released parties in respect of any
of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
our Settlement Agreement with Deene Beauchamp, dated as of May 3, 2022, the parties agreed, among other things, to a general release
and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as
listed on an exhibit to the agreement, including without limitation, claims relating to Mr. Beauchamp&rsquo;s direct or indirect ownership
of shares of SDS Inc. &ndash; DE&rsquo;s capital stock, or Mr. Beauchamp&rsquo;s direct or indirect ownership of membership interests
of SDS LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement
was intended to release any rights that any party or Mr. Beauchamp may have under that certain Simple Agreement for Future Equity and/or
Convertible Note, as applicable. As of the date of this registration statement, the Company has no agreements with Mr. Beauchamp otherwise
relating to, and has not issued to Mr. Beauchamp, any simple agreement for future equity or convertible note. Further, Mr. Beauchamp
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any
claim, distributions, payments, or other amounts that Mr. Beauchamp believed should have been paid or were owed to Mr. Beauchamp by SDS
LLC &ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE. Each party also agreed, in order to make sure there was
a clear understanding regarding the capitalization of SDS Inc. &ndash; DE, irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC
&ndash; AZ, SDS LLC &ndash; DE, SDSF LLC, SDSB LLC, or SDS Inc. &ndash; DE, whether past, present, future, or contingent, and affirmed
that he, she, or it did not own any interests in SDS Inc. &ndash; DE beyond that set forth on the capitalization table attached as an
exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Beauchamp owned 5,988 shares of common stock pursuant to the
Settlement Agreement. Mr. Beauchamp also irrevocably covenanted that he would not sue us or the other released parties in respect of
any of the matters released and discharged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>SAFEs
Private Placement</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
March 2021 to July 2021, we raised an aggregate of $1,980,000 from investors in exchange for securities called Simple Agreements for
Future Equity (collectively, the &ldquo;SAFEs&rdquo;). For a description of the terms of the SAFEs, see the section entitled &ldquo;<I>Description
of Securities &ndash; SAFEs</I>&rdquo; of this registration statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>SAFE
Cancellations and Exchanges</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
September 22, 2022 to October 11, 2022, we entered into cancellation and exchange agreements with the holders of the SAFEs. Under these
agreements, each SAFE holder agreed to cancel and exchange the holder&rsquo;s SAFE for a number of shares of common stock equal to the
purchase amount under the SAFE divided by approximately $3.35, based on a $25 million valuation for the Company. As a result, SAFEs that
were purchased in the aggregate amount of $1,980,000 were cancelled and exchanged for a total of 591,048 shares of common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>6%
Convertible Unsecured Promissory Notes Private Placement</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
October 2021 to December 2021, we conducted a private placement of 6% convertible unsecured promissory notes due three years from the
date of execution and entered into related subscription agreements and investor rights and lockup agreements with a number of accredited
investors. Pursuant to the agreements, we issued 27 convertible notes for aggregate loans of $6,305,000. The convertible notes bear interest
at 6% annually. For a further description of the terms of these convertible notes, see the section entitled &ldquo;<I>Description of
Securities &ndash; 6% Convertible Unsecured Promissory Notes</I>&rdquo; of the prospectus contained in this registration statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>8%
Convertible Unsecured Promissory Notes and Warrants Private Placement</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
August 2022 to January 2023, we conducted a private placement of the Company&rsquo;s 8% convertible unsecured promissory notes and accompanying
warrants under subscription agreements with a number of accredited investors. Pursuant to the agreements, we issued 15 convertible notes
and accompanying warrants for aggregate loans of $1,465,000. The convertible notes bear interest at 8% annually and are due August 8,
2023 unless converted in accordance with their terms. For a further description of the terms of these convertible notes and warrants,
see &ldquo;<I>Description of Securities &ndash; 8% Convertible Unsecured Promissory Notes</I>&rdquo; and &ldquo;<I>Description of Securities
&ndash; Warrants &ndash; Investor Warrants</I>&rdquo;, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>8%
Unsecured Promissory Notes and Warrants Private Placements</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2023 and April 2023 we completed one
private placement, and in May 2023 we conducted a subsequent private placement, in which we issued 8% unsecured promissory notes and
accompanying warrants to a number of accredited investors under subscription agreements. Pursuant to the agreements, we issued promissory
notes for aggregate loans of $2,350,000, which bear interest at the annual rate of 8%, and accompanying warrants to purchase an aggregate
of 940,000&nbsp;shares of common stock exercisable at $2.50 per share. The convertible notes bear interest at 8% annually. The amount
outstanding under the 8% unsecured promissory notes must be repaid upon the earlier to occur of the consummation of a Liquidity Event
or the second anniversary of the initial closing date of the respective private placement (March 17, 2025 as to $1,500,000 principal
and May 2, 2025 as to $850,000 principal). The warrants may be voluntarily exercised for cash prior to the maturity date of the related
8% unsecured promissory notes or will be automatically exercised as to any unexercised portion for shares of common stock upon the occurrence
of a Liquidity Event-based maturity of the related 8% unsecured promissory notes in exchange for the Company&rsquo;s deemed repayment
of the balance outstanding under the related 8% unsecured promissory notes in an amount equal to the exercise price for exercise of the
unexercised portion of the warrants. For a further description of the private placements and the terms of these notes and warrants, see
&ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations &ndash; Recent Developments &ndash;
8% Unsecured Promissory Notes and Warrants Private Placement</I>&rdquo;, &ldquo;<I>Description of Securities &ndash; 8% Unsecured Promissory
Notes</I>&rdquo;, and &ldquo;<I>Description of Securities &ndash; Warrants &ndash; Investor Warrants</I>&rdquo;.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Placement
Agent&rsquo;s Warrants</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Boustead
acted as placement agent in our private placements of the convertible promissory notes, promissory notes, and warrants described above.
Pursuant to our engagement letter agreement with the representative, in addition to a commission equal to 7% of the gross proceeds raised
in the private placements, a non-accountable expense allowance equal to 1% of the gross proceeds raised in the private placements, and
payment of certain other expenses, we agreed to issue Boustead five-year warrants to purchase a number of shares of common stock at an
exercise price equal to the conversion price as defined in the notes in an amount equal to 7% of the common stock underlying the securities
sold in the private placements. Accordingly, a warrant to purchase common stock was issued in December 2021 in connection with our private
placement of 6% convertible unsecured promissory notes, exercisable to purchase 7% of the original principal amount of the Company&rsquo;s
6% convertible unsecured promissory notes divided by the convertible notes&rsquo; applicable conversion price, at an exercise price equal
to the convertible notes&rsquo; applicable per-share conversion price. Warrants to purchase shares of common stock were also issued to
Boustead in March 2023, April 2023 and May 2023 in connection with our private placements of 8% unsecured promissory notes and accompanying
investor warrants. The warrants may be exercised to purchase an aggregate of 7% of the common stock underlying the warrants that were
issued to the initial 8% unsecured promissory note holders at an exercise price equal to the exercise price as defined in such warrants.
Each of the placement agent&rsquo;s warrants will terminate five years after issuance. Boustead has informally waived its rights to warrants
to purchase shares of common stock in connection with our private placement of 8% convertible unsecured promissory notes and accompanying
investor warrants. Under the engagement letter with Boustead, its placement agent&rsquo;s warrants must be registered for resale with
the Company&rsquo;s initial public offering. However, Boustead has informally deferred these registration rights with respect to the
registration statement for the initial public offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Boustead
agreed to waive its success fee and expense allowance for any Company-introduced investors in the private placement of the Company&rsquo;s
8% convertible unsecured promissory notes and accompanying warrants and in consideration of such waiver Boustead will receive a number
of shares of common stock of the Company that is equal to 8% of the number of shares of common stock issuable to the Company-introduced
investors upon conversion or exercise, as applicable, of their securities. A total of $965,000 were invested by Company-introduced investors
in that private placement. Accordingly, Boustead will receive a total of 77,200 shares of common stock based on the number of shares
of common stock that will be issued upon the automatic conversion of the 8% convertible promissory notes and issuable to the holders
of the related warrants upon the initial public offering, based on the assumed initial public offering price of $4.00 per share, which
is the low point of the price range set forth on the cover page of the Company&rsquo;s initial public offering prospectus filed contemporaneously
with this prospectus. Further, Boustead agreed to defer 50% of its total success fee and 50% of its expense allowance for the other investors
in that private placement until the closing of the initial public offering. Based on a total of $500,000 invested by non-Company-introduced
investors in that private placement, such deferred fees and non-accountable expense allowance total $20,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Restricted
Stock and Option Grants</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
September 2022, we have made the following grants of options to purchase common stock and restricted stock to employees, officers, and
directors under the Signing Day Sports, Inc. 2022 Equity Incentive Plan (the &ldquo;Plan&rdquo;):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dennis
Gile, our largest stockholder and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, was
granted options to purchase a total of 35,000 shares of common stock on September 28, 2022. The options may be exercised at $3.10 per
share. The options are subject to certain vesting conditions. Effective March 19, 2023, Mr. Gile resigned from all positions as an officer
or director of the Company. Under the terms of his option agreements, the portion of Mr. Gile&rsquo;s stock options that had vested prior
to Mr. Gile&rsquo;s resignation, relating to 29,000 shares, will be exercisable until June 19, 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David
O&rsquo;Hara, our Chief Operating Officer and Secretary, was granted options to purchase a total of 60,000 shares of common stock on
September 9, 2022 and September 28, 2022. The options may be exercised at $3.10 per share. The options are subject to certain vesting
conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Daniel
D. Nelson, our Chief Executive Officer, Chairman, and director, was granted options to purchase a total of 35,000 shares of common stock
on September 28, 2022. The options may be exercised at $3.10 per share. The options are subject to certain vesting conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Noah
(Jed) Smith, a former director and a beneficial owner of more than 5% of the common stock of the Company of the Company, was granted
an option to purchase 5,000 shares of common stock on September 28, 2022. The option may be exercised at $3.10 per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clayton
Adams, a former director and a beneficial owner of more than 5% of the common stock of the Company, was granted options to purchase a
total of 30,000 shares of common stock on September 28, 2022. The options may be exercised at $3.10 per share. The options are subject
to certain vesting conditions. Effective April 27, 2023, Mr. Adams resigned from his position as a director of the Company. Under the
terms of his option agreements, the portion of Mr. Adams&rsquo; stock options that had vested prior to Mr. Adams&rsquo; resignation,
relating to 20,000 shares, will be exercisable until July 27, 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glen
Kim, our director, was granted an option to purchase 5,000 shares of common stock on September 28, 2022. The option may be exercised
at $3.10 per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Martin
Lanphere, our director, was granted an options to purchase 27,000 shares of common stock for $3.10 per share, subject to certain vesting
conditions, on September 28, 2022. Mr. Lanphere was also granted an option to purchase 3,000 shares of common stock for $2.50 per share
on April 18, 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Roger
Mason Jr., our director, was granted an option to purchase 24,000 shares of common stock on September 9, 2022. The option may be exercised
at $3.10 per share. The option is subject to certain vesting conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Richard
Symington, our President, Chief Marketing Officer and director, was granted an option to purchase 100,000 shares of common stock on April
5, 2023. The option may be exercised at $2.50 per share. The option is subject to certain vesting conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David
O&rsquo;Hara, our Chief Operating Officer, was granted 90,000 shares of restricted stock on March 14, 2023. The restricted stock is subject
to certain vesting conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Greg Economou, our director, was granted an option
to purchase 24,000 shares of common stock on May 9, 2023. The option may be exercised at $2.50 per share. The option is subject to certain
vesting conditions.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain
non-executive employees were granted options to purchase a total of 56,000 shares of common stock in September 2022. The options may
be exercised at $3.10 per share. A portion of the options is subject to certain vesting conditions. Subsequently, two of the employees
were terminated. The former employees&rsquo; options were formerly exercisable to purchase 27,000 shares of common stock. The former
employees did not exercise the options within the options&rsquo; exercise period as to the vested portion of the options, resulting in
the full termination of these options without exercise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 14, 2023, options to purchase a total of 53,800 shares of common stock were granted under the Plan to certain employees. The options
may be exercised at $3.10 per share. A portion of the options is subject to certain vesting conditions. Subsequently, one of the employees
resigned prior to the vesting of a portion of the former employee&rsquo;s option to purchase 13,800 shares of common stock after vesting;
the unvested portion of the option, as to 10,350 shares of common stock, terminated immediately and the vested portion of the option,
as to 3,450 shares of common stock, will remain exercisable until July 20, 2023. On April 19, 2023, stock options to purchase a total
of 51,000 shares of common stock were granted under the Plan to certain employees. The options may be exercised at $2.50 per share. The
options are subject to certain vesting conditions. On May 5, 2023, stock options to purchase a total of 35,000 shares of common stock
that were granted under the Plan to certain employees on April 19, 2023 were amended and restated to grant at total of 100,000 shares
of common stock. The options may be exercised at $2.50 per share. The options are subject to certain vesting conditions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Service
Provider Agreements</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
service provider agreements entered into with certain vendors effective as of November 28, 2022, in exchange for services, we agreed
to issue the number of shares of common stock equal to the number of shares derived by dividing the total of $53,500 by the public offering
price of the securities in the initial public offering to the vendors upon the completion of the initial public offering, if completed
by November 15, 2023; otherwise we will issue the number of shares of common stock derived by divided $53,500 by the Fair Market Value
(as defined in the service provider agreements) of the common stock. Pursuant to the agreements, each service provider was also required
to enter into related restricted stock award agreements and an accredited investor questionnaire prior to the issuances of shares of
common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>General</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
otherwise stated above, the sales of securities described above were made or will be made in reliance upon exemptions provided by Section&nbsp;4(a)(2)
of the Securities Act and/or Rule 506(b) of Regulation D thereunder for the offer and sale of securities not involving a public offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
underwriter was engaged in connection with the foregoing sales of securities. The Company has reason to believe that all of the foregoing
purchasers were familiar with or had access to information concerning the operations and financial conditions of the Company, and all
of those individuals or entities purchasing securities represented that they were accredited investors, acquiring the shares for investment
and without a view to the distribution thereof. At the time of issuance, all of the foregoing securities were deemed to be restricted
securities for purposes of the Securities Act and the certificates representing such securities bore legends to that effect.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
16. Exhibits.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)
Exhibits.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: top; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
    No.</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; vertical-align: top; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 89%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.1*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Underwriting Agreement</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea178536ex2-1_signingday.htm">Agreement
    and Plan of Merger of Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, and Signing Day Sports Football, LLC, with and into
    Signing Day Sports, Inc.</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea178536ex3-1_signingday.htm">Amended
    and Restated Certificate of Incorporation of Signing Day Sports, Inc.</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea178536ex3-2_signingday.htm">Second
    Amended and Restated Bylaws of Signing Day Sports, Inc.</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Representative&rsquo;s
    Warrant (included in Exhibit 1.1)</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea178536ex4-2_signingday.htm">Form
    of Simple Agreement for Future Equity</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea178536ex4-3_signingday.htm">Form
    of 6% Convertible Note</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.4</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea178536ex4-4_signingday.htm">Warrant
    to Purchase Common Stock issued to Boustead Securities, LLC, dated as of December 23, 2021</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.5</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea178536ex4-5_signingday.htm">Form
    of 8% Convertible Unsecured Note</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.6</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea178536ex4-6_signingday.htm">Form
    of Warrant to Purchase Equity Securities issued with 8% Convertible Unsecured Note</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.7</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex4-7_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Promissory
    Note issued by Signing Day Sports, Inc. to John Dorsey, dated January 12, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.8</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex4-8_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of 8% Unsecured Promissory Note</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.9</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex4-9_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Common Stock Purchase Warrant issued with 8% Unsecured Promissory Note</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.10</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex4-10_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Warrants to Purchase Common Stock issued to Boustead Securities, LLC, in connection with issuances of 8% Unsecured Promissory
    Notes and accompanying warrants</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion of Bevilacqua PLLC</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-1_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shareholder
    Agreement among Signing Day Sports, Inc. and each of the stockholders of Signing Day Sports, Inc., effective as of May 17, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-2_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Marketing
    Agreement between Texas High School Coaches Association and Signing Day Sports, LLC, dated June 22, 2021</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-3_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Marketing
    Agreement between North Carolina Coaches Association and Signing Day Sports, Inc., dated September 15, 2021</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-4_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Marketing
    Agreement between Arizona Football Coaches Association and Signing Day Sports, dated May 23, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-5_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Client
    Service Agreement between Tilson HR, Inc. and Signing Day Sports, dated June 18, 2020</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-6_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Master
    Services Agreement between SAGE186, LLC and Signing Day Sports, dated January 18, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-7_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Work
    for Hire Agreement between Signing Day Sports and Midwestern Interactive, LLC, dated August 17, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.8</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-8_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Order
    for Services between Signing Day Sports, Inc. and Paycor Services, dated May 23, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.9</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-9_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Membership
    Interest Purchase Agreement between Clayton Adams and Signing Day Sports, LLC, dated August 7, 2021</FONT></A></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.10</FONT></TD>
    <TD STYLE="text-align: right; width: 1%"></TD>
    <TD STYLE="text-align: justify; width: 89%"><A HREF="ea178536ex10-10_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Membership
    Interest Purchase Agreement between Matthew Atkinson and Signing Day Sports, LLC, dated August 9, 2021</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.11&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-11_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employment
    Offer Letter Agreement between George Weathers and Signing Day Sports, Inc., dated October 8. 2021</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.12&dagger;</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-12_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Engagement
    Letter Agreement between Wolfson Berbenich &amp; Co., CPA&rsquo;s, LLP and Signing Day Sports, Inc., dated August 12, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.13</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-13_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Dennis Gile and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of May 12, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.14</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-14_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Dorsey Family Holdings, LLC, John Dorsey and Elena Dorsey, and Signing Day Sports, LLC, Signing Day
    Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 25, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.15</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-15_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Joshua A. Donaldson Revocable Trust and Joshua Donaldson, and Signing Day Sports, LLC, Signing Day
    Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 17, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.16</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-16_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Noah (Jed) Smith and Glory Smith, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.17</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-17_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Midwestern Interactive, LLC, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 2, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.18</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-18_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Virginia Byrd and Byrd Enterprises of Arizona, Inc., and Signing Day Sports, LLC, Signing Day Sports
    Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.19</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-19_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Zone Right, LLC, Glen Kim and Jessica Lee, and Signing Day Sports, LLC, Signing Day Sports Baseball,
    LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 26, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.20</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-20_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Clayton Adams and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of May 3, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.21</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-21_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Matthew Atkinson and Penny Atkinson, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC,
    Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.22</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-22_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Bayston Family Limited Partnership, Brett Bayston and Shari L. Bayston, and Signing Day Sports, LLC,
    Signing Day Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 26, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.23</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-23_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between DeWayne L. Corvin and Becky Corvin, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC,
    Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 4, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.24</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-24_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between 35&rsquo;sNextChapters, LLC and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.25</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-25_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between William Greene and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of May 1, 2022</FONT></A></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.26</FONT></TD>
    <TD STYLE="text-align: right; width: 1%"></TD>
    <TD STYLE="text-align: justify; width: 89%"><A HREF="ea178536ex10-26_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Herbert and Sandra Irvine, as Joint Tenants with Right of Survivorship, and Signing Day Sports, LLC,
    Signing Day Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 3, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.27</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea178536ex10-27_signingday.htm">Settlement
    Agreement and Release between Jonathan Byrd and Abigail R. Byrd, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.28</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-28_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Jeffrey L. Smith, Trustee of the Jeffrey L. Smith Living Trust, and Signing Day Sports, LLC, Signing
    Day Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 27, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.29</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-29_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Shawn Olson and Jill Olson, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 29, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.30</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-30_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between John and Valerie Russell, as Trustees of the Valerie P. Russell Revocable Trust, and Signing Day Sports,
    LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 3, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.31</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-31_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Spencer Bayston and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of April 26, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.32</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-32_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement and Release between Deene Beauchamp and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of May 3, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.33</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-33_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Subscription Agreement for 6% Convertible Unsecured Promissory Notes</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.34</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-34_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Investor Rights and Lock-Up Agreement</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.35</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-35_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Subscription Agreement for 8% Convertible Unsecured Promissory Notes and Warrants</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.36</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-36_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sponsorship
    Agreement between Goat Farm Sports and Signing Day Sports, Inc., dated September 9, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.37</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-37_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Collaboration
    and Revenue-Sharing Agreement between Signing Day Sports, Inc. and Louisville Slugger Hitting Science Center LLC, dated as of October
    31, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.38&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-38_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Offer
    Letter Agreement between John Dorsey and Signing Day Sports, Inc., dated January 13, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.39&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-39_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Severance
    General Waiver and Release Agreement between Signing Day Sports, Inc. and Dennis Gile, dated March 22, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.40</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-40_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease
    Agreement between Scottsdale Financial Center Owner LLC and Signing Day Sports, LLC, dated January 25, 2021</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.41</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-41_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent
    to Sublease, executed as of December 1, 2021, between Scottsdale Financial Center Owner LLC, Signing Day Sports, LLC, and Exact Payments
    Opco LLC</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.42</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-42_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sublease,
    dated as of November 10, 2021, between Signing Day Sports, LLC and Exact Payments Opco LLC</FONT></A></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.43</FONT></TD>
    <TD STYLE="text-align: right; width: 1%"></TD>
    <TD STYLE="text-align: justify; width: 89%"><A HREF="ea178536ex10-43_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Standard
    Multi-Tenant Office Lease &ndash; Gross and Addendum to Lease, dated as of October 7, 2021, between Verde View Grove, LLC and Signing
    Day Sports, Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.44</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-44_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease
    Termination Agreement, dated as of August 31, 2022, between Verde View Grove LLC and Signing Day Sports, Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.45</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-45_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Cancellation and Exchange Agreement between Signing Day Sports, Inc. and the former holders of certain Simple Agreements for Future
    Equity</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.46</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-46_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Service Provider Agreement between Signing Day Sports, Inc. and certain vendors</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.47</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-47_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Restricted Stock Award Agreement between Signing Day Sports, Inc. and certain vendors</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.48</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-48_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Settlement
    Agreement, Release of Claims, and Covenant Not To Sue between Signing Day Sports, Inc. and John Dorsey, dated as of January 12, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.49</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-49_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Standard
    Form Office Lease, dated November 1, 2022, and Addendum to Lease, dated November 1, 2022, between M4 Perimeter, LLC and Signing Day
    Sports, Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.50&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-50_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amended
    and Restated Employment Offer Letter, dated March 14, 2023, between Signing Day Sports, Inc. and David O&rsquo;Hara</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.51&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-51_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Independent Director Agreement between Signing Day Sports, Inc. and each independent director</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.52&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-52_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Indemnification Agreement between Signing Day Sports, Inc. and each officer or director</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.53&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-53_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Signing
    Day Sports, Inc. 2022 Equity Incentive Plan</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.54&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-54_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Stock Option Agreement for Signing Day Sports, Inc. 2022 Equity Incentive Plan</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.55&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-55_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Restricted Stock Award Agreement for Signing Day Sports, Inc. 2022 Equity Incentive Plan</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.56&dagger;</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-56_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Restricted Stock Unit Award Agreement for Signing Day Sports, Inc. 2022 Equity Incentive Plan</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.57</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-57_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form
    of Subscription Agreement for 8% Unsecured Promissory Notes and Warrants</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.58</FONT></TD>
    <TD STYLE="text-align: right"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-58_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Repurchase
    and Resignation Agreement between Signing Day Sports, Inc. and Dennis Gile, dated March 21, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.59</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-59_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Confidential
    Mutual General Release and Covenant Not to Sue Agreement, effective as of March 29, 2023, between Signing Day Sports, Inc. and John
    Dorsey</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.60</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-60_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">First
    Amendment to Lease, dated April 1, 2023, between M4 PERIMETER, LLC and Signing Day Sports, Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.61&dagger;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-61_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Employee
    Confidential Information and Inventions Assignment Agreement, dated April 3, 2023, between Signing Day Sports, Inc. and David O&rsquo;Hara</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.62&dagger;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex10-62_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive
    Employment Agreement, dated April 5, 2023, between Signing Day Sports, Inc. and Richard Symington</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14.1</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex14-1_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Code
    of Ethics and Business Conduct</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex23-1_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of BARTON CPA</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.2</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex23-2_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent
    of Marcum LLP</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.3*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Bevilacqua PLLC
    (included in Exhibit 5.1)</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24.1</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="#poa"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Power of
    Attorney (included on the signature page of this registration statement)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex99-1_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Audit
    Committee Charter</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.2</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex99-2_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compensation
    Committee Charter</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">99.3</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex99-3_signingday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nominating
    and Corporate Governance Committee Charter</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>107</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea178536ex-fee_signingday.htm">Calculation of Filing Fee Table</A></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="width: 25%"><DIV STYLE="border-top: Black 1.5pt solid; font-size: 1pt">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&dagger;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive
                                            compensation plan or arrangement.</FONT></TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                            be filed by amendment.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"></P>

<!-- Field: Page; Sequence: 196; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)
Financial Statement Schedules.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
financial statement schedules are omitted because the information called for is not required or is shown either in the financial statements
or in the notes thereto.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item
17. Undertakings</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement, certificates
in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(a)
The undersigned registrant hereby undertakes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 20px; padding-top: 3pt; padding-bottom: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)
                                            To file, during any period in which offers or sales are being made, a post-effective amendment
                                            to this registration</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">statement:</FONT></P></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 41px; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 20px; padding-top: 3pt; padding-bottom: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</FONT></TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
    include any prospectus required by Section 10(a)(3) of the Securities Act of 1933 (the &ldquo;Securities Act&rdquo;);</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 41px; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 20px; padding-top: 3pt; padding-bottom: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</FONT></TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
    reflect in the prospectus any facts or events arising after the effective date of this registration statement (or the most recent
    post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
    forth in this registration statement; notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
    the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end
    of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission
    pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate
    offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 41px; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 20px; padding-top: 3pt; padding-bottom: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</FONT>&nbsp;</TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
    include any material information with respect to the plan of distribution not previously disclosed in this registration statement
    or any material change to such information in this registration statement.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 21px; padding-top: 3pt; padding-bottom: 3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 20px; padding-top: 3pt; padding-bottom: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="padding-top: 3pt; padding-bottom: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">That,
    for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a
    new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed
    to be the initial bona fide offering thereof.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 21px"></TD><TD STYLE="width: 20px; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                            remove from registration by means of a post-effective amendment any of the securities being
                                            registered which remain unsold at the termination of the offering.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 21px"></TD><TD STYLE="width: 20px; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">That,
                                            for the purpose of determining liability under the Securities Act of 1933 to any purchaser,
                                            each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating
                                            to an offering, other than registration statements relying on Rule 430B or other than prospectuses
                                            filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration
                                            statement as of the date it is first used after effectiveness. Provided, however, that no
                                            statement made in a registration statement or prospectus that is part of the registration
                                            statement or made in a document incorporated or deemed incorporated by reference into the
                                            registration statement or prospectus that is part of the registration statement will, as
                                            to a purchaser with a time of contract of sale prior to such first use, supersede or modify
                                            any statement that was made in the registration statement or prospectus that was part of
                                            the registration statement or made in any such document immediately prior to such date of
                                            first use.</FONT></TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 21px"></TD><TD STYLE="width: 20px; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">That,
                                            for the purpose of determining liability of the&nbsp;registrant&nbsp;under the&nbsp;Securities
                                            Act of 1933&nbsp;to any purchaser in the initial&nbsp;distribution&nbsp;of the securities,
                                            the undersigned&nbsp;registrant&nbsp;undertakes that in a primary offering of securities
                                            of the undersigned&nbsp;registrant&nbsp;pursuant to this registration statement, regardless
                                            of the&nbsp;underwriting&nbsp;method used to sell the securities to the purchaser, if the
                                            securities are offered or sold to such purchaser by means of any of the following communications,
                                            the undersigned&nbsp;registrant&nbsp;will be a seller to the purchaser and will be considered
                                            to offer or sell such securities to such purchaser:</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 41px"></TD><TD STYLE="width: 20px; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
                                            preliminary prospectus or prospectus of the undersigned&nbsp;registrant&nbsp;relating to
                                            the offering required to be filed pursuant to Rule 424;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-align: justify; background-color: white; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-align: justify; background-color: white; text-indent: 0.25in"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 41px"></TD><TD STYLE="width: 20px; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
                                            free writing prospectus relating to the offering prepared by or on behalf of the undersigned&nbsp;registrant&nbsp;or
                                            used or referred to by the undersigned&nbsp;registrant;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-align: justify; background-color: white; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 41px"></TD><TD STYLE="width: 20px; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</FONT>&nbsp;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            portion of any other free writing prospectus relating to the offering containing&nbsp;material&nbsp;information
                                            about the undersigned&nbsp;registrant&nbsp;or its securities provided by or on behalf of
                                            the undersigned&nbsp;registrant; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-align: justify; background-color: white; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 41px"></TD><TD STYLE="width: 20px; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iv)</FONT>&nbsp;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
                                            other communication that is an offer in the offering made by the undersigned&nbsp;registrant&nbsp;to
                                            the purchaser.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12pt; text-align: justify; background-color: white; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(b)
Insofar as indemnification for liabilities arising under the&nbsp;Securities Act of 1933&nbsp;may be permitted to directors, officers
and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in
the opinion of the&nbsp;Securities and Exchange Commission&nbsp;such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act
and will be governed by the final adjudication of such issue.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(c)
The undersigned registrant hereby undertakes that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 41px"></TD><TD STYLE="width: 20px; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
                                            purposes of determining any liability under the Securities Act, the information omitted from
                                            the form of prospectus filed as part of this registration statement in reliance upon Rule
                                            430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1)
                                            or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration
                                            statement as of the time it was declared effective.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 41px"></TD><TD STYLE="width: 20px; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
                                            purposes of determining any liability under the Securities Act, each post-effective amendment
                                            that contains a form of prospectus shall be deemed to be a new registration statement relating
                                            to the securities offered therein, and the offering of such securities at that time shall
                                            be deemed to be the initial bona fide offering thereof.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="poa"></A>SIGNATURES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Scottsdale, State of Arizona, on May 15, 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signing
                    Day Sports, Inc.</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 36%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/
    Daniel D. Nelson</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Daniel
        D. Nelson</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief
    Executive Officer</FONT></P></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>POWER
OF ATTORNEY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
person whose signature appears below constitutes and appoints each of Daniel D. Nelson and Damon Rich as his or her true and lawful attorneys-in-fact
and agents with full power of substitution and resubstitution, for him and his name, place and stead, in any and all capacities, to sign
any or all amendments (including post-effective amendments) to this registration statement and to file a new registration statement under
Rule 461, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite
and necessary to be done in and about the foregoing, as fully to all intents and purposes as he or she might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or their substitutes, may lawfully do or cause to be done by virtue
hereof.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities
and on the dates indicated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; width: 26%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid; white-space: nowrap; width: 57%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap; width: 15%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Daniel
    D. Nelson</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 15, 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Daniel D. Nelson</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(principal executive officer), Chairman, and Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Damon
    Rich</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interim Chief Financial Officer </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 15, 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Damon Rich </FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(principal financial officer and principal accounting
    officer)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Richard
    Symington</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">President, Chief Marketing Officer, and Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 15, 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Richard Symington</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Greg Economou</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 15, 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Greg Economou</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Glen Kim</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 15, 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glen Kim</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Martin
    Lanphere</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 15, 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Martin Lanphere</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Roger
    Mason Jr.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">May 15, 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Roger Mason Jr.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  </TABLE>

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As filed with the Securities and Exchange Commission
on May 15, 2023.
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON, D.C. 20549
FORM
S-1
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
Signing Day Sports, Inc.
(Exact name of registrant
as specified in its charter)
Delaware
7389
87-2792157
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
8355 East Hartford Rd.,
Suite 100
Scottsdale, AZ 85255
(602) 481-7440
(Address, including zip
code, and telephone number, including area code, of registrant's principal executive offices)
Damon Rich, Interim Chief
Financial Officer
8355 East Hartford Rd.,
Suite 100
Scottsdale, AZ 85255
(602) 481-7440
(Name, address, including
zip code, and telephone number, including area code, of agent for service)
Copies to:
Louis
                           A. Bevilacqua, Esq.
Bevilacqua PLLC
1050 Connecticut
    Avenue, NW, Suite 500
Washington, DC
    20036
(202) 869-0888
Laura Anthony, Esq.
Craig D. Linder, Esq
.
Anthony L.G., PLLC
625 N. Flagler Drive, Suite 600
West Palm Beach, FL 33401
(561) 514-0936
Approximate d
ate
of commencement of proposed sale to the public:
As soon as practicable after the date this registration statement becomes effective.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, check the following box. ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company,
or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller
reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated
    filer ☐
Accelerated filer ☐
Non-accelerated filer
    ☒
Smaller reporting company ☒
Emerging growth company ☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐
The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further a
mendment which specifically states that this registration statement shall thereafter become
effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective
on such date as the Commission, acting pursuant to such Section 8(a), may determine.
EXPLANATORY NOTE
This registration statement
contains two prospectuses, as set forth below.
●
Public Offering Prospectus
.
                                            A prospectus to be used for the public offering of shares of common stock through the underwriter
                                            named on the cover page of this prospectus, which is referred to in this Explanatory Note
                                            as the Public Offering Prospectus.
●
The Resale Prospectus
.
                                            A prospectus, which is referred to in this Explanatory Note as the Resale Prospectus, to
                                            be used for the resale by selling stockholders of up to 2,346,548 shares of common stock,
                                            consisting of (i) 746,548 shares of common stock issued to the selling stockholders; (ii)
                                            410,000 shares of common stock issuable upon the conversion of 6% convertible unsecured promissory
                                            notes issued to the selling stockholders; (iii) 250,000 shares of common stock issuable upon
                                            the conversion of 8% convertible unsecured promissory notes issued to the selling stockholders;
                                            and (iv) 940,000 shares of common stock issuable upon the exercise of warrants issued to
                                            the selling stockholders.
The Resale Prospectus
is substantively identical to the Public Offering Prospectus, except for the following principal points:
●
they contain different front covers;
●
they contain different "
Offering
"
                                            sections in the Prospectus Summary;
●
they contain different "
Use
                                            of Proceeds
" sections;
●
the "
Capitalization
"
                                            and "
Dilution
" sections are deleted from the Resale Prospectus;
●
a "
Selling Stockholders
"
                                            section is included in the Resale Prospectus;
●
the "
Underwriting
"
                                            section from the Public Offering Prospectus is deleted from the Resale Prospectus and
                                            a "
Plan of Distribution
" section is inserted in its place; and
●
the "
Legal Matters
"
                                            section in the Resale Prospectus deletes the reference to counsel for the underwriters.
The registrant has included
in this registration statement a set of alternate pages after the back cover page of the Public Offering Prospectus, which are referred
to as the Alternate Pages, to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering Prospectus.
The Public Offering Prospectus will exclude the Alternate Pages and will be used for the public offering by the Registrant. The Resale
Prospectus will be substantively identical to the Public Offering Prospectus except for the addition or substitution of the Alternate
Pages and will be used for the resale offering by the selling stockholders.
The
information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and
it is not soliciting offers to buy these securities in any jurisdiction where the offer or sale is not permitted.
SUBJECT
TO COMPLETION
PRELIMINARY
PROSPECTUS DATED MAY 15, 2023
Signing Day Sports, Inc.
3,750,000 Shares of Common Stock
This is an initial public offering of our shares
of common stock, $0.0001 par value per share (the "common stock"). We are offering 3,750,000 of our shares of common
stock. It is currently estimated that the initial public offering price will be between $4.00 and $6.00. We have selected the lowest
point of this range of $4.00 per share for use herein as the assumed sales price for our shares, given recent market volatility, for
purposes of calculation of estimated use of proceeds, estimated dilution and other matters in this prospectus.
We are also seeking to register the issuance
of warrants to purchase 301,875 shares of common stock (the "Representative's Warrants") to the underwriters (assuming
the exercise of the over-allotment option by the underwriters in full) as well as the 301,875 shares of common stock issuable upon exercise
by the underwriters of the Representative's Warrants at an exercise price of $4.00 per share, based on the assumed public offering
price of $4.00 per share, which is the low point of the estimated offering range set forth above.
Prior to this offering, there has been no public
market for our shares.  We are in the process of applying to list our shares of common stock on NYSE American under the symbol "SDS".
NYSE American may or may not approve such application, and if our application is not approved, this offering cannot be completed.
Unless otherwise noted, the share and per share
information in this prospectus have been adjusted to give effect to the one-for-five (1-for-5) reverse stock split (the "Reverse
Stock Split") of the outstanding common stock which became effective on April 14, 2023. See "
Corporate History and Structure
– Reverse Stock Split
".
We are an "emerging growth company",
as defined in the Jumpstart Our Business Startups Act of 2012, under applicable U.S. federal securities laws, and are eligible for reduced
public company reporting requirements. See "
Prospectus Summary – Implications of Being an Emerging Growth Company
"
for more information.
Investing in our securities is highly speculative
and involves a high degree of risk.  See "
Risk Factors
" beginning on page 15 for a discussion of information
that should be considered in connection with an investment in our securities.
Neither the U.S. Securities and Exchange Commission
nor any state or provincial securities commission has approved or disapproved of these securities or determined if this prospectus is
truthful or complete.  Any representation to the contrary is a criminal offense.
Per Share
Total
Initial public offering price
$
$
Underwriting discounts and commissions
(1)
$
$
Proceeds to us, before expenses
$
$
(1)
Does not include a non-accountable expense
                                            allowance equal to 1% of the gross proceeds of this offering payable to Boustead Securities,
                                            LLC, the representative of the underwriters ("Boustead" or "the representative"),
                                            or the reimbursement of certain expenses of the underwriters. The representative will also
                                            receive other compensation in addition to underwriting discounts and commissions. See "
Underwriting
"
                                            for additional disclosure regarding underwriters' compensation and offering expenses.
This offering is being
conducted on a firm commitment basis.  The underwriters are obligated to take and purchase all of the shares of common stock offered
under this prospectus if any such shares are taken.
We have granted the
underwriters an option for a period of 45 days from the date of this prospectus to purchase up to 15% of the total number of our shares
to be offered by us pursuant to this offering (excluding shares subject to this option), solely for the purpose of covering over-allotments,
at the initial public offering price less the underwriting discounts, commissions and non-accountable expense allowance. If the underwriters
exercise the option in full, the total estimated underwriting discounts, commissions and non-accountable expense allowance payable will
be $1,380,000, and the total estimated gross proceeds to us, before underwriting discounts, commissions and non-accountable expense allowance
will be $17,250,000, based on the assumed initial public offering price of $4.00 per share, which is the low point of the estimated offering
range set forth above.  Net proceeds will be delivered to us on the closing date.
The underwriters expect to deliver the shares
of common stock to purchasers in the offering on or about , 2023.
Boustead Securities,
LLC
The date of this prospectus
is                                  ,
2023.
TABLE OF CONTENTS
Page
Prospectus Summary
1
Risk Factors
15
Cautionary Statement Regarding Forward-Looking Statements
37
Use of Proceeds
38
Dividend Policy
39
Capitalization
40
Dilution
42
Management's Discussion and Analysis of Financial Condition and Results of Operations
44
Corporate History and Structure
58
Business
62
Management
80
Executive Compensation
87
Certain Relationships and Related Party Transactions
98
Principal Stockholders
105
Description of Securities
108
Shares Eligible for Future Sale
116
Material U.S. Federal Tax Considerations for Non-U.S. Holders of Our Common Stock
119
Underwriting
123
Legal Matters
128
Experts
128
Where You Can Find More Information
128
Financial Statements
F-1
Please read this prospectus carefully. It
describes our business, financial condition, results of operations and prospects, among other things. We are responsible for the information
contained in this prospectus and in any free-writing prospectus we have authorized. Neither we nor the underwriter have authorized anyone
to provide you with different information, and neither we nor the underwriter take responsibility for any other information others may
give you. Neither we nor the underwriter are making an offer to sell these securities in any jurisdiction where the offer or sale is
not permitted. The information contained in this prospectus is accurate only as of the date on the front of this prospectus, regardless
of the time of delivery of this prospectus or any sale of shares of common stock. You should not assume that the information contained
in this prospectus is accurate as of any date other than its date.
i
TRADEMARKS, TRADE NAMES AND SERVICE MARKS
We use various trademarks, trade names and service
marks in our business, including "Signing Day Sports™", "The Hat Before The Hat™ and associated marks.
For convenience, we may not include the SM,
®
or
™
symbols, but such omission is not meant to indicate
that we would not protect our intellectual property rights to the fullest extent allowed by law. Any other trademarks, trade names or
service marks referred to in this prospectus are the property of their respective owners.
INDUSTRY AND MARKET DATA
We are responsible for the information contained
in this prospectus. This prospectus includes industry and market data that we obtained from periodic industry publications, third-party
studies and surveys, filings of public companies in our industry and internal company surveys. These sources generally state that the
information they provide has been obtained from sources believed to be reliable, but that the accuracy and completeness of the information
are not guaranteed. The forecasts and projections are based on historical market data, and there is no assurance that any of the forecasts
or projected amounts will be achieved. Industry and market data could be wrong because of the method by which sources obtained their
data and because information cannot always be verified with complete certainty due to the limits on the availability and reliability
of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties. The market and industry data
used in this prospectus involve risks and uncertainties that are subject to change based on various factors, including the COVID-19 pandemic
and those discussed in the section titled "
Risk Factors
." These and other factors could cause results to differ materially
from those expressed in, or implied by, the estimates made by independent parties and by us. Furthermore, we cannot assure you that a
third party using different methods to assemble, analyze or compute industry and market data would obtain the same results.
ii
PROSPECTUS
SUMMARY
This summary highlights selected information
contained elsewhere in this prospectus. This summary is not complete and does not contain all of the information that you should consider
before deciding whether to invest in common stock. You should carefully read the entire prospectus, including the risks associated with
an investment in our company discussed in the "Risk Factors" section of this prospectus, before making an investment decision.
Some of the statements in this prospectus are forward-looking statements. See the section titled "Cautionary Statement Regarding
Forward-Looking Statements."
In this prospectus, unless the context indicates
otherwise, "we," "us," "our," "Signing Day Sports," "the Company," "our
company" and similar references refer to the consolidated operations of Signing Day Sports, Inc., a Delaware corporation.
Unless otherwise noted, the share and per
share information in this prospectus reflects the Reverse Stock Split ratio of 1-for-5 as if it had occurred at the beginning
of the earliest period presented.
Our
Company
Overview
We are a technology
company developing and operating platforms aiming to give significantly more student-athletes the opportunity to go to college and continue
playing sports. Our platform, Signing Day Sports, is a digital ecosystem to help athletes get discovered and recruited by coaches and
recruiters across the country. We currently fully support football and baseball, and we plan to expand the Signing Day Sports platform
to include additional sports. Each sport is led by former professional athletes and coaches who know what it takes to get to the big
leagues.
Signing Day Sports launched
in 2019, and as of March 2023, many high schools, sports clubs, and aspiring high school athletes have subscribed to the Signing Day
Sports platform. Colleges in the National Collegiate Athletic Association (NCAA) Division I, Division II, and Division III, and the National
Association of Intercollegiate Athletics (NAIA), have utilized our platform for recruitment purposes. Signing Day Sports initially supported
football athletes, also now offers a platform for baseball and softball, and is expected to offer a men's and women's soccer
platform in or around May 2023, resulting in even more recruiter and athlete platform participants.
We founded Signing Day
Sports to reinvent the high school and college sports recruiting process for the digital era. When we started the Company, recruiting
was still being done largely as it had been done since before the mass availability of Internet-connected devices and was still limited
by that model. We believe that we identified the flaws in the recruiting process and the unique opportunity it presented for us to become
a solution provider in the industry. We developed and operated our platform with the objective of optimizing and enhancing the sports
recruitment process across all sizes of colleges and athletic departments.
Our ability to leverage
modern technologies to bring coaches and athletes together in a mutually beneficial ecosystem has shown significant benefits for both
sides of the student-athlete recruitment process. Parents and athletes can use the platform to understand and provide what recruiters
want to see, seek and gain offers of better athletic scholarships or other financial aid packages, and maximize the potential of an athlete's
career. Recruiters now have a comprehensive recruitment application that shows video verification of key attribute data and gives the
recruiter the ability to narrow down their search with a highly optimized search engine and athlete screening process.
In short, we offer a comprehensive solution that
services the needs of all participants in the sports recruitment process. We are aware of no other platform that offers what our platform
does. Our goal is to change the way sports recruitment is done for the betterment of everyone.
1
Our Historical Performance
The Company's
current and former independent registered public accounting firms have expressed substantial doubt as to the Company's ability
to continue as a going concern. We have incurred losses for each period from our inception and a significant accumulated deficit. For
the fiscal years ended December 31, 2022 and 2021, our net loss was approximately $6.7 million and $8.8 million, respectively, our cash
used in operating activities was approximately $4.9 million and $5.7 million, respectively, and we had cumulative losses of approximately
$18.1 million and $11.5 million
, respectively.
We expect to incur expenses
and operating losses over the next several years. Accordingly, we will need additional financing to support our continuing operations.
We will seek to fund our operations through public or private equity offerings, debt financings, government or other third-party funding,
collaborations and licensing arrangements. Adequate additional financing may not be available to us on acceptable terms, or at all. Our
failure to raise capital as and when needed would impact our going concern status and would have a negative impact on our financial condition
and our ability to pursue our business strategy and continue as a going concern. We will need to generate significant revenues to achieve
profitability, and we may never do so.
For further discussion,
see "
Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital
Resources – Going Concern
".
The sports recruitment industry has a number
of problems. Frequently, the best athletes in the world get overlooked because of a lack of exposure, promotion, and experience. The
dominance of the top athletic programs reduces opportunities for talented student-athletes. Many student-athletes who do not know how
to effectively promote themselves will get pushed down ranking sheets. Signing Day Sports has built an application to bring equal opportunity
to all student-athletes looking to be recruited at every level.
We believe that our technology can help level
the playing field for both student-athletes and recruiters. Any student-athlete can promote and demonstrate their talent to all of the
recruiters on our platform. On the other side, every recruiter who uses the platform can access the same rich level of data that can
be provided by our platform's student-athletes.
We believe our technology will help move sports
recruitment toward a truly fair experience for all parties involved.
Our Solution
Signing Day Sports is a platform in the form
of an app available on Apple's App Store and Google Play for student-athletes and desktops for coaches and recruiters. We believe
Signing Day Sports is the first comprehensive sports recruitment platform. The platform interface is designed to be optimized for each
participant in the sports recruitment process. The three-tiered technology platform serves student-athletes and their parents, high school
and sports club coaches, and college and professional recruiters and scouts.
Student-athletes can upload key information and
verified data that is critical in the recruitment process. The data fields in our player platform include the following: Video-verified
measurables (such as height, weight, 40-yard dash, wingspan, hand size), academic information (such as official transcripts and SAT/ACT
scores), and technical skill videos (such as drills and mechanics that exemplify player mechanics, coordination, and development).
College coaches, team managers and other recruiters
can load in all athletes on their respective teams, sports clubs or programs. They can use the platform to communicate directly with
athletes, track their progress in the weight room and training field, and manage other aspects of their athletes. Additionally, the platform
serves as an important tool for recruitment and development. In particular, college coaches can manage their entire recruitment process
through our platform. Our platform provides college coaches an optimized organizational system, communication tools, and verified data
to make informed decisions and save program costs. Athletes and parents can use the platform to communicate with their coaches and managers
as well as track individual performance and key metrics that are valuable to recruiters. The platform was built by athletes and recruiters
for athletes and recruiters, and we believe it truly represents the future of sports recruitment.
Our Competitive Strengths
We believe our key competitive strengths include:
●
Massive
                                            Low-Cost Access to Recruiters
. Recruiting events, camps, games and showcases such
                                            as those hosted by Next College Student Athlete, Gridiron Elite and Perfect Game strive to
                                            match high-level high school athletes for in-person competition. Attendees sometimes travel
                                            interstate to attend these events and typically pay an attendance fee as well. These events
                                            are typically costly to recruits' families and present a number of practical challenges
                                            for recruits.  Our app evens the playing field by allowing an athlete to get in front
                                            of numerous recruiters without any travel or significant costs.
2
●
More
                                            Objective and Fair Player Evaluations
.  Our platform fills a niche in the current
                                            competitive landscape by allowing recruits to put their best foot forward by submitting only
                                            their best interviews, verified athletic/academic measurables, verified drill footage, and
                                            actual game film.  Recruiters can then better assess their prospects than in traditional
                                            in-person recruitment events where chance events can throw off even the best athletes'
                                            performances.
●
Better
                                            Athlete Comparison Tools.
Other digital sports recruitment apps such as Hudl do not
                                            allow coaches to evaluate prospects' drill performances frame-by-frame, side-by-side.
                                            Additionally, these platforms do not have verified statistics within individual recruiting
                                            profiles.  Our tool offers these and a number of other unique features that recruiters
                                            and their prospects find exceptionally valuable.
●
Designed
                                            for Coaches and Recruiters.
Through our verified measurables, "Film Room,"
                                            "Big Board", "Interview" and recruiter-athlete messaging features,
                                            our app's coach/recruiter platform allows college coaches and recruiters to drive the
                                            recruitment process. At their desktops, recruiters can easily access and request verifiable
                                            information from thousands of athletes across the nation. After players submit their video-verified
                                            uploads, verified academics, and supplemental data like responses to interview questions,
                                            coaches can make well-informed decisions. Our in-app messaging allows coaches to communicate
                                            directly with prospective recruits. All of our app's features are designed to produce
                                            an efficient, comprehensive and intuitive process for accessing, comparing, ranking and recruiting
                                            athletes by user coaches and recruiters.
●
Designed
                                            for Players and Parents.
Our app's player-facing mobile platform easily allows
                                            players to submit video-verified information, verified academic information, responses to
                                            interview questions, and other data, and be seen by hundreds of college coaches and recruiters.
                                            In the comfort of their own home or a nearby field, players can upload all the information
                                            coaches need to make a well-informed decision.
●
PRO+
                                            Service
:  PRO+, our premium services offering, provides players with all of
                                            the critical features within our platform, and adds direct support and guidance from former
                                            Division I football recruiters and personnel. For this service, our recruitment team provides
                                            players and families with the following: Two film evaluations, access to college recruiting
                                            experts, highlight tape development, custom college scorecard, and more recruiting services.
                                            At a price of $299.99 per year, the combination of our technology platform and recruitment
                                            guidance will ensure the players have the best opportunity to earn a scholarship.
●
Educational
                                            Tools for Players and Parents
. Signing Day Sports supports athletes and parents through
                                            the entirety of the recruiting process in three ways. First, our former college coaches,
                                            athletes, and player personnel directors are readily available through the Signing Day Sports
                                            app, website, and personal social media accounts. They support and communicate regularly
                                            with athletes to assist them throughout the recruiting process. The second way is
The
                                            Wire
, Signing Day Sports' official blog. We regularly post educational and informative
                                            blog entries that consist of interviews, player features, in-depth dives into specific recruiting
                                            processes and events, and other relevant subjects. Thousands of visitors read
The Wire
's
                                            entries every month to stay up to date regarding the most recent recruiting news and updates.
                                            The third way is called "Signing Day Sports University" or "SDS University".
                                            SDS University is a Zendesk-based customer-facing knowledge base and is composed of short,
                                            educational videos. Athletes, parents, and coaches can learn about our app, the collegiate
                                            recruiting process from beginning to end, and more through the SDS University video catalog.
                                            Topics range from NIL, the transfer portal, and eligibility to more specific app tutorials
                                            like uploading videos or sharing the athlete's profile link. SDS University helps leverage
                                            our internal knowledge to communicate more efficiently and with more people.
Our Growth Strategies
The key elements of our strategy to grow our
business include:
●
Completion
                                            and Development of New Sports Platforms
. Our app previously offered fully-supported
                                            football and baseball platforms. More recently, our official platform for softball launched
                                            in February 2023, and we expect our men's and women's soccer platform to launch
                                            in May 2023. We plan to continue to develop all of our platforms with additional features.
3
●
Investment
                                            in our Platform
. We will continue to invest in our technology and infrastructure
                                            to improve our product and ability to present best-in-class technology in the recruitment
                                            space, with planned features such as player recommendations for coaches based on their specific
                                            requirements and preferences. We hired key employees and retained an onshore technology and
                                            development agency, Midwestern Interactive, LLC, or Midwestern, for product launches in baseball,
                                            softball, and soccer, in addition to continually improving the features and performance of
                                            our platform. Additionally, we will recruit, hire, and employ a high-quality offshore team
                                            to improve the efficiency and quality of our platform. We will also prioritize internal hires
                                            of engineers and developers to launch new features and sports platforms, while ensuring product
                                            stability and effectiveness.
●
Launch
                                            New Products and Expand Features
. Over time, we will continue to launch new products
                                            and features to meet market demand. We will prioritize both the needs of college coaches
                                            and recruiters across the nation and the athletes seeking to be recruited in major sports
                                            verticals. Some of the planned features include:
●
Public
                                            Player Profile
. By allowing athletes and their parents to share a public version
                                            of the athlete's profile, we can ensure that the ultimate power of recruiting is in
                                            the athlete's hands.  We expect that the public version may be shared with coaches,
                                            other athletes and on social media and will contain all of the athlete's data, including
                                            videos.  The profile will be available to anyone, including recruiters and others that
                                            are not Signing Day Sports users. Additionally, our profile tracking is being designed to
                                            allow players to see who has viewed their profile and may be interested in recruiting them.
●
Social
                                            Community of Student-Athletes
. Signing Day Sports plans to introduce social features
                                            on the platform. We expect these features will help athletes share and exchange videos, information,
                                            and bragging rights, and enhance the users' sense of community. With a robust integration
                                            of LinkedIn and Facebook, athletes will be able to follow other athletes, see their profiles
                                            and videos in a feed, favorite other athletes, and exchange workout tips on our platform
                                            forums.  Athletes will also be able to compete against one another for bragging rights
                                            on the leaderboard, complete tasks for badges, and take part in Signing Day Sports community
                                            challenges.  These social features are expected to engage athletes with the Signing
                                            Day Sports app more holistically through these social connections.
●
Release
                                            of My Invites
. With the first iterative release of our platform's My Invites
                                            feature, coaches can drive player subscriptions and engagement by uploading unlimited lists
                                            of athletes and inviting them to our platform with as few as two mouse clicks.  Our
                                            system analyzes the submitted data and tracks whether an athlete deleted their email, opened
                                            it or signed up for subscription.  With this functionality, coaches can play a key role
                                            in the recruitment process by getting prospective athletes to not only join the platform
                                            but encourage them to upload verified information like transcripts, drill videos, and height
                                            and weight.  This data upload from the coaches is simple, streamlined and provides them
                                            with key information to make data-informed decisions, communicate with prospects and even
                                            make offers and build their virtual team.
●
Increase
                                            Profitability through Multiple Revenue Streams
. Signing Day Sports expects increased
                                            profitability as we launch digital marketing campaigns and sports platforms. We expect that
                                            a growing subscriber base will allow us to increase subscription margin, increase subscriber
                                            lifetime value, and increase monthly and annual renewal profits. An increase in profitability
                                            from a greater subscription base and multiple sports platforms can in turn support our branding,
                                            marketing, and operational spend.
●
Expand
                                            Sports Club Support
.
Prominent youth sports organizations in the United States are involved in many different
                                            sports including soccer, baseball, softball, lacrosse, basketball, and track and field. Sports
                                            clubs are often more competitive than high school athletic programs, and club players often
                                            demonstrate a commitment to continue playing sports at the next level. As we expand our platform
                                            to other sports, we will prioritize support for youth club sports organizations. Our support
                                            will be the expansion of a sales team to directly work with club coaches and organizations.
                                            We expect that club teams and organizations will embed our platform fees into their annual
                                            fees so that they can offer enhanced recruitment support for players and their parents, while
                                            providing their coaches with a tool to streamline the recruitment process.
●
Grow
                                            and Broaden Brand Awareness
. Our brand awareness has developed primarily within our
                                            football vertical, particularly in the Southwestern United States and other areas where football
                                            is a dominant sport. With strategic partnerships with football associations and organizations,
                                            digital, social media, event marketing, and organizational partnerships, we expect to grow
                                            our brand throughout the United States. Additionally, as we launch new sports verticals,
                                            we will have many opportunities to increase brand and product awareness through additional
                                            markets. We will broaden our reach through educating players, parents, and coaches through
                                            best-in-class technology and compelling value.
4
●
Pursue
                                            Strategic Geographies for Product Expansion
.
With youth sports being played across the world, we will seek to expand our platform
                                            and technology to other countries across the globe. Through disciplined research, we will
                                            seek to expand our product to areas with significant children's sport participation,
                                            technology adoption, and access to recruiters. We expect to prioritize the North America
                                            markets first, then replicate and introduce products suited to the local. For example, our
                                            anticipated soccer platform could provide a significant solution to inefficiencies in the
                                            student-athlete recruitment process in markets like Mexico and Europe.
●
Digital
                                            Marketing Campaigns
●
Business-to-consumer
                                            (B2C) digital marketing
. Through our B2C digital marketing campaign, we will promote
                                            and advertise our products and services to thousands of high-school-aged football players
                                            and parents across the nation. With our planned combination of compelling content, brand
                                            influencers, and a marketing website, we expect significant growth in individual subscriber
                                            growth. In particular, we will prioritize parent-friendly social media platforms such as
                                            Facebook, Twitter, and Instagram, and our campaigns will support and educate parents on the
                                            recruitment process while providing our value proposition through our products, services
                                            and technology.
●
Business-to-business
                                            (B2B) digital marketing
. Through our B2B digital marketing campaign, we will promote
                                            and advertise our products and services to high school and sports club coaches, athletic
                                            directors, sports club owners, and their business development teams.
●
Digital
                                            marketing techniques
. Our digital marketing campaigns will utilize search engine
                                            optimization, pay per click, digital ads, and other effective techniques to increase team
                                            and organizational subscriptions.
●
Marketing
                                            and Sponsorship Agreements and Collaborations
. Our focus on key sponsorship and marketing
                                            agreements will serve to both increase overall player subscriptions and marketing.
●
Louisville
                                            Slugger Hitting Science Center
: We and Louisville Slugger Hitting Science Center
                                            LLC, or LSHSC, whose mission is to become the gold standard in baseball and fastpitch softball
                                            education and instruction, will collaborate on the joint marketing and promotion of each
                                            other's products and services. LSHSC will offer subscriptions to our platform and subscription
                                            revenues will be shared between us. See "
Business – Sales and Marketing –
                                            Marketing and Sponsorship Agreements
" for further information regarding the terms
                                            of this agreement.
●
The
                                            U.S. Army Bowl
: Over the course of our three-year agreement, we will be the official
                                            recruitment platform for the Bowl, an annual national all-star game for U.S. high school
                                            football which was last held in December 2022 at Ford Center at The Star in Frisco, Texas.
                                            Aside from having priority on-site access to many of the top players in the game, we may
                                            potentially promote ourselves, advertise to, and onboard more than an estimated 30,000 athletes
                                            as a sponsor through the game's advertising channels. The first Bowl event in December
                                            2022 resulted in more than 600 player subscriptions. Bowl-related events planned for 2023
                                            include, among others, the 2023 U.S. Army Bowl National Combine Series, which are scheduled
                                            from March 2023 to June 2023. Data collected and analyzed by our platform will be part of
                                            the selection process for determining whether athletes participating in the combines may
                                            advance to the Bowl and/or National Combine events in December 2023. Athletes participating
                                            in Bowl combines will receive three months of access to the Signing Day Sports app's
                                            recruiting platform with registration, a Signing Day Sports recruiting profile with personal
                                            guidance from recruiting experts, video highlights from their combine, and tools to put their
                                            game highlights into their profiles on the Signing Day Sports app. See "
Business
                                            – Sales and Marketing – Marketing and Sponsorship Agreements
" for further
                                            information regarding the terms of this agreement.
●
State
                                            Athletic and Coaches Associations
: We have sponsored a number of state athletic associations
                                            across the U.S., including the Texas High School Coaches Association, or THSCA, the North
                                            Carolina Coaches Association, or NCCA, and the Arizona Football Coaches Association, or AZFCA.
                                            These associations have agreed to designate us as their exclusive recruitment platform for
                                            all coaches in their respective states. In addition, we have marketing rights to their coaches,
                                            athletes, and athletic events and combines throughout the year. Please see the details of
                                            our marketing and sponsorship agreements with these associations in "
Business –
                                            Sales and Marketing – Marketing and Sponsorship Agreements
".
●
Potential
                                            Accretive Acquisitions
. We are currently evaluating potential acquisition targets
                                            (although no such acquisition target has yet been identified) that could bolster subscriber
                                            growth, branding awareness, and revenue shares. These potential acquisitions range from owners
                                            of specific game events, athlete development programs, and technologies to boost subscriber
                                            growth and revenue.
5
●
Events
                                            and Marketing
. Through key partnerships, our events team will conduct on-site Signing
                                            Day Sports app registration with high school-aged athletes and their parents. Specifically,
                                            at these events, athletes will have the opportunity to purchase, download, and upload key
                                            data and information on-site. These events will include football skills camps, soccer tournaments,
                                            7v7 football tournaments, baseball showcases, and state-wide combines. In particular, our
                                            hosted combine events are expected to continue to be an effective means for gaining exposure
                                            to our brand and registering new users on our platform. We plan to increase the number of
                                            our hosted combine events and utilize media to increase attendance and exposure at these
                                            events.
Implications of Being an Emerging
Growth Company and a Smaller Reporting Company
Upon the completion of the Company's initial
public offering, we will qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012, or
the JOBS Act. As a result, we will be permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long
as we are an emerging growth company, we will not be required to:
●
have
                                            an auditor report on our internal controls over financial reporting pursuant to Section 404(b)
                                            of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act;
●
comply
                                            with any requirement that may be adopted by the Public Company Accounting Oversight Board
                                            regarding mandatory audit firm rotation or a supplement to the auditor's report providing
                                            additional information about the audit and the financial statements (i.e., an auditor discussion
                                            and analysis);
●
being
                                            permitted to present only two years of audited financial statements, in addition to any required
                                            unaudited interim financial statements, with correspondingly reduced "Management's
                                            Discussion and Analysis of Financial Condition and Results of Operations" disclosure
                                            in this prospectus;
●
submit
                                            certain executive compensation matters to stockholder advisory votes, such as "say-on-pay"
                                            and "say-on-frequency;" and
●
disclose
                                            certain executive compensation related items such as the correlation between executive compensation
                                            and performance and comparisons of the chief executive officer's compensation to median
                                            employee compensation.
In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. In other words, an emerging growth
company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have
elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable
to those of companies that comply with such new or revised accounting standards.
We will remain an emerging growth company for
up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed
$1,235,000,000, (ii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange
Act of 1934, as amended, or the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates
exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (iii) the date on which we
have issued more than $1 billion in non-convertible debt during the preceding three year period.
To the extent that we continue to qualify as
a "smaller reporting company," as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended,
(the "Exchange Act"), after we cease to qualify as an emerging growth company, certain of the exemptions available to us
as an emerging growth company may continue to be available to us as a smaller reporting company, including: (i) not being required to
comply with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (ii) scaled executive compensation disclosures;
and (iii) the requirement to provide only two years of audited financial statements, instead of three years.
6
Significant Voting Power of Certain Beneficial
Owners, Executive Officers and Directors
Our executive officers and directors collectively
will beneficially own approximately 10.5% of our outstanding common stock following the Company's initial public offering if the
underwriters do not exercise the over-allotment option, or approximately 10.2% if the underwriters exercise the over-allotment option
in full (based on the assumed public offering price of $4.00 per share of common stock being sold in the Company's initial public
offering, which is the low point of the estimated offering range set forth on the cover page of this prospectus), and assuming, at the
time of the initial public offering, the automatic conversion of the Company's 6% convertible unsecured promissory notes into a
total of 3,152,500 shares of common stock, the automatic conversion of the Company's 8% convertible unsecured promissory notes
into a total of 732,500 shares of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares of common
stock. Management will collectively control the same percentage of the voting power following the offering. Dennis Gile, our largest
stockholder and a former officer and director, will beneficially own approximately 13.5% of our outstanding common stock following the
initial public offering, or approximately 13.1% if the underwriters exercise the over-allotment option in full, subject to the other
assumptions described above, and will have the same percentage of the voting power following the offering. As a result, both Mr. Gile
individually, and our executive officers and directors collectively, will be able to exercise significant influence over all matters
requiring stockholder approval following the offering.
Our Corporate History and Structure
Signing Day Sports, LLC, an Arizona limited liability
company ("SDS LLC – AZ"), was formed on January 21, 2019. SDS LLC – AZ formed two wholly-owned subsidiaries,
Signing Day Sports Football, LLC, an Arizona limited liability company ("SDSF LLC"), and Signing Day Sports Baseball, LLC,
an Arizona limited liability company ("SDSB LLC"), on September 29, 2020 and November 25, 2020, respectively.
On June 5, 2020, a process to change SDS LLC
– AZ into a Delaware corporation was initiated (collectively, the "Arizona-to-Delaware Conversion Process"). On that
date, a certificate of formation of Signing Day Sports, LLC, a Delaware limited liability company ("SDS LLC – DE"),
and a certificate of conversion of SDS LLC – AZ into SDS LLC – DE, were filed with the Delaware Secretary of State. On September
9, 2021, a certificate of incorporation (as amended from time to time, the "Certificate of Incorporation") of Signing Day
Sports, Inc., a Delaware corporation ("SDS Inc. – DE"), and a certificate of conversion of SDS LLC – DE into
SDS Inc. – DE were filed with the Delaware Secretary of State. From September 9, 2021 to July 11, 2022, SDS Inc. – DE operated
as the successor entity to SDS LLC – AZ, and SDS LLC – AZ continued to be registered as an active entity with the Arizona
Corporation Commission while its conversion into SDS LLC – DE pended.
A unanimous written consent of the board of directors
of SDS Inc. – DE, dated as of March 25, 2022, approved the form of an Agreement and Plan of Merger between SDS LLC – AZ,
SDSF LLC, SDSB LLC, and SDS Inc. – DE (the "Merger Agreement") and related merger documents, the related merger transactions,
the form of certain Settlement Agreements (as defined below), the form of a Shareholder Agreement among the Company and the stockholders
of the Company (the "Shareholder Agreement") (for a description of the terms of the Shareholder Agreement, see "
Corporate
History and Structure – Shareholder Agreement
"), and a proposed capitalization table of SDS Inc. – DE, approved
and ratified the Certificate of Incorporation and approved amended and restated bylaws of SDS Inc. – DE, and approved and ratified
related matters. In anticipation of the execution of the Merger Agreement and its consummation, in April 2022 and May 2022, SDS LLC –
AZ, SDS Inc. – DE, and each of the members or stockholders of SDS LLC – AZ, SDSF LLC, SDSB LLC, and SDS Inc. – DE,
entered into a Settlement Agreement and Release (each individually, the "Settlement Agreement," and collectively, the "Settlement
Agreements"), which provided, among other things, for the mutual general release of all claims by the parties against and relating
to SDS LLC – AZ, SDSF LLC, SDSB LLC, and SDS Inc. – DE, and confirmed the owners and related amounts of all outstanding shares
of common stock of SDS Inc. represented by the capitalization table exhibit to the Settlement Agreements. The stockholders of SDS Inc.
– DE and the members of SDS LLC – AZ executed unanimous written consents, dated as of May 17, 2022 and July 6, 2022, respectively,
approving the Merger Agreement and related transactions, the form of the Settlement Agreements, the form of the Shareholder Agreement,
an updated capitalization table of SDS Inc., and approved and ratified the Certificate of Incorporation, the amended and restated bylaws,
the prior corporate actions that were taken in connection with the Arizona-to-Delaware Conversion Process, and certain related matters.
On July 11, 2022, the Merger Agreement was executed.
On the same date, pursuant to the Merger Agreement, a certificate of merger was filed with the Delaware Secretary of State and a statement
of merger was filed with the Arizona Secretary of State effecting the merger of SDS LLC – AZ, SDSF LLC, and SDSB LLC with and into
SDS Inc. – DE, and SDS Inc. – DE succeeded to the rights, property, obligations, and liabilities of each of SDS LLC –
AZ, SDSF LLC, and SDSB LLC.
7
The releases of claims under the Settlement Agreements
with each of Dennis Gile, Dorsey Family Holdings, LLC, an Arizona limited liability company ("Dorsey LLC"), Joshua A. Donaldson
Revocable Trust, and Zone Right, LLC, a California limited liability company ("Zone Right") are subject to certain specific
exceptions for claims under certain separate agreements or instruments, including rights under one convertible note held by Zone Right.
For a further description of the Settlement Agreements, including the rights under the convertible note held by Zone Right and other
rights subject to exceptions referenced in the Settlement Agreements, see "
Certain Relationships and Related Party Transactions
– Transactions With Related Persons
".
On March 13, 2023, the Reverse Stock Split, in
which each five shares of the outstanding common stock were automatically combined and converted into one share of outstanding common
stock, was approved by the board of directors, and was approved by stockholders holding a majority of the voting power of our issued
and outstanding voting capital stock as of April 4, 2023. On April 14, 2023, we filed a certificate of amendment to the Certificate of
Incorporation, which provided for the Reverse Stock Split, and the Reverse Stock Split became effective on the same date.
The Reverse Stock Split combined
each five shares of our outstanding common stock into one share of common stock, without any change in the number of authorized shares
of common stock or the par value per share of common stock. The Reverse Stock Split, correspondingly adjusted, among other
things, the exercise price of our warrants, convertible notes and stock options. No fractional shares were issued in connection with
the Reverse Stock Split, and any fractional shares resulting from the Reverse Stock Split were rounded
up to the nearest whole share.
On May 5, 2023, the amendment and restatement
of the Certificate of Incorporation was approved by stockholders holding a majority of the voting power of our issued and outstanding
voting capital stock, and on May 9, 2023, the amended and restated Certificate of Incorporation was filed with the Delaware Secretary
of State and became effective the same date. Effective the same date, the second amended and restated bylaws of the Company currently
in effect (the "Amended and Restated Bylaws") were adopted by unanimous written consent of the board of directors. The Certificate
of Incorporation and Amended and Restated Bylaws contain certain provisions relating to limitations of liability and indemnification
of directors and certain officers, provide advance notice procedures for stockholder proposals at stockholder meetings, and other matters.
See "
Description of Securities – Anti-Takeover Provisions
" and "
Management – Limitation on Liability
and Indemnification of Directors and Certain Officers
".
See "
Corporate History and Structure
"
for a further description of our corporate history and structure.
Corporate Information
Our principal executive offices are located at
8355 East Hartford Rd., Suite 100, Scottsdale, AZ 85255 and our telephone number is (602) 481-7440. We maintain a website at https://www.signingdaysports.com/.
Information available on our website is not incorporated by reference in and is not deemed a part of this prospectus.
Retrospective Presentation of Reverse Stock
Split
Except as otherwise indicated, all references
to our common stock, share data, per share data and related information has been adjusted for the Reverse Stock Split ratio of 1-for-5
as if it had occurred at the beginning of the earliest period presented.
8
The
Offering
Shares being offered:
3,750,000 shares of common stock (or 4,312,500 shares if the underwriters exercise the
    over-allotment option in full), assuming an initial public offering price of $4.00 per share (which is the low point of the estimated
    range of the initial public offering price shown on the cover page of this prospectus).
Offering price:
We currently estimate that the initial public offering price will be between $4.00 and $6.00 per
    share.
Shares outstanding after the offering
(1)
:
11,341,152 shares of common stock (or 11,903,652 shares if the underwriters exercise the over-allotment
    option in full), assuming an initial public offering price of $4.00 per share (which is the low point of the estimated range of the
    initial public offering price shown on the cover page of this prospectus).
Over-allotment option:
We have granted to the underwriters a 45-day option to purchase from us up to an additional 15% of
    the shares sold in the offering (562,500 additional shares assuming an initial public offering price of $4.00 per share (which is
    the low point of the estimated range of the initial public offering price shown on the cover page of this prospectus)) at the initial
    public offering price, less the underwriting discounts and commissions.
Representative's warrants:
We have agreed to issue to the representative warrants to purchase a number of shares of common stock
    equal in the aggregate to 7% of the total number of shares issued in the initial public offering. The representative's warrants
    will be exercisable at a per share exercise price equal to 100% of the public offering price per share of common stock sold in the
    initial public offering. The representative's warrants will be exercisable at any time and from time to time, in whole or in
    part, during the five-year period commencing on the commencement date of sales in the initial public offering. The registration statement
    of which this prospectus forms a part also registers the shares of common stock issuable upon exercise of the representative's
    warrants. See "
Underwriting
" for more information.
Use of proceeds:
We expect to receive net proceeds of approximately $12.8 million from the initial public offering
    (or approximately $14.8 million if the underwriters exercise their over-allotment option in full), assuming an initial public offering
    price of $4.00 per share (which is the low point of the estimated range of the initial public offering price shown on the cover page
    of this prospectus), no exercise of the representative's warrants, and after deducting estimated underwriting discounts and
    commissions and estimated offering expenses payable by us. We plan to use the net proceeds of the initial public offering for  product
    and technology development, expansion of our sales team and marketing efforts, and general working capital and other corporate purposes.  See
    "
Use of Proceeds
" for more information on the planned use of proceeds.
Risk factors:
Investing in our common stock involves a high degree of risk. As an investor, you should be able
    to bear a complete loss of your investment. You should carefully consider the information set forth in the "
Risk Factors
"
    section beginning on page 15 before deciding to invest in our common stock.
Lock-up
We, all of our directors and officers and stockholders holding 5% or more of our shares have agreed
    with the underwriters, subject to certain exceptions, not to sell, transfer or dispose of, directly or indirectly, any of our common
    stock or securities convertible into or exercisable or exchangeable for our common stock for a period of 12 months after the closing
    of the initial public offering. The underwriters have agreed to waive the lock-up requirement for shares of common stock being sold
    by the selling stockholders named in the resale prospectus filed contemporaneously with this prospectus.  See "
Underwriting
"
    for more information.
9
Proposed trading market and symbol
We are in the process of applying to list our common stock on NYSE American under the
    symbol "SDS". We believe that upon the completion of the initial public offering, we will meet the standards for listing
    on NYSE American.  The closing of the initial public offering is contingent upon the successful listing of our common stock
    on NYSE American.
Reverse Stock Split
The Reverse Stock Split, in which each five shares of the outstanding common stock were automatically
    combined and converted into one share of outstanding common stock, became effective on April 14, 2023. Except as otherwise indicated,
    all references to the common stock, share data, per share data and related information has been adjusted for the Reverse Stock Split
    ratio of 1-for-5 as if it had occurred at the beginning of the earliest period presented.
(1) The number of shares of common stock outstanding
immediately following the initial public offering is based on 7,591,152 shares outstanding as of the date of this prospectus, after giving
effect to the Reverse Stock Split at a ratio of 1-for-5, and excludes the following securities or rights to securities that were outstanding
as of the date of this prospectus or that may be outstanding before the commencement of the initial public offering:
●
3,152,500
                                            shares of common stock issuable upon conversion of 6% convertible unsecured promissory notes
                                            at a conversion price of $2.00 per share assuming that all are converted at the mandatory
                                            conversion price at the time of the initial public offering, based on the assumed initial
                                            public offering price of $4.00 per share, which is the low point of the price range set forth
                                            on the cover page of this prospectus, or up to 2,522,000 shares of common stock issuable
                                            upon the optional conversion of 6% convertible unsecured promissory notes at their optional
                                            conversion price of $2.50 per share;
●
732,500
                                            shares of common stock issuable upon conversion of 8% convertible unsecured promissory notes
                                            at a conversion price of $2.00 per share assuming that all are converted at the mandatory
                                            conversion price at the time of the initial public offering, based on the assumed initial
                                            public offering price of $4.00 per share, which is the low point of the price range set forth
                                            on the cover page of this prospectus, or up to 444,842 shares of common stock issuable upon
                                            the optional conversion of 8% convertible unsecured promissory notes at their optional conversion
                                            price of approximately $3.29 per share;
●
732,500
                                            shares of common stock issuable upon exercise of warrants at an exercise price of $2.00 per
                                            share, based on the assumed initial public offering price of $4.00 per share, which is the
                                            low point of the price range set forth on the cover page of this prospectus;
●
940,000
                                            shares of common stock issuable upon exercise of warrants at an exercise price of $2.50 per
                                            share;
●
220,675
                                            shares of common stock issuable to Boustead as placement agent upon exercise of placement
                                            agent's warrants issued to Boustead at an exercise price of $2.00 per share with respect
                                            to outstanding 6% convertible unsecured promissory notes issued to private placement investors
                                            assuming that all such private placement securities are converted at the 6% convertible unsecured
                                            promissory notes' mandatory conversion price at the time of the initial public offering,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of this prospectus, or 176,540 shares of common
                                            stock issuable upon exercise of such placement agent's warrants at an exercise price
                                            of $2.50 per share upon the optional conversion of outstanding 6% convertible unsecured promissory
                                            notes at their optional conversion price of $2.50 per share;
10
●
Up
                                            to 77,200 shares of common stock issuable to Boustead as placement agent in consideration
                                            for the waiver of its success fee and expense allowance for Company-introduced investors
                                            in the private placement of the Company's 8% convertible unsecured promissory notes
                                            and accompanying warrants equal to 8% of the number of shares of common stock issuable to
                                            the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of this prospectus;
●
65,800
                                            shares of common stock issuable to Boustead as placement agent upon exercise of placement
                                            agent's warrants issued to Boustead at an exercise price of $2.50 per share with respect
                                            to warrants issued or that may be issued to private placement investors in our 8% unsecured
                                            promissory notes;
●
13,375
                                            shares of common stock upon the completion of the initial public offering assuming the offering
                                            is completed by November 15, 2023, based on the assumed initial public offering price of
                                            $4.00 per share, which is the low point of the price range set forth on the cover page of
                                            this prospectus, otherwise the number of shares of common stock equal to the number of shares
                                            derived by dividing $53,500 by the Fair Market Value, as defined by certain service provider
                                            agreements, of the common stock of the Company on November 15, 2023, pursuant to such service
                                            provider agreements;
●
277,450
                                            total shares of common stock issuable upon the exercise of stock options at an exercise price
                                            per share equal to $3.10 per share and 243,000 total shares of common stock issuable upon
                                            the exercise of stock options at an exercise price per share equal to $2.50 per share which
                                            were granted to certain employees, consultants, officers, and directors under the Signing
                                            Day Sports, Inc. 2022 Equity Incentive Plan, or the Equity Incentive Plan, or the Plan;
●
750,000
                                            shares of common stock that are reserved for issuance under the Plan, which is inclusive
                                            of the 520,450 shares issuable upon the exercise of stock options that are granted under
                                            the Plan; and
●
301,875
                                            shares of common stock issuable upon exercise of representative's warrants to be issued
                                            to the underwriters in connection with the initial public offering, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus, and assuming full exercise by the underwriters
                                            of the over-allotment option.
11
Summary
Financial Information
The following tables summarize certain financial
data regarding our business and should be read in conjunction with our financial statements and related notes contained elsewhere in
this prospectus and the information under "
Management's Discussion and Analysis of Financial Condition and Results of
Operations
."
Our summary financial data as of December 31,
2022 and 2021 are derived from our audited financial statements included elsewhere in this prospectus. All financial statements included
in this prospectus are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP").
The summary financial information is only a summary and should be read in conjunction with the historical financial statements and related
notes contained elsewhere herein. The financial statements contained elsewhere fully represent our financial condition and operations;
however, they are not indicative of our future performance.
Years
                                            Ended
December
                                            31,
2022
2021
Statements of Operations Data
(restated)
Revenue
$
78,336
$
340,984
Operating expenses
5,688,840
8,408,918
Total other income (expense)
(280,246
)
(231,951
)
Net earnings (loss)
$
(6,673,814
)
$
(8,804,227
)
As
                                            of
December
                                            31,
2022
2021
Balance Sheet Data
(restated)
Cash and cash equivalents
$
254,409
$
4,687,550
Total current assets
301,332
4,855,223
Total assets
454,163
4,916,195
Total current liabilities
2,639,631
532,552
Total liabilities
8,556,711
8,477,180
Total stockholders' (deficit)
(8,102,548
)
(3,560,985
)
Total liabilities and stockholders' (deficit)
$
454,163
$
4,916,195
12
Summary
of Risk Factors
An investment in our common stock involves a
high degree of risk. You should carefully consider the risks summarized below. These risks are discussed more fully in the "
Risk
Factors
" section immediately following this Prospectus Summary. These risks include, but are not limited to, the following:
Risks Related to the Company's Business,
Operations and Industry
●
The
                                            currently evolving situation related to the COVID-19 pandemic could adversely affect
                                            our business, financial condition and results of operations.
●
We
                                            have a limited operating history. There can be no assurance that we will be successful in
                                            growing our business.
●
We
                                            have a history of losses since our inception and may continue to incur losses for the foreseeable
                                            future.
●
Our
                                            management has concluded that factors raise substantial doubt about our ability to continue
                                            as a going concern and our auditor has included an explanatory paragraph relating to our
                                            ability to continue as a going concern in its audit report for the fiscal years ended December
                                            31, 2022 and 2021.
●
We
                                            will need to obtain additional funding to continue operations. If we fail to obtain the necessary
                                            financing or fail to become profitable or are unable to sustain profitability on a continuing
                                            basis, then we may be unable to continue our operations and we may be forced to significantly
                                            delay, scale back or discontinue our operations.
●
Our
                                            ability to use our net operating loss carryforwards and certain other tax attributes may
                                            be limited.
●
We
                                            operate in the highly competitive sports recruitment industry which is subject to rapid and
                                            significant technological changes.
●
If
                                            we fail to acquire new customers, we may not be able to increase net sales or achieve profitability.
●
Our
                                            software or services may not operate properly, which could damage our reputation, give rise
                                            to claims against us, or divert application of our resources from other purposes, any of
                                            which could harm our business and operating results.
●
If
                                            our security measures are breached or fail and unauthorized access is obtained to a customer's
                                            data, our service may be perceived as insecure, the attractiveness of our services to current
                                            or potential customers may be reduced, and we may incur significant liabilities.
●
We
                                            depend on sophisticated information technology systems and data processing to operate our
                                            business. If we experience security or data privacy breaches or other unauthorized or improper
                                            access to, use of, or destruction of our proprietary or confidential data, customer data
                                            or personal data, we may face costs, significant liabilities, harm to our brand and business
                                            disruption.
●
Claims
                                            by others that we infringe their intellectual property could force us to incur significant
                                            costs or revise the way we conduct our business.
●
There
                                            may be challenges to our patents and proprietary technology.
●
If
                                            we fail to renew and/or expand our existing licenses, we may be required to discontinue or
                                            limit our use of the products that include or incorporate the licensed intellectual property.
●
Changes
                                            in government policy, legislation or regulatory or judicial interpretations could hinder
                                            or prevent our ability to conduct our business operations.
●
We
                                            are dependent on our management team, and the loss of any key member of this team may prevent
                                            us from implementing our business plan in a timely manner, or at all.
13
●
If
                                            we fail to effectively manage our growth, our business, financial condition and operating
                                            results could be harmed.
●
We
                                            are subject to governmental regulation, which can change, and any failure to comply with
                                            these regulations may have a material negative effect on our business and results of operations.
●
Climate
                                            change and increased focus by governmental organizations on sustainability issues, including
                                            those related to climate change, may have a material adverse effect on our business and operations.
Risks Related to Our Common Stock and Initial
Public Offering
●
There
                                            has been no public market for our common stock prior to the Company's initial public
                                            offering, and an active market in which investors can resell their shares of our common stock
                                            may not develop.
●
The
                                            market price of our common stock may fluctuate, and you could lose all or part of your investment.
●
Certain
                                            recent initial public offerings of companies with relatively small public floats comparable
                                            to our anticipated public float have experienced extreme volatility that was seemingly unrelated
                                            to the underlying performance of the respective company. Our common stock may potentially
                                            experience rapid and substantial price volatility, which may make it difficult for prospective
                                            investors to assess the value of our common stock.
●
We
                                            may not be able to satisfy listing requirements of NYSE American or maintain a listing of
                                            our common stock on NYSE American.
●
We
                                            have considerable discretion as to the use of the net proceeds from the Company's initial
                                            public offering and we may use these proceeds in ways with which you may not agree.
●
Investors
                                            in the Company's initial public offering will experience immediate and substantial
                                            dilution.
●
Substantial
                                            future sales or issuances of our common stock or securities convertible into, or exercisable
                                            or exchangeable for, our common stock, or the perception in the public markets that these
                                            sales or issuances may occur, may depress our stock price. Also, future issuances of our
                                            common stock or rights to purchase common stock could result in additional dilution of the
                                            percentage ownership of our stockholders and could cause our share price to fall. The expiration
                                            of lock-up agreements that restrict the issuance of new common stock or the trading of outstanding
                                            common stock could also cause the market price of our common stock to decline.
●
We
                                            do not expect to declare or pay dividends in the foreseeable future.
●
If
                                            securities industry analysts do not publish research reports on us, or publish unfavorable
                                            reports on us, then the market price and market trading volume of our common stock could
                                            be negatively affected.
●
Future
                                            issuances of debt securities, which would rank senior to our common stock upon our bankruptcy
                                            or liquidation, and future issuances of preferred stock, which could rank senior to our common
                                            stock for the purposes of dividends and liquidating distributions, may adversely affect the
                                            level of return you may be able to achieve from an investment in our common stock.
●
We
                                            will be subject to ongoing public reporting requirements that are less rigorous than Exchange
                                            Act rules for companies that are not emerging growth companies and our stockholders could
                                            receive less information than they might expect to receive from more mature public companies.
●
Upon
                                            becoming a public company, we will incur significant increased costs as a result of operating
                                            as a public company, and our management will be required to devote substantial time to new
                                            compliance initiatives.
●
Our
                                            principal stockholder, executive officers and directors will beneficially own a significant
                                            percentage of the outstanding voting power of the Company following the Company's initial
                                            public offering. As a result, they will be able to exercise significant influence over all
                                            matters requiring stockholder approval.
14
RISK
FACTORS
An investment in our common stock involves
a high degree of risk. You should carefully consider the following risk factors, together with the other information contained in this
prospectus, before purchasing our common stock. We have listed below (not necessarily in order of importance or probability of occurrence)
what we believe to be the most significant risk factors applicable to us, but they do not constitute all of the risks that may be applicable
to us. Any of the following factors could harm our business, financial condition, results of operations or prospects, and could result
in a partial or complete loss of your investment. Some statements in this prospectus, including statements in the following risk factors,
constitute forward-looking statements. Please refer to the section titled "Cautionary Statement Regarding Forward-Looking Statements".
Risks Related to the Company's Business,
Operations and Industry
The currently
evolving situation related to the COVID-19 pandemic could adversely affect our business, financial condition and results of
operations.
In January 2020, the
World Health Organization declared the COVID-19 outbreak to be a public health emergency and, in March 2020, it declared the outbreak
to be a pandemic. The COVID-19 pandemic has caused severe global economic and societal disruptions and uncertainties. In response to
the virus, countries and local governments instituted policies and measures to curtail the spread of the virus, including "stay
at home" orders, travel restrictions and restrictions on the operation of non-essential businesses and services. Companies have
also taken precautions, such as requiring employees to work remotely and temporarily closing or minimizing operations. Although some
initial restrictions have been relaxed, some restrictions have also been re-imposed and the current restrictions and future prevention
and mitigation measures imposed by governments and private companies are likely to continue to have a severe adverse impact on global
economic conditions and consumer confidence and spending. The COVID-19 pandemic may negatively affect our business by causing or contributing
to, among other things, the following:
●
Cessation
                                            or significant reductions in the operations of, or the inability, or significant disruptions
                                            in the ability, to meet obligations to us, of significant third-party suppliers, vendors,
                                            external manufacturers and other business or commercial partners, which may be caused by
                                            their business, operational or financial difficulties, among other reasons.
●
Significant
                                            decreases in sales of or demand for, or significant volatility in sales of or demand for,
                                            one or more of our significant products or service offerings due to, among other things,
                                            closure or reduction in occupancy of sporting events which could affect our key customers;
                                            changes in customer behavior or preference; any negative impact to our reputation resulting
                                            from an adverse perception of our response to the pandemic; or the worldwide, regional and
                                            local adverse economic and financial market conditions.
●
Significant
                                            disruptions to our business operations due to, among other things, unavailability of key
                                            employees, including our senior management team, as a result of illness to themselves or
                                            their families; cancellation or other disruptions of sales and marketing events; disruptions
                                            to trade promotion initiatives; and any delays or modifications to any significant strategic
                                            initiatives.
●
Additional
                                            or renewed significant governmental actions, including closures, quarantines or other restrictions
                                            on the ability of our employees to travel or perform necessary business functions or our
                                            ability to market or sell our products; changes in costs associated with governmental actions
                                            or general economic trends; or other limitations or restrictions on our ability to market
                                            or sell our products or the ability of our suppliers, customers or third-party partners to
                                            effectively run their operations, which may negatively impact demand and our ability to market
                                            and sell our products.
15
The Company does not
believe that the COVID-19 pandemic has had a significant adverse impact on the Company's business to date. As described under "
Business
– Market for Recruiting Services
", the ongoing COVID-19 global pandemic has increased both the need for, and familiarity
with, remote interactions. As a result of the COVID-19 pandemic, the Company believes that its business can generate more revenues, at
little or no additional cost, from more customers as a result of their search for alternatives to in-person recruiting events. Therefore,
we do not believe that the COVID-19 pandemic has had an adverse impact on the Company's business to date, or on the Company's
revenues or expenses. However, the ultimate extent of the COVID-19 pandemic's effect on our operational and financial performance
will depend on future developments, including the duration, spread and intensity of the pandemic and our continued ability to manufacture
and distribute our products, as well as any future government actions affecting consumers and the economy generally, all of which are
uncertain and difficult to predict, especially in light of the rapidly evolving social and political situations in response to the pandemic.
We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required
by local, state or federal authorities or that we determine are in the best interests of our employees, consumers, customers or business
partners. Although the potential effects that COVID-19 may have on us are not clear, such impacts could materially adversely affect our
business, financial condition and results of operations.
We have a limited
operating history. There can be no assurance that we will be successful in growing our business.
We have a limited history of operations. As a
result, there can be no assurance that we will be successful in providing our sports recruitment technology services. Any potential for
future growth will place additional demands on our executive officers, and any increased scope of our operations will present challenges
due to our current limited management resources. There can be no assurance that we will be successful in our efforts. Our inability to
locate additional opportunities, to hire additional management and other personnel, or to enhance our management systems, could have
a material adverse effect on our results of operations. There can be no assurance that our operations will be profitable.
We have a history of losses since our inception
and may continue to incur losses for the foreseeable future.
To date, we have been unable to sell its services
in quantities sufficient to be operationally profitable. Consequently, we have sustained substantial losses. There can be no assurances
that the Company will ever achieve the level of revenues needed to be operationally profitable in the future and if profitability is
achieved, that it will be sustained. Our revenues have fluctuated and may likely continue to fluctuate significantly from quarter to
quarter and from year to year. We will need to obtain additional capital and increase sales to become profitable.
Our management has concluded that factors
raise substantial doubt about our ability to continue as a going concern and our auditor has included an explanatory paragraph relating
to our ability to continue as a going concern in its audit report for the fiscal years ended December 31, 2022 and 2021.
Our management has concluded that our historical
recurring losses from operations and negative cash flows from operations as well as our dependence on private equity and other financings
raise substantial doubt about our ability to continue as a going concern and our current and former auditors have included an explanatory
paragraph relating to our ability to continue as a going concern in their audit reports for the fiscal years ended December 31, 2022
and 2021.
Our financial statements do not include any adjustments
that might result from the outcome of this uncertainty. These adjustments would likely include substantial impairment of the carrying
amount of our assets and potential contingent liabilities that may arise if we are unable to fulfill various operational commitments.
In addition, the value of our securities, including common stock issued in the Company's initial public offering, would be greatly
impaired. Our ability to continue as a going concern is dependent upon generating sufficient cash flow from operations and obtaining
additional capital and financing, including funds to be raised in the initial public offering. If our ability to generate cash flow from
operations is delayed or reduced and we are unable to raise additional funding from other sources, we may be unable to continue in business
even if the initial public offering is successful. For further discussion about our ability to continue as a going concern and our plan
for future liquidity, see "
Management's Discussion and Analysis of Financial Condition and Results of Operations –
Liquidity and Capital Resources – Going Concern
."
16
We will need to obtain additional funding
to continue operations. If we fail to obtain the necessary financing or fail to become profitable or are unable to sustain profitability
on a continuing basis, then we may be unable to continue our operations and we may be forced to significantly delay, scale back or discontinue
our operations.
We will require additional capital to fund our
operations, and if we fail to obtain necessary financing, our business plan may not be successful.
Our operations have consumed substantial amounts
of cash since inception, and we expect they will continue to consume substantial amounts of cash as we aggressively build our platform
and our internal marketing, compliance and other administrative functions. Although we believe the net proceeds from the Company's
initial public offering together with existing cash and cash equivalents will be sufficient to fund our projected operating expenses
for some period of time, we will require additional capital to maintain our business operations, and we may also need to raise additional
funds sooner if our operating and other expenses are higher than we expect.
Our forecast of the period of time through which
our financial resources will be adequate to support our operations is a forward-looking statement and involves risks and uncertainties,
and actual results could vary as a result of a number of factors. We have based this estimate on assumptions that may prove to be wrong,
and we could exhaust our available capital resources sooner than we currently expect.
If a lack of available capital means that we
are unable to expand our operations or otherwise capitalize on our business opportunities, our business, financial condition and results
of operations could be materially adversely affected.
Adverse developments affecting the financial
services industry, such as actual events or concerns involving liquidity, defaults, or non-performance by financial institutions
or transactional counterparties, could adversely affect our current and projected business operations and our financial condition and
results of operations.
Actual events involving limited liquidity, defaults, non-performance or
other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services
industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks,
have in the past and may in the future lead to market-wide liquidity problems. For example, on March 10, 2023, Silicon Valley Bank ("SVB"),
was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. Similarly, on March
12, 2023, Signature Bank Corp. ("Signature"), and Silvergate Capital Corp. were each swept into receivership. Although a
statement by the Department of the Treasury, the Federal Reserve and the FDIC indicated that all depositors of SVB would have
access to all of their money after only one business day of closure, including funds held in uninsured deposit accounts, borrowers under
credit agreements, letters of credit and certain other financial instruments with SVB, Signature or any other financial institution that
is placed into receivership by the FDIC may be unable to access undrawn amounts thereunder. In addition, on May 1, the FDIC
announced that First Republic had been closed by the California Department of Financial Protection and Innovation and its assets
seized by the FDIC. JPMorgan Chase eventually won the auction, paying the FDIC $10.6 billion for nearly all of First Republic's
assets. Although we are not a borrower under or party to any material letter of credit or any other such instruments with SVB, Signature
or any other financial institution currently in receivership, if we enter into any such instruments and any of our lenders or counterparties
to such instruments were to be placed into receivership, we may be unable to access such funds. In addition, if any of our customers,
suppliers or other parties with whom we conduct business are unable to access funds pursuant to such instruments or lending arrangements
with such a financial institution, such parties' ability to pay their obligations to us or to enter into new commercial arrangements
requiring additional payments to us could be adversely affected. In this regard, counterparties to credit agreements and arrangements
with these financial institutions, and third parties such as beneficiaries of letters of credit (among others), may experience direct
impacts from the closure of these financial institutions and uncertainty remains over liquidity concerns in the broader financial services
industry. Similar impacts have occurred in the past, such as during the 2007-2008 financial crisis.
Inflation and rapid increases in interest rates
have led to a decline in the trading value of previously-issued government securities with interest rates below current market interest
rates. Although the U.S. Department of Treasury, FDIC and Federal Reserve Board have announced a program to provide up to $25
billion of loans to financial institutions secured by certain of such government securities held by financial institutions to mitigate
the risk of potential losses on the sale of such instruments, widespread demands for customer withdrawals or other liquidity needs of
financial institutions for immediately liquidity may exceed the capacity of such program.
17
Our access to funding sources and other credit
arrangements in amounts adequate to finance or capitalize our current and projected future business operations could be significantly
impaired by factors that affect us, any financial institutions with which we enter into credit agreements or arrangements directly, or
the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints
or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions
or instability in the financial services industry or financial markets, or concerns or negative expectations about the prospects for
companies in the financial services industry. These factors could involve financial institutions or financial services industry companies
with which we have financial or business relationships, but could also include factors involving financial markets or the financial services
industry generally.
The results of events or concerns that involve
one or more of these factors could include a variety of material and adverse impacts on our current and projected business operations
and our financial condition and results of operations. These risks include, but may not be limited to, the following:
●
delayed
                                            access to deposits or other financial assets or the uninsured loss of deposits or other financial
                                            assets;
●
inability
                                            to enter into credit facilities or other working capital resources;
●
potential
                                            or actual breach of contractual obligations that require us to maintain letters of credit
                                            or other credit support arrangements; or
●
termination
                                            of cash management arrangements and/or delays in accessing or actual loss of funds subject
                                            to cash management arrangements.
In addition, investor concerns regarding the
U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or
costs and tighter financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making
it more difficult for us to acquire financing on acceptable terms or at all. Any decline in available funding or access to our cash and
liquidity resources could, among other risks, adversely impact our ability to meet our operating expenses or other obligations, financial
or otherwise, result in breaches of our financial and/or contractual obligations, or result in violations of federal or state wage and
hour laws. Any of these impacts, or any other impacts resulting from the factors described above or other related or similar factors,
could have material adverse impacts on our liquidity and our current and/or projected business operations and financial condition and
results of operations.
In addition, any further deterioration in the
economy or financial services industry could lead to losses or defaults by our customers, service providers, vendors, or suppliers, which
in turn, could have a material adverse effect on our current and/or projected business operations and results of operations and financial
condition. For example, a customer may fail to make payments when due, default under their agreements with us, become insolvent or declare
bankruptcy, or a service provider, vendor, or supplier may determine that it will no longer deal with us as a customer. In addition,
a service provider, vendor or supplier could be adversely affected by any of the liquidity or other risks that are described above as
factors that could result in material adverse impacts on us, including but not limited to delayed access or loss of access to uninsured
deposits or loss of the ability to draw on existing credit facilities involving a troubled or failed financial institution. The bankruptcy
or insolvency of any customers, service providers, vendors, or suppliers, or the failure of any customer to make payments when due, or
any breach or default by a customer, service provider, vendor, or supplier, or the loss of any significant supplier relationships, could
cause us to suffer material losses and may have a material adverse impact on our business.
Our ability to use our
net operating loss carryforwards and certain other tax attributes may be limited.
We have incurred net
losses since our inception in 2019, and we may never achieve or sustain profitability. Federal net operating loss, or NOL, carryforwards
we generated since our incorporation may be carried forward indefinitely but may only be used to offset 80% of our taxable income annually.
Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an "ownership change,"
generally defined as a greater than 50 percentage point change (by value) in its equity ownership by certain stockholders over a three-year
period, the corporation's ability to use its pre-change NOL carryforwards and other pre-change tax attributes (such as research
tax credits) to offset its post-change income or taxes may be limited. We have not completed a study to assess whether an ownership change
for purposes of Section 382 or 383 has occurred, or whether there have been multiple ownership changes since our inception. For purposes
of Section 382 or 383, we may have experienced ownership changes in the past and may experience ownership changes in the future as a
result of shifts in our stock ownership (some of which shifts are outside our control). As a result, if we earn net taxable income, our
ability to use our pre-change NOL carryforwards to offset such taxable income will be subject to limitations. Similar provisions of state
tax law may also apply to limit our use of accumulated state tax attributes. Therefore, if we attain profitability, we may be unable
to use a material portion of our NOL carryforwards and other tax attributes, which could adversely affect our future cash flows.
18
We operate in the highly competitive sports
recruitment industry which is subject to rapid and significant technological changes.
The sports recruitment industry in which the
Company is engaged is intensely competitive and characterized by rapid changes in technology, customer requirements, and industry standards,
and by frequent new product and service offerings and improvements. We compete with an array of established and emerging recruiting solution
providers. Conditions in our market could change rapidly and significantly as a result of technological advancements, partnerships, or
acquisitions by our competitors or continuing market consolidation. With the introduction of new technologies and market entrants, we
expect the competitive environment to remain intense. There can be no assurance that Company's systems can be upgraded to meet
future innovations in the industry or that new technologies will not emerge, or existing technologies will not be improved, which would
render the Company's offerings obsolete or non-competitive. Many of the companies we compete with enjoy significant competitive
advantages over us, including but not limited to greater name recognition; greater financial, technical and service resources; established
networks; additional product offerings; and greater resources for product development and sales and marketing. In addition, there can
be no assurance that other established sports recruiting companies, any of which would likely have greater resources than the Company,
will not enter the market. There can be no assurance that the Company will be able to compete successfully against any of its competitors.
If we fail to acquire new customers, we
may not be able to increase net sales or achieve profitability.
We have invested in marketing and branding related
to customer acquisition and expect to continue to do so. We must continue to acquire subscription customers in order to increase net
sales and achieve profitability. In order to expand our customer base, we must appeal to and acquire customers who have historically
used other means to recruit athletes and may prefer alternatives to do so. We cannot assure you that the net sales from new customers
we acquire will ultimately exceed the cost of acquiring those customers. If consumers do not perceive the platform we offer to be of
high value and quality, we may not be able to acquire new customers. If we are unable to acquire new customers, the net sales we generate
may decrease, and our business, financial condition and operating results may be materially and adversely affected.
We use social networking sites, such as Facebook,
Instagram and YouTube, online services, search engines, affiliate marketing websites, directories and other social media websites and
ecommerce businesses to advertise, market and direct potential customers to use our platform. As social networking continues to rapidly
evolve, we must continue to use social media channels that are used by our current and prospective customers and cost-effectively drive
traffic to our platform. We believe that failure to utilize these channels as sources of traffic to our site to generate new customers
would adversely affect our financial condition.
Our software or services may not operate
properly, which could damage our reputation, give rise to claims against us, or divert application of our resources from other purposes,
any of which could harm our business and operating results.
We may encounter human or technical obstacles
that prevent our website and apps from operating properly. If our offerings do not function reliably or fail to achieve customer expectations
in terms of performance, customers could assert liability claims against us or cancel their contracts with us. This could damage our
reputation and impair our ability to attract or maintain customers. We cannot assure you that material performance problems or defects
in our service offerings will not arise in the future. Errors may result from receipt, entry, or interpretation of customer information
or from interface of our services. These defects and errors and any failure by us to identify and address them could result in loss of
revenue or market share, liability to customers or others, failure to achieve market acceptance or expansion, diversion of development
resources, injury to our reputation, and increased service and maintenance costs. The costs incurred in correcting any defects or errors
or in responding to resulting claims or liability may be substantial and could adversely affect our operating results.
19
If our security measures are breached or
fail and unauthorized access is obtained to a customer's data, our service may be perceived as insecure, the attractiveness of
our services to current or potential customers may be reduced, and we may incur significant liabilities.
Our services involve the Internet-based storage
and transmission of customers' information. We rely on proprietary and commercially available systems, software, tools and monitoring,
as well as other processes, to provide security for processing, transmission and storage of such information. Because of the sensitivity
of this information and due to requirements under applicable laws and regulations, the effectiveness of our security efforts is very
important. If our security measures are breached or fail as a result of third-party action, acts of terror, social unrest, employee error,
malfeasance or for any other reasons, someone may be able to obtain unauthorized access to customer data. Improper activities by third-parties,
advances in computer and software capabilities and encryption technology, new tools and discoveries and other events or developments
may facilitate or result in a compromise or breach of our security systems. Our security measures may not be effective in preventing
unauthorized access to the customer data stored on our servers. If a breach of our security occurs, we could face damages for contract
breach, penalties for violation of applicable laws or regulations, possible lawsuits by individuals affected by the breach and significant
remediation costs and efforts to prevent future occurrences. In addition, whether there is an actual or a perceived breach of our security,
the market perception of the effectiveness of our security measures could be harmed and we could lose current or potential customers.
We depend on sophisticated information
technology systems and data processing to operate our business. If we experience security or data privacy breaches or other unauthorized
or improper access to, use of, or destruction of our proprietary or confidential data, customer data or personal data, we may face costs,
significant liabilities, harm to our brand and business disruption.
We rely on information technology systems and
data processing that we or our service providers, collaborators, consultants, contractors or partners operate to collect, process, transmit
and store electronic information in our day-to-day operations, including a variety of personal data, such as name, mailing
address, email addresses, academic records, phone numbers and potentially other sensitive user information. Additionally, we, and our
service providers, collaborators, consultants, contractors or partners, do or will collect, receive, store, process, generate, use, transfer,
disclose, make accessible, protect and share personal information and other information to operate our business, for legal and marketing
purposes, and for other business-related purposes. Our internal computer systems and data processing and those of our third-party vendors,
consultants, collaborators, contractors or partners, may be vulnerable to a cyber-attack, malicious intrusion, breakdown, destruction,
loss of data privacy, actions or inactions by our employees or contractors that expose security vulnerabilities, theft or destruction
of intellectual property or other confidential or proprietary information, business interruption or other significant security incidents.
As the cyber-threat landscape evolves, these attacks are growing in frequency, level of persistence, sophistication and intensity, and
are becoming increasingly difficult to detect. In addition to traditional computer "hackers," threat actors, software bugs,
malicious code (such as viruses and worms), employee theft or misuse, denial-of-service attacks (such as credential stuffing),
phishing and ransomware attacks, sophisticated nation-state and nation-state supported actors now engage in attacks (including advanced
persistent threat intrusions). These risks may be increased as a result of COVID-19, owing to an increase in personnel working
remotely and higher reliance on internet technology. Furthermore, because the techniques used to obtain unauthorized access to, or to
sabotage, systems change frequently and often are not recognized until launched against a target, we may be unable to anticipate these
techniques or implement adequate preventative measures. We may also experience security breaches that may remain undetected for an extended
period.
There can be no assurance
that we, our service providers, collaborators, consultants, contractors or partners will be successful in efforts to detect, prevent
or fully recover systems or data from all breakdowns, service interruptions, attacks or breaches of systems that could adversely affect
our business and operations and/or result in the loss of critical or sensitive data. Any failure by us or our service providers, collaborators,
consultants, contractors or partners to detect, prevent, respond to or mitigate security breaches or improper access to, use of, or inappropriate
disclosure of any of this information or other confidential or sensitive information, including customers' personal data, or the
perception that any such failure has occurred, could result in claims, litigation, regulatory investigations and other proceedings, significant
liability under state, federal and international law, and other financial, legal or reputational harm to us. Further, such failures or
perceived failures could result in liability and a material disruption of our development programs and our business operations, which
could lead to significant delays, lost revenues or other adverse consequences, any of which could have a material adverse effect on our
business, results of operations, financial condition, prospects and cashflow.
20
Additionally, applicable
laws and regulations relating to privacy, data protection or cybersecurity, external contractual commitments and internal
privacy and security policies may require us to notify relevant stakeholders if there has been a security breach, including affected
individuals, business partners and regulators. Such disclosures are costly, and the disclosures or any actual or alleged failure to comply
with such requirements could lead to a materially adverse impact on the business, including negative publicity, a loss of confidence
in our services or security measures by our business partners or breach of contract claims. There can be no assurance that the limitations
of liability in our contracts would be enforceable or adequate or would otherwise protect us from liabilities or damages if we fail to
comply with applicable data protection laws, privacy policies or other data protection obligations related information
security or security breaches.
Claims by others that we infringe their
intellectual property could force us to incur significant costs or revise the way we conduct our business.
Our competitors protect their proprietary rights
by means of patents, trade secrets, copyrights, trademarks and other intellectual property. We have not conducted an independent review
of patents and other intellectual property issued to third-parties, who may have patents or patent applications relating to our proprietary
technology. We have not received notice of any claims alleging infringement of third parties' intellectual property. However, we
may in the future receive letters from third parties alleging, or inquiring about, possible infringement, misappropriation or violation
of their intellectual property rights. Any party asserting that we infringe, misappropriate or violate proprietary rights may force us
to defend ourselves, and potentially our customers, against the alleged claim. These claims and any resulting lawsuit, if successful,
could subject us to significant liability for damages and/or invalidation of our proprietary rights or interruption or cessation of our
operations. Any such claims or lawsuit could:
●
be time-consuming
                                            and expensive to defend, whether meritorious or not;
●
require us to stop providing products or services that use the technology that
    allegedly infringes the other party's intellectual property;
●
divert the attention of our technical and managerial resources;
●
require us to enter into royalty or licensing agreements with third-parties,
    which may not be available on terms that we deem acceptable;
●
prevent us from operating all or a portion of our business or force us to redesign
    our products, services or technology platforms, which could be difficult and expensive and may make the performance or value of our
    product or service offerings less attractive;
●
subject us to significant liability for damages or result in significant settlement
    payments; or
●
require us to indemnify our customers.
Furthermore, during the course of litigation,
confidential information may be disclosed in the form of documents or testimony in connection with discovery requests, depositions or
trial testimony. Disclosure of our confidential information and our involvement in intellectual property litigation could materially
adversely affect our business. Some of our competitors may be able to sustain the costs of intellectual property litigation more effectively
than we can because they have substantially greater resources. In addition, any litigation could significantly harm our relationships
with current and prospective customers. Any of the foregoing could disrupt our business and have a material adverse effect on our business,
operating results and financial condition.
There may be challenges to our patents
and proprietary technology.
The Company holds a provisional patent and trade
secret rights relating to various aspects of its technologies, which are of material importance to the Company and its future prospects.
Any patent we have obtained or do obtain may be challenged by re-examination or otherwise invalidated or eventually found unenforceable.
Both the patent application process and the process of managing patent disputes can be time consuming and expensive. Competitors may
attempt to challenge or invalidate our patents, or may be able to design alternative techniques or devices that avoid infringement of
our patents, or develop products with functionalities that are comparable to ours. In the event a competitor infringes upon our patent
or other intellectual property rights, litigation to enforce our intellectual property rights or to defend our patents against challenge,
even if successful, could be expensive and time consuming and could require significant time and attention from our management. Furthermore,
there can be no assurance that the Company's products and services will not infringe on any patents of others. We may not have
sufficient resources to enforce our intellectual property rights or to defend our patents against challenges from others.
21
If we fail to renew and/or expand our existing
licenses, we may be required to discontinue or limit our use of the products that include or incorporate the licensed intellectual property.
Our third-party licenses, or support for such
licensed products and technologies, may not continue to be available to us on commercially reasonable terms, if at all. In the event
that we cannot renew and/or expand existing licenses, we may be required to discontinue or limit our use of the products that include
or incorporate the licensed intellectual property. Although to date we have not encountered such issues, licensing requirements may preclude
us from using technologies owned or developed by third parties if those parties are unwilling to allow us to comply with related disclosure
requirements or other regulatory requirements. In any such event, we may be unable to operate on a profitable basis.
Changes in government policy, legislation
or regulatory or judicial interpretations could hinder or prevent our ability to conduct our business operations.
Changes in government policy, legislation or
regulatory or judicial interpretations could hinder or prevent our ability to conduct our business operations. For example, we could
be deemed to be subject to insurance and other regulations, which in some circumstances may be applied retrospectively. Any other changes
in or interpretations of current laws and regulations could also require us to increase our compliance expenditures, inhibit our ability
to enter into new contracts or conduct our business operations. In addition, our failure to comply with applicable laws and regulations
could lead to significant penalties, fines or other sanctions. If we are unable to effectively respond to any such changes or comply
with existing and future laws and regulations, our competitive position, results of operations, financial condition and cash flows could
be materially adversely impacted.
We are dependent on our management team,
and the loss of any key member of this team may prevent us from implementing our business plan in a timely manner, or at all.
Our success depends largely upon the continued
services of our executive officers and other key personnel, particularly Daniel D. Nelson, our Chief Executive Officer, Chairman and
director; Damon Rich, our Interim Chief Financial Officer; Richard Symington, our President, Chief Marketing Officer and director; and
David O'Hara, our Chief Operating Officer. Our executive officers or key employees could terminate their employment with us at
any time without penalty. In addition, we do not maintain key person life insurance policies on any of our employees or any of our contract
parties. The loss of one or more of these executive officers or key employees could seriously harm our business and may prevent us from
implementing our business plan in a timely manner, or at all.
The failure to attract and retain additional
qualified personnel could harm our business and culture and prevent us from executing our business strategy.
To execute our business strategy, we must attract
and retain highly qualified personnel. Competition for executives, software developers, sales personnel, and other key personnel in our
industry is intense. In particular, we compete with many other companies for software developers with high levels of experience in designing,
developing, and managing software for college sports recruitment technologies, as well as for skilled sales and operations professionals
with connections and experience in the intensely competitive college sports recruitment system. Recently we have experienced, and we
may continue to experience, employee turnover, and we may not be able to fill positions in a timely manner or at all. These risks may
be exacerbated by perceptions of our recent restructuring actions in preparation for our initial public offering, including potential
confusion or misgivings regarding the intent and effect of the Reverse Stock Split, changes in executive management, efforts to rapidly
expand the utility of our platform, multiple capital raises through private placements of debt and equity at valuations of our common
stock that are or may be the same or less than the implied valuations of our common stock upon which their equity awards were granted,
and any similar future actions. In addition, our recruiting personnel, methodology, and approach may need to be altered to address a
changing candidate pool and profile. We may not be able to identify or implement such changes in a timely manner. New hires and other
personnel require training and take time before they achieve full productivity. New employees and other personnel may not become as productive
as we expect, and we may be unable to hire or retain sufficient numbers of qualified individuals. If we fail to attract new personnel
or fail to retain and motivate our current personnel, our business could be harmed.
22
Many of the companies with which we compete for
experienced personnel have greater resources than we have, and some of these companies may offer more attractive compensation packages.
In particular, job candidates and existing employees and other personnel carefully consider the value of the equity awards they receive
in connection with their employment or engagement. If the perceived value of our equity awards declines, or if the mix of equity and
cash compensation that we offer is unattractive, it may adversely affect our ability to recruit and retain highly skilled employees and
other personnel. Job candidates may also be threatened with legal action under agreements with their existing employers if we attempt
to hire them, which could impact hiring and result in a diversion of our time and resources. Additionally, laws and regulations, such
as restrictive immigration laws, may limit our ability to recruit internationally. We must also continue to retain and motivate existing
employees and other personnel through our compensation practices, company culture, and career development opportunities. If we fail to
attract new personnel or to retain our current personnel, our business would be harmed.
If we fail to effectively manage
our growth, our business, financial condition and operating results could be harmed.
To effectively manage our growth,
we must continue to implement our operational plans and strategies, improve and expand our infrastructure of people and information systems
and expand, train and manage our employee and contractor base. We have increased employee and contractor headcount since our inception
to support the growth in our business, and we intend for this growth to continue for the foreseeable future. To support continued growth,
we must effectively integrate, develop and motivate new employees, while maintaining our corporate culture. We face competition for qualified
personnel. Additionally, we may not be able to hire new employees quickly enough to meet our needs. If we fail to effectively manage
our hiring needs or successfully integrate our new hires, our efficiency and ability to meet our forecasts and our employee morale, productivity
and retention could suffer, which may have a material adverse effect on our business, financial condition and operating results.
Additionally, the growth and expansion
of our business and our product offerings in the future will place significant demands on our management. The growth of our business
may require significant additional resources, which may not scale in a cost-effective manner or may negatively affect the quality of
our customer experience. We are also required to manage multiple relationships with various vendors, customers and other third parties.
Further growth of our operations, our vendor base, our fulfillment process, information technology systems or our internal controls and
procedures may not be adequate to support our operations. If we are unable to manage the growth of our organization effectively, our
business, financial condition and operating results may be materially and adversely affected.
We are subject to governmental regulation,
which can change, and any failure to comply with these regulations may have a material negative effect on our business and results of
operations.
We are subject to substantial governmental regulations
affecting our business. These include, but are not limited to, data privacy and protection laws, regulations, policies and contractual
obligations that apply to the collection, transmission, storage, processing and use of personal information or personal data, which among
other things, impose certain requirements relating to the privacy and security of personal information. The variety of laws and regulations
governing data privacy and protection, and the use of the internet as a commercial medium are rapidly evolving, extensive, and complex,
and may include provisions and obligations that are inconsistent with one another or uncertain in their scope or application.
Under our user agreements and certain sponsorship
agreements, we collect certain information about student-athletes that have been submitted by the student-athletes and, if applicable,
their coaches, recruiters, or other teaching professionals or institutions. This data includes age, date of birth, name, email address,
athletic and educational data, and payment information. We intend to use such data for purposes of providing platform services to the
submitting student-athletes and, if applicable, their coaches, recruiters, and other teaching professionals and institutions. In order
to provide such services, we may need to share certain data with certain third-party services providers. We do not intend to share such
data for any other purposes. All such data collection is subject to our prior receipt of electronically- or physically-signed written
consents or acceptance of terms of use and terms and conditions of our platform app software by student-athletes and, if applicable,
their coaches, recruiters, or other teaching professionals or institutions, granting us rights to share such information for posting
on our platform. Such consents or acceptances of terms and use and terms of conditions of our app software explicitly includes the student-athlete's
and, if applicable, their coach, recruiter, or other teaching professional or institution's grant of a license to each coach, recruiter,
or other teaching professional or institution on our platform to view, compare, analyze and store platform player data. Each coach, recruiter,
or other teaching professional or institution on our platform is in turn required to agree to such terms and use and terms of conditions
to access and use such player data only as permitted under all applicable international, national, state, and local law, including laws
applicable to the use of data of minors. Regardless of these agreements and consents, however, we are subject to a number of data protection
requirements relating to the management and safeguarding of information of users, including minors, including those described below.
23
The data protection landscape is rapidly evolving
in the United States and the European Union. As our operations and business grow, we may become subject to or affected by new or additional
data protection laws and regulations and face increased scrutiny or attention from regulatory authorities. For example, the European
Union and California have passed comprehensive data privacy laws, the EU General Data Protection Regulation (GDPR) and the California
Consumer Privacy Act (CCPA), respectively, which impose data protection obligations on enterprises, including limitations on data uses
and constraints on certain uses of sensitive data. Of particular importance, the CCPA, which became effective on January 1, 2020, limits
how we may collect and use personal information, including by requiring companies that process information relating to California residents
to make disclosures to consumers about their data collection, use and sharing practices, provide consumers with rights to know and delete
personal information and allow consumers to opt out of certain data sharing with third parties. The CCPA also creates an expanded definition
of personal information, imposes special rules on the collection of consumer data from minors, and provides for civil
penalties for violations, as well as a private right of action for data breaches that is expected to increase the likelihood and cost
of data breach litigation. The potential effects of this legislation are far-reaching and may require us to modify our data processing
practices and policies and incur substantial costs and expenses in compliance and potential ligation efforts.
Effective January 1, 2023, we also became subject
to the CPRA, which expands upon the consumer data use restrictions, penalties and enforcement provisions under the CCPA, and Virginia's
Consumer Data Protection Act, another comprehensive data privacy law. Effective July 1, 2023, we may also become subject to the Colorado
Privacy Act and Connecticut's An Act Concerning Personal Data Privacy and Online Monitoring, which are also comprehensive consumer
privacy laws. Effective December 31, 2023, we may also become subject to the Utah Consumer Privacy Act, regarding business handling of
consumers' personal data. Effective January 1, 2025, we may also become subject to the Iowa Consumer Privacy Act, a similar consumer
data privacy law. Further, there are several legislative proposals in the United States, at both the federal and state level, that could
impose new privacy and security obligations. We cannot yet determine the impact that these future laws and regulations may have on our
business.
In addition, our business is, and may in the
future be, subject to a variety of other laws and regulations, including working conditions, labor, immigration and employment laws,
and health, safety and sanitation requirements. We are unable to predict the outcome or effects of any potential legislative or regulatory
proposals on our business. Any changes to the legal and regulatory framework applicable to our business could have an adverse impact
on our business and results of operations.
Our failure to comply with applicable governmental
laws and regulations, or to maintain necessary permits or licenses, could result in liability that could have a material negative effect
on our business and results of operations.
Climate change and increased focus by governmental
organizations on sustainability issues, including those related to climate change, may have a material adverse effect on our business
and operations.
Federal, state and local governments are beginning
to respond to climate change issues. This increased focus on sustainability may result in new legislation or regulations and vendor and
customer requirements that could negatively affect us as we may incur additional costs or be required to make changes to our operations
in order to comply with any new regulations. Legislation or regulations that potentially impose restrictions, caps, taxes, or other controls
on emissions of greenhouse gases such as carbon dioxide, a by-product of burning fossil fuels could force us to incur additional costs
and we may fail to pass such additional costs on to our customers, which could also have a material adverse effect on our business.
24
In addition, on March 21, 2022,
the SEC proposed new rules requiring a range of climate-related disclosure that would be applicable to all companies that file
annual reports or registration statements with the SEC, including the Company. The proposed climate-related disclosure framework is modeled
in part on the Task Force on Climate Related Financial Disclosures' recommendations, and also draws upon the Greenhouse Gas ("GHG")
Protocol ("GHG Protocol"). In particular, the proposed rules would require a registrant to disclose information about: The
oversight and governance of climate-related risks by the registrant's board and management; how any climate-related risks identified
by the registrant have had or are likely to have a material impact on its business and consolidated financial statements, which may manifest
over the short-, medium-, or long-term; how any identified climate-related risks have affected or are likely to affect the registrant's
strategy, business model, and outlook; the registrant's processes for identifying, assessing, and managing climate-related risks
and whether any such processes are integrated into the registrant's overall risk management system or processes; the impact of
climate-related events (severe weather events and other natural conditions as well as physical risks identified by the registrant) and
transition activities (including transition risks identified by the registrant) on the line items of a registrant's consolidated
financial statements and related expenditures, and disclosure of financial estimates and assumptions impacted by such climate-related
events and transition activities; "Scope 1" and "Scope 2" (as defined by the SEC's proposed rule) GHG emissions
metrics, separately disclosed, expressed both by disaggregated constituent greenhouse gases and in the aggregate, and in absolute and
intensity terms; "Scope 3" (as defined by the SEC's proposed rule) GHG emissions and intensity, if material, or if
the registrant has set a GHG emissions reduction target or goal that includes its Scope 3 emissions; and the registrant's climate-related
targets or goals, and transition plan, if any. The proposed rules would be subject to certain accommodations and phase-in periods. For
example, companies meeting the definition of "smaller reporting company" in Rule 12b-2 of the Exchange Act, which currently
includes the Company (see below, "—
We believe we will be considered a smaller reporting company and will be exempt from
certain disclosure requirements, which could make our common stock less attractive to potential investors.
" and "
As
a 'smaller reporting company,' we may choose to exempt our company from certain corporate governance requirements that could
have an adverse effect on our public stockholders."
), would be exempt from the Scope 3 emissions disclosure requirement. The
proposed rules would also require an attestation report provided by a third-party attestation service provider that satisfies a minimum
level of attestation services for a company that meets the definition of "accelerated filer" or "large accelerated
filer" in Rule 12b-2 of the Exchange Act, including: (1) limited assurance for Scopes 1 and 2 emissions disclosure that scales
up to reasonable assurance after a specified transition period; (2) minimum qualifications and independence requirements for the attestation
service provider; and (3) minimum requirements for the accompanying attestation report. A company that is not an "accelerated filer"
or "large accelerated filer", which currently includes the Company, would not be subject to this attestation requirement
(see also "
—As a non-accelerated filer, we will not be required to comply with the auditor attestation requirements of
the Sarbanes-Oxley Act.
" and "—
We will be subject to ongoing public reporting requirements that are less rigorous
than Exchange Act rules for companies that are not emerging growth companies and our stockholders could receive less information than
they might expect to receive from more mature public companies.
").
Although we cannot predict
the costs of implementation or any potential adverse impacts resulting from the proposed rule, the SEC estimated that compliance costs
for a "smaller reporting company" in the first year of compliance would be $490,000 ($140,000 for internal costs and $350,000
for outside professional costs), while annual costs in the subsequent five years were estimated to be $420,000 ($120,000 for internal
costs and $300,000 for outside professional costs). For non-"smaller reporting company" registrants, the costs in the first
year of compliance were estimated to be $640,000 ($180,000 for internal costs and $460,000 for outside professional costs), while annual
costs in the subsequent five years were estimated to be $530,000 ($150,000 for internal costs and $380,000 for outside professional costs).
To the extent that this rule is finalized as proposed, we could therefore incur significant increased costs relating to the assessment
and disclosure of climate-related matters.
These potential additional costs, forced changes
in operations, or loss of revenues may have a material adverse effect on our business and operations.
25
Risks Related to Our Common Stock and Initial
Public Offering
There has been no public market for our
common stock prior to the Company's initial public offering, and an active market in which investors can resell their shares of
our common stock may not develop.
Prior to the Company's initial public offering,
there has been no public market for our common stock. We are in the process of applying to list our common stock on NYSE American under
the symbol "SDS". The closing of the initial public offering is contingent upon the successful listing of our common stock
on NYSE American. There is no guarantee that NYSE American, or any other exchange or quotation system, will permit our common stock to
be listed and traded.
Even if our common stock is approved for listing
on NYSE American, a liquid public market for our common stock may not develop. The initial public offering price for our common stock
has been determined by negotiation between us and the underwriters based upon several factors, including prevailing market conditions,
our historical performance, estimates of our business potential and earnings prospects, and the market valuations of similar companies.
The price at which the common stock is traded after the initial public offering may decline below the initial public offering price,
meaning that you may experience a decrease in the value of your common stock regardless of our operating performance or prospects.
The market price of our common stock may
fluctuate, and you could lose all or part of your investment.
After the Company's initial public offering,
the market price for our common stock is likely to be volatile, in part because our shares have not been traded publicly. In addition,
the market price of our common stock may fluctuate significantly in response to several factors, most of which we cannot control, including:
●
actual
                                            or anticipated variations in our periodic operating results;
●
increases
                                            in market interest rates that lead investors of our common stock to demand a higher investment
                                            return;
●
changes
                                            in earnings estimates;
●
changes
                                            in market valuations of similar companies;
●
actions
                                            or announcements by our competitors;
●
adverse
                                            market reaction to any increased indebtedness we may incur in the future;
●
additions
                                            or departures of key personnel;
●
actions
                                            by stockholders;
●
speculation
                                            in the media, online forums, or investment community; and
●
our
                                            intentions and ability to list our common stock on NYSE American and our subsequent ability
                                            to maintain such listing.
The public offering price of our common stock
has been determined by negotiations between us and the underwriters based upon many factors and may not be indicative of prices that
will prevail following the closing of the initial public offering. Volatility in the market price of our common stock may prevent investors
from being able to sell their common stock at or above the initial public offering price. As a result, you may suffer a loss on your
investment.
26
Certain recent initial public offerings
of companies with relatively small public floats comparable to our anticipated public float have experienced extreme volatility that
was seemingly unrelated to the underlying performance of the respective company. Our common stock may potentially experience rapid and
substantial price volatility, which may make it difficult for prospective investors to assess the value of our common stock.
In addition to the risks addressed above under
"—
The market price of our common stock may fluctuate, and you could lose all or part of your investment
,"
our common stock may be subject to rapid and substantial price volatility. Recently, companies with comparably small public floats and
initial public offering sizes have experienced instances of extreme stock price run-ups followed by rapid price declines,
and such stock price volatility was seemingly unrelated to the respective company's underlying performance. Although the specific
cause of such volatility is unclear, our anticipated public float may amplify the impact the actions taken by a few stockholders have
on the price of our stock, which may cause our stock price to deviate, potentially significantly, from a price that better reflects the
underlying performance of our business. Our common stock may experience run-ups and declines that are seemingly unrelated to our actual
or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly
changing value of our common stock. In addition, investors in shares of our common stock may experience losses, which may be material,
if the price of our common stock declines after the Company's initial public offering or if such investors purchase shares of our
common stock prior to any price decline. For example, if the trading volumes of our common stock are low, persons buying or selling in
relatively small quantities may easily influence prices of our common stock. This low volume of trades could also cause the price of
our common stock to fluctuate greatly, with large percentage changes in price occurring in any trading day session. Holders of our common
stock may also not be able to readily liquidate their investment or may be forced to sell at depressed prices due to low volume trading.
Broad market fluctuations and general economic and political conditions may also adversely affect the market price of our common stock.
As a result of this volatility, investors may experience losses on their investment in our common stock. A decline in the market price
of our common stock also could adversely affect our ability to sell additional shares of common stock or other securities and our ability
to obtain additional financing in the future. No assurance can be given that an active market in our common stock will develop or be
sustained. If an active market does not develop, holders of our common stock may be unable to readily sell the common stock they hold
or may not be able to sell their common stock at all.
We may not be able to satisfy listing requirements
of NYSE American or maintain a listing of our common stock on NYSE American.
If our common stock is listed on NYSE American
we must meet certain financial and liquidity criteria to maintain such listing. If we violate NYSE American's listing requirements,
or if we fail to meet any of NYSE American's listing standards, our common stock may be delisted. In addition, our board of directors
may determine that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting
of our common stock from NYSE American may materially impair our stockholders' ability to buy and sell our common stock and could
have an adverse effect on the market price of, and the efficiency of the trading market for, our common stock. The delisting of our common
stock could significantly impair our ability to raise capital and the value of your investment.
We have considerable discretion as to the
use of the net proceeds from the Company's initial public offering and we may use these proceeds in ways with which you may not
agree.
We intend to use the proceeds from the Company's
initial public offering for product and technology development, expansion of our sales team and marketing efforts, and general working
capital and other corporate purposes. However, we have considerable discretion in the application of the proceeds. Because of the number
and variability of factors that will determine our use of our net proceeds from the initial public offering, their ultimate use may vary
substantially from their currently intended use. You will not have the opportunity, as part of your investment decision, to assess whether
the proceeds are being used appropriately. You must rely on the judgment of our management regarding the application of the net proceeds
of the initial public offering. The net proceeds may be used for corporate or other purposes with which you do not agree or that do not
improve our profitability or increase our share price. The net proceeds from the initial public offering may also be placed in investments
that do not produce income or that lose value. Please see "
Use of Proceeds
" below for more information.
27
Investors in the Company's initial
public offering will experience immediate and substantial dilution.
As of December 31, 2022, our net tangible book
value was $(8,237,077), or approximately $(1.02) per share. Since the effective price per share of our common stock being
offered in the Company's initial public offering is substantially higher than the net tangible book value per share of our common
stock, you will suffer substantial dilution with respect to the net tangible book value of the common stock you purchase in the initial
public offering. Based on the assumed public offering price of $4.00 per share of common stock being sold in the initial public offering,
which is the low point of the estimated offering range set forth on the cover page of this prospectus, our net tangible book value per
share as of December 31, 2022, and certain other events that have occurred or that we have assumed will occur prior to or at the time
of the initial public offering, if you purchase shares of common stock in the initial public offering, you will suffer immediate and
substantial dilution of approximately $3.18 per share (or approximately $3.09 per share if the underwriters exercise the over-allotment
option in full) with respect to the net tangible book value of the common stock. See the section titled "
Dilution
"
for a more detailed discussion of the dilution you will incur if you purchase securities in the initial public offering.
Substantial future sales or issuances of
our common stock or securities convertible into, or exercisable or exchangeable for, our common stock, or the perception in the public
markets that these sales or issuances may occur, may depress our stock price. Also, future issuances of our common stock or rights to
purchase common stock could result in additional dilution of the percentage ownership of our stockholders and could cause our share price
to fall. The expiration of lock-up agreements that restrict the issuance of new common stock or the trading of outstanding common stock
could also cause the market price of our common stock to decline.
Future issuances of our common stock or securities
convertible into, or exercisable or exchangeable for, our common stock, or the expiration of lock-up agreements that restrict the issuance
of new common stock or the trading of outstanding common stock, could cause the market price of our common stock to decline. We cannot
predict the effect, if any, of future issuances of our securities, or the future expirations of lock-up agreements, on the price of our
common stock. In all events, future issuances of our common stock would result in the dilution of your holdings. In addition, the perception
that new issuances of our securities could occur, or the perception that locked-up parties will sell their securities when the lock-ups
expire, could adversely affect the market price of our common stock. In connection with the Company's initial public offering,
we, our executive officers, directors and current stockholders will enter into a lock-up agreement that prevents us and the other locked-up
parties, subject to certain exceptions, from offering or selling shares of capital stock for up to 12 months after the closing of the
initial public offering, as further described in the section titled "
Underwriting
." In addition to any adverse effects
that may arise upon the expiration of these lock-up agreements, the lock-up provisions in these agreements may be waived, at any time
and without notice. If the restrictions under the lock-up agreements are waived, our common stock may become available for resale, subject
to applicable law, including without notice, which could reduce the market price for our common stock.
In addition, the number of shares of common stock
that will be issued upon conversion of outstanding 6% convertible unsecured notes with a total principal amount of $6,305,000 plus accrued
interest are issuable at the option of the holders at the price per share equal to $2.50 if converted prior to the initial public offering
is 2,522,000 shares of common stock, or 3,152,500 shares of common stock (assuming an initial public offering price of $4.00 per share,
the low point of the price range set forth on the cover page of this prospectus), based on an automatic conversion price equal to 50%
of the offering price per share in the initial public offering pursuant to the applicable convertible note terms, if such notes convert
automatically pursuant to mandatory conversion upon the initial public offering, in either case without further payments by such notes'
holders. In addition, the number of shares of common stock that will be issued upon conversion of outstanding 8% convertible unsecured
notes with a total principal amount of $1,465,000 plus accrued interest are issuable at the option of the holders at the price per share
determined by dividing $25 million by the total number of outstanding shares of the Company if converted prior to the initial public
offering is 444,842 shares of common stock, or 732,500 shares of common stock (assuming an initial public offering price of $4.00 per
share, the low point of the price range set forth on the cover page of this prospectus), based on an automatic conversion price equal
to 50% of the offering price per share in the initial public offering pursuant to the applicable convertible note terms, if such notes
convert automatically pursuant to mandatory conversion upon the initial public offering, in either case without further payments by such
notes' holders. In addition, the number of shares of common stock that will be issued upon exercise of certain outstanding investor
warrants that were issued to the initial holders of the outstanding 8% convertible unsecured promissory notes representing the right
to purchase shares of up a value equal to $1,465,000 in shares of common stock at an exercise price equal to 50% of the offering price
per share in the initial public offering is 732,500 shares of common stock (assuming an initial public offering price of $4.00 per share,
the low point of the price range set forth on the cover page of this prospectus). In addition, the number of shares of common stock that
will be issued upon exercise of certain investor warrants that were issued to the initial holders of the outstanding 8% unsecured promissory
notes is 940,000 shares of common stock at an exercise price $2.50 per share, which may be voluntarily exercised for cash, or, upon the
occurrence of certain events, including this initial public offering, automatically exercised as to the unexercised portion for the deemed
repayment in the amount of the exercise price of the balance under related outstanding 8% unsecured promissory notes. Additionally, Boustead,
as the placement agent in the private placements of these securities, has been issued warrants to purchase an amount equal to 7% of the
shares issuable under the above securities other than the 8% convertible unsecured promissory notes and related warrants, including 220,675
shares upon the automatic conversion of the 6% convertible unsecured promissory notes or 176,540 shares at the 6% convertible unsecured
promissory convertible notes' optional conversion, plus 65,800 shares upon exercise of the warrants issued to the initial holders
of the 8% unsecured promissory notes, at the exercise price equal to the conversion or exercise price of the investor securities in connection
with which each placement agent warrant will be issued. All of these shares will be issuable at a lower price per share than the initial
public offering price, which may cause further dilution of the shares issued in the initial public offering.
28
We will also issue 13,375 shares of common stock
upon the completion of the initial public offering to certain vendors, assuming the offering is completed by November 15, 2023, based
on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover page
of this prospectus, otherwise the number of shares of common stock equal to the number of shares derived by dividing $53,500 by the Fair
Market Value, as defined by certain service provider agreements, of the common stock of the Company on November 15, 2023, pursuant to
such service provider agreements. These shares will be issued in exchange for legal services and no cash payments, which may cause further
dilution of your shares.
We have also granted options to certain employees,
consultants, officers and directors that may be exercised to purchase up to 277,450 shares of common stock at an exercise price per share
equal to $3.10 per share and 243,000 shares of common stock at an exercise price per share equal to $2.50 per share, not including stock
options or portions of stock options that subsequently terminated due to employee and director departures. The dilutive effect of these
grants on the value of your shares may therefore be substantial.
Following the initial public offering, we will
have 16,256,727 shares of common stock outstanding (at the assumed public offering price of $4.00 per share, the low point of the price
range set forth on the cover page of this prospectus), assuming no exercise of the underwriters' over-allotment option, and further
assuming, at the time of the initial public offering, the automatic conversion of the Company's 6% convertible unsecured promissory
notes into a total of 3,152,500 shares of common stock, the automatic conversion of the Company's 8% convertible unsecured promissory
notes into a total of 732,500 shares of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares
of common stock, or 16,819,227 shares of common stock outstanding assuming the over-allotment amount is exercised in full and subject
to the other assumptions described above. Upon the closing of the initial public offering, all of the shares of common stock to be sold
in the initial public offering or by the selling stockholders named in the resale prospectus filed contemporaneously with this prospectus
will be freely tradable without restriction or further registration under the federal securities laws. All of the shares of common stock
outstanding prior to the initial public offering are believed to be subject to restrictions on resale under U.S. securities laws, including
Securities Act Rule 144, or will be subject to lock-up agreements. Following the initial public offering, including both the shares of
common stock offered by the Company and the shares of common stock offered by the selling stockholders named in the Company's resale
prospectus, 6,096,548 shares, or 37.5%, if the underwriters' over-allotment option is not exercised (or 6,659,048 shares, or 39.6%
assuming the underwriters' over-allotment amount is exercised in full), subject to the other assumptions described above, of our
outstanding common stock may not be subject to restrictions on resale under U.S. securities laws or lock-up agreements. After these lock-up
periods have expired, and the holding periods of restricted shares have elapsed, additional shares will be eligible for sale in the public
market. The market price of shares of our common stock may drop significantly when the lock-up agreements and other restrictions on resale
by our existing stockholders and beneficial owners lapse.
Moreover, in addition to the shares issuable
upon exercise of the warrants related to the 8% unsecured promissory notes, which are being registered for resale contemporaneously with
this initial public offering as required by such warrants, any shares issuable upon conversion of the 6% convertible unsecured promissory
notes not being registered contemporaneously with the initial public offering must be registered by a resale registration statement within
the period required by such notes, and any shares issuable upon conversion of the 8% convertible unsecured promissory notes not being
registered contemporaneously with the initial public offering and shares issuable upon exercise of the placement agent's warrants
are required to be registered for resale with such shares pursuant to the piggyback registration rights of the holders of such warrants.
Upon the registration of the resale of such shares, up to 4,243,975 additional shares of common stock will be registered for resale without
restrictions, or 26.1%, of our outstanding common stock, if the underwriters' over-allotment option is not exercised (or 25.2%
assuming the underwriters' over-allotment amount is exercised in full), subject to the other assumptions described above with respect
to shares outstanding following the initial public offering.
In addition, if we file a registration statement
after the initial public offering, certain beneficial owners of our common stock may be entitled to require us to register, for public
sale in the United States, the shares of common stock beneficially owned by them, including shares issuable upon conversion of our 8%
convertible unsecured promissory notes and accompanying warrants. We may also file a registration statement on Form S-8 to register shares,
including shares under stock options or other equity compensation previously granted to our officers, directors, employees and service
providers or reserved for future issuance under our Stock Incentive Plan after the completion of the initial public offering. Subject
to the satisfaction of vesting conditions and the expiration of lock-up agreements, shares registered under the registration statement
on Form S-8 will be available for resale immediately in the public market without restriction other than those restrictions imposed on
sales by affiliates pursuant to Rule 144. Resales of our common stock as restrictions end or pursuant to registration rights may make
it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate. These sales could
also cause the trading price of our common stock to decline and make it more difficult for you to sell shares of our common stock. See
"
Shares Eligible for Future Sale – Registration Rights
" for a description of our obligations to file registration
statements following the initial public offering.
29
Additionally, certain of our employees, executive
officers, and directors may enter into Rule 10b5-1 trading plans providing for sales of shares of our common stock from time to time.
Under a Rule 10b5-1 trading plan, a broker executes trades pursuant to parameters established by the employee, director, or officer when
entering into the plan, without further direction from the employee, officer, or director. A Rule 10b5-1 trading plan may be amended
or terminated in some circumstances. Our employees, executive officers, and directors also may buy or sell additional shares outside
of a Rule 10b5-1 trading plan when they are not in possession of material, non-public information, subject to the expiration of the lock-up
agreements and Rule 144 requirements referred to above.
We expect that significant additional capital
will be needed in the future to continue our planned operations, including expanding research and development, funding clinical trials,
purchasing of capital equipment, hiring new personnel, commercializing our products, and continuing activities as an operating public
company. To the extent we raise additional capital by issuing equity securities, our stockholders may experience substantial dilution.
We may sell common stock, convertible securities or other equity securities in one or more transactions at prices and in a manner we
determine from time to time. If we sell common stock, convertible securities, or other equity securities in more than one transaction,
investors may be materially diluted by subsequent sales. Such sales may also result in material dilution to our existing stockholders,
and new investors could gain rights superior to our existing stockholders.
In the event that the market price of shares
of our common stock drops significantly when the restrictions on resale by our existing stockholders lapse, existing stockholders'
dilution might be reduced to the extent that the decline in the price of shares of our common stock impedes our ability to raise capital
through the issuance of additional shares of our common stock or other equity securities. However, in the event that our capital-raising
ability is weakened as a result of a lower stock price, we may be unable to continue to fund our operations, which may further harm the
value of our stock price.
We do not expect to declare or pay dividends
in the foreseeable future.
We do not expect to declare or pay dividends
in the foreseeable future, as we anticipate that we will invest future earnings in the development and growth of our business. Therefore,
holders of our common stock will not receive any return on their investment unless they sell their securities, and holders may be unable
to sell their securities on favorable terms or at all.
If securities industry analysts do not
publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our common stock
could be negatively affected.
Any trading market for our common stock may be
influenced in part by any research reports that securities industry analysts publish about us. We do not currently have and may never
obtain research coverage by securities industry analysts. If no securities industry analysts commence coverage of us, the market price
and market trading volume of our common stock could be negatively affected. In the event we are covered by analysts, and one or more
of such analysts downgrade our securities, or otherwise reports on us unfavorably, or discontinues coverage of us, the market price and
market trading volume of our common stock could be negatively affected.
Future issuances of debt securities, which
would rank senior to our common stock upon our bankruptcy or liquidation, and future issuances of preferred stock, which could rank senior
to our common stock for the purposes of dividends and liquidating distributions, may adversely affect the level of return you may be
able to achieve from an investment in our common stock.
In the future, we may attempt to increase our
capital resources by offering debt securities. Upon bankruptcy or liquidation, holders of our debt securities, and lenders with respect
to other borrowings we may make, would receive distributions of our available assets prior to any distributions being made to holders
of our common stock. Moreover, if we authorize and issue preferred stock, the holders of such preferred stock could be entitled to preferences
over holders of common stock in respect of the payment of dividends and the payment of liquidating distributions. Because our decision
to issue debt or preferred stock in any future offering, or borrow money from lenders, will depend in part on market conditions and other
factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings or borrowings. Holders
of our common stock must bear the risk that any future offerings we conduct or borrowings we make may adversely affect the level of return,
if any, they may be able to achieve from an investment in our common stock.
30
If our shares of common stock become subject
to the penny stock rules, it would become more difficult to trade our shares.
The SEC has adopted rules that regulate broker-dealer
practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00,
other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation
systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange
or system. If we do not retain a listing on NYSE American or another national securities exchange and if the price of our common stock
is less than $5.00, our common stock could be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction
in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information.
In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules,
a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive
(i) the purchaser's written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions
involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have
the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty
selling their shares.
The offering price of the Company's
initial public offering and resale offering could differ.
The offering price of the common stock in the
Company's initial public offering has been determined by negotiations between the Company and the underwriters based upon several
factors, including our prospects and the history and prospects for the industry in which we compete; an assessment of our management;
our prospects for future revenue and earnings; the recent prices of, and demand for, shares sold by us prior to the initial public offering;
the general condition of the securities markets at the time of the initial public offering; the recent market prices of, and demand for,
publicly traded securities of generally comparable companies; and other factors deemed relevant by us and the underwriters. The offering
price in the initial public offering bears no relationship to our assets, earnings or book value, or any other objective standard of
value. Additionally, the assumed offering price in the initial public offering of $4.00 per share (which is the low point of the estimated
range of the initial public offering price shown on the cover page of this prospectus) is substantially higher than the prices at which
the selling stockholders named in the resale prospectus filed contemporaneously with this prospectus acquired their shares (at a weighted-average
price per share of approximately $1.56), and we recently sold securities that may convert into or be exercised to purchase shares of
common stock at a per-share conversion or exercise price ($2.00 per share) substantially less than the initial public offering price.
Our recent share issuances at prices substantially less than the initial public offering price occurred while we were a non-public company,
and the shares we issued were subject to transfer restrictions imposed by the Securities Act, and by lock-up restrictions, whereas shares
issued in the initial public offering will be issued after we are a public company and will be issued without restriction.
The selling stockholders may sell the resale
shares at prevailing market prices or privately negotiated prices after close of the initial public offering and listing of our common
stock on the Nasdaq Capital Market. Therefore, the offering prices of our common stock in the initial public offering and the Company's
contemporaneous resale offering could differ. As a result, purchasers in the resale offering could pay more or less than the offering
price in the initial public offering.
The resale by the selling stockholders
may cause the market price of our common stock to decline.
The resale of shares of our common stock by the
selling stockholders named in the resale prospectus filed contemporaneously with this prospectus for the Company's contemporaneous
resale offering could result in resales of our common stock by our other stockholders concerned about selling volume. In addition, the
resale by the selling stockholders could have the effect of depressing the market price for our common stock.
We will be subject to ongoing public reporting
requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies and our stockholders
could receive less information than they might expect to receive from more mature public companies.
Upon the completion of the Company's initial
public offering, we will be required to publicly report on an ongoing basis as an "emerging growth company" (as defined in
the JOBS Act) under the reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company, we may
take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies
that are not emerging growth companies, including but not limited to:
●
not
                                            being required to comply with the auditor attestation requirements of Section 404 of the
                                            Sarbanes-Oxley Act;
31
●
being
                                            permitted to comply with reduced disclosure obligations regarding executive compensation
                                            in our periodic reports and proxy statements; and
●
being
                                            exempt from the requirement to hold a non-binding advisory vote on executive compensation
                                            and stockholder approval of any golden parachute payments not previously approved.
In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits
of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.
We expect to take advantage of these reporting
exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years, although
if the market value of our common stock that is held by non-affiliates exceeds $700 million as of any June 30 before that time, we would
cease to be an emerging growth company as of the following December 31.
Because we will be subject to ongoing public
reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies, our stockholders
could receive less information than they might expect to receive from more mature public companies. We cannot predict if investors will
find our common stock less attractive if we elect to rely on these exemptions, or if taking advantage of these exemptions would result
in less active trading or more volatility in the price of our common stock.
We believe we will be considered a smaller
reporting company and will be exempt from certain disclosure requirements, which could make our common stock less attractive to potential
investors.
Rule 12b-2 of the Exchange Act defines a "smaller
reporting company" as an issuer that is not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a
parent that is not a smaller reporting company and that:
●
had
                                            a public float of less than $250 million as of the last business day of its most recently
                                            completed second fiscal quarter, computed by multiplying the aggregate worldwide number of
                                            shares of its voting and non-voting common equity held by non-affiliates by the price at
                                            which the common equity was last sold, or the average of the bid and asked prices of common
                                            equity, in the principal market for the common equity; or
●
in
                                            the case of an initial registration statement under the Securities Act or the Exchange Act
                                            for shares of its common equity, had a public float of less than $250 million as of a date
                                            within 30 days of the date of the filing of the registration statement, computed by multiplying
                                            the aggregate worldwide number of such shares held by non-affiliates before the registration
                                            plus, in the case of a Securities Act registration statement, the number of such shares included
                                            in the registration statement by the estimated public offering price of the shares; or
●
in
                                            the case of an issuer whose public float as calculated under paragraph (1) or (2) of this
                                            definition was zero or whose public float was less than $700 million, had annual revenues
                                            of less than $100 million during the most recently completed fiscal year for which audited
                                            financial statements are available.
If a company determines
that it does not qualify for smaller reporting company status because it exceeded one or more of the above thresholds, it will remain
unqualified unless when making its annual determination it meets certain alternative threshold requirements which will be lower than
the above thresholds if its prior public float or prior annual revenues exceed certain thresholds.
As a smaller reporting company, we will not be
required and may not include a Compensation Discussion and Analysis section in our proxy statements; we will provide only two years of
financial statements; and we need not provide the table of selected financial data. We also will have other "scaled" disclosure
requirements that are less comprehensive than issuers that are not smaller reporting companies which could make our common stock less
attractive to potential investors, which could make it more difficult for our stockholders to sell their shares.
32
As a "smaller reporting company,"
we may choose to exempt our company from certain corporate governance requirements that could have an adverse effect on our public stockholders
.
Under Nasdaq rules, a "smaller reporting
company," as defined in Rule 12b-2 under the Exchange Act, is not subject to certain corporate governance requirements otherwise
applicable to companies listed on Nasdaq. For example, a smaller reporting company is exempt from the requirement of having a compensation
committee composed solely of directors meeting certain enhanced independence standards, as long as the compensation committee has at
least two members who do meet such standards. Although we have not yet determined to avail ourselves of this or other exemptions from
Nasdaq requirements that are or may be afforded to smaller reporting companies, while we will seek to maintain our shares on Nasdaq in
the future we may elect to rely on any or all of them. By electing to utilize any such exemptions, our company may be subject to greater
risks of poor corporate governance, poorer management decision-making processes, and reduced results of operations from problems in our
corporate organization. Consequently, our stock price may suffer, and there is no assurance that we will be able to continue to meet
all continuing listing requirements of Nasdaq from which we will not be exempt, including minimum stock price requirements.
As a non-accelerated filer, we will not
be required to comply with the auditor attestation requirements of the Sarbanes-Oxley Act.
We will not be an "accelerated filer"
or a "large accelerated filer" under the Exchange Act. Rule 12b-2 under the Exchange Act defines an "accelerated filer"
to mean any company that first meets the following conditions at the end of each fiscal year: The company had a public float of $75 million
or more, but less than $700 million, as of the last business day of the company's most recently completed second fiscal quarter;
the company has been subject to the reporting requirements of the Exchange Act for at least twelve calendar months; the company has filed
at least one annual report under the Exchange Act; and the company is not eligible to use the requirements for a "smaller reporting
company" under the revenue test in paragraph (2) or (3)(iii)(B), as applicable, of the "smaller reporting company"
definition in Rule 12b-2 of the Exchange Act. Rule 12b-2 under the Exchange Act defines a "large accelerated filer" in the
same way except that the company meeting the definition must have a public float of $700 million or more as of the last business day
of the company's most recently completed second fiscal quarter.
A non-accelerated filer is not required to file
an auditor attestation report on internal control over financial reporting that is otherwise required under Section 404(b) of the Sarbanes-Oxley
Act.
Therefore, our internal control over financial
reporting will not receive the level of review provided by the process relating to the auditor attestation included in annual reports
of issuers that are subject to the auditor attestation requirements. In addition, we cannot predict if investors will find our common
stock less attractive because we are not required to comply with the auditor attestation requirements. If some investors find our common
stock less attractive as a result, there may be a less active trading market for our common stock and trading price for our common stock
may be negatively affected.
Upon becoming a public company, we will
incur significant increased costs as a result of operating as a public company, and our management will be required to devote substantial
time to new compliance initiatives.
Upon becoming a public company, we will incur
significant legal, accounting and other expenses that we did not incur as a private company. In addition, the Sarbanes-Oxley Act has
imposed various requirements on public companies including requiring establishment and maintenance of effective disclosure and financial
controls. Our management and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover,
these rules and regulations have increased and will continue to increase our legal and financial compliance costs and will make some
activities more time-consuming and costly. For example, we expect that these rules and regulations may make it more difficult and more
expensive for us to obtain directors' and officers' liability insurance, which could make it more difficult for us to attract
and retain qualified members of our board of directors. We cannot predict or estimate the amount of additional costs we will incur as
a public company or the timing of such costs.
33
The Sarbanes-Oxley Act requires, among other
things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. In particular, we
must perform system and process evaluation and testing of our internal control over financial reporting to allow management to report
on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. In addition,
we will be required to have our independent registered public accounting firm attest to the effectiveness of our internal control over
financial reporting the later of our second annual report on Form 10-K or the first annual report on Form 10-K following the date on
which we are no longer an emerging growth company or a smaller reporting company. Our compliance with Section 404 of the Sarbanes-Oxley
Act will require that we incur substantial accounting expense and expend significant management efforts. We currently do not have an
internal audit group, and we will need to hire additional accounting and financial staff with appropriate public company experience and
technical accounting knowledge. If we are not able to comply with the requirements of Section 404 in a timely manner, or if we or our
independent registered public accounting firm identify deficiencies in our internal control over financial reporting that are deemed
to be material weaknesses, the value of our securities could decline and we could be subject to sanctions or investigations by the SEC
or other regulatory authorities, which would require additional financial and management resources.
Our ability to successfully
implement our business plan and comply with Section 404 requires us to be able to prepare timely and accurate financial statements. We
expect that we will need to continue to improve existing, and implement new operational and financial systems, procedures and controls
to manage our business effectively. Any delay in the implementation of, or disruption in the transition to, new or enhanced systems,
procedures or controls, may cause our operations to suffer and we may be unable to conclude that our internal control over financial
reporting is effective and to obtain an unqualified report on internal controls from our auditors as required under Section 404 of the
Sarbanes-Oxley Act. This, in turn, could have an adverse impact on value of our securities, and could adversely affect our ability to
access the capital markets.
Our principal stockholder, executive officers
and directors will beneficially own a significant percentage of the outstanding voting power of the Company following the Company's
initial public offering. As a result, they will be able to exercise significant influence over all matters requiring stockholder approval.
As of the date of this prospectus, our executive
officers and directors, in the aggregate, beneficially own shares representing approximately 18.7% of our common stock. Dennis Gile,
our largest stockholder and a former officer and director, beneficially owns approximately 28.9% of our common stock. Our executive officers
and directors collectively will beneficially own approximately 10.5% of our outstanding common stock following the Company's initial
public offering if the underwriters do not exercise their over-allotment option, or approximately 10.2% if the underwriters exercise
the over-allotment option in full (based on the assumed public offering price of $4.00 per share of common stock being sold in the
Company's initial public offering, which is the low point of the estimated offering range set forth on the cover page of this prospectus),
and assuming, at the time of the initial public offering, the automatic conversion of the Company's 6% convertible unsecured promissory
notes into a total of 3,152,500 shares of common stock, the automatic conversion of the Company's 8% convertible unsecured promissory
notes into a total of 732,500 shares of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares
of common stock. Management will collectively control the same percentage of the voting power following the offering. Mr. Gile will beneficially
own and have voting power over approximately 13.5% of our outstanding common stock following the initial public offering if the underwriters
do not exercise their over-allotment option, or approximately 13.1% if the underwriters exercise the over-allotment option in full,
subject to the other assumptions described above. Beneficial ownership includes shares over which an individual or entity has investment
or voting power and includes shares that could be issued upon the exercise of options, convertible notes and warrants within 60 days
after the date of determination. On matters submitted to our stockholders for approval, holders of our common stock are entitled to one
vote per share. Mr. Gile, individually, and our executive officers and directors collectively if they choose to act together, would have
significant influence over all matters submitted to our stockholders for approval, as well as our management and affairs. For example,
these individuals would have significant influence on the election of directors and approval of any merger, consolidation, or sale of
all or substantially all of our assets. This concentration of voting power could delay or prevent an acquisition of our company on terms
that other stockholders may desire.
34
Anti-takeover provisions contained in our
Amended and Restated Bylaws, as well as provisions of Delaware law, could impair a takeover attempt.
We are subject to Section 203 of
the Delaware General Corporation Law, or DGCL, which prohibits a Delaware corporation from engaging in any business combination
with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder,
with the following exceptions:
●
before
                                            such date, the Board of the corporation approved either the business combination or the transaction
                                            that resulted in the stockholder becoming an interested stockholder;
●
upon
                                            completion of the transaction that resulted in the stockholder becoming an interested stockholder,
                                            the interested stockholder owned at least 85% of the voting stock of the corporation outstanding
                                            at the time the transaction began, excluding for purposes of determining the voting stock
                                            outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares
                                            owned (i) by persons who are directors and also officers and (ii) employee stock
                                            plans in which employee participants do not have the right to determine confidentially whether
                                            shares held subject to the plan will be tendered in a tender or exchange offer; or
●
on
                                            or after such date, the business combination is approved by the Board and authorized at an
                                            annual or special meeting of the stockholders, and not by written consent, by the affirmative
                                            vote of at least 662∕3% of the outstanding voting stock that is not owned by the interested
                                            stockholder.
In general, Section 203 defines
a "business combination" to include the following:
●
any
                                            merger or consolidation involving the corporation and the interested stockholder;
●
any
                                            sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation
                                            involving the interested stockholder;
●
subject
                                            to certain exceptions, any transaction that results in the issuance or transfer by the corporation
                                            of any stock of the corporation to the interested stockholder;
●
any
                                            transaction involving the corporation that has the effect of increasing the proportionate
                                            share of the stock or any class or series of the corporation beneficially owned by the interested
                                            stockholder; and
●
the
                                            receipt by the interested stockholder of the benefit of any loans, advances, guarantees,
                                            pledges or other financial benefits by or through the corporation.
In general, Section 203 defines
an "interested stockholder" as an entity or person who, together with the person's affiliates and associates, beneficially
owns, or within three years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding
voting stock of the corporation.
The statute could prohibit or delay mergers or
other takeover or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may
offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.
A Delaware corporation may "opt out"
of these provisions with an express provision in its certificate of incorporation. We have not opted out of these provisions, which may,
as a result, discourage or prevent mergers or other takeover or change of control attempts of us.
35
In addition, our Amended and Restated Bylaws
contain certain provisions that may have anti-takeover effects, making it more difficult for or preventing a third party from acquiring
control of our company or changing our board of directors and management. Our Certificate of Incorporation provides that a majority of
the board of directors has the sole authority to establish the number of directors and fill any vacancies and newly created directorships.
These provisions may prevent a stockholder from increasing the size of our board of directors and gaining control of our board of directors
by filling the resulting vacancies with its own nominees. In addition, our Amended and Restated Bylaws provide that in addition to any
other vote required by law, no member of our board of directors may be removed from office by our stockholders without the approval of
not less than the majority of the total voting power of all of our outstanding shares of capital stock then entitled to vote in the election
of directors. Our Amended and Restated Bylaws also do not provide our stockholders with the power to call a special meeting of stockholders
and contain certain advance notice provisions for the submission and presentation of stockholder meeting proposals or director nominations
at a stockholder meeting, which may limit the ability of stockholders to influence the composition and business decisions of our management.
Our
Amended and Restated Bylaws expressly provide for a right of first refusal of the Company for any proposed sale or transfer of stock
by a stockholder. As provided, any stockholder may only sell or transfer stock after first giving written notice of the proposed terms
of the transfer and a 30-day option to the Company or any designee(s) to purchase the shares on such terms. To the extent that the Company
and any designee(s) do not exercise the right of first refusal, the stockholder will have 60 days to sell or transfer the shares as proposed.
Certain transfers are exempt from the right of first refusal, including to immediate family, pledges of shares, or to another stockholder
or an officer or director of the Company.
However, this right of first refusal will terminate upon the date securities of the
Company are first offered to the public pursuant to a registration statement or offering statement filed with, and declared effective
or qualified by, as applicable, the SEC under the Securities Act. It is expected that upon the completion of the Company's initial
public offering, the right of first refusal under the Amended and Restated Bylaws will terminate in accordance with its terms.
Our
Amended and Restated Bylaws also provide that the Company may agree with any stockholders to restrict the sale or other disposal of the
stock of the Company owned by such stockholders. Our Amended and Restated Bylaws are expressly subject to the restrictions set forth
in the Shareholder Agreement. As discussed in "
Corporate History and Structure – Shareholder Agreement
" and
"
Shares Eligible For Future Sale –
Shareholder Agreement
", the Shareholder Agreement provides
certain restrictions, rights and obligations relating to the proposed sale, transfer or other disposition of the shares of the Company.
These restrictions, rights and obligations include certain provisions that may have anti-takeover effects and prevent a third party from
acquiring control of the Company, including the Company's right of first refusal for proposed sales of shares by any stockholder;
each of the stockholder parties' right to purchase up to their relative percentage ownership of the Company's common stock
of any common stock or securities convertible into or exercisable to purchase common stock that the Company may from time to time issue,
including in an initial public offering, at the proposed price and other offering terms; and tag-along rights of the stockholder parties
to a proposed Change of Control, which may limit the Company's ability to negotiate a Change of Control transaction. However, the
Shareholder Agreement provides that it will terminate on the earliest of (i) the written consent of the board of directors and vote of
two-thirds of the holders of the outstanding common stock of the Company; (ii) the Company's dissolution, filing of a petition
in bankruptcy under Chapter 7 of the United States Bankruptcy Code or insolvency of the Company; (iii) upon the closing of the Company's
first underwritten public offering of its common stock on Nasdaq, the New York Stock Exchange or other exchange or marketplace approved
by the board of directors; or (iv) at such time as only one stockholder party remains. It is expected that upon the completion of the
initial public offering, the Shareholder Agreement will terminate in accordance with its terms.
Furthermore, the holders of our common stock
do not have cumulative voting rights in the election of our directors. The combination of the present ownership by a few stockholders
of a significant portion of our issued and outstanding common stock and lack of cumulative voting makes it more difficult for other stockholders
to replace our board of directors or for a third party to obtain control of our company by replacing its board of directors.
36
CAUTIONARY
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements
that are based on our management's beliefs and assumptions and on information currently available to us. All statements other than
statements of historical facts are forward-looking statements. The forward-looking statements are contained principally in, but not limited
to, the sections entitled "
Prospectus Summary
," "
Risk Factors
," "
Management's Discussion
and Analysis of Financial Condition and Results of Operations
" and "
Business
." These statements relate to
future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause
our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, but are not
limited to, statements about:
●
our
                                            ability to obtain additional funding to develop additional services and offerings;
●
market
                                            acceptance of our new offerings;
●
competition
                                            from existing online offerings or new offerings that may emerge;
●
our
                                            ability to attract new users and customers;
●
our
                                            ability and third parties' abilities to protect intellectual property rights;
●
our
                                            ability to adequately support future growth; and
●
our
                                            ability to attract and retain key personnel to manage our business effectively.
In some cases, you can identify forward-looking
statements by terms such as "may," "could," "will," "should," "would," "expect,"
"plan," "intend," "anticipate," "believe," "estimate," "predict,"
"potential," "project" or "continue" or the negative of these terms or other comparable terminology.
These statements are only predictions. Factors that may cause actual results to differ materially from current expectations include, among
other things, those listed under the heading "
Risk Factors
" and elsewhere in this prospectus. If one or more of these
risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly
from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance.
The forward-looking statements made in this prospectus
relate only to events or information as of the date on which the statements are made in this prospectus. Although we will become a public
company after the Company's initial public offering and have ongoing disclosure obligations under United States federal securities
laws, we do not intend to update or otherwise revise the forward-looking statements in this prospectus, whether as a result of new information,
future events or otherwise.
37
USE
OF PROCEEDS
After deducting the estimated underwriting discounts,
commissions and non-accountable expense allowance and other offering expenses payable by us, and assuming no exercise of the representative's
warrants, we expect to receive net proceeds of approximately $12.8 million from the Company's initial public offering (or approximately
$14.8 million if the underwriters exercise the over-allotment option in full), based on an assumed public offering price of $4.00 per
share, which is the low point of the estimated offering range set forth on the cover page of this prospectus.
We plan to use the net proceeds of the initial
public offering as follows:
●
50%
                                            of the net proceeds (approximately $6.4 million if the underwriters do not exercise
                                            the over-allotment option, or approximately $7.4 million if the underwriters exercise the
                                            over-allotment option in full), for product and technology development;
●
40%
                                            of the net proceeds (approximately $5.1 million if the underwriters do not exercise
                                            the over-allotment option, or approximately $5.9 million if the underwriters exercise the
                                            over-allotment option in full), for expansion of our sales team and marketing efforts; and
●
10%
                                            of the net proceeds (approximately $1.3 million if the underwriters do not exercise
                                            the over-allotment option, or approximately $1.5 million if the underwriters exercise the
                                            over-allotment option in full), for general working capital and other corporate purposes,
                                            including repayment of indebtedness used for working capital consisting of $40,000 in principal
                                            outstanding under a promissory note due within ten business days of the closing of the initial
                                            public offering and any balance outstanding under 8% unsecured promissory notes issued for
                                            the aggregate principal amount of $2,350,000 bearing interest at 8% per annum, due on the
                                            earlier to occur of the second anniversary of the initial closing date of the respective
                                            private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000
                                            principal), the closing of the initial public offering and listing of the common stock on
                                            a national stock exchange, or other Liquidity Event (defined in the same manner as "Alternative
                                            Liquidity Event," except such term also applies to an initial public offering and national
                                            stock exchange listing of the common stock) (see "
Description of Securities –
                                            6% Convertible Unsecured Promissory Notes
").
Each $1.00 increase or decrease in the assumed
initial public offering price of $4.00 per share, which is the low point of the estimated offering price range set forth on the cover
page of this prospectus, would increase or decrease the net proceeds that we receive from the initial public offering by approximately
$3.5 million if the underwriters do not exercise the over-allotment option (or approximately $4.0 million if the underwriters exercise
the over-allotment option in full), assuming that the number of shares offered by us, as set forth on the cover page of this prospectus,
remains the same and after deducting the estimated underwriting discounts, commissions and non-accountable expense allowance, and other
offering expenses payable by us.
The foregoing represents our current intentions
to use and allocate the net proceeds of the initial public offering based upon our present plans and business conditions. Our management,
however, will have broad discretion in the way that we use the net proceeds of the initial public offering. Pending the final application
of the net proceeds of the initial public offering, we intend to invest the net proceeds of the initial public offering in short-term,
interest-bearing, investment-grade securities. See "
Risk Factors—Risks Related to Our Common Stock and the Initial Public
Offering—We have considerable discretion as to the use of the net proceeds from the initial public offering and we may use these
proceeds in ways with which you may not agree
."
38
DIVIDEND
POLICY
We have never declared or paid cash dividends
on our common stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business
and do not anticipate paying any cash dividends on our common stock in the near future. We may also enter into credit agreements or other
borrowing arrangements in the future that will restrict our ability to declare or pay cash dividends on our common stock. Any future
determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition,
operating results, capital requirements, contractual restrictions, general business conditions and other factors that our board of directors
may deem relevant. See also "
Risk Factors—Risks Related to Our Common Stock and Initial Public Offering—We do not
expect to declare or pay dividends in the foreseeable future
."
39
CAPITALIZATION
The following table sets forth our capitalization
as of December 31, 2022:
●
on
                                            an actual basis;
●
on
                                            a pro forma basis to reflect (i) the issuance of 8% convertible unsecured promissory notes
                                            in the principal amount of $150,000 subsequent to December 31, 2022; (ii) the issuance of
                                            15,000 shares of common stock as partial payment for legal services subsequent to December
                                            31, 2022; (iii) the issuance  of 8% unsecured promissory notes for principal of $2,350,000
                                            subsequent to December 31, 2022; (iv) the repurchase of 600,000 shares of common stock from
                                            a stockholder and former officer and director of the Company for a total purchase price of
                                            $800,000 subsequent to December 31, 2022; and (v) a grant of 90,000 shares of common stock
                                            to an executive officer under the Plan subsequent to December 31, 2022; and
●
on
                                            a pro forma as-adjusted basis to reflect (i) the issuance of 3,750,000 shares by us in the
                                            Company's initial public offering at an assumed price to the public of $4.00 per share,
                                            which is the low point of the estimated offering range set forth on the cover page of this
                                            prospectus, resulting in net proceeds to us of approximately $12.8 million after deducting
                                            (a) underwriting discounts and commissions and non-accountable expense allowance of approximately
                                            $1.2 million and (b) our estimated other offering expenses of approximately $1.0 million
                                            (assuming no exercise of the underwriters' over-allotment option), and assuming no
                                            exercise of the representative's warrants; (ii) the repayment of $40,000 due under
                                            a promissory note within ten business days after the closing of the initial public offering;
                                            (iii) the assumed conversion upon the closing of the initial public offering of the outstanding
                                            6% convertible unsecured promissory notes in the principal amount of $6,305,000 into an aggregate
                                            of 3,152,500 shares of common stock assuming a mandatory conversion price of $2.00 per
                                            share, based on the assumed initial public offering price of $4.00 per share, which is the
                                            low point of the price range set forth on the cover page of this prospectus; (iv) the assumed
                                            conversion upon the closing of the initial public offering of the outstanding 8% convertible
                                            unsecured promissory notes in the principal amount of $1,465,000 into an aggregate of 732,500 shares
                                            of common stock assuming a mandatory conversion price of $2.00 per share, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus; (v) the assumed automatic exercise of warrants
                                            upon the closing of the initial public offering for the issuance of 940,000 shares of
                                            common stock; (vi) the assumed deemed repayment of the principal amount of the 8% unsecured
                                            promissory notes upon such automatic exercise of warrants; (vii) the assumed nominal cash
                                            repayment of any amount remaining outstanding under the 8% unsecured promissory notes as
                                            of the date of this prospectus; (viii) the issuance of up to 77,200 shares of common stock
                                            to Boustead as placement agent in consideration for the waiver of its success fee and expense
                                            allowance for Company-introduced investors in the private placement of the Company's
                                            8% convertible unsecured promissory notes and accompanying warrants equal to 8% of the number
                                            of shares of common stock issuable to the Company-introduced investors upon conversion or
                                            exercise, as applicable, of their securities, based on the assumed initial public offering
                                            price of $4.00 per share, which is the low point of the price range set forth on the cover
                                            page of this prospectus; (ix) the payment of an aggregate $20,000 in deferred success fees
                                            and non-accountable expense allowance to Boustead relating to the private placement of the
                                            8% convertible unsecured promissory notes and accompanying warrants; and (x) the issuance
                                            of 13,375 shares of common stock to certain vendors pursuant to service provider agreements.
40
The pro forma as-adjusted information below is
illustrative only and our capitalization following the completion of the initial public offering is subject to adjustment based on the
initial public offering price of our common stock and other terms of the initial public offering determined at pricing. You should read
this table together with our financial statements and the related notes included elsewhere in this prospectus and the information under
"
Management's Discussion and Analysis of Financial Condition and Results of Operations
."
As of December 31, 2022
Actual
Pro
                                            Forma
Pro Forma As Adjusted
Cash and cash equivalents
$
254,409
$
1,791,047
$
14,503,302
Long-term debt
$
5,917,080
$
8,267,080
$
-
Stockholders' (deficit):
Common stock, $0.0001 par value per share, 150,000,000
    shares authorized, 8,086,152 shares issued and outstanding, actual, 7,591,152 shares issued and outstanding, pro forma, 16,256,727
    shares issued and outstanding, pro forma as adjusted
809
760
1,626
Additional paid-in capital
3,377,459
3,376,700
16,087,329
Accumulated deficit
(11,480,816
)
(11,480,816
)
(11,480,816
)
Total stockholders' (deficit)
(8,102,548
)
(8,103,357
)
4,608,139
Total capitalization
$
(2,185,468
)
$
163,723
$
4,608,139
Each $1.00 increase or decrease in the assumed
offering price per share of $4.00 would increase or decrease the net proceeds that we receive in the initial public offering and each
of total stockholders' equity and total capitalization by approximately $3.5 million (or approximately $4.0 million if the over-allotment
option is exercised in full), assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains
the same, and after deducting the estimated underwriting discounts and commissions and non-accountable expense allowance and offering
expenses payable by us.
The table above is based on 8,086,152 shares
of our common stock outstanding as of December 31, 2022, after giving effect to the Reverse Stock Split at a ratio of 1-for-5 which became
effective on April 14, 2023, and excludes the following securities or rights to securities that were outstanding as of December 31, 2022:
●
2,039,328
                                            shares of common stock issuable upon the optional conversion of outstanding 6% convertible
                                            unsecured promissory notes at their optional conversion price of approximately $3.09 per
                                            share;
●
399,294
                                            shares of common stock issuable upon the optional conversion of outstanding 8% convertible
                                            unsecured promissory notes at their optional conversion price of approximately $3.09 per
                                            share;
●
Up
                                            to 65,200 shares of common stock issuable to Boustead as placement agent in consideration
                                            for the waiver of its success fee and expense allowance for Company-introduced investors
                                            in the private placement of the Company's 8% convertible unsecured promissory notes
                                            and accompanying warrants equal to 8% of the number of shares of common stock issuable to
                                            the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of this prospectus;
●
176,540
                                            shares of common stock issuable upon exercise of placement agent's warrants at an exercise
                                            price of $2.50 per share upon the optional conversion of outstanding 6% convertible unsecured
                                            promissory notes at their optional conversion price of $2.50 per share;
●
262,000
                                            total shares of common stock issuable upon the exercise of stock options that were granted
                                            to certain employees, consultants, officers, and directors under the Equity Incentive Plan,
                                            at an exercise price per share equal to $3.10 per share;
●
750,000
                                            shares of common stock that are reserved for issuance under the Plan, which is inclusive
                                            of the 262,000 shares issuable upon the exercise of stock options that were granted under
                                            the Plan; and
●
301,875
                                            shares of common stock issuable upon exercise of representative's warrants to be issued
                                            to the underwriters in connection with the initial public offering, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus, and assuming full exercise by the underwriters
                                            of the over-allotment option.
41
DILUTION
Dilution in net tangible book value per share
to new investors is the amount by which the offering price paid by the purchasers of the shares of common stock sold in the Company's
initial public offering exceeds the pro forma net tangible book value per share of common stock after the initial public offering. Net
tangible book value per share is determined at any date by subtracting our total liabilities from the total book value of our tangible
assets and dividing the difference by the number of shares of common stock deemed to be outstanding at that date.
The net tangible book value of our common stock
as of December 31, 2022 was $(8,237,077), or approximately $(1.02) per share.
Pro forma as adjusted net tangible book value
dilution per share to new investors represents the difference between the amount per share paid by purchasers of common stock in the
initial public offering and the pro forma as adjusted net tangible book value per share of common stock immediately after completion
of the initial public offering. Investors participating in the initial public offering will incur immediate, substantial dilution. After
giving effect to (i) the issuance of 8% convertible unsecured promissory notes in the principal amount of $150,000 subsequent to December
31, 2022; (ii) the issuance of 15,000 shares of common stock as partial payment for legal services subsequent to December 31, 2022; (iii)
the issuance of 8% unsecured promissory notes for principal of $2,350,000 subsequent to December 31, 2022; (iv) the repurchase of 600,000
shares of common stock from a stockholder and former officer and director of the Company for a total purchase price of $800,000 subsequent
to December 31, 2022; (v) a grant of 90,000 shares of common stock to an executive officer under the Plan subsequent to December 31,
2022; (vi) the issuance of 3,750,000 shares by us in the initial public offering at an assumed price to the public of $4.00 per share,
which is the low point of the estimated offering range set forth on the cover page of this prospectus, resulting in net proceeds to us
of approximately $12.8 million after deducting (a) underwriting discounts and commissions and non-accountable expense allowance of approximately
$1.2 million and (b) our estimated other offering expenses of approximately $1.0 million (assuming no exercise of the underwriters'
over-allotment option), and assuming no exercise of the representative's warrants; (vii) the repayment of $40,000 due under a promissory
note within ten business days after the closing of the initial public offering; (viii) the assumed conversion upon the closing of the
initial public offering of the outstanding 6% convertible unsecured promissory notes in the principal amount of $6,305,000 into an aggregate
of 3,152,500 shares of common stock assuming a mandatory conversion price of $2.00 per share, based on the assumed initial public
offering price of $4.00 per share, which is the low point of the price range set forth on the cover page of this prospectus; (ix) the
assumed conversion upon the closing of the initial public offering of the outstanding 8% convertible unsecured promissory notes in the
principal amount of $1,465,000 into an aggregate of 732,500 shares of common stock assuming a mandatory conversion price of $2.00
per share, based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth
on the cover page of this prospectus; (x) the assumed automatic exercise of warrants upon the closing of the initial public offering
for the issuance of 940,000 shares of common stock; (xi) the assumed deemed repayment of the full principal amount of the 8% unsecured
promissory notes upon such automatic exercise of warrants; (xii) the assumed nominal cash repayment of any amount remaining outstanding
under the 8% unsecured promissory notes as of the date of this prospectus; (xiii) the issuance of up to 77,200 shares of common stock
to Boustead as placement agent in consideration for the waiver of its success fee and expense allowance for Company-introduced investors
in the private placement of the Company's 8% convertible unsecured promissory notes and accompanying warrants equal to 8% of the
number of shares of common stock issuable to the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover
page of this prospectus; (x) the payment of an aggregate $20,000 in deferred success fees and non-accountable expense allowance to Boustead
relating to the private placement of the 8% convertible unsecured promissory notes and accompanying warrants; and (xi) the issuance of
13,375 shares of common stock to certain vendors pursuant to service provider agreements, our pro forma as adjusted net tangible book
value as of December 31, 2022 would have been approximately $13.3 million, or approximately $0.82 per share. This amount represents an
immediate increase in pro forma net tangible book value of approximately $1.84 per share to existing stockholders and an immediate dilution
in pro forma net tangible book value of approximately $3.18 per share to purchasers of common stock in the initial public offering, as
illustrated in the following table.
Assumed public offering price per share
$
4.00
Historical net tangible book value per share as of December 31, 2022
$
(1.02
)
Increase in pro forma as adjusted net tangible book value per share attributable to new investors purchasing shares in the initial public offering
1.84
Pro forma as adjusted net tangible book value per share after giving effect to the initial public offering
0.82
Dilution per share to new investors purchasing shares in the initial public offering
$
3.18
42
If the underwriters exercise their over-allotment
option in full, the pro forma as adjusted net tangible book value per share of our common stock, as adjusted to give effect to the initial
public offering, would be approximately $0.91 per share, and the dilution in pro forma net tangible book value per share to new investors
purchasing shares of common stock in the initial public offering would be approximately $3.09 per share.
The pro forma information discussed above is
illustrative only. Our net tangible book value following the completion of the initial public offering is subject to adjustment based
on the actual initial public offering price of our common stock and other terms of the initial public offering determined at pricing.
The following table sets forth, as of December
31, 2022 on a pro forma as adjusted basis, the total number of shares of common stock previously issued and sold to existing investors,
the total consideration paid for the foregoing and the average price per share of common stock paid, or to be paid, by existing owners
and by the new investors. The calculation below is based on the assumed initial public offering price of $4.00 per share, which is the
low point of the estimated offering price range set forth on the cover page of this prospectus, before deducting estimated underwriter
commissions and offering expenses, in each case payable by us, and assumes no exercise of the underwriters' over-allotment option
or representative's warrants.
Shares
    Purchased
Total Consideration
Average 
    Price
Number
Percent
Amount
Percent
Per Share
Shares held by existing stockholders
7,591,152
46.7
%
$
759
0.0
%
$
0.0001
Shares issuable upon certain events upon the consummation
    of the initial public offering
4,915,575
30.2
%
$
10,210,000
40.5
%
$
2.08
Shares issued to investors in the initial public offering
3,750,000
23.1
%
$
15,000,000
59.5
%
$
4.00
Total
16,256,727
100.0
%
$
25,210,759
100.0
%
$
1.55
The table above is based on 8,086,152 shares
of our common stock outstanding as of December 31, 2022, after giving effect to the Reverse Stock Split at a ratio of 1-for-5 which became
effective on April 14, 2023, and excludes the following securities or rights to securities that were outstanding as of December 31, 2022:
●
2,039,328
                                            shares of common stock issuable upon the optional conversion of outstanding 6% convertible
                                            unsecured promissory notes at their optional conversion price of approximately $3.09 per
                                            share;
●
399,294
                                            shares of common stock issuable upon the optional conversion of outstanding 8% convertible
                                            unsecured promissory notes at their optional conversion price of approximately $3.09 per
                                            share;
●
Up
                                            to 65,200 shares of common stock issuable to Boustead as placement agent in consideration
                                            for the waiver of its success fee and expense allowance for Company-introduced investors
                                            in the private placement of the Company's 8% convertible unsecured promissory notes
                                            and accompanying warrants equal to 8% of the number of shares of common stock issuable to
                                            the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of this prospectus;
●
176,540
                                            shares of common stock issuable upon exercise of placement agent's warrants at an exercise
                                            price of $2.50 per share upon the optional conversion of outstanding 6% convertible unsecured
                                            promissory notes at their optional conversion price of $2.50 per share;
●
262,000
                                            total shares of common stock issuable upon the exercise of stock options that were granted
                                            to certain employees, consultants, officers, and directors under the Equity Incentive Plan,
                                            at an exercise price per share equal to $3.10 per share;
●
750,000
                                            shares of common stock that are reserved for issuance under the Plan, which is inclusive
                                            of the 262,000 shares issuable upon the exercise of stock options that were granted under
                                            the Plan; and
●
301,875
                                            shares of common stock issuable upon exercise of representative's warrants to be issued
                                            to the underwriters in connection with the initial public offering, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus, and assuming full exercise by the underwriters
                                            of the over-allotment option.
To the extent that any outstanding stock options
or warrants are exercised, or new stock options, restricted stock units or other securities are granted under the Plan, or we issue additional
shares of common stock in the future, there will be further dilution to investors participating in the initial public offering.
43
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis summarizes
the significant factors affecting our operating results, financial condition, liquidity and cash flows of our company as of and for the
periods presented below. The following discussion and analysis should be read in conjunction with our financial statements and the related
notes thereto included elsewhere in this prospectus. The discussion contains forward-looking statements that are based on the beliefs
of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially
from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and
elsewhere in this prospectus, particularly in the sections titled "Risk Factors" and "Cautionary Statement Regarding
Forward-Looking Statements".
Overview
We are a technology
company developing and operating platforms to give significantly more student-athletes the opportunity to go to college and continue
playing sports. Our platform, Signing Day Sports, is a digital ecosystem to help athletes get discovered and recruited by coaches and
recruiters across the country. We currently fully support football and baseball, and we plan to expand the Signing Day Sports platform
to include additional sports. Each sport is led by former professional athletes and coaches who know what it takes to get to the big
leagues.
Signing Day Sports launched
in 2019, and as of March 2023, many high schools, sports clubs, and aspiring high school athletes have subscribed to the Signing Day
Sports platform. Colleges in the NCAA Division I, Division II, and Division III, and the NAIA, have utilized our platform for recruitment
purposes. Signing Day Sports initially supported football athletes, also now offers a platform for baseball and softball, and is expected
to offer a men's and women's soccer platform in or around May 2023, resulting in even more recruiter and athlete platform
participants.
We founded Signing Day
Sports to reinvent the high school and college sports recruiting process for the digital era. When we started the Company, recruiting
was still being done largely as it had been done since before the mass availability of Internet-connected devices and was still limited
by that model. We identified the flaws in the recruiting process and the unique opportunity it presented for us to become a solution
provider in the industry. We developed and operated our platform with the objective of optimizing and enhancing the sports recruitment
process across all sizes of colleges and athletic departments.
Our ability to leverage
modern technologies to bring coaches and athletes together in a mutually beneficial ecosystem has shown significant benefits for both
sides of the student-athlete recruitment process. Parents and athletes can use the platform to understand and provide what recruiters
want to see, seek and gain offers of better athletic scholarships or other financial aid packages, and maximize the potential of an athlete's
career. Recruiters now have a comprehensive recruitment application that shows video verification of key attribute data and gives the
recruiter the ability to narrow down their search with a highly optimized search engine and athlete screening process.
In short, we offer a comprehensive solution that
services the needs of all participants in the sports recruitment process. We are aware of no other platform that offers what our platform
does. Our goal is to change the way sports recruitment is done for the betterment of everyone.
Our Historical Performance
The Company's current
and former independent registered public accounting firms have expressed substantial doubt as to the Company's ability to continue
as a going concern. We have incurred losses for each period from our inception and a significant accumulated deficit. For the fiscal years
ended December 31, 2022 and 2021, our net loss was approximately $6.7 million and $8.8 million, respectively, our cash used in operating
activities was approximately $4.9 million and $5.7 million, respectively, and we had cumulative losses of approximately $18.1 million
and $11.5 million
, respectively.
We expect to incur expenses and operating
losses over the next several years. Accordingly, we will need additional financing to support our continuing operations. We will seek
to fund our operations through public or private equity offerings, debt financings, government or other third-party funding, collaborations
and licensing arrangements. Adequate additional financing may not be available to us on acceptable terms, or at all. Our failure to raise
capital as and when needed would impact our going concern status and would have a negative impact on our financial condition and our ability
to pursue our business strategy and continue as a going concern. We will need to generate significant revenues to achieve profitability,
and we may never do so.
44
For further discussion,
see "
Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital
Resources – Going Concern
".
Recent Developments
8% Convertible Unsecured Promissory Notes
and Warrants
Subsequent to December 31, 2022, the Company
issued two 8% convertible unsecured promissory notes and accompanying warrants to accredited investors under subscription agreements
for aggregate loans of $150,000. The convertible notes bear interest at 8% annually, and are due August 8, 2023 unless converted in accordance
with their terms. For a further description of the terms of these convertible notes and warrants, see "
Description of Securities
– 8% Convertible Unsecured Promissory Notes
" and "
Description of Securities – Warrants – Investor
Warrants
", respectively.
January 2023 Settlement
On or about November 29, 2022, John Dorsey, a
former Chief Executive Officer and director of the Company, through his counsel, sent the Company a letter demanding full payment on
a $50,000 loan that Mr. Dorsey allegedly made to the Company on or about July 21, 2022 while Mr. Dorsey was the Chief Executive Officer
of the Company that was due and payable two weeks thereafter (the "Alleged Loan"). The Company has generally denied entering
into a binding agreement with Mr. Dorsey on those terms and that payment is due and owing (the "Loan Dispute"). Under a Settlement
Agreement, Release of Claims, and Covenant Not To Sue between the Company and Mr. Dorsey, dated as of January 12, 2023 (the "January
2023 Dorsey Settlement Agreement"), Mr. Dorsey agreed to a discharge of the Alleged Loan and waiver and release of claims relating
to the Alleged Loan and Loan Dispute and covenant not to sue on the basis of such claims or otherwise commence any action or proceeding
that would be inconsistent with the release of such claims. The Company agreed to pay Mr. Dorsey $10,000 and issue a promissory note
to Mr. Dorsey in the principal amount of $40,000 payable on the earlier of ten business days following the successful closing of an initial
public offering of the Company's common stock that generates at least $1 million in net proceeds to the Company or July 1, 2023.
8% Unsecured Promissory Notes and Warrants
Private Placements
In March 2023 and April 2023 we completed one
private placement, and in May 2023  we conducted a subsequent private placement in which we entered into subscription agreements
with a number of accredited investors, pursuant to which we issued 8% unsecured promissory notes in the aggregate principal amount of
$2,350,000, which bear interest at the annual rate of 8%, and accompanying warrants to purchase an aggregate of 940,000 shares of
common stock exercisable at $2.50 per share. The warrants may be voluntarily exercised for cash prior to the maturity date of the promissory
notes or will be automatically exercised as described below. The amount outstanding under the 8% unsecured promissory notes must be repaid
upon the earlier to occur of the consummation of a Liquidity Event or the second anniversary of the initial closing date of the respective
private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000 principal). If a Liquidity Event occurs before
the second anniversary of the initial closing date of the applicable private placement, the warrants will be automatically exercised
as to the unexercised portion of the warrants, the outstanding balance under the 8% unsecured promissory notes will be deemed repaid
in the amount of the exercise price for the automatic exercise of the unexercised portion of the related warrants, with any remaining
balance owed on the promissory notes to be repaid in cash. If a Liquidity Event does not occur before the second anniversary of the initial
closing date of the applicable private placement, then both principal and interest outstanding under the notes must be repaid in cash.
The Company agreed to register the resale all of the shares of common stock that such warrants may or shall be exercised to purchase
with the shares being registered for sale in the registration statement of which this prospectus forms a part. The Company must generally
keep the registration statement effective for a period as shall be required to permit the investors to complete the offer and sale of
their shares. The Company and the investors also provided customary mutual indemnification relating to any damages arising from such
registration.
Boustead has acted as placement agent in these
private placements. Pursuant to our engagement letter agreement with Boustead, in addition to a commission equal to 7% of the gross proceeds
raised in the private placements, a non-accountable expense allowance equal to 1% of the gross proceeds raised in the private placements,
and payment of certain other expenses, we agreed to issue Boustead five-year warrants to purchase a number of shares of common stock
equal to 7% of the common stock underlying the warrants accompanying the 8% unsecured promissory notes at an exercise price equal to
the exercise price as defined in such warrants. Under the engagement letter with Boustead, its placement agent's warrants must
be registered for resale with the Company's initial public offering. However, Boustead has informally deferred these registration
rights with respect to the registration statement for the initial public offering.
45
Under the subscription agreements with the investors
in the first of these two private placements, the Company was required to use the first $450,000 of the net proceeds from the private
placement to expand its current operations, including its technology and intellectual property portfolio, and to fund the costs of its
initial public offering. The Company was required to use the next $800,000 of the net proceeds from the private placement to repurchase
up to 600,000 shares of common stock that were held by Dennis Gile, our largest stockholder and a former officer and director of the
Company, at a price equal to approximately $1.35 per share. The repurchase was required to be consummated only to the extent that it
does not impair the Company's capital within the meaning of Section 160 of the DGCL or the Company's ability to pay down
its debts as they become due. The Company was required to enter into an agreement with Mr. Gile providing that Mr. Gile will use the
proceeds of the repurchase to settle an existing lawsuit filed against Mr. Gile by John Dorsey, a former officer and director of the
Company, subject to a full release of Mr. Gile and the Company, and that Mr. Gile will resign from the board of directors of the Company
and from any officer position with the Company upon the repurchase. The Company was required to use any remaining net proceeds from the
private placement, which consisted of $250,000 less placement agent fees and expenses, for working capital and other general corporate
purposes. Subsequently, the Company used the net proceeds as required. For discussion of related recent developments, see "—
Repurchase
of Shares, Settlement and Release
" below.
Repurchase of Shares, Settlement and Release
On March 31, 2023, under the terms of a Repurchase
and Resignation Agreement, dated March 21, 2023, with Dennis Gile (the "Repurchase Agreement"), we paid an aggregate purchase
price of $800,000 for the repurchase (the "Repurchase") of 600,000 shares of common stock from Dennis Gile, our largest stockholder
and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, at approximately $1.33 per share.
Pursuant to the Repurchase Agreement, $695,000 of the $800,000 payment was made to the attorneys for John Dorsey, a former officer and
director of the Company (the "Dorsey/Gile Settlement Payment"), as part of the settlement of a private lawsuit under a settlement
agreement between Mr. Gile and Mr. Dorsey (the "Dorsey/Gile Lawsuit") between these individuals and Dorsey LLC (the "Dorsey/Gile
Settlement Agreement"). Pursuant to the Repurchase Agreement, the balance of the aggregate purchase price was paid to the attorneys
for Mr. Gile. Pursuant to the Repurchase Agreement, Mr. Gile agreed to resign his position as Chairman and every other director and officer
position he held with the Company effective as of March 21, 2023. Prior to such date, on March 20, 2023, Mr. Gile delivered notice of
resignation from such positions, which stated that it was effective March 19, 2023. Pursuant to the Repurchase Agreement, Mr. Gile will
not receive any severance payments in connection with any other agreement with the Company as a result of his resignation. The Repurchase
was also conditioned on the Company's prior review of and consent to the Dorsey/Gile Settlement Agreement prior to its execution,
and receipt of a certificate from the Chief Financial Officer of the Company that the Repurchase will not impair the Company's
capital within the meaning of Section 160 of the DGCL or the Company's ability to pay down its debts as they become due (the "CFO
Certificate"). Under the Repurchase Agreement, the Dorsey/Gile Settlement Agreement was required to fully resolve, settle and dismiss
the Gile/Dorsey Lawsuit and contain a general release of claims by all the plaintiffs in the Dorsey/Gile Lawsuit in favor of Mr. Gile,
the Company, the Company's affiliates, stockholders, and certain other Company releasees. Under the Repurchase Agreement, Mr. Gile
agreed to indemnify the Company for claims arising out of based upon the Repurchase Agreement. Pursuant to the Repurchase Agreement,
a copy of the Dorsey/Gile Settlement Agreement was reviewed and consented to by the Company and entered into as of March 20, 2023. Under
the Dorsey/Gile Settlement Agreement, between Mr. Gile, Mr. Dorsey, and Dorsey LLC, Mr. Gile agreed to pay the Dorsey/Gile Settlement
Payment, transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile, Mr. Dorsey and Dorsey LLC agreed to mutual releases of all claims
relating to the Dorsey/Gile Lawsuit and to dismiss the Dorsey/Gile Lawsuit. Although the Dorsey/Gile Settlement Agreement did not contain
a release of the Company and did not contain releases by the plaintiffs of Mr. Gile other than with respect to the Lawsuit, the Company
waived any related requirements under the Repurchase Agreement in light of the expected execution of the Mutual Release Agreement (as
defined below). The CFO Certificate was received as of March 21, 2023. The repurchased shares were cancelled as of March 31, 2023. The
transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023, after waiver of the board of directors of the repurchase
rights and purchase rights provided for under the Shareholder Agreement by resolutions adopted on March 24, 2023.
Effective March 29, 2023, a Confidential Mutual
General Release and Covenant Not to Sue Agreement was entered into between the Company and Mr. Dorsey (the "Mutual Release Agreement").
Under the Mutual Release Agreement, Mr. Dorsey agreed to a general release of claims against and covenant not to sue the Company, the
Company's affiliates, stockholders, and certain other Company releasees, and the Company agreed to a general release of claims
against and covenant not to sue Mr. Dorsey, Mr. Dorsey's affiliates, and certain other releasees, subject to payment of the Dorsey/Gile
Settlement Payment, which, as indicated above, was made on March 31, 2023. The releases of claims and covenants not to sue under the
Mutual Release Agreement do not apply to breach of the Dorsey/Gile Settlement Agreement or to the January 2023 Dorsey Settlement Agreement.
46
Emerging Growth Company
We qualify as an "emerging growth company"
under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so
long as we are an emerging growth company, we will not be required to:
●
have
                                            an auditor report on our internal controls over financial reporting pursuant to Section 404(b)
                                            of the Sarbanes-Oxley Act;
●
being
                                            permitted to present only two years of audited financial statements, in addition to any required
                                            unaudited interim financial statements, with correspondingly reduced "Management's
                                            Discussion and Analysis of Financial Condition and Results of Operations" disclosure
                                            in this prospectus;
●
comply
                                            with any requirement that may be adopted by the Public Company Accounting Oversight Board
                                            regarding mandatory audit firm rotation or a supplement to the auditor's report providing
                                            additional information about the audit and the financial statements (i.e., an auditor discussion
                                            and analysis);
●
submit
                                            certain executive compensation matters to stockholder advisory votes, such as "say-on-pay"
                                            and "say-on-frequency;" and
●
disclose
                                            certain executive compensation related items such as the correlation between executive compensation
                                            and performance and comparisons of the chief executive officer's compensation to median
                                            employee compensation.
In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits
of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.
We will remain an emerging growth company for
up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed
$1,235,000,000, (ii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act,
which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business
day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible
debt during the preceding three year period.
Principal Factors Affecting Our Financial
Performance
Our operating results are primarily affected
by the following factors:
●
our
                                            ability to acquire new customers and users or retain existing customers and users;
●
our
                                            ability to offer competitive product pricing;
●
our
                                            ability to broaden product offerings;
●
our
                                            ability to leverage technology and use and develop efficient processes;
●
our
                                            ability to attract and retain talented employees; and
●
industry
                                            demand and competition; and
●
market
                                            conditions and our market position.
47
Results of Operations
The following table sets forth
key components of our results of operations during the years ended December 31, 2022 and 2021.
Years Ended
December 31,
December 31,
2022
2021
Revenues, net
$
78,336
$
340,984
Cost of revenues
783,064
504,342
Gross profit (loss)
(704,728
)
(163,358
)
Operating cost and expenses
Advertising and marketing
1,842,666
1,104,939
General and administrative
3,025,223
5,027,820
Impairment charge
820,951
2,276,159
Total operating expenses
5,688,840
8,408,918
Net income (loss) from operations
(6,393,568
)
(8,572,276
)
Other Income (expense)
Interest expense
(597,747
)
(78,503
)
Interest income
1,100
1,187
Deferred tax income
100,000
-
Change in fair value of SAFE Agreements
154,635
(154,635
)
Other expense
(53,640
)
-
Other Income
115,406
-
Total other income (expense)
(280,246
)
(231,951
)
Net loss
$
(6,673,814
)
$
(8,804,227
)
Revenues, Net
Net
revenues for the years ended December 31, 2022 and 2021 was approximately $
0.08
million
and $
0.3
million, respectively. Net revenues decreased approximately
$
0.26
million, or approximately 77.0%, due to
an increase in the
proportion of customers using our technology platform under a free trial arrangement.
Cost of Revenues
Cost
of revenues for the years ended December 31, 2022 and 2021 was approximately $
0.8
million
and $
0.5
million, respectively. Cost of revenue increased approximately
$
0.3
million, or approximately 55.3%, due to an increase in the
number of employees in our internal engineering and development team.
Gross Profit (Loss)
Gross
loss was approximately $
0.7 million
and $
0.2
million
for the years ended December 31, 2022 and 2021, respectively. The increase of approximately $0.5 million, or 331.4%, was due to the
decrease in revenue and increase in cost of revenues for the reasons described above.
48
Advertising and Marketing
Advertising and marketing
expenses
were approximately $
1.8 million
and $
1.1
million
for the years ended December 31, 2022 and 2021, respectively. The increase of approximately $0.7 million, or 66.8%, was due to increased
advertising and marketing on social media platforms.
General and Administrative
General
and administrative expenses were approximately $
3.0 million
and
$
5.0
million for the years ended December 31, 2022 and 2021, respectively.
The decrease of approximately $2.0 million, or 41.2%, was due to
a reduction of nonessential employees and the move of corporate
headquarters to office space under a lower rental rate.
Impairment Charge
Impairment
charge was approximately $
0.8
million and $
2.3
million
for the years ended December 31, 2022 and 2021, respectively. Impairment charge decreased approximately $
1.5
million,
or 63.9%, was due to an increase in the proportion of customers using our technology platform under a free trial arrangement.
Total Operating Expenses
Total operating expenses
were
approximately $
5.7 million
and $
8.4
million
for the years ended December 31, 2022 and 2021, respectively. The decrease of approximately $2.7 million, or 32.3%, was due to the
factors discussed above.
Net Income (Loss) From Operations
Net income (loss) from operations was approximately
$(6.4 million) and $(8.6 million) for the years ended December 31, 2022 and 2021, respectively. The decrease of approximately $2.2
million, or 25.4%, was due to the factors discussed above.
Interest Expense
Interest expense
was
approximately $0.6 million and $0.08 million for the years ended December 31, 2022 and 2021, respectively. The increase of approximately
$0.52 million, or 661.4%, was due to an increase in convertible notes payable.
Interest Income
Interest income
was
$1.1 thousand
and approximately $1.2 thousand for the years
ended December 31, 2022 and 2021, respectively. The decrease was due to a reduction
in
interest-bearing
assets.
Deferred Tax Income
Deferred tax income was $0.1 million and none
for the years ended December 31, 2022 and 2021, respectively. The increase
was due to recognition of deferred tax assets.
Change in Fair Value of SAFE Agreements
Change in fair value of SAFE Agreements
was
approximately $
0.2
million and $(
0.2
million)
for the years ended December 31, 2022 and 2021, respectively. The change was due to a change in fair value measurement.
Other Expense
Other expense
was
approximately $
0.05 million
and none for the years ended December
31, 2022 and 2021, respectively. The increase was due to an increase in events-related equipment expense.
Other Income
Other income
was
approximately $
0.1 million
and none for the years ended December
31, 2022 and 2021, respectively. The increase was due to tax deductions relating to employee travel expenses.
49
Total Other Income (Expense)
Total other income (expense)
was
approximately $(
0.3 million)
and $(0.
2 million)
for the years ended December 31, 2022 and 2021, respectively. The increase was due to
the factors discussed above
.
Net Loss
During
the years ended December 31, 2022 and 2021, we incurred net loss of approximately $6.7 million and $
8.8
million,
respectively, due to the factors discussed above.
Liquidity and Capital Resources
As of December 31, 2022, we had cash and cash
equivalents of $254,409. To date, we have financed our operations primarily through revenue generated from operations and private placements
of securities. We are currently in discussions with other banks and believe that we will secure substantially equivalent financing.
We believe that our current levels of cash, either
with or without the proceeds of the Company's initial public offering, will be sufficient to meet our anticipated cash needs for
our operations for at least the next 12 months, including our anticipated costs associated with becoming a public reporting company.
We may, however, in the future require additional cash resources due to changing business conditions, implementation of our strategy
to expand our business, or other investments or acquisitions we may decide to pursue. If our own financial resources are insufficient
to satisfy our capital requirements, we may seek to sell additional equity or debt securities or obtain additional credit facilities.
The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in
increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations.
Financing may not be available in amounts or on terms acceptable to us, if at all. Any failure by us to raise additional funds on terms
favorable to us, or at all, could limit our ability to expand our business operations and could harm our overall business prospects.
Going Concern
Our
current auditor and former auditor's opinions included in our audited financial statements for the years ended December 31, 2022
and 2021 contain an explanatory paragraph regarding substantial doubt about our ability to continue as a going concern.
For the
fiscal years ended December 31, 2022 and 2021, our net loss was approximately $6.7 million and $8.8 million, respectively, our cash used
in operating activities was approximately $4.9 million and $5.7 million, respectively, and we had cumulative losses of approximately
$18.1 million and $11.5 million
, respectively. In recent years, we have suffered
recurring losses from operations, have negative working capital and cash outflows from operating activities, and therefore we are dependent
upon external sources for financing our operations.
Our transition to profitable operations is dependent
on generating a level of revenue adequate to support our cost structure. We must continue our path to profitability through increased
business development, marketing and sales of the Company's multiple lines of subscriptions. Our management has evaluated the significance
of these conditions as well as the time in which we have to complete these tasks and has determined that we can meet our operating obligations
for the foreseeable future. We plan to finance our operations using primarily proceeds from private placements of securities and our
initial public offering. There can be no assurance that we will succeed in generating sufficient revenues from our product sales to continue
our operations as a going concern.
Our management expects to have the required funds
in order to continue to operate as a going concern in the coming year from the initial public offering. Nonetheless, there can be no
assurance that necessary financing will be available on satisfactory terms, if at all. If we are unable to secure needed financing, management
may be forced to take additional restructuring actions, which may include significantly reducing our anticipated level of expenditures.
The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and
classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.
50
SAFEs
From March 2021 through July 2021, the Company
entered into eight agreements consisting of a "Simple Agreement for Future Equity" (the "SAFE agreements") totaling
$1,980,000. The SAFE agreements provided a right to the holder to future equity in the Company in the form of these agreements.
In September 2022 and October 2022, all of the
SAFE agreements were canceled and in exchange a total of 591,048 shares of common stock were issued to the former SAFE holders pursuant
to cancellation and exchange agreements with the former SAFE holders.
If the Company had conducted an Equity Financing
(as defined in the SAFE agreements), the SAFE agreements would have automatically converted into the number of shares of preferred stock
equal to the Purchase Amount (as defined in the SAFE agreements) divided by the conversion price per share.
If there had been a SAFE Liquidity Event (as
defined in the "
Description of Securities – SAFEs – Specific Conversion Terms
"), the holder of the SAFE
agreement would have been automatically entitled to receive a portion of the proceeds equal to the greater of (i) the Purchase Amount
or (ii) an amount equal to a percentage of the proceeds to be received in a SAFE Liquidity Event with such percentage calculated by dividing
the Purchase Amount by the Liquidity Event Amount (as defined in the SAFE agreements).
If there had been a Dissolution Event (as defined
in the SAFE agreements), the holder of the SAFE agreement will automatically receive a portion of the Proceeds equal to the Purchase
Amount/Cash-out Amount, due and payable immediately prior to the consummation of the Dissolution Event.
If after eighteen months, there had been no Equity
Financing, SAFE Liquidity Event, or Dissolution Event, the SAFE agreement would have automatically converted into the number of shares
of common stock equal to the Purchase Amount divided by the Valuation Discount Price Per Share (as defined in the SAFE agreements) resulting
in an approximate 20% discount.
The SAFE agreements were not subject to mandatory
redemption, and they could have required the Company to issue a variable number of shares. Management of the Company determined that
the SAFE agreements contained a liquidity event provision that embodied an obligation indexed to the fair value of the equity shares
and that could have required the Company to settle the SAFE obligation by transferring assets or cash. The SAFE agreements represented
a recurring measurement that is classified within Level 3, disclosed and defined in Note 4 to the financial statements accompanying this
prospectus of the fair value hierarchy wherein fair value is estimated using significant unobservable inputs.
Equity Incentive Plan
On August 31, 2022, the Company adopted the Equity
Incentive Plan for the purpose of granting restricted stock, stock options, and other forms of incentive compensation to officers, employees,
directors, and consultants of the Company. A total of 750,000 shares of common stock are reserved for issuance under the Plan. In September
2022, stock options were granted under the Plan to certain officers, directors and employees that may be exercised to purchase a total
of 234,000 shares of common stock, not including stock options or portions of stock options that subsequently terminated due to employee,
officer and director departures. Subsequent to December 31, 2022, stock options were granted under the Plan to certain employees, an
executive officer and directors that may be exercised to purchase a total of 286,450 shares of common stock, not including stock options
or portions of stock options that subsequently terminated due to employee and director departures, and 90,000 shares of restricted common
stock was granted to an officer. See "
Executive Compensation – 2022 Equity Incentive Plan
" for a summary of
the principal features of the Plan.
51
Summary of Cash Flow
The following table provides detailed information about our net cash
flow for all financial statement periods presented in this prospectus:
Cash Flow
Year Ended
December 31,
2022
December 31,
2021 (restated)
Net cash provided by (used in) operating activities
$
(4,928,461
)
$
(5,729,483
)
Net cash (used in) investing activities
(855,480
)
(1,086,278
)
Net cash provided by (used in) financing activities
1,350,800
10,452,434
Net increase (decrease) in cash and cash equivalents
(4,433,141
)
3,636,673
Cash and cash equivalents, beginning of period
4,687,550
1,050,877
Cash and cash equivalents, end of period
$
254,409
$
4,687,550
Net
cash used in operating activities was approximately $
4.9 million
for
the year ended December 31, 2022, as compared to net cash used in operating activities of approximately $
5.7 million
for
the year ended December 31, 2021. The decrease was primarily due to
a reduction of nonessential employees and movement into office
space at a reduced rental rate
.
Net cash used in investing activities was approximately
$0.9 million for the year ended December 31, 2022 and approximately $1.1 million for the year ended December 31, 2021. The decrease was
primarily due to reductions in computer equipment.
Net
cash provided by financing activities was approximately $
1.4
million
for the year ended December 31, 2022 and approximately $10.4 million for the year ended December 31, 2021. The decrease was primarily
due to a decrease in proceeds from private placements of debt and equity securities.
Contractual
Obligations
Convertible Notes
As of December 31, 2022 and 2021, the outstanding convertible unsecured
promissory notes of the Company consisted of the following:
December 31,
2022
December 31,
2021
13 8% convertible unsecured promissory notes, maturity date August 8, 2023
$
1,315,000
$
-
9 6% convertible notes payable, maturity date October 15, 2024
3,300,000
3,300,000
12 6% convertible notes payable, maturity date November 15, 2024
1,205,000
1,205,000
6 6% convertible notes payable, maturity date December 23, 2024
1,800,000
1,800,000
7,620,000
6,305,000
Less unamortized debt issuance costs
(387,920
)
(495,007
)
Long-term debt, less unamortized debt issuance costs
$
7,232,080
$
5,809,993
For
                                            a description of the terms of the Company's 6% convertible unsecured promissory notes,
                                            see "
Description of Securities – 6% Convertible Unsecured Promissory Notes
".
                                            For a description of the terms of the Company's 8% convertible unsecured promissory
                                            notes, see "
Description of Securities – 8% Convertible Unsecured Promissory
                                            Notes
".
52
As of December 31, 2022, the Company's
convertible unsecured promissory notes will mature and require repayment in future years with respect to the total principal amounts
indicated below:
Years Ending December 31,
Amount ($)
2022
-
2023
1,315,000
2024
6,305,000
$
7,620,000
Leases
The Company formerly leased office space under
a lease agreement with a term from January 2022 to December 2026. The office space was owned by a former chief executive officer and
director of the Company. The lease agreement required monthly payments of approximately $20,800 plus tax and certain operating expenses,
with an increase of 3% at the beginning of every calendar year following the first year of the term of the lease agreement through January
2026. As of December 31, 2021, a security deposit was paid in the amount of $23,411. In August 2022, the Company entered into a lease
termination agreement in which both parties agreed to terminate the lease and release each other from all future obligations.
The Company currently leases its corporate offices
consisting of approximately 3,154 square feet under a lease agreement dated November 1, 2022, as amended by an addendum dated November
2, 2022, and as further amended under a first amendment to lease dated April 1, 2023. As amended, the lease's initial term from
November 1, 2022 to April 30, 2023 was extended for a 39-month term beginning on May 4, 2023 and ending on August 3, 2026. Under the
amended lease agreement, rent for the first month was $6,741.90 and was $7,491.00 for each subsequent month through April 2023, plus
applicable rental taxes, sales taxes, and operating expenses. Monthly rent will be $7,359 from May 4, 2023 to May 3, 2024, abated for
the first three months of this period; $7,580 from May 4, 2024 to May 3, 2025; $7,808 from May 4, 2025 to May 3, 2026; and $8,042 from
May 4, 2026 to August 3, 2026, plus applicable rental taxes. Parking fees were $290.50 for the first month and will be $325.00 for each
subsequent month. The Company also paid an initial security deposit of $8,000.00 in November 2022 and a second security deposit of $16,000
in May 2023. The initial security deposit will be refunded and credited toward monthly rent for the months beginning May 4, 2024 and
May 4, 2025 if the Company has performed all obligations under the amended lease agreement including making all rent payments when due.
The Company may exercise a one-time option to extend the amended lease agreement for an additional three-year term upon 9-12 months'
notice for the fair market rent at the time of the extension, as determined in accordance with the amended lease agreement and which
will not be less than 103% of the final rent amount under the current term. Under the amended lease agreement, the Company must pay for
any tenant improvements above the allowance provided for such improvements of $37,848 or that are not in compliance with the terms of
the amended lease agreement.
The Company also leases office space under a
lease agreement expiring on May 31, 2023. Monthly rent is $12,075 and includes annual escalations. In December 2021, the Company entered
into an agreement to sublease its office space. The sublease ends on May 31, 2023 and includes fixed rent of $9,894. As a result of the
sublease, the Company incurred a loss on the transaction of $43,785 during the year ended December 31, 2021, which is shown as lease
liability in the balance sheet included with the financial statements that begin on page F-1 of this prospectus.
Total rental expense to non-related parties in
2022 and 2021 was $158,621 and $174,437, respectively. Total rental expense to related parties in 2022 and 2021 was $148,876 and $0,
respectively.
As of December 31, 2022, there are no future
maturities of non-cancelable leases with a term longer than one year.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that
have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues
or expenses, results of operations, liquidity, capital expenditures or capital resources.
53
Critical Accounting Policies
The following discussion relates to critical
accounting policies for our company. The preparation of financial statements in conformity with GAAP requires our management to make
assumptions, estimates and judgments that affect the amounts reported, including the notes thereto, and related disclosures of commitments
and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements.
These accounting policies are important for an understanding of our financial condition and results of operation. Critical accounting
policies are those that are most important to the portrayal of our financial condition and results of operations and require management's
difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently
uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance
to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management's
current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in
the preparation of our financial statements:
Concentrations of Credit Risk
The Company
maintains its cash account in several deposit accounts, the balances of which are periodically more than federally insured limits. At
December 31, 2022 and 2021, the uninsured amounts approximated $0 and $4,000,000, respectively.
Receivables and Credit Policy
The Company estimates an allowance for doubtful
accounts based upon an evaluation of the status of receivables, historical experience, and other factors as necessary. It is reasonably
possible that the Company's estimate of the allowance for doubtful accounts will change. There were approximately $16,000 of open
receivables at December 31, 2022 and $5,000 at December 31, 2021. At December 31, 2022 and 2021, the Company believes the accounts receivable
are fully collectable and has no reserve established.
Payment Terms
Payments from individuals and organizations are
required prior to providing access to the Company's website and application. If not paid in advance, payments are required from
organizations on a monthly basis. If a payment is not made, access to the Company's website and application is suspended until
the required payment is received.
Property and Equipment
Property and equipment is recorded at cost. Expenditures
for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized.
Expenditures for maintenance and repairs are charged to expense. When equipment is retired or sold, the cost and related accumulated
depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income.
Depreciation is provided using the
straight-line method, based on useful lives of the assets which range from three to five years.
The
Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying
value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition.
In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an
amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment
include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand,
competition, and other economic factors. Based on this assessment there was no impairment at December 31, 2022 and 2021.
Internally Developed Software
Software consists of an internally developed
information system for use by the Company in matching athletes with qualified coaches. The Company has capitalized costs incurred with
development and upgrades of the information systems in accordance with applicable accounting standards. Costs incurred up to and including
the feasibility stage of development as well as maintenance costs are expensed as incurred. The Company amortizes these capitalized costs
on a straight-line basis over the estimated useful life of the asset of five years.
54
The Company periodically performs reviews of
the recoverability of such capitalized technology costs. At the time a determination is made that capitalized amounts are not recoverable
based on estimated cash flows to be generated from technology; any remaining capitalized amounts are written off. During the years ended
December 31, 2022, and 2021, the Company wrote off net capitalized software development costs of $820,951 and $2,276,159 respectively.
An impairment charge for this write-off is reflected in the operating expenses in the accompanying statement of operations.
Intangible Assets
Intangible assets consist of development software,
patented technology, customer lists, trademarks, software IP, and customer data in the form of verifiable video uploads, player statistics,
and academic records. Intangible assets are stated at cost less accumulated amortization. For intangible assets that have finite lives,
the assets are amortized using the straight-line method over the estimated useful lives of the related assets. For intangible assets
with indefinite lives, the assets are tested periodically for impairment.
Fair Value Measurements
The Company values its "Simple Agreement
for Future Equity" Agreements ("SAFE Agreements") under the provisions of FASB ASC 820, "
Fair Value Measurements
and Disclosures
," which defines fair value under U.S. GAAP, establishes a framework for measuring fair value and enhances disclosures
about fair value measurements. U.S. GAAP establishes a fair value hierarchy, which required an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. The asset or liability's fair value measurement level
within the fair value hierarchy is based up the lowest level of any input that is significant to the fair value measurement.
A fair value hierarchy has been established,
which prioritizes the valuation inputs into three broad levels. Level 1 inputs consist of quoted prices in active markets for identical
assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than
quoted prices included within Level 1 that are observable for the related asset or liability. Level 3 inputs are unobservable inputs
related to the asset or liability.
The SAFE Agreements are valued using
market conditions to estimate the fair value of the agreements. These are classified within Level 3.
Income Taxes
Income taxes are provided for the tax effects
of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences
between the basis of internally developed software and net operating loss and research and development tax credit carry forwards for
financial and income tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences,
which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets are reduced
by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax
assets will not be realized.
The Company converted to a C corporation in August
of 2021. As a limited liability company for the 2020 year and through the date of conversion in 2021, the Company's taxable loss
was allocated to members in accordance with their respective percentage of ownership. Therefore, no provision for income taxes has been
included in the financial statements for the period prior to the Company's conversion to a corporation.
The Company evaluates its tax positions that
have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions.
As of December 31, 2022 and 2021, the unrecognized tax benefits accrual was zero. The Company will recognize future accrued interest
and penalties related to unrecognized tax benefits in income tax expense if incurred. As of December 31, 2022, the 2020 through 2022
tax years generally remain subject to examination by federal and state authorities.
55
Deferred Revenue
Deferred revenues are contract liabilities for
collections on subscription agreements in excess of revenue recognized.
Revenue Recognition
The Company accounts for revenue under the guidance
of FASB ASC 606, "Revenue from Contracts from Customers" ("ASC 606").
ASC 606 prescribes a five-step model that focuses
on transfer of control and entitlement to payment when determining the amount of revenue to be recognized. Under the ASC 606 guidance,
an entity is required to perform the following five steps:
(1) identify the contract(s) with a customer;
(2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to
the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.
Revenue from performance obligations satisfied
at a point in time consist of sales to individuals representing a one-month subscription and are recognized at the end of the subscription.
Revenue from performance obligations satisfied
over time consists of the sale of subscription agreements to individual organizations or customers that are more than one month in duration
and are recognized on a monthly basis over the life of the subscription agreement.
Debt Issuance Costs
Debt issuance costs are amortized over the period
the related obligation is outstanding using the straight-line method. The straight-line method is a reasonable estimate of the effective
interest method due to the relatively short maturities of the related debt. Debt issuance costs are included within long-term debt on
the balance sheet. Amortization of debt issuance costs is included in interest expense in the accompanying financial statements. As of
December 31, 2022 and 2021, unamortized debt issuance costs were $387,920 and $495,007, respectively.
Advertising Costs
Advertising costs are expensed as incurred. Such
costs amounted to $ 1,842,666 and $1,104,939 for the years ended December 31, 2022 and 2021, respectively. Advertising costs are included
in advertising and marketing expenses in the statements of operations.
Estimates
The preparation
of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Contract Costs
Incremental costs of obtaining a contract are
expensed as incurred as the amortization period of the asset that otherwise would have been recognized is estimated to be one year or
less.
Stock-Based Compensation
The Company accounts for stock-based compensation
costs under the provisions of ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation
expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. Stock-based compensation expense
recognized includes the compensation cost for all stock-based payments granted to employees, officers, and directors based on the grant
date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled
during the periods reported. Stock-based compensation is recognized as expense over the employee's requisite vesting period and
over the nonemployee's period of providing goods or services.
56
Basic and Diluted Net Loss per Common
Share
Basic loss per common share is computed by dividing
the net loss by the weighted average number of shares of common stock outstanding for each period. Diluted loss per share is computed
by dividing the net loss by the weighted average number of shares of common stock outstanding plus the dilutive effect of shares issuable
through the common stock equivalents. The weighted-average number of common shares outstanding excludes common stock equivalents because
their inclusion would be anti-dilutive. As of December 31, 2022, and 2021, 253,000 and zero stock options, respectively, were excluded
from dilutive earnings per share as their effects were anti-dilutive.
Recent Accounting Pronouncements
In February 2016, the FASB issued Accounting
Standards Update No. 2016-02, Leases (Topic 842), which requires lessees to recognize leases on the balance sheet and disclose key information
about leasing arrangements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and
lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating,
with classification affecting the pattern and classification of the expense recognition in the income statement. The Company has implemented
the new standard and it does not have an impact on its assets, liabilities and results of operations or cash flows.
Leases
At the inception or modification of a contract,
the Company determines whether a lease exists and classifies its leases as an operating or finance lease at commencement. Right-of-use
("ROU") assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent
their obligation to make lease payments arising from the lease.
As most of the Company's leases do not
provide an implicit interest rate, the lease liability is calculated at lease commencement as the present value of unpaid lease payments
using the Company's estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that the
Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined
using a portfolio approach based on information available at the commencement date of the lease.
The lease asset also reflects any prepaid rent,
initial direct costs incurred and lease incentives received. The Company's lease terms may include optional extension periods when
it is reasonably certain that those options will be exercised.
Leases with an initial expected term of 12 months
or less are not recorded in the Balance Sheet and the related lease expense is recognized on a straight-line basis over the lease term.
For certain classes of underlying assets, the Company has elected to not separate fixed lease components from the fixed non-lease components.
As of December 31, 2022 and 2021, there were no leases with an expected term greater than 12 months.
57
CORPORATE
HISTORY AND STRUCTURE
Our Corporate History
SDS LLC – AZ was formed on January 21,
2019. SDS LLC – AZ formed two wholly-owned subsidiaries, SDSF LLC, and SDSB LLC, on September 29, 2020 and November 25, 2020, respectively.
On June 5, 2020, the Arizona-to-Delaware Conversion
Process was initiated. On that date, a certificate of formation of SDS LLC – DE, and a certificate of conversion of SDS LLC –
AZ into SDS LLC – DE, were filed with the Delaware Secretary of State. On September 9, 2021, the Certificate of Incorporation of
SDS Inc. – DE, and a certificate of conversion of SDS LLC – DE into SDS Inc. – DE were filed with the Delaware Secretary
of State. From September 9, 2021 to July 11, 2022, SDS Inc. – DE operated as the successor entity to SDS LLC – AZ, and SDS
LLC – AZ continued to be registered as an active entity with the Arizona Corporation Commission while its conversion into SDS LLC
– DE pended.
A unanimous written consent of the board of directors
of SDS Inc. – DE, dated as of March 25, 2022, approved the Merger Agreement and related merger documents, the related merger transactions,
the form of the Settlement, the form of the Shareholder Agreement (for a description of the terms of the Shareholder Agreement, see "
Corporate
History and Structure – Shareholder Agreement
"), and a proposed capitalization table of SDS Inc. – DE, approved
and ratified the Certificate of Incorporation and approved amended and restated bylaws of SDS Inc. – DE, and approved and ratified
related matters. In anticipation of the execution of the Merger Agreement and its consummation, in April 2022 and May 2022, SDS LLC –
AZ, SDS Inc. – DE, and each of the members or stockholders of SDS LLC – AZ, SDSF LLC, SDSB LLC, and SDS Inc. – DE,
entered into the Settlement Agreements, which provided, among other things, for the mutual general release of all claims by the parties
against and relating to SDS LLC – AZ, SDSF LLC, SDSB LLC, and SDS Inc. – DE, and confirmed the owners and related amounts
of all outstanding shares of common stock of SDS Inc. represented by the capitalization table exhibit to the Settlement Agreements. The
stockholders of SDS Inc. – DE and the members of SDS LLC – AZ executed unanimous written consents, dated as of May 17, 2022
and July 6, 2022, respectively, approving the Merger Agreement and related transactions, the form of the Settlement Agreements, the form
of the Shareholder Agreement, an updated capitalization table of SDS Inc., and approved and ratified the Certificate of Incorporation,
the Amended and Restated Bylaws, and the prior corporate actions that were taken in connection with the Arizona-to-Delaware Conversion
Process, and certain related matters.
On July 11, 2022, the Merger Agreement was executed.
On the same date, pursuant to the Merger Agreement, a certificate of merger was filed with the Delaware Secretary of State and a statement
of merger was filed with the Arizona Secretary of State effecting the merger of SDS LLC – AZ, SDSF LLC, and SDSB LLC with and into
SDS Inc. – DE, and SDS Inc. – DE succeeded to the rights, property, obligations, and liabilities of each of SDS LLC –
AZ, SDSF LLC, and SDSB LLC.
The releases of claims under the Settlement Agreements
with each of Dennis Gile, Dorsey LLC, Joshua A. Donaldson Revocable Trust, and Zone Right are subject to certain specific exceptions
for claims under certain separate agreements or instruments, including rights under one convertible note held by Zone Right. For a further
description of the Settlement Agreements, including the rights under the convertible note held by Zone Right and other rights subject
to exceptions referenced in the Settlement Agreements, see "
Certain Relationships and Related Party Transactions – Transactions
With Related Persons
".
Reverse Stock Split
On March 13, 2023, the Reverse Stock Split, in
which each five shares of the outstanding common stock were automatically combined and converted into one share of outstanding common
stock, was approved by the board of directors, and was approved by stockholders holding a majority of the voting power of our issued
and outstanding voting capital stock as of April 4, 2023. On April 14, 2023, we filed a certificate of amendment to the Certificate of
Incorporation, which provided for the Reverse Stock Split, and the Reverse Stock Split became effective on the same date.
Except as otherwise indicated, all references
to our common stock, share data, per share data and related information has been adjusted for the Reverse Stock Split ratio of 1-for-5
as if it had occurred at the beginning of the earliest period presented. The Reverse Stock Split combined each five shares
of our outstanding common stock into one share of common stock, without any change in the number of authorized shares of common stock
or the par value per share of common stock. The Reverse Stock Split, correspondingly adjusted, among other things, the
exercise price of our warrants, convertible notes and stock options. No fractional shares were issued in connection with the Reverse Stock Split,
and any fractional shares resulting from the Reverse Stock Split were rounded up to the nearest whole share.
58
Amended and Restated Certificate of Incorporation
and Amended and Restated Bylaws
On May 5, 2023, the amendment and restatement
of the Certificate of Incorporation was approved by stockholders holding a majority of the voting power of our issued and outstanding
voting capital stock, and on May 9, 2023, the amended and restated Certificate of Incorporation was filed with the Delaware Secretary
of State and became effective the same date. Effective the same date, the Amended and Restated Bylaws were adopted by unanimous written
consent of the board of directors. The Certificate of Incorporation and Amended and Restated Bylaws contain certain provisions relating
to limitations of liability and indemnification of directors and certain officers, provide advance notice procedures for stockholder
proposals at stockholder meetings, and other matters. See "
Description of Securities – Anti-Takeover Provisions
"
and "
Management – Limitation on Liability and Indemnification of Directors and Certain Officers
".
Private Placements
SAFEs Financing
From March 2021 to July 2021, we raised an aggregate
of $1,980,000 from investors in exchange for securities called Simple Agreements for Future Equity (collectively, the "SAFEs").
For a description of the terms of the SAFEs, see "
Description of Securities – SAFEs
".
SAFE Cancellations and Exchanges
From September 22, 2022 to October 11, 2022,
we entered into cancellation and exchange agreements with the holders of the SAFEs. Under these agreements, each SAFE holder agreed to
cancel and exchange the holder's SAFE for a number of shares of common stock equal to the purchase amount under the SAFE divided
by approximately $3.35, based on a $25 million valuation for the Company. As a result, SAFEs that were purchased in the aggregate amount
of $1,980,000 were cancelled and exchanged for a total of 591,048 shares of common stock.
Convertible Notes and Warrants
6% Convertible Unsecured Promissory Notes
From October 2021 to December 2021, we conducted
a private placement of 6% convertible unsecured promissory notes due three years from the date of execution and entered into related
subscription agreements and investor rights and lockup agreements with a number of accredited investors. Pursuant to the agreements,
we issued 27 convertible notes for aggregate loans of $6,305,000. The convertible notes bear interest at 6% annually. For a further description
of the terms of these convertible notes, see "
Description of Securities – 6% Convertible Unsecured Promissory Notes
".
8% Convertible Unsecured Promissory Notes
and Warrants
From August 2022 to January 2023, we conducted
a private placement of the Company's 8% convertible unsecured promissory notes and accompanying warrants under subscription agreements
with a number of accredited investors. Pursuant to the agreements, we issued 15 convertible notes and accompanying warrants for aggregate
loans of $1,465,000. The convertible notes bear interest at 8% annually, and are due August 8, 2023 unless converted in accordance with
their terms. For a further description of the terms of these convertible notes and warrants, see "
Description of Securities
– 8% Convertible Unsecured Promissory Notes
" and "
Description of Securities – Warrants – Investor
Warrants
", respectively.
8% Unsecured Promissory Notes and Warrants
In March 2023 and April 2023 we completed one
private placement, and in May 2023 we conducted a subsequent private placement, in which we issued 8% unsecured promissory notes and
accompanying warrants to a number of accredited investors under subscription agreements.  Pursuant to the agreements, we issued
promissory notes for aggregate loans of $2,350,000. The notes will be due by the earlier of the second anniversary of the initial closing
date of the respective private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000 principal) or the
date of a Liquidity Event. For a further description of the private placement and the terms of these notes and warrants, see "
Management's
Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments – 8% Unsecured Promissory
Notes and Warrants Private Placements
", "Description of Securities – 8% Unsecured Promissory Notes", and
"
Description of Securities – Warrants – Investor Warrants
".
59
Placement Agent Services
Boustead acted as placement agent in our private
placements of the convertible promissory notes, promissory notes, and warrants described above. Pursuant to our engagement letter agreement
with Boustead, in addition to a commission equal to 7% of the gross proceeds raised in the private placements, a non-accountable expense
allowance equal to 1% of the gross proceeds raised in the private placements, and payment of certain other expenses, we agreed to issue
Boustead five-year warrants to purchase a number of shares of common stock at an exercise price equal to the conversion price as defined
in the convertible notes in an amount equal to 7% of the common stock underlying the securities sold in the private placements. Accordingly,
a warrant to purchase common stock was issued in December 2021 in connection with our private placement of 6% convertible unsecured promissory
notes, exercisable to purchase 7% of the original principal amount of the Company's 6% convertible unsecured promissory notes divided
by the convertible notes' applicable conversion price, at an exercise price equal to the convertible notes' applicable per-share
conversion price. Warrants to purchase shares of common stock have also been issued to Boustead in March 2023, April 2023 and May 2023
in connection with our private placements of 8% unsecured promissory notes and accompanying investor warrants. The warrants may be exercised
to purchase an aggregate of 7% of the common stock underlying the warrants that were issued to the initial 8% unsecured promissory note
holders at an exercise price equal to the exercise price as defined in such warrants. Each of the placement agent's warrants will
terminate five years after issuance. Boustead has informally waived its rights to warrants to purchase shares of common stock in connection
with our private placement of 8% convertible unsecured promissory notes and accompanying investor warrants. Under the engagement letter
with Boustead, its placement agent's warrants must be registered for resale with the Company's initial public offering. However,
Boustead has informally deferred these registration rights with respect to the registration statement for the initial public offering.
Boustead agreed to waive its success fee and
expense allowance for any Company-introduced investors in the private placement of the Company's 8% convertible unsecured promissory
notes and accompanying warrants and in consideration of such waiver Boustead will receive a number of shares of common stock of the Company
that is equal to 8% of the number of shares of common stock issuable to the Company-introduced investors upon conversion or exercise,
as applicable, of their securities. A total of $965,000 were invested by Company-introduced investors in that private placement. Accordingly,
Boustead will receive a total of up to 77,200 shares of common stock based on the number of shares of common stock that will be issued
upon the automatic conversion of the 8% convertible promissory notes and issuable to the holders of the related warrants upon the Company's
initial public offering, based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range
set forth on the cover page of the prospectus. Further, Boustead agreed to defer 50% of its total success fee and 50% of its expense
allowance for the other investors in the private placement of the Company's 8% convertible unsecured promissory notes and accompanying
warrants until the closing of the initial public offering. Based on a total of $500,000 invested by non-Company-introduced investors
in that private placement, such deferred fees and non-accountable expense allowance total $20,000.
Shareholder Agreement
On May 17, 2022, the Shareholder Agreement was
entered into by and among the Company and the stockholders of the Company. The Shareholder Agreement provides certain restrictions, rights
and obligations relating to the proposed sale, transfer or other disposition of the shares of the Company.
Rights of First Refusal
If a stockholder party proposes to sell their
shares, or the ownership of the shares would change as a result of a marital divorce or separation, death, bankruptcy or similar proceeding,
or the stockholder party engages in fraud, a felony or bad-faith violation of the implied contractual covenant of good faith and fair
dealing, the Company may repurchase the shares within a certain period. If the Company does not repurchase any of the shares within the
prescribed period, the other stockholder parties may then purchase the unpurchased shares within a certain period. The purchase price
would be the seller's proposed price, or, in the event of a purchase pursuant to a change in the ownership of the shares for one
of the reasons stated above, at the Company or other stockholder party buyer's proposed price, and if not accepted by the disposing
stockholder or their spouse, representative or successor, as applicable, then the fair market value of the shares. The purchase price
must be paid at the proposed price for proposed sales; in cash as to dispositions pursuant to marital divorce or separation; and for
the other events described above, must be paid in cash or with a 5-year nonnegotiable promissory note bearing interest at the rate per
annum equal to
The Wall Street Journal
prime rate of interest as quoted in the Money Rates section of
The Wall Street Journal
,
compounded annually on each anniversary of the note. These purchase rights are subject to certain notice, timing and other provisions
set forth in the Shareholder Agreement. The board of directors of the Company may waive the application of the repurchase rights of the
Company and the purchase rights of the other stockholder parties described above. Dispositions subject to the tag-along right or drag-along
rights described below are subject to the requirements described below and are not subject to the purchase rights and repurchase rights
described above.
60
Drag-Along Right and Tag-Along Rights
If the Company proposes a transaction or series
of related transactions resulting in (i) the sale of all or substantially all of the assets of the Company to a non-affiliated third
party; (ii) a sale resulting in more than 50% of the voting power of the Company being held by one or a non-affiliated third parties;
or (iii) a merger, consolidation, recapitalization or reorganization of the Company with or into a non-affiliate third party after which
the stockholder parties will be unable to designate or elect a majority of the board of directors or similar governing body (a "Change
of Control"), the Company may require the other stockholders to transfer all of their shares to the proposed transferee for the
same consideration and otherwise on the same terms and conditions upon which the Company is arranging for the sale of shares. Likewise,
in the event of such a proposed transaction or series of transactions, subject to the Company's repurchase rights described above,
any stockholder party may cause the Company to effect a disposition of such stockholder's shares in the transaction. The drag-along
right and tag-along rights are subject to certain notice, timing, payment, and other provisions set forth in the Shareholder Agreement.
Participation Rights
Each of the stockholder parties generally has
the right to purchase up to their relative percentage ownership of the Company's common stock of any common stock or securities
convertible into or exercisable to purchase common stock that the Company may from time to time issue, including in an initial public
offering, at the proposed price and other offering terms. These purchase rights are subject to certain notice and timing provisions set
forth in the Shareholder Agreement.
Other Provisions
The stockholder parties are subject to certain
confidentiality requirements. The Shareholder Agreement will terminate on the earliest of (i) the written consent of the board of directors
and vote of two-thirds of the holders of the outstanding common stock of the Company; (ii) the Company's dissolution, filing of
a petition in bankruptcy under Chapter 7 of the United States Bankruptcy Code or insolvency of the Company; (iii) upon the closing of
the Company's first underwritten public offering of its common stock on The Nasdaq Stock Market LLC, or Nasdaq, the New York Stock
Exchange or other exchange or marketplace approved by the board of directors; or (iv) at such time as only one stockholder party remains.
61
BUSINESS
Overview
We are a technology
company developing and operating platforms to give significantly more student-athletes the opportunity to go to college and continue
playing sports. Our platform, Signing Day Sports, is a digital ecosystem to help athletes get discovered and recruited by coaches and
recruiters across the country. We currently fully support football and baseball, and we plan to expand the Signing Day Sports platform
to include additional sports. Each sport is led by former professional athletes and coaches who know what it takes to get to the big
leagues.
Signing Day Sports launched
in 2019, and as of March 2023, many high schools, sports clubs, and aspiring high school athletes have subscribed to the Signing Day
Sports platform. Colleges in the National Collegiate Athletic Association (NCAA) Division I, Division II, and Division III, and the National
Association of Intercollegiate Athletics (NCIA), have utilized our platform for recruitment purposes. Signing Day Sports initially supported
football athletes, also now offers a platform for baseball and softball, and is expected to offer a men's and women's soccer
platform in or around May 2023, resulting in even more recruiter and athlete platform participants.
We founded Signing Day
Sports to reinvent the high school and college sports recruiting process for the digital era. When we started the Company, recruiting
was still being done largely as it had been done since before the mass availability of Internet-connected devices and was still limited
by that model. We identified the flaws in the recruiting process and the unique opportunity it presented for us to become a solution
provider in the industry. We developed and operated our platform with the objective of optimizing and enhancing the sports recruitment
process across all sizes of colleges and athletic departments.
Our ability to leverage
modern technologies to bring coaches and athletes together in a mutually beneficial ecosystem has shown significant benefits for both
sides of the student-athlete recruitment process. Parents and athletes can use the platform to understand and provide what recruiters
want to see, seek and gain offers of better athletic scholarships or other financial aid packages, and maximize the potential of an athlete's
career. Recruiters now have a comprehensive recruitment application that shows video verification of key attribute data and gives the
recruiter the ability to narrow down their search with a highly optimized search engine and athlete screening process.
In short, we offer a comprehensive solution that
services the needs of all participants in the sports recruitment process. We are aware of no other platform that offers what our platform
does. Our goal is to change the way sports recruitment is done for the betterment of everyone.
A Problem Worth Solving
The sports recruitment industry has a number
of problems. Frequently, the best athletes in the world get overlooked because of a lack of exposure, promotion, and experience. The
dominance of the top athletic programs reduces opportunities for talented student-athletes. Many student-athletes who do not know how
to effectively promote themselves will get pushed down ranking sheets. Signing Day Sports has built an application to bring equal opportunity
to all student-athletes looking to be recruited at every level.
We believe that our technology can help level
the playing field for both student-athletes and recruiters. Any student-athlete can promote and demonstrate their talent to all of the
recruiters on our platform. On the other side, every recruiter who uses the platform can access the same rich level of data that can
be provided by our platform's student-athletes.
We believe our technology will help move sports
recruitment toward a truly fair experience for all parties involved.
Our Solution
Signing Day Sports is a platform in the form
of an app available on Apple's App Store and Google Play for student-athletes and desktops for coaches and recruiters. We believe
Signing Day Sports is the first comprehensive sports recruitment platform. The platform interface is designed to be optimized for each
participant in the sports recruitment process. The three-tiered technology platform serves student-athletes and their parents, high school
and sports club coaches, and college and professional recruiters and scouts.
62
Student-athletes can upload key information and
verified data that is critical in the recruitment process. The data fields in our player platform include the following: Video-verified
measurables (such as height, weight, 40-yard dash, wingspan, hand size), academic information (such as official transcripts and SAT/ACT
scores), and technical skill videos (such as drills and mechanics that exemplify player mechanics, coordination, and development).
College coaches, team managers and other recruiters
can load in all athletes on their respective teams, sports clubs or programs. They can use the platform to communicate directly with
athletes, track their progress in the weight room and training field, and manage other aspects of their athletes. Additionally, the platform
serves as an important tool for recruitment and development. In particular, college coaches can manage their entire recruitment process
through our platform. Our platform provides college coaches an optimized organizational system, communication tools, and verified data
to make informed decisions and save program costs. Athletes and parents can use the platform to communicate with their coaches and managers
as well as track individual performance and key metrics that are valuable to recruiters. The platform was built by athletes and recruiters
for athletes and recruiters, and we believe it truly represents the future of sports recruitment.
Market for Recruiting Services
The youth sports market was $28.7 billion in
the U.S. in 2019 before it declined to $6.7 billion in the wake of the pandemic, and it was projected that it would start to recover
in 2021 (Wintergreen Research, Inc., "Global Youth Team, League, and Tournament Sports Market Report 2021: The $28.7 Billion Market
Declined to $6.7 Billion in 2020 in the Wake of the Pandemic with Recovery Expected in 2021," May 2021). Prior to the pandemic,
it was reported that the youth sports market was projected to reach $77.6 billion by 2026 (Business Wire, "Youth Sports: Market
Shares, Strategies and Forecasts, Worldwide, 2019-2026 - ResearchAndMarkets.com", December 26, 2019). In the United States alone,
in the 13-17 age-range only, as of 2020, there are 1,845,000 youth baseball players, 1,437,000 youth tackle football players, 1,208,000
outdoor soccer players, and 353,000 youth fastpitch softball players (Sports & Fitness Industry Association, 2020). Additionally,
sports families spent an average of $693 per child, per sport annually (Project Play – An Initiative of the Aspen Institute, "State
of Play – 2019," September 4, 2019).
Globally, we believe that the number is likely
in the hundreds of millions. This grouping includes school-affiliated athletic programs, sports clubs, and recreational participants.
In 2020, in the United States alone there were 8 million student-athletes competing in high school sports (NCAA, "Probability of
Competing Beyond High School"). In most sports, less than 10% of high school athletes compete in college athletics, and the probability
of NCAA athletes making it to the professional leagues ranges from about 2% to essentially zero (NCAA, "2020 Probability of Competing
Beyond High School Figures and Methodology").
Parents of recruitable student-athletes are also
an important demographic. According to a survey conducted by The Harris Poll for TD Ameritrade, sports parents say a third
of their income goes toward covering children's expenses, including sports (TD Ameritrade, "Cost of Youth Sports Delaying
Retirement for Parents," May 15, 2019). According to the survey, the majority (62%) of sports parents believe college scholarships
will cover more than half of tuition. Yet from 2016 to 2019, according to the report, the number of sports parents' children who
secured an athletic scholarship has declined by more than half (24% in 2016; 11% in 2019).
Historically, only those parents with the necessary
knowledge and resources could access the private coaches, training camps, and other services often needed to ensure that their student-athletes
would have the best opportunities in the traditional recruitment process. Long-distance traveling, an essential part of the traditional
recruitment process, has always presented unique difficulties for student-athletes, parents, and coaches, both as a major expense and
distraction from academic or job priorities. However, most student-athletes and their parents do not have the necessary resources or
know-how to overcome the challenges in the recruitment process, and may be at a severe disadvantage as a result.
In the past several years, online recruiting
services have emerged to improve the reach and accessibility of the recruiting process for coaches and athletes. The overall technology,
familiarity and overall usage of online recruiting has developed, and the number of users leveraging appears to be growing. Additionally,
the ongoing COVID-19 global pandemic has increased both the need for, and familiarity with, remote interactions. As a result, we believe
a significant business opportunity exists to provide these opportunities to existing and new customers as alternatives to in-person recruiting
events.
Our proprietary and custom technology allows
coaches and athletes to bypass that process by providing a platform that allows coaches to effectively evaluate talent without having
to see the athletes in person.
63
Competitive Strengths
We believe our key competitive strengths include:
●
Massive
                                            Low-Cost Access to Recruiters
. Recruiting events, camps, games and showcases such
                                            as those hosted by Next College Student Athlete, Gridiron Elite and Perfect Game strive to
                                            match high-level high school athletes for in-person competition. Attendees sometimes travel
                                            interstate to attend these events and typically pay an attendance fee as well. These events
                                            are typically costly to recruits' families and present a number of practical challenges
                                            for recruits. Our app evens the playing field by allowing an athlete to get in front of numerous
                                            recruiters without any travel or significant costs.
●
More
                                            Objective and Fair Player Evaluations
. Our platform fills a niche in the current
                                            competitive landscape by allowing recruits to put their best foot forward by submitting only
                                            their best interviews, verified athletic/academic measurables, verified drill footage, and
                                            actual game film. Recruiters can then better assess their prospects than in traditional in-person
                                            recruitment events where chance events can throw off even the best athletes' performances.
●
Better
                                            Athlete Comparison Tools.
Other digital sports recruitment apps such as Hudl do not
                                            allow coaches to evaluate prospects' drill performances frame-by-frame, side-by-side.
                                            Additionally, these platforms do not have verified statistics within individual recruiting
                                            profiles. Our tool offers these and a number of other unique features that recruiters and
                                            their prospects find exceptionally valuable.
●
Designed
                                            for Coaches and Recruiters.
Through our verified measurables, "Film Room,"
                                            "Big Board", "Interview" and recruiter-athlete messaging features,
                                            our app's coach/recruiter platform allows college coaches and recruiters to drive the
                                            recruitment process. At their desktops, recruiters can easily access and request verifiable
                                            information from thousands of athletes across the nation. After players submit their video-verified
                                            uploads, verified academics, and supplemental data like responses to interview questions,
                                            coaches can make well-informed decisions. Our in-app messaging allows coaches to communicate
                                            directly with prospective recruits. All of our app's features are designed to produce
                                            an efficient, comprehensive and intuitive process for make accessing, comparing, ranking
                                            and recruiting athletes by user coaches and recruiters.
●
Designed
                                            for Players and Parents.
Our app's player-facing mobile platform easily allows
                                            players to submit video-verified information, verified academic information, responses to
                                            interview questions, and other data, and be seen by hundreds of college coaches and recruiters.
                                            In the comfort of their own home or a nearby field, players can upload all the information
                                            coaches need to make a well-informed decision.
●
PRO+
                                            Service
: PRO+, our premium services offering, provides players with all of the critical
                                            features within our platform, and adds direct support and guidance from former Division I
                                            football recruiters and personnel. For this service, our recruitment team provides players
                                            and families with the following: Two film evaluations, access to college recruiting experts,
                                            highlight tape development, custom college scorecard, and more recruiting services. At a
                                            price of $299.99 per year, the combination of our technology platform and recruitment guidance
                                            will ensure the players have the best opportunity to earn a scholarship.
●
Educational
                                            Tools for Players and Parents
. Signing Day Sports supports student-athletes and parents
                                            through the entirety of the recruiting process in three ways. First, our former college coaches,
                                            athletes, and player personnel directors are readily available through the Signing Day Sports
                                            app, website, and personal social media accounts. They support and communicate regularly
                                            with student-athletes to assist them throughout the recruiting process. The second way is
The Wire
, Signing Day Sports' official blog. We regularly post educational and
                                            informative blog entries that consist of interviews, player features, in-depth dives into
                                            specific recruiting processes and events, and other relevant subjects. Thousands of visitors
                                            read
The Wire
's entries every month to stay up to date regarding the most recent
                                            recruiting news and updates. The third way is called "Signing Day Sports University"
                                            or "SDS University". SDS University is a Zendesk-based customer-facing knowledge
                                            base and is composed of short, educational videos. Student-athletes, parents, and coaches
                                            can learn about our app, the collegiate recruiting process from beginning to end, and more
                                            through the SDS University video catalog. Topics range from NIL, the transfer portal, and
                                            eligibility to more specific app tutorials like uploading videos or sharing the student-athlete's
                                            profile link. SDS University helps leverage our internal knowledge to communicate more efficiently
                                            and with more people.
64
Growth Strategies
The key elements of our strategy to grow our
business include:
●
Completion
                                            and Development of New Sports Platforms
. Our app previously offered fully-supported
                                            football and baseball platforms. More recently, our official platform for softball launched
                                            in February 2023, and we expect our men's and women's soccer platform to launch
                                            in May 2023. We plan to continue to develop all of our platforms with additional features.
●
Investment
                                            in our Platform
. We will continue to invest in our technology and infrastructure
                                            to improve our product and ability to present best-in-class technology in the recruitment
                                            space, with planned features such as player recommendations for coaches based on their specific
                                            requirements and preferences. We hired key employees and retained an onshore technology and
                                            development agency, Midwestern, for product launches in baseball, softball, and soccer, in
                                            addition to continually improving the features and performance of our platform. Additionally,
                                            we will recruit, hire, and employ a high-quality offshore team to improve the efficiency
                                            and quality of our platform. We will also prioritize internal hires of engineers and developers
                                            to launch new features and sports platforms, while ensuring product stability and effectiveness.
●
Launch
                                            New Products and Expand Features
. Over time, we will continue to launch new products
                                            and features to meet market demand. We will prioritize both the needs of college coaches
                                            and recruiters across the nation and the athletes seeking to be recruited in major sports
                                            verticals. Some of the planned features include:
●
Public
                                            Player Profile
. By allowing athletes and their parents to share a public version
                                            of the athlete's profile, we can ensure that the ultimate power of recruiting is in
                                            the athlete's hands.  We expect that the public version may be shared with coaches,
                                            other athletes and on social media and will contain all of the athlete's data, including
                                            videos.  The profile will be available to anyone, including recruiters and others that
                                            are not Signing Day Sports users. Additionally, our profile tracking is being designed to
                                            allow players to see who has viewed their profile and may be interested in recruiting them.
●
Social
                                            Community of Student-Athletes
. Signing Day Sports plans to introduce social features
                                            on the platform. We expect these features will help athletes share and exchange videos, information,
                                            and bragging rights, and enhance the users' sense of community. With a robust integration
                                            of LinkedIn and Facebook, athletes will be able to follow other athletes, see their profiles
                                            and videos in a feed, favorite other athletes, and exchange workout tips on our platform
                                            forums.  Athletes will also be able to compete against one another for bragging rights
                                            on the leaderboard, complete tasks for badges, and take part in Signing Day Sports community
                                            challenges.  These social features are expected to engage athletes with the Signing
                                            Day Sports app more holistically through these social connections.
●
Release
                                            of My Invites
. With the first iterative release of our platform's My Invites
                                            feature, coaches can drive player subscriptions and engagement by uploading unlimited lists
                                            of athletes and inviting them to our platform with as few as two mouse clicks.  Our
                                            system analyzes the submitted data and tracks whether an athlete deleted their email, opened
                                            it or signed up for subscription.  With this functionality, coaches can play a key role
                                            in the recruitment process by getting prospective athletes to not only join the platform
                                            but encourage them to upload verified information like transcripts, drill videos, and height
                                            and weight.  This data upload from the coaches is simple, streamlined and provides them
                                            with key information to make data-informed decisions, communicate with prospects and even
                                            make offers and build their virtual team.
●
Increase
                                            Profitability through Multiple Revenue Streams
. Signing Day Sports expects increased
                                            profitability as we launch digital marketing campaigns and sports platforms. We expect that
                                            a growing subscriber base will allow us to increase subscription margin, increase subscriber
                                            lifetime value, and increase monthly and annual renewal profits. An increase in profitability
                                            from a greater subscription base and multiple sports platforms can in turn support our branding,
                                            marketing, and operational spend.
●
Expand
                                            Sports Club Support
.
Prominent youth sports organizations in the United States are involved in many different
                                            sports including soccer, baseball, softball, lacrosse, basketball, and track and field. Sports
                                            clubs are often more competitive than high school athletic programs, and club players often
                                            demonstrate a commitment to continue playing sports at the next level. As we expand our platform
                                            to other sports, we will prioritize support for youth club sports organizations. Our support
                                            will be the expansion of a sales team to directly work with club coaches and organizations.
                                            We expect that club teams and organizations will embed our platform fees into their annual
                                            fees so that they can offer enhanced recruitment support for players and their parents, while
                                            providing their coaches with a tool to streamline the recruitment process.
65
●
Grow and Broaden Brand Awareness
.
                                            Our brand awareness has developed primarily within our football vertical, particularly in
                                            the Southwestern United States and other areas where football is a dominant sport. With strategic
                                            partnerships with football associations and organizations, digital, social media, event marketing,
                                            and organizational partnerships, we expect to grow our brand throughout the United States.
                                            Additionally, as we launch new sports verticals, we will have many opportunities to increase
                                            brand and product awareness through additional markets. We will broaden our reach through
                                            educating players, parents, and coaches through best-in-class technology and compelling value.
●
Pursue Strategic Geographies
                                            for Product Expansion
.
With
                                            youth sports being played across the world, we will seek to expand our platform and technology
                                            to other countries across the globe. Through disciplined research, we will seek to expand
                                            our product to areas with significant children's sport participation, technology adoption,
                                            and access to recruiters. We expect to prioritize the North America markets first, then replicate
                                            and introduce products suited to the local. For example, our anticipated soccer platform
                                            could provide a significant solution to inefficiencies in the student-athlete recruitment
                                            process in markets like Mexico and Europe.
●
Digital Marketing Campaigns
●
Business-to-consumer (B2C)
                                            digital marketing
. Through our B2C digital marketing campaign, we will promote and
                                            advertise our products and services to thousands of high-school-aged football players and
                                            parents across the nation. With our planned combination of compelling content, brand influencers,
                                            and a marketing website, we expect significant growth in individual subscriber growth. In
                                            particular, we will prioritize parent-friendly social media platforms such as Facebook, Twitter,
                                            and Instagram, and our campaigns will support and educate parents on the recruitment process
                                            while providing our value proposition through our products, services and technology.
●
Business-to-business (B2B)
                                            digital marketing
. Through our B2B digital marketing campaign, we will promote and
                                            advertise our products and services to high school and sports club coaches, athletic directors,
                                            sports club owners, and their business development teams.
●
Digital marketing techniques
.
                                            Our digital marketing campaigns will utilize search engine optimization, pay per click, digital
                                            ads, and other effective techniques to increase team and organizational subscriptions.
●
Marketing and Sponsorship
                                            Agreements and Collaborations
. Our focus on key sponsorship and marketing agreements
                                            will serve to both increase overall player subscriptions and marketing.
●
Louisville Slugger Hitting
                                            Science Center
: We and Louisville Slugger Hitting Science Center LLC, or LSHSC, whose
                                            mission is to become the gold standard in baseball and fastpitch softball education and instruction,
                                            will collaborate on the joint marketing and promotion of each other's products and
                                            services. LSHSC will offer subscriptions to our platform and subscription revenues will be
                                            shared between us. See "
Business – Sales and Marketing – Marketing and
                                            Sponsorship Agreements
" for further information regarding the terms of this agreement.
●
The U.S. Army Bowl
:
                                            Over the course of our three-year agreement, we will be the official recruitment platform
                                            for the Bowl, an annual national all-star game for U.S. high school football which was last
                                            held in December 2022 at Ford Center at The Star in Frisco, Texas. Aside from having priority
                                            on-site access to many of the top players in the game, we may potentially promote ourselves,
                                            advertise to, and onboard more than an estimated 30,000 athletes as a sponsor through the
                                            game's advertising channels. The first Bowl event in December 2022 resulted in more
                                            than 600 player subscriptions. Bowl-related events planned for 2023 include, among others,
                                            the 2023 U.S. Army Bowl National Combine Series, which are scheduled from March 2023 to June
                                            2023. Data collected and analyzed by our platform will be part of the selection process for
                                            determining whether athletes participating in the combines may advance to the Bowl and/or
                                            National Combine events in December 2023. Athletes participating in Bowl combines will receive
                                            three months of access to the Signing Day Sports app's recruiting platform with registration,
                                            a Signing Day Sports recruiting profile with personal guidance from recruiting experts, video
                                            highlights from their combine, and tools to put their game highlights into their profiles
                                            on the Signing Day Sports app. See "
Business – Sales and Marketing –
                                            Marketing and Sponsorship Agreements
" for further information regarding the terms
                                            of this agreement.
66
●
State Athletic and Coaches
                                            Associations
: We have sponsored a number of state athletic associations across the
                                            U.S., including the Texas High School Coaches Association, or THSCA, the North Carolina Coaches
                                            Association, or NCCA, and the Arizona Football Coaches Association, or AZFCA. These associations
                                            have agreed to designate us as their exclusive recruitment platform for all coaches in their
                                            respective states. In addition, we have marketing rights to their coaches, athletes, and
                                            athletic events and combines throughout the year. Please see the details of our marketing
                                            and sponsorship agreements with these associations in "
Business – Sales and
                                            Marketing – Marketing and Sponsorship Agreements
".
●
Potential Accretive Acquisitions
.
                                            We are currently evaluating potential acquisition targets (although no such acquisition target
                                            has yet been identified) that could bolster subscriber growth, branding awareness, and revenue
                                            shares. These potential acquisitions range from owners of specific game events, athlete development
                                            programs, and technologies to boost subscriber growth and revenue.
●
Event and Marketing
.
                                            Through key partnerships, our events team will conduct on-site Signing Day Sports app registration
                                            with high school-aged athletes and their parents. Specifically, at these events, athletes
                                            will have the opportunity to purchase, download, and upload key data and information on-site.
                                            These events will include football skills camps, soccer tournaments, 7v7 football tournaments,
                                            baseball showcases, and state-wide combines. In particular, our hosted combine events are
                                            expected to continue to be an effective means for gaining exposure to our brand and registering
                                            new users on our platform. We plan to increase the number of our hosted combine events and
                                            utilize media to increase attendance and exposure at these events.
Our Platform's Features
Our recruitment platform allows athletes to manage
their recruitment profile, upload drills and evaluation metrics, interview, and communicate directly with recruiters in our proprietary
ecosystem. Among the features our platform provides are:
Manage Athlete's Profile
Athletes can easily set up an account to start
completing a profile by uploading their measurables, testing stats, academics, and demographic information.
Upload Key Drills and Statistics for Recruiters to Evaluate
Athletes can easily upload key drills and valuable
gameplay statistics that recruiters at all levels will need to review to make a decision on proceeding with the recruitment process.
Keep Track of Athlete Stats and Get Verified
Users can upload their game logs after each game
or each week to keep their season stats up to date. We verify this data to potentially increase an athlete's chances to get recruited.
Recruiters will need to see and validate an athlete's key attributes such as:
●
Height;
●
Weight;
●
Hand-size;
●
Wing-span;
●
Academic information; and
●
Other sport specific attributes.
By having this baseline information verified
with digital transcripts (image, video, document), a recruiter can establish a baseline of trust establishing a highly educated decision
on how to proceed with a student-athlete. Without this kind of verification, a recruiter must trust what was input on a spreadsheet by
an athlete or a paid recruitment consultant. This reliance can lead to confusion, false starts, wasted time, and loss of confidence in
the information. This reliance can also cause, unfairly at times, the recruiter to lose trust in the athlete that may have inappropriately
mis-recorded key attributes.
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Let Recruiters Meet the Real Athlete
Through our platform, athletes can introduce
themselves to a recruiter before they have even stepped on a facility's grounds. The platform's interview process gives recruiters
a first look at the player behind the film. This function is important because recruiters want to get a sense of an athlete's personality
before they take the next step in the recruitment process.
Actual Game Film
The platform also allows recruiters to view actual
game film of athletes by integrating with verified game film distribution services.
Pricing
All platform users can freely download the app.
Individual student-athletes can use its basic features without payment or upgrade to use premium features of the platform; coach-recruiters
can access the app's backend to evaluate potential recruits without payment. Basic features include building a profile, filling
in measurables, uploading academic information, and testing their skills. Premium features include filming measurables, viewing pro day
script tutorials, viewing pro day videos, gaining access to interview features, and others. Athletic departments or other group organizations
may be eligible for reduced pricing per athlete if the whole team participates. Premium subscriptions for individual athletes are currently
$249.99 for an annual plan and $24.99 for a monthly plan, and PRO+ subscriptions for individual athletes are currently $299 per year.
High school football team annual group plans are $5,000. Currently colleges are accepted onto the platform free of charge to encourage
participation.
Technology
We intend to invest in the development and expansion
of our technology with the goal of continuously supporting our products and services. Our current technology's basic attributes
are listed below, and may change as we continue to develop it.
Infrastructure
●
Hosted on: Microsoft Azure cloud infrastructure
●
Primary OS: Nginx/Linux
●
Primary database: MySQL
●
Primary programming language: PHP
CI/CD - Continuous Integration, Continuous Deployment
●
TDD with PHPUNIT tests
●
Bitbucket code repository
●
Pipelines for clean, downtime-less deployments using Envoyer
Code Stack
●
NPM
●
Composer
●
Laravel
●
Vue
●
jQuery
●
Webpack
●
MIX
●
React Native
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Microservices Model
●
Passport
●
OAuth 2.0
●
Postman
Customers
As of May 2023, many
high schools, sports clubs, and aspiring high school athletes have subscribed to the Signing Day Sports platform. Colleges in the NCAA
Division I, Division II, and Division III, and the NAIA, have utilized our platform for recruitment purposes. Signing Day Sports initially
supported football athletes, also now offers a platform for baseball and softball, and is expected to offer a men's and women's
soccer platform in or around May 2023, resulting in even more recruiter and athlete platform participants.
Our customers are primarily
medium and large-sized sports clubs ranging from 100 to 5,000 athletes, school districts, and statewide/nationwide sports organizations,
particularly those that use our free trial model. We solicit feedback from our customers and coaches on a regular basis, allowing us
to understand their evolving needs. We have used this feedback to develop new applications and we intend to continue to develop new offerings
based on customer feedback. Our business is not dependent on any particular end customer.
Our Intellectual Property and License Agreements
We believe that our
intellectual property rights are valuable and important to our business. We rely on trademarks, patents, copyrights, trade secrets, license
agreements, intellectual property assignment agreements, confidentiality procedures, non-disclosure agreements, and employee non-disclosure
and invention assignment agreements to establish and protect our proprietary rights. Though we rely in part upon these legal and contractual
protections, we believe that factors such as the skills and ingenuity of our employees and the functionality and frequent enhancements
to our solutions are larger contributors to our success in the marketplace.
Signing Day Sports currently
has a pending provisional patent for its video analysis and review of a student-athlete tool. Patent application number 63/084,295 entitled
"Athlete Recruitment Preliminary Analysis System and Methods" was filed on September 28, 2020. This tool allows recruiters
to analyze and compare performance of a drill by two athletes, side-by-side, frame-by-frame. We believe that no other recruiting service
can provide this level of athlete comparison tracking.
We also use products, technologies, and intellectual
property that we license from third parties for use in our business-to-business and business-to-consumer offerings. Substantially all
our offerings and services use intellectual property licensed from third parties. While we intend to develop our own intellectual property,
the future success of our business may depend, in part, on our ability to obtain, retain, or expand licenses for popular technologies
in a competitive market.
Research and Development
Our research and development
team is responsible for the design, architecture, operation and quality of our platform. In addition to improving on the platform's
features, functionality and scalability, the Company's R&D team is tasked with coordinating with our cloud operations staff
to ensure that our platform is available, reliable, and stable.
Our success will depend
on our continuous drive for innovation. We plan to invest substantial resources in research and development to enhance our platform and
develop new features and functionality. We believe timely development and enhancement of products, services, and features is essential
to maintaining our competitive position. Our technical staff must monitor and regularly test our platform, and may on occasion use third-party
quality control software. We also maintain a regular release process to update and enhance our existing solutions. In addition, we engage
security consulting firms to perform periodic vulnerability analysis of our solutions.
Additional Markets
We currently operate primarily in the United
States. We believe that there will be opportunities within the next 12-24 months to expand our operations into other parts of the Americas
and globally in order to address recruitment technology gaps in these other sports markets. Expansion beyond our current market may require
changes to effectively penetrate international markets, such as translations of our website and apps into several additional languages,
offer customer services and technical support in the local language of foreign key markets, and implement data-privacy and other relevant
compliance procedures of non-U.S. regulatory regimes.
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Technology and Human Resources Vendor Relationships
We maintain key relationships with certain vendors
to provide critical infrastructure and services to enable us to provide a full suite of services for our customers and human resources.
We also make every effort to ensure that risk is appropriately managed with each vendor. For example, we may use redundant accounts or
deployments for a given vendor's services, or maintain a backup strategy in case a vendor fails to provide the contracted services.
These strategies enable us and our platform to continue to function without complete service disruption for our users and staff if a
vendor encounters any issues.
The following are some of our key vendor relationships:
●
Under a work for hire agreement
                                            with Midwestern, dated August 17, 2022, we engage Midwestern to perform contract engineering-related
                                            projects to utilize agile development and/or design processes, define two- or one-week sprints
                                            that consist of development and/or design tasks and priorities set by the parties to move
                                            their project forward, continually improve the Company's platform, and add new features
                                            and sports. Midwestern will include the full-time equivalent services of three engineers,
                                            one designer and one-half project manager per month at its current rate of $46,666 per month
                                            for specific development and/or design services provided to us pursuant to the agreement,
                                            and reasonable and pre-approved travel and/or other expenses related to the project. We will
                                            own all works created or developed by Midwestern under the agreement. Our rights with respect
                                            to such works may be freely assigned and licensed at our sole discretion. The current term
                                            of our contract with Midwestern begins on September 1, 2022 and ends on February 28, 2023.
                                            We may terminate the contract upon a material breach or default by Midwestern upon thirty
                                            days' written notice and opportunity to cure such breach or default. The contract is
                                            subject to certain confidentiality, non-compete, and non-solicitation provisions.
●
Under a client service agreement
                                            with Tilson HR, Inc., or Tilson, dated June 18, 2020, Tilson agreed to pay wages and benefits,
                                            withhold employment taxes, maintain workers' compensation, and provide certain other
                                            employment-related services to certain designated employees of the Company and co-employed
                                            by Tilson. We agreed to provide certain information to Tilson and meet certain employment
                                            conditions for any co-employed employees. We will generally remain solely responsible for
                                            co-employed employees' acts, errors or omissions with respect to the business activities
                                            of the Company. Both parties will cooperate, develop, and implement employment policies and
                                            practices relating to co-employed employees, administer paid time off and report any claim,
                                            accident, injury, or complaint to the other in relation to co-employed employees. Under the
                                            agreement, we paid Tilson an initial enrollment fee, gross payroll and benefits for each
                                            co-employed employee each pay period, and a service fee of $500.00 per month for groups of
                                            6 or under, following which time the administrative fee will convert to $1,075.00 per employee
                                            per year, which will increase 4% annually after the initial contract term. We must maintain
                                            certain general liability insurance, comprehensive automobile liability insurance, and certain
                                            professional liability insurance if applicable. The agreement also has customary mutual employee
                                            non-solicitation provisions. The agreement also requires an annual irrevocable letter of
                                            credit guarantee from our bank. The agreement has a two-year term and automatically renews
                                            for additional two-year terms until terminated by either party providing at least sixty days
                                            of written notice, by Tilson immediately without notice upon certain material breaches by
                                            the Company, or by the Company immediately with payment of an early termination penalty.
●
Under an order for services with
                                            Paycor Services, or Paycor, dated May 23, 2022, Paycor provides employee payroll and benefit
                                            support services. We must pay an annualized fee of $11,786. The agreement is subject to an
                                            early termination fee if terminated prior to the six-month anniversary of the effective date.
●
Under a master services agreement
                                            with SAGE186, LLC, or SAGE186, dated January 18, 2022, SAGE186 agreed to provide certain
                                            services to the Company pursuant to a statement of work, or SOW. Pursuant to an SOW dated
                                            January 18, 2022, SAGE186 will provide us with ongoing human resources support to assist
                                            in a variety of people-related business needs. Under this SOW, we will pay SAGE186 a monthly
                                            retainer of $1,850 for up to 10 hours per month of billable time, with additional payments
                                            for excess hours, from February 1, 2022 and ending July 31, 2022. Under this SOW, we will
                                            also pay a one-time $3,500 fee for SAGE186's completion of a human resources audit
                                            of the Company's people, processes and procedures, including a prioritized project
                                            list and strategic human resources roadmap, by February 15, 2022. Under the agreement, we
                                            will have five business days following SAGE186's delivery of any deliverable described
                                            in the SOW to accept the deliverable and SAGE186 will have a reasonable period of time not
                                            exceeding ten business days to remedy the deficiencies if we do not accept the deliverable.
                                            The master service agreement is subject to certain mutual confidentiality provisions. All
                                            work products will be considered work made for hire and be our sole and exclusive property.
                                            We granted SAGE186 a limited right to use our trademarks only within the scope of the agreement,
                                            and may include our name in its published client lists and issue announcements and written
                                            statements concerning this agreement and the general substance of services performed under
                                            it. The agreement has certain mutual indemnification and employee non-solicitation provisions.
                                            The agreement has an initial term of six months and automatically renews for successive six
                                            months terms unless either party terminates it for any reason within thirty calendar days'
                                            written notice to the other party, or upon breach by the non-breaching party or mutual agreement
                                            to terminate. Termination of the agreement also terminates any SOWs, while termination of
                                            a SOW will not have the effect of terminating other SOWs or the agreement.
70
Sales and Marketing
Our sales and events
and marketing teams work together closely to drive market awareness, build a strong sales pipeline and cultivate customer relationships
to drive revenue growth.
Marketing Overview
Our marketing organization
is focused on building our brand reputation, increasing the awareness and reputation of our platform, and driving customer demand. We
also engage in paid media and web marketing, attend industry and trade conferences, and host events and jamborees for athletes, coaches,
parents, and other stakeholders. We employ a wide range of digital programs, including search engine marketing, online and social media
initiatives, and content syndication to increase traffic to our website and encourage new customers to sign up. We also harness targeted
radio advertising to drive down our cost of acquisition and increase awareness of the brand.
Additionally, we plan to engage in more joint
marketing activities with our sports and technology alliance partners along with pursuing an affiliate marketing program focused on our
core sports domains and individual social media influencers. As part of our efforts to market our online recruiting services, we will
attempt to enter into affiliate marketing agreements with individuals and groups within the high school, sports club, and college sports
community. We expect this affiliate marketing system will allow us to spend fewer resources on direct advertising, provide enhanced direct
or targeted marketing, and lead to increased traffic on our website.
Marketing and Sponsorship Agreements
As of May 2023, we had
marketing and sponsorship agreements with or relating to LSHSC, The U.S. Army Bowl, THSCA, NCCA, and AZFCA. The following are summaries
of our agreements with these and our rights and obligations under the agreements.
Collaboration and Revenue-Sharing Agreement
with Louisville Slugger Hitting Science Center LLC.
LSHSC is in the business of putting on and offering "LSHSC Events,"
i.e.
, membership programs, classes, camps, clinics, and similar events to baseball and softball players and their parents. Under
this agreement, dated October 31, 2022, we and LSHSC will collaborate on the joint marketing and promotion of LSHSC Events and the "SDS
Platform,"
i.e.,
the web-based technology platform that we offer to help athletes get discovered and recruited by coaches.
Under the agreement, we and LSHSC agreed to issue a joint press release regarding our collaboration. As part of this collaboration, we
and LSHSC are to jointly create emails, digital ads, and social media posts in furtherance of our collaboration, which each party will
issue through its regular channels to its typical target audiences for its own products and services. We and LSHSC will also jointly
create and maintain co-branded educational content (to be supported by us), including content for athletes and their parents on training,
development, and recruiting.
Under the agreement, we will be LSHSC's
exclusive provider of athlete recruitment technology substantially similar to the SDS Platform for the term of the agreement. LSHSC will
include an advertisement for the SDS Platform and information on how persons can subscribe to it in all emails and written materials
related to LSHSC Events that LSHSC sends to its customers and prospective customers. LSHSC has also agreed to permit our representatives
to present information on the SDS Platform at LSHSC Events and to list us as "Our Partner" on LSHSC's websites for
the term of the agreement.
As part of this agreement, LSHSC will also offer
individuals a 1-year subscription license to the SDS Platform at a price to be set by LSHSC not below $30.00 per month, and we will provide
each person whom LSHSC enrolls for the SDS Platform (each an "LSHSC Referral") a 1-year subscription license to the SDS Platform.
LSHSC must pay us a "Revenue Share Payment" every month for each LSHSC Referral that pays LSHSC in that month his/her monthly
fee on his/her 1-year subscription license for the SDS Platform, as follows:
●
For the first 100,000 LSHSC Referrals,
                                            the Revenue Share Payment is $25.00 per LSHSC Referral;
●
For the next 149,999 LSHSC Referrals,
                                            the Revenue Share Payment is $20.00 per LSHSC Referral; and
●
For the 250,000th LSHSC Referral
                                            and beyond, the Revenue Share Payment is $17.50 per LSHSC Referral.
71
LSHSC will pay Revenue Share Payments to us for
each LSHSC Referral for the life of the 1-year subscription license to the SDS Platform associated with such LSHSC Referral. LSHSC must
send Signing Day Sports all Revenue Share Payments due for a month within 15 days after the month ends and include a statement on how
it calculated that payment. The agreement requires LSHSC to keep complete and accurate books and records according to U.S. GAAP for the
LSHSC Referrals which it enrolls to the SDS Platform and the license subscription fees for the SDS Platform charged to and paid by the
LSHSC Referrals, and we may examine and audit those books and records.
Under the agreement, LSHSC will collect and provide
us with the first and last name, email address, and all "Player Profile" data for each LSHSC Referral and obtain the written
consent from each LSHSC Referral or his/her parent or guardian, in a form reasonably acceptable to us, for LSHSC to share that information
with SDS and for his/her Player Profile to be posted to the SDS Platform. Under the agreement, a "Player Profile" is the
collection of athletic-related data for a particular LSHSC Referral, such as the LSHSC Referral's first and last names and athletic
statistics. We will upload onto the SDS Platform the Player Profile for each LSHSC Referral and host the data in that Player Profile
on the SDS Platform. We must include an LSHSC leaderboard in the SDS Platform or specified Player Profiles in Signing Day Sports influencer
promotions.
The term of the agreement is one year, with three
renewal periods of one year each. Either party may terminate the agreement for cause, defined as a material breach of the agreement that
is not cured or cannot be cured within 30 days, or without cause if 30 days' advance written notice is provided to the other party.
The agreement also contains mutual limited trademark license grants, confidentiality and indemnification provisions.
Sponsorship Agreement
for The U.S. Army Bowl
. Over the course of our three-year sponsorship agreement, dated as of September 9, 2022, we will be the exclusive
national recruiting partner in 2022, 2023 and 2024 for the Bowl, an annual national all-star game for U.S. high school football along
with a branded football combine, fiesta event, all-star youth championship, 7v7 and flag championship, and National Signing Day event,
which is traditionally the first day that a high school senior can sign a binding National Letter of Intent committing to attend a year
at a NCAA member school in exchange for athletics financial aid. The first Bowl held during the term of the sponsorship agreement was
held in December 2022 at Ford Center at The Star in Frisco, Texas. Aside from having priority on-site access to many of the top players
in the game, we will be able to promote ourselves, advertise to, and onboard more than an estimated 30,000 athletes as a sponsor through
the game's advertising channels. At the game event alone, we expect to be able to subscribe and onboard more than 4,000 players
onto our platform.
Under our sponsorship
agreement with Goat Farm Sports, the owner of the Bowl, we will have onsite marketing rights at every Bowl event and football event during
the week of Bowl events in the Frisco region at all such events operated by Goat Farm Sports, as well as onsite marketing nationally
or internationally, wherever Goat Farm Sports produces and owns such football events, which can include showcases/training camp, combine,
7v7, College Football All-America Team honors selection and other events, rankings shows, and reality show series dedicated to high school
football athletes that Goat Farm Sports owns and produces. We will also have a national presence at The Ladies Ball, a girls' basketball
tournament owned by Goat Farm Sports, for 2023 and 2024 with branding rights, access to athlete data and on-site education.
Under our agreement,
we will have unlimited rights to reuse all Bowl-related media in social media and other media, including on-air content packages, pre-game
promos and other footage taken at the Bowl featuring the Company's apparel or recruiting services. Our branding benefits include
Bowl-provided Company signage at the Bowl including eight sideline banners at Bowl events; having our logo, tagline and "National
Recruiting Partner" status featured on all official Bowl-related materials including tickets and lanyards; and Bowl-provided Company-branded
non-game day apparel for athletes and coaches. We may provide other promotional materials to all athletes, coaches and media members
at each regional and national event. The Bowl's website will feature our logo, tagline, and key messaging; we will be featured
in Bowl social and digital media in the months leading up to Bowl events, every day in the week prior to an event and at least twice
on the date of an event. During a Bowl event, we will be recognized as "National Partner" with a script provided by us on
the Bowl's schedule. We may construct and place a booth at or near Bowl registration and at all Bowl events to promote the Company
and hand out materials to attendees. We may have a sales representative at the booth to sell services or products at Bowl events and
meet coaches, players and spectators. We may also have breakout functions for speaking opportunities with coaches, athletes and parents
at Bowl events. We will receive a complete database after each Bowl event with all athlete and parent information. In addition, we will
receive 500 game tickets to use for any purpose and 25 VIP tickets. The television broadcasting rights will include featuring our national
sponsorship status with the official Bowl logo on all U.S. television packages and certain international broadcasts, six Company TV spots,
opening, middle and closing billboards, and a detailed $100,000 media plan promoting us at the Bowl and all events where Bally Sports
Network is producing media.
72
In addition, both parties
will work towards creating event sales packages with baked-in services by the Company as well as incentives for additional revenue opportunities
for The U.S. Army Bowl from our sales, and revenue sharing opportunities for both parties from clients or partners who can access or
leverage our ability, technology, services or expertise (including The U.S. Army).
During 2023, the 2023
U.S. Army Bowl National Combine Series will feature a series of drills and assessments to measure participating athletes' athleticism
and football skills. Data collected and analyzed by our platform from these drills and assessments will be part of the selection process
for determining whether athletes participating in the combines may advance to the Bowl and/or National Combine events in December 2023.
Each athlete will be reviewed based on physical ability, skills, game film, combine numbers, and, most importantly, their character,
values and leadership. Athletes participating in Bowl combines will receive three months of access to the Signing Day Sports app's
recruiting platform with registration, a Signing Day Sports recruiting profile with personal guidance from recruiting experts, video
highlights from their combine, and tools to put their game highlights into their profiles on the Signing Day Sports app.
We agreed to make sponsorship
payments consisting of a total of $325,000 for 2022 Bowl events, and equity grants. We agreed to make an initial contribution of $100,000
to Goat Farm Sports; provide valuable product or service donations to athletes and participants at our breakout speaking functions with
coaches, athletes and parents; pay $25,000 to Noel Mazzone by December 15, 2022 for partnership activation purposes; and pay an additional
$200,000 to Goat Farm Sports by December 15, 2022. In addition, we agreed that we will grant Richard McGinness Company stock with a value
of $175,000 for a role to be determined, and that Mr. McGuinness will provide Noel Mazzone with $50,000 of Company stock with rights
to purchase an additional $25,000 of Company stock through Bowl activities, pursuant to a separate agreement outlining such terms. We
will also pay for all expenses relating to our sponsorship except as otherwise provided. Upon the Company's request, Bowl will
secure commercial insurance and add the Company as an additional insured for Bowl events. The agreement will terminate on December 31,
2024. At the end of the contract term, we will have a first right of negotiation for future years. The agreement may be terminated immediately
in the event of notice of breach by either party and the other party's failure to cure within 20 business days of such notice.
Marketing Agreement
with Texas High School Coaches Association
. The THSCA is the principal advocate and leadership organization for more than 20,000
coaches across all high school sports in Texas. As their official recruitment platform, and in our three-year agreement, we are therefore
the official recruitment platform for more than 20,000 coaches across all high school sports in Texas. Our agreement with the THSCA,
dated June 22, 2021, began July 1, 2021 and ends June 30, 2024 with an option to renew annually. Under the agreement, we will become
a Cornerstone Sponsor of the THSCA. We will receive first-choice-priority convention booth space, recognition as a sponsor on the THSCA's
website and related rights, advertising rights in the THSCA's
Texas Coach
magazine, digital ad rights on the THSCA's
website, rights to send quarterly email blasts to the THSCA members with the THSCA's prior approval of content, up to four social
media posts per month, and other sponsorship rights. We may receive payments for platform services from schools only and not directly
from individual students or their families in Texas under the agreement. The THSCA will assist with setting up eight locations at the
National Football League's Super Regional Combines in late May or early June during each contract year. Sign up for the combines
may be done only by athletes at participating schools. We will make sponsorship payments to the THSCA totaling $100,000 per contract
year.
Marketing Agreement with North Carolina Coaches
Association
. The NCCA exists to promote and improve athletics in North Carolina's public schools and to foster high standards
of ethics and sportsmanship. Our agreement with the NCCA, dated September 15, 2021, has a one-year term beginning September 15, 2021,
with an option to renew annually upon mutual agreement. Under the agreement, we will become the official recruiting platform sponsor
of the NCCA. We will receive booth space at the annual NCCA coaching clinic, ad space in three NCCA digital newsletters, email promotion
rights to high school coaches, website promotions on NCCA's websites including digital ad space, and print ad rights in NCCA game
program/year book publications. We will make sponsorship payments to the NCCA totaling $3,500 for the initial contract year.
73
Marketing Agreement with Arizona Football
Coaches Association
. The AZFCA focuses on advancing Arizona high school athletic and academic competitions through governance, coaching,
officiating and community advocacy. Under our marketing agreement, dated May 23, 2022, we agreed to be the official and exclusive recruiting
platform sponsor of the AZFCA beginning June 1, 2022 for a term of three years, expiring on June 1, 2025, with an option to renew annually.
As the title sponsor, for the AZFCA coaches clinic/showcase series except in cases where participation would be considered out of compliance
with the NCAA. In addition to AZFCA's commitment to endorse us as the official recruiting platform for the AZFCA, we will receive
booth space for AZFCA coaches clinics, ad space in AZFCA digital newsletters, monthly email promotions about us for high school coaches,
website promotions on all AZFCA-related websites, and access to AZFCA's email and cell phone contact list for head coaches. AZFCA
will also coordinate with us to identify locations in Arizona for potential combines to take place each year. We will make an annual
sponsorship payment to the AZFCA of $2,500. In addition, we agreed to provide introductory premium subscriptions to our app for Arizona
high school teams at no charge from June 1, 2022 to December 31, 2022 for up to 30 participating schools. After that time, ongoing premium
subscriptions to our app for Arizona high school teams would be $49.99 per player per year for 5-30 players per team, and $29.99 per
player for 31 or more players per team, not to exceed $3,000 per team. Participating teams on either our basic or premium subscription
plans will be required to provide their full team roster and current player prospect list as part of account activation.
Marketing Communications
As we continue to educate players, parents, coaches,
and recruiters about our product and value propositions, we are confident that we will see a rise in profitability and brand awareness.
The following statements are examples of how
we may communicate the attributes of our app to student-athletes:
●
Take control of your recruiting
                                            journey: Get discovered and recruited by coaches across the country. Set up a profile with
                                            the information college coaches need to evaluate you all in one place.
●
Share your recruiting information:
                                            After completing your profile, set it to Public, share it on social media and send it directly
                                            to college coaches!
●
Get your film evaluated: Our Signing
                                            Day Sports' Recruiting Experts will evaluate your film and provide detailed recruiting
                                            feedback. Looking for more recruiting services? Check out our new Pro+ Program. [link to
                                            webpage]
●
Prove yourself to college coaches:
                                            Upload your video-verified measurables to confirm your data. This is what college coaches
                                            need to see to evaluate you accurately.
●
Showcase your talent: Once you have
                                            chosen your primary and secondary positions, you can upload a variety of position-specific
                                            drills that college coaches want to see.
●
Show college coaches who you are:
                                            The Signing Day Sports' interview process was designed by college coaches to get to
                                            know you better.
The following statements are examples of how
we may communicate the attributes of our app to high school coaches:
●
Give your program an edge: Signing
                                            Day Sports supports athletes in football, baseball, softball, and soccer. Coaches have the
                                            capability to maximize each athlete's recruiting journey all in one place.
●
Share your athletes' profiles
                                            with colleges: You can create a digital prospect list at the click of a button. Share this
                                            list easily with college coaches.
●
Manage your roster: Upload and manage
                                            your roster all in one place within the Signing Day Sports platform and track your teams'
                                            profile completion.
●
Maximize your teams' visibility:
                                            Your players can complete their Signing Day Sports' profiles – including uploading
                                            video-verified data, position-specific drills and interview questions.
●
Get your athletes seen by college
                                            coaches: Your athletes can set their completed profiles to Public, and you can share their
                                            public link with college coaches.
The following statements are examples of how
we may communicate the attributes of our app to college coaches and recruiters:
●
View verifiable information: Using
                                            the "My Invites" feature, you can request accurate data on prospects all in one
                                            place.
●
Find the perfect fit: Use advanced
                                            search tools to find prospects that fit your program's criteria.
●
Manage your prospects: Build multiple
                                            comprehensive prospect lists that you can customize and track throughout the season.
●
Skip the trip: Save yourself time
                                            and travel by using our side-by-side technology to compare prospects' drills and video-verified
                                            data simultaneously.
●
Communicate easily, all in one place:
                                            Send messages directly within the Signing Day Sports' platform to coaches and prospects.
74
Sales
We primarily sell subscriptions
to our recruiting platform through our direct sales and events team, which is comprised of area sales managers who are segmented by sport
and geography. Our sales and events team also leverages our network of schools, sports associations and clubs, consultants, and other
potential partners. By segmenting our sales and events team, we can deploy a low-touch sales model that efficiently identifies prospective
customers.
Security Procedures
Data Collection Practices
Under our user agreements and certain sponsorship
agreements, we collect certain information about student-athletes that have been submitted by the student-athletes and, if applicable,
their coaches, recruiters, or other teaching professionals or institutions. This data includes age, date of birth, name, email address,
athletic and educational data, and payment information. We intend to use such data for purposes of providing platform services to the
submitting student-athletes and, if applicable, their coaches, recruiters, and other teaching professionals and institutions. In order
to provide such services, we may need to share certain data with certain third-party services providers. We do not intend to share such
data for any other purposes. All such data collection is subject to our prior receipt of electronically- or physically-signed written
consents or acceptance of terms of use and terms and conditions of our platform app software by student-athletes and, if applicable,
their coaches, recruiters, or other teaching professionals or institutions, granting us rights to share such information for posting
on our platform. Such consents or acceptances of terms and use and terms of conditions of our app software explicitly includes the student-athlete's
and, if applicable, their coach, recruiter, or other teaching professional or institution's grant of a license to each coach, recruiter,
or other teaching professional or institution on our platform to view, compare, analyze and store platform player data. Each coach, recruiter,
or other teaching professional or institution on our platform is in turn required to agree to such terms and use and terms of conditions
to access and use such player data only as permitted under all applicable international, national, state, and local law, including laws
applicable to the use of data of minors. Regardless of these agreements and consents, however, we are subject to a number of data protection
requirements relating to the management and safeguarding of information of users, including minors, including those described in "
Risk
Factors – Risks Related to the Company's Business, Operations and Industry – We are subject to governmental regulation,
which can change, and any failure to comply with these regulations may have a material negative effect on our business and results of
operations.
"
We adhere to internal data governance procedures.
Because our users include minors, we comply with heightened disclosure requirements and best practices for how we can use and protect
their information. We give guidance to our users and their guardians on their rights to delete and be forgotten from our application.
Every year we will engage in penetration testing
of our applications to ensure that we maintain a very high degree of protection from bad actors looking to steal information. We also
employ secure coding standards and annual training to our engineering team and product managers. We encrypt all data that we transmit,
and any data that we receive and that is legally or generally considered sensitive, such as personally identifiable information (PII)
and academic records. We regularly rotate private encryption keys used to sign and secure data.
We closely monitor relationships with third-party
vendors that we rely on for critical services, such as Microsoft and Salesforce. We also use a set of observability tools and monitoring
software with the aim of identifying problems as they occur.
75
Business continuity and disaster recovery are
ongoing projects for our operations and engineering teams. Ensuring outages and other catastrophic failures of service are mitigated
effectively is among our highest priorities. We use Structured Query Language, or SQL, a specialized programming language designed for
interacting with a database, and maintain seven days of trailing SQL data retention. As of the end of 2022, we had increased our SQL
data's backup retention to 35 days. Our file/content storage system has geo-replicated data, and we plan to enable the system's
file/content backup data retention function to 30 days. Data retention allows data to be restored without any data loss as of a specified
point in time within the trailing retention period.
At this time, we are not aware of any significant
failures to maintain submitted personal data in compliance with applicable law, including laws governing the collection and use of the
data of minors. However, there are significant regulatory and legal consequences for such failures and related risks to our business.
For further discussion, see "
Risk Factors – Risks Related to the Company's Business, Operations and Industry –
We are subject to governmental regulation, which can change, and any failure to comply with these regulations may have a material negative
effect on our business and results of operations.
"
Employees
As of May 9, 2023, we had 15 employees, all of
whom are full-time. We also engage consultants as needed to support our operations.
We do not believe any of our employees are represented
by labor unions, and we believe that we have an excellent relationship with our employees.
Legal Proceedings and Claims
From time to time, we may become involved in
various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business. Other than as described below,
we are not aware of any such legal proceedings or claims against us.
Betterdays Media, Inc. v. Signing Day Sports,
LLC,
Case No. 2:21-cv-07442-DMG-JDE (United States District Court for the Central District of California, September 17, 2021)
The plaintiff, Betterdays Media, Inc. commenced
this case in the Superior Court of California for Los Angeles County. Thereafter, the defendant, SDS LLC – AZ, removed the case
to U.S. District Court for the Central District of California on September 17, 2021. The plaintiff's complaint in the case alleges
that it entered into a contract with the defendant pursuant to which the plaintiff was to perform film production work on a sports documentary
for the defendant and that the defendant breached that contract by failing to pay the full amount owed under the contract to the plaintiff.
The plaintiff claimed damages in the amount of $138,062.97 plus interest. In its answer to the complaint, SDS LLC – AZ denied the
plaintiff's allegations. On February 1, 2022, the parties filed a joint notice stating that they had agreed to settle the case,
were preparing a written settlement agreement and stipulation of dismissal, and that by February 28, 2022 they would file such stipulated
dismissal or a report why such stipulated dismissal was not filed. On February 4, 2022, the court entered an order providing that, by
March 1, 2022, the parties were to file either (1) a stipulation and proposed order for dismissal of the action or judgment, or (2) a
motion to reopen if settlement has not been consummated and that upon the failure to timely comply with this order, the action would
be deemed to be dismissed as of March 2, 2022. That was the last docket entry in the case. Therefore, pursuant to that order, the case
was deemed dismissed as neither a stipulation and proposed order of dismissal nor a motion to reopen was filed by March 1, 2022.
Claim of John Dorsey
On or about November 29, 2022, John Dorsey, a
former Chief Executive Officer and director of the Company, through his counsel, sent the Company a letter demanding full payment on
the Alleged Loan in connection with the Loan Dispute. Under the January 2023 Dorsey Settlement Agreement, Mr. Dorsey agreed to a discharge
of the Alleged Loan and waiver and release of claims relating to the Alleged Loan and Loan Dispute and covenant not to sue on the basis
of such claims or otherwise commence any action or proceeding that would be inconsistent with the release of such claims. The Company
agreed to pay Mr. Dorsey $10,000 and issue a promissory note to Mr. Dorsey in the principal amount of $40,000 payable on the earlier
of ten business days following the successful closing of an initial public offering of the Company's common stock that generates
at least $1 million in net proceeds to the Company or July 1, 2023.
76
Properties
Our corporate offices are located in Scottsdale,
Arizona. We leased our former corporate offices consisting of approximately 7,800 square feet in October 2021 for a term of five years
beginning January 1, 2022 and ending December 31, 2026 for a monthly rent of $20,800 plus tax, with an increase of 3% at the beginning
of every calendar year following the first year of the term of the lease agreement through January 2026. As of December 31, 2021, a security
deposit was paid in the amount of $23,411. On August 31, 2022, we entered into a Lease Termination Agreement to terminate this lease.
On September 1, 2022, our corporate offices temporarily
moved to offices owned by Daniel D. Nelson, our Chief Executive Officer, Chairman and director. We did not have a lease agreement for
this facility.
We currently lease our corporate offices consisting
of approximately 3,154 square feet under a lease agreement dated November 1, 2022, as amended by an addendum dated November 2, 2022,
and as further amended under a first amendment to lease dated April 1, 2023. As amended, the lease's initial term from November
1, 2022 to April 30, 2023 was extended for a 39-month term beginning on May 4, 2023 and ending on August 3, 2026. Under the amended lease
agreement, rent for the first month was $6,741.90 and was $7,491.00 for each subsequent month through April 2023, plus applicable rental
taxes, sales taxes, and operating expenses. Monthly rent will be $7,359 from May 4, 2023 to May 3, 2024, abated for the first three months
of this period; $7,580 from May 4, 2024 to May 3, 2025; $7,808 from May 4, 2025 to May 3, 2026; and $8,042 from May 4, 2026 to August
3, 2026, plus applicable rental taxes. Parking fees were $290.50 for the first month and will be $325.00 for each subsequent month. We
also paid an initial security deposit of $8,000.00 in November 2022 and a second security deposit of $16,000 in May 2023. The initial
security deposit will be refunded and credited toward monthly rent for the months beginning May 4, 2024 and May 4, 2025 if we have performed
all obligations under the amended lease agreement including making all rent payments when due. We may exercise a one-time option to extend
the amended lease agreement for an additional three-year term upon 9-12 months' notice for the fair market rent at the time of
the extension, as determined in accordance with the amended lease agreement and which will not be less than 103% of the final rent amount
under the current term. Under the amended lease agreement, we must pay for any tenant improvements above the allowance provided for such
improvements of $37,848 or that are not in compliance with the terms of the amended lease agreement.
The Company also leases office space containing
4,025 square feet at another location in Scottsdale, Arizona under a lease which began on February 1, 2021 and will end on May 31, 2023.
Monthly rent is $12,075 and includes annual escalations. The lease also provides for additional rent based on our proportionate share
of certain increases in building operating expenses and taxes. A $25,491.67 security deposit was required. The lease provided for the
abatement of rent during the first four months. In December 2021, the Company entered into an agreement to sublease its office space.
The sublease ends on May 31, 2023 and includes fixed rent of $9,894.
Charity
We have a history of providing pro bono service
and giving back to our local community through sports and sports related activities. We would expect to continue and grow these efforts
moving forward in many of the markets that we serve.
Competition
The market for our services is intensely competitive
and characterized by rapid changes in technology, customer requirements, and industry standards, and by frequent new product and service
offerings and improvements. We compete with an array of established and emerging recruiting solution providers. Conditions in our market
could change rapidly and significantly as a result of technological advancements, partnerships, or acquisitions by our competitors or
continuing market consolidation. With the introduction of new technologies and market entrants, we expect the competitive environment
to remain intense.
Laws and Regulations
We are subject to domestic and foreign laws and
regulations that pertain to our business practices. In order to grow and maintain our business, we will continue to adhere to the laws,
regulations, association rules, and licenses that we need to maintain our business.
77
College Athlete Recruiting Regulations
We are required to adhere to applicable rules
and regulations of the recruitment of high school and college-level athletes. In particular, we must comply with Article 13 of each of
the NCAA Division I Manual and NCAA Division II Manual, and related NCAA rules, regulations, and bylaws, which govern the locations,
periods, manner, persons, and other matters involved in student-athlete recruitment of NCAA member institutions and their recruitment
prospects. We must also comply with applicable sections of the National Association of Intercollegiate Athletics Official Handbook &
Policy Handbook.
Data Protection and Information Security
Regulations
We are subject to several laws and regulations
that affect companies conducting business on the Internet and in the athletic recruitment industry, many of which are still evolving
and could be interpreted in ways that could harm our business. The way existing laws and regulations will be applied to the Internet
and athletes in general and how they will relate to our business, are often unclear. For example, we often cannot be certain how existing
laws will apply in the e-commerce and online context, including with respect to such topics as privacy, defamation, pricing, credit card
fraud, advertising, taxation, promotions, content regulation, financial aid, scholarships, student matriculation and student-athlete
recruitment, quality of products and services, and intellectual property ownership and infringement. In addition, we may be subject to
state oversight for the recruiting, admissions, and marketing activities associated with the business.
Numerous laws and regulatory schemes have been
adopted at the national and state level in the United States, and in some cases internationally, that have a direct impact on our business
and operations. For example:
●
The CAN-SPAM Act of 2003 and similar
                                            laws adopted by several states, regulate unsolicited commercial emails, create criminal penalties
                                            for emails containing fraudulent headers, and control other abusive online marketing practices.
                                            Similarly, the U.S. Federal Trade Commission (FTC) has guidelines that impose responsibilities
                                            on us with respect to communications with consumers and impose fines and liability for failure
                                            to comply with rules with respect to advertising or marketing practices it may deem misleading
                                            or deceptive.
●
The Telephone Consumer Protection
                                            Act of 1991 (TCPA) restricts telemarketing and the use of automated telephone equipment.
                                            The TCPA limits the use of automatic dialing systems, artificial or prerecorded voice messages,
                                            SMS text messages, and fax machines. It also applies to unsolicited text messages advertising
                                            the commercial availability of goods or services. Additionally, several states have enacted
                                            statutes that address telemarketing. For example, some states, such as California, Illinois,
                                            and New York, have created do-not-call lists. Other states, such as Oregon and Washington,
                                            have enacted "no rebuttal statutes" that require the telemarketer to end the
                                            call when the consumer indicates that he or she is not interested in the product being sold.
                                            Restrictions on telephone marketing, including calls and text messages, are enforced by the
                                            FTC, the Federal Communications Commission, states, and through the availability of statutory
                                            damages and class action lawsuits for violations of the TCPA.
●
The Credit Card Accountability Responsibility
                                            and Disclosure Act of 2009, or CARD Act, and similar laws and regulations adopted by several
                                            states regulate credit card and gift certificate use fairness, including expiration dates
                                            and fees. Our business also requires that we comply with payment card industry data security
                                            and other standards. We are subject to payment card association operating rules, certification
                                            requirements, and rules governing electronic funds transfers, which could change or be reinterpreted
                                            to make it difficult or impossible for us to comply. If we fail to comply with these rules
                                            or requirements, or if our data security systems are breached or compromised, we may be liable
                                            for card issuing banks' costs, subject to fines and higher transaction fees, and lose
                                            our ability to accept credit and debit card payments from our customers, process electronic
                                            funds transfers, or facilitate other types of online payments, and our business and results
                                            of operations could be adversely affected.
●
Regulations related to the Program
                                            Participation Agreement of the U.S. Department of Education and other similar laws that regulate
                                            the recruitment of students to colleges and other institutions of higher learning.
●
The Digital Millennium Copyright
                                            Act (DMCA) provides relief for claims of circumvention of copyright protected technologies
                                            and includes a safe harbor intended to reduce the liability of online service providers for
                                            hosting, listing, or linking to third-party content that infringes copyrights of others.
●
The Communications Decency Act provides
                                            that online service providers will not be considered the publisher or speaker of content
                                            provided by others, such as individuals who post content on an online service provider's
                                            website.
78
●
The California Consumer Privacy
                                            Act (CCPA), which went into effect on January 1, 2020, provides consumers the right to know
                                            what personal data companies collect, how it is used, and the right to access, delete, and
                                            opt out of the sale of their personal information to third parties. It also expands the definition
                                            of personal information and gives consumers increased privacy rights and protections for
                                            that information. The CCPA also includes special requirements for California consumers under
                                            the age of 16. Effective January 1, 2023, we will also become subject to the California Privacy
                                            Rights Act, which expands upon the consumer data use restrictions, penalties and enforcement
                                            provisions under the California Consumer Privacy Act.
●
The Virginia Consumer Data Protection
                                            Act (CDPA) establishes rights for Virginia consumers to control how companies use individuals'
                                            personal data. The CDPA dictates how companies must protect personal data in their possession
                                            and respond to consumers exercising their rights, as prescribed by the law, regarding such
                                            personal data. The CDPA went into effect on January 1, 2023.
●
Effective July 1, 2023, we may also
                                            become subject to the Colorado Privacy Act and Connecticut's An Act Concerning Personal
                                            Data Privacy and Online Monitoring, which are comprehensive consumer privacy laws. Effective
                                            December 31, 2023, we may become subject to the Utah Consumer Privacy Act, regarding business
                                            handling of consumers' personal data. Effective January 1, 2025, we may also become
                                            subject to the Iowa Consumer Privacy Act, a similar consumer data privacy law.
●
We may be subject to the EU's
                                            General Data Protection Regulation (GDPR). The GDPR imposes stringent requirements for controllers
                                            and processors of personal data of persons in the EU, including, for example, more robust
                                            disclosures to individuals and a strengthened individual data rights regime, shortened timelines
                                            for data breach notifications, limitations on retention of information, increased requirements
                                            pertaining to special categories of data, and additional obligations when we contract with
                                            third-party processors in connection with the processing of the personal data. The GDPR also
                                            imposes strict rules on the transfer of personal data out of the European Union to the United
                                            States and other third countries. In addition, the GDPR provides that EU member states may
                                            make their own further laws and regulations limiting the processing of personal data.
The GDPR applies extraterritorially,
and we may be subject to the GDPR because of our data processing activities that involve the personal data of individuals located in
the European Union, such as in connection with our EU-based students. Failure to comply with the requirements of the GDPR and the applicable
national data protection laws of the EU member states may result in fines of up to €20,000,000 or up to 4% of the total worldwide
annual turnover of the preceding financial year, whichever is higher, and other administrative penalties. GDPR regulations may impose
additional responsibility and liability in relation to the personal data that we process, and we may be required to put in place additional
mechanisms to ensure compliance with the new data protection rules.
Following the withdrawal of the United
Kingdom from the EU and the expiry of the transition period, from January 1, 2021, the United Kingdom Data Protection Act 2018 (UK GDPR)
retains in large part the GDPR in United Kingdom national law. The UK GDPR mirrors the fines under the GDPR, e.g., we could be fined
up to the greater of €20 million/£17.5 million or 4% of global turnover under each regime.
●
The Children's Online Privacy
                                            Protection Act (COPPA), the GDPR, and the UK GDPR impose additional restrictions on the ability
                                            of online services to collect information from minors. In addition, certain states, including
                                            Utah and Massachusetts, have laws that impose criminal penalties on the production and distribution
                                            of content that is "harmful to a minor."
79
MANAGEMENT
Directors and Executive Officers
Set forth below is information regarding our directors and executive
officers as of the date of this prospectus.
Name
Age
Position
Daniel D. Nelson
60
Chief Executive Officer, Chairman and Director
Richard Symington
43
President, Chief Marketing Officer, and Director
Damon Rich
53
Interim Chief Financial Officer
David O'Hara
42
Chief Operating Officer and Secretary
Glen Kim
40
Director
Martin Lanphere
48
Director
Roger Mason Jr.
42
Director
Greg Economou
58
Director
Daniel D. Nelson
. Mr. Nelson has
been a member of our board of directors since July 2022, was our President from August 2022 to November 2022, has been our Chief Executive
Officer since November 2022, and has been our Chairman since March 2023. Mr. Nelson began working in the financial services industry
in 1986. In 1997, Mr. Nelson formed, and has since served as chief executive officer of, Nelson Financial Services Inc., which focuses
on the employee benefits market. For more than 30 years, Mr. Nelson has acquired extensive knowledge and experience in the financial
services arena. Mr. Nelson also formed Nelson Financial Services to provide financial guidance for all individuals. We believe that Mr.
Nelson is qualified to serve on our board of directors due to his experience in finance, particularly with respect to the sports management
division of Nelson Financial Services.
Richard Symington
. Mr. Symington
has served as our President and Chief Marketing Officer and a member of our board of directors since April 2023. From May 2015 to February
2020, Mr. Symington was the Manager of Blacklight Technologies LLC. From January 2015 to September 2019, Mr. Symington was also the founder,
Chief Executive Officer, and Manager of Island Marketing Consultants LLC (formerly A20 Media LLC). From 2002 to 2014, Mr. Symington founded
or managed a number of other businesses. Mr. Symington obtained a B.A. in International Relations from the University of San Diego in
2002 and a Diploma in Culinary Arts/Restaurant Management from Arizona Culinary Institute in 2003. We believe that Mr. Symington is qualified
to serve on our board of directors due to his experience in technology and marketing-driven businesses.
Damon Rich
. Damon Rich has served
as our Interim Chief Financial Officer since April 2023. Since February 2019, Mr. Rich has also been Chief Financial Officer of Nelson
Financial Services Inc. From July 2011 to February 2019, Mr. Rich was Accounting Manager – General Ledger/Financial Reporting at
Safeway, Inc. From July 2005 to July 2011, Mr. Rich was Accounting Manger – Warehouse Payables, at Safeway, Inc.  From May
2001 to July 2005, Mr. Rich was an accountant for Safeway, Inc. From February 1999 to May 2001, Mr. Rich was the Controller of North
Phoenix Baptist Church in Phoenix, Arizona. Mr. Rich holds a Bachelor of Accountancy and a Bachelor of Business Administration from New
Mexico State University, and earned his CPA designation in 1999.
David O'Hara
. Mr. O'Hara
has served as our Chief Operating Officer since July 2022 and has served as our Secretary since March 2023. Mr. O'Hara also served
as our interim Chief Executive Officer and Chief Financial Officer in July 2022, and as our Chief Administrative Officer from September
2021 to July 2022. Mr. O'Hara joined Signing Day Sports as General Manager in April 2021. Prior to joining the Company, from March
2019 to March 2021, Mr. O'Hara served as Chief of Education and Operations at Harlem Village Academies, a network of charter schools
in Harlem, New York, where he oversaw operations, academics, recruitment, hiring, and talent development. From July 2017 to February
2019, Mr. O'Hara supported nonprofit organizations via his work as Senior Director of District Leadership with the Buck Institute
for Education, a nonprofit organization, where Mr. O'Hara also supported charter management organizations, school districts in
leadership development, operations, organizational leadership, and strategic planning. From September 2011 to July 2017, Mr. O'Hara
additionally served as the school principal of Leaders High School in Brooklyn, NY. Mr. O'Hara was also a member of the cohort
of New Leaders, a national leadership program. Mr. O'Hara is a former collegiate athlete having been an All-Arizona wide receiver
recruited to play at a Division I school. Mr. O'Hara is a graduate of Arizona State University, has a MSEd in Science Education
from Lehman College, a MSEd in Organizational Leadership from Baruch College, and is a graduate of the Cahn Fellows Program at Columbia
University.
80
Glen Kim
. Mr. Kim has served as
a member of our board of directors since July 2022. Mr. Kim has over 15 years of experience in digital media, software, SaaS, and various
technology industries where he has led corporate financial planning and analysis efforts, built business operating models, and led many
corporate development activities, including M&A and post-acquisition integration. Since October 2020, Mr. Kim has been the chief
financial officer at Longevity Nutrition Inc., a plant-based food company, and since September 2019, Mr. Kim has been the chief financial
officer at Performa Labs Inc., a government technology company. Since September 2021, Mr. Kim has also been the chief financial officer
at Apollo Education Systems Inc., an education software company. Since November 2016, Mr. Kim has also served as Vice President of Finance,
Accounting Analytics of Cie Digital Labs, a Technology Development & Venture Studio. From September 2017 to November 2020, Mr. Kim
was the chief financial officer of Titan School Solutions Inc., a school nutrition software company, wholly acquired by EMS LINQ. From
June 2010 to November 2016, Mr. Kim served as the Director of Finance of Internet Brands, Inc., a former public software-as-a-service,
or SaaS, and Internet media portfolio company. Mr. Kim graduated from Claremont McKenna College with a Bachelor of Arts in 2004 and majored
in Economics. Mr. Kim is a former collegiate athlete in football and track and field, and served as captain of his college football team.
We believe that Mr. Kim is qualified to serve on our board of directors due to his extensive experience in digital media and SaaS-based
companies, his background in mergers and acquisitions, private equity and venture capital-based financing, in addition to firsthand experience
in coaching, recruiting, and playing sports at the NCAA level.
Martin Lanphere
.
Mr. Lanphere has been a member of our board of directors since September 2022. Mr. Lanphere was also Vice-President of the Company from
August 2022 to February 2023. Mr. Lanphere is the Owner/President of Timberline Drilling Inc., an industry leader in underground
and surface core drilling. Mr. Lanphere was hired as President of Timberline Drilling in 2007 to take on the task of turning around a
company near insolvency. Due to his ability to quickly gauge the pulse of an organization and internally maximize potential opportunities,
Mr. Lanphere was able to quickly execute and turn the company around. After Mr. Lanphere purchased Timberline Drilling in 2011, it has
grown to more than 200 employees. Prior to Mr. Lanphere's success with Timberline Drilling, Mr. Lanphere was District Sales Manager
at HSBC (NYSE: HSBC), where he led and managed numerous teams and employees. During his time with the bank, Mr. Lanphere led the restructuring
of branches from Washington State to Southern California. As a veteran of the United States Marine Corps, Mr. Lanphere earned several
Merits, Service and Campaign Metals and Leadership awards. We believe that Mr. Lanphere is qualified to serve on our board of directors
due to his enthusiastic leadership style and years of experience implementing efficient processes and managing and motivating people.
Roger Mason Jr
.
Mr. Mason
has been a member of our board of directors since September 2022. Mr. Mason is a former professional basketball player for the National
Basketball Association, or NBA. Mr. Mason was selected with the 31st overall pick by the Chicago Bulls in the 2002 NBA draft and continued
his NBA player career with various NBA teams through January 2014. Mr. Mason also played professional basketball internationally for
Olympiacos of Greece during the 2004–05 season and Hapoel Jerusalem in Israel during the 2005–06 season. From August 2013
to September 2014, Mr. Mason served as First Vice President of the National Basketball Players Association, or NBPA, and from November
2014 to December 2016, was the NBPA's Deputy Executive Director. In March 2018, Mr. Mason co-founded and has since served as the
Chief Executive Officer of Vaunt. Vaunt, based in New York City, creates in-person, once-in-a-lifetime destination programming and alternative
competitions with pro athletes and entertainers. Mr. Mason earned a Bachelor of Science in Architecture/Business from the University
of Virginia in 2002, a Bachelor of Science in Business/Management from Union Institute & University, and an MBA from Columbia Business
School in 2017. We believe that Mr. Mason is qualified to serve on our board of directors due to his business acumen and success in numerous
organizations. Additionally, with Mr. Mason's knowledge and skills as a former NBA player and Deputy Executive Director of the
NBPA, Mr. Mason will be able to provide insights, leadership, and expertise as it pertains to our technology, recruitment, and marketplace.
Greg Economou
. Mr. Economou has
been a member of our board of directors since May 2023. Since March 2023, Mr. Economou has been Managing Director of
Greg
Economou Consulting
. From July 2019 to March 2023, Mr. Economou was co-founder and Chief Executive Officer of game1, LLC. From
April 2017 to June 2019, Mr. Economou was Chief Commercial Officer and Head of Sports of Live Nation Entertainment, Inc. Mr. Economou
earned a BA in History and Communications. We believe that Mr. Economou is qualified to serve on our board of directors due to Mr. Economou's
executive-level experience with sports-related businesses.
Our directors currently have terms which will
end at our next annual meeting of the stockholders or until their successors are elected and qualify, subject to their prior death, resignation
or removal. Officers serve at the discretion of the board of directors. There is no arrangement or understanding between any director
or executive officer and any other person pursuant to which he was or is to be selected as a director, nominee or officer.
Family Relationships
There are no family relationships among any of
our executive officers or directors.
81
Involvement in Certain Legal Proceedings
To the best of our knowledge, except as described
above, none of our directors or executive officers has, during the past ten years:
●
been convicted in a criminal proceeding
                                            or been subject to a pending criminal proceeding (excluding traffic violations and other
                                            minor offences);
●
had any bankruptcy petition filed
                                            by or against the business or property of the person, or of any partnership, corporation
                                            or business association of which he was a general partner or executive officer, either at
                                            the time of the bankruptcy filing or within two years prior to that time;
●
been subject to any order, judgment,
                                            or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction
                                            or federal or state authority, permanently or temporarily enjoining, barring, suspending
                                            or otherwise limiting, such director or executive officer's involvement in any type
                                            of business, securities, futures, commodities, investment, banking, savings and loan, or
                                            insurance activities, or to be associated with persons engaged in any such activity;
●
been found by a court of competent
                                            jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity
                                            Futures Trading Commission to have violated a federal or state securities or commodities
                                            law, and the judgment has not been reversed, suspended, or vacated;
●
been the subject of, or a party
                                            to, any federal or state judicial or administrative order, judgment, decree, or finding,
                                            not subsequently reversed, suspended or vacated (not including any settlement of a civil
                                            proceeding among private litigants), relating to an alleged violation of any federal or state
                                            securities or commodities law or regulation, any law or regulation respecting financial institutions
                                            or insurance companies including, but not limited to, a temporary or permanent injunction,
                                            order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist
                                            order, or removal or prohibition order, or any law or regulation prohibiting mail or wire
                                            fraud or fraud in connection with any business entity; or
●
been the subject of, or a party
                                            to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory
                                            organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))),
                                            any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C.
                                            1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary
                                            authority over its members or persons associated with a member.
Corporate Governance
The Board's Role in Risk Oversight
The board of directors oversees that the assets
of our company are properly safeguarded, that the appropriate financial and other controls are maintained, and that our business is conducted
wisely and in compliance with applicable laws and regulations and proper governance. Included in these responsibilities is the board's
oversight of the various risks facing our company. In this regard, our board seeks to understand and oversee critical business risks.
Our board does not view risk in isolation. Risks are considered in virtually every business decision and as part of our business strategy.
Our board recognizes that it is neither possible nor prudent to eliminate all risk. Indeed, purposeful and appropriate risk-taking is
essential for our company to be competitive on a global basis and to achieve its objectives.
While the board oversees risk management, company
management is charged with managing risk. Management communicates routinely with the board and individual directors on the significant
risks identified and how they are being managed. Directors are free to, and indeed often do, communicate directly with senior management.
Our board administers its risk oversight function
as a whole by making risk oversight a matter of collective consideration. Much of this work will be delegated to committees, which will
meet regularly and report back to the full board beginning on the date of this prospectus. The Audit Committee will oversee risks related
to our financial statements, the financial reporting process, accounting and legal matters, and related party transactions; the Compensation
Committee will evaluate the risks and rewards associated with our compensation philosophy and programs, and the Nominating and Corporate
Governance Committee will evaluate risk associated with management decisions and strategic direction.
82
Independent Directors
NYSE American's rules generally require
that a majority of an issuer's board of directors consist of independent directors. Our board of directors currently consists of
six directors, four of whom, Roger Mason Jr., Glen Kim, Greg Economou, and Martin Lanphere, have each been determined to be an "independent
director" within the meaning of NYSE American's rules, and two of whom, Richard Symington and Daniel Nelson, have not been
determined to be an "independent director" within the meaning of NYSE American's rules. We have entered into an independent
director agreement with each of Mr. Mason, Mr. Kim, Mr. Economou, and Mr. Lanphere.
Committees of the Board of Directors
Our board of directors has established the Audit
Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee, each with its own charter approved by the
board. The committee charters have been filed as exhibits to the registration statement of which this prospectus is a part. Upon completion
of the Company's initial public offering, we intend to make each committee's charter available on our website at https://www.signingdaysports.com/.
In addition, our board of directors may, from
time to time, designate one or more additional committees, which shall have the duties and powers granted to it by our board of directors.
Audit Committee
Glen Kim, Roger Mason Jr., and Greg Economou,
each of whom has been determined by our board of directors to meet the "independence" requirements of Rule 10A-3 under
the Exchange Act and the definition of an "independent director" under NYSE American's rules, will serve on the Audit
Committee effective as of the date of this prospectus, with Mr. Kim serving as the chairman. Our board has determined that Mr. Kim qualifies
as an "audit committee financial expert" as defined by Item 407(d)(5) of Regulation S-K. The Audit Committee oversees our
accounting and financial reporting processes and the audits of the financial statements of our company.
The Audit Committee will be responsible for,
among other things: (i) the integrity of the Company's and its subsidiaries' financial statements and financial reporting
process and the Company's and its subsidiaries' systems of internal accounting and financial controls, (ii) the performance
of the internal audit services function, (iii) the annual independent audit of the Company's and subsidiaries' financial
statements, the engagement of the independent auditors and the evaluation of the independent auditors' qualifications, independence
and performance, (iv) the compliance by the Company with legal and regulatory requirements, including the Company's disclosure
of controls and procedures, (v) the approval of related party transactions, (vi) the evaluation of enterprise risk issues, and (vii)
the fulfillment of the other responsibilities set out in its charter.
Compensation Committee
Glen Kim, Roger Mason Jr., and Greg Economou,
each of whom has been determined by our board of directors to meet the "independence" requirements of Rule 10C-1 under
the Exchange Act and the definition of an "independent director" under NYSE American's rules, will serve on the Compensation
Committee effective as of the date of this prospectus, with Mr. Mason serving as the chairman. The members of the Compensation Committee
will also be "non-employee directors" within the meaning of Section 16 of the Exchange Act. The Compensation Committee will
assist the board in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors
and executive officers.
The Compensation Committee will be responsible
for, among other things: (i) reviewing and approving the compensation of the Company's Chief Executive Officer, Interim Chief Financial
Officer and any other executive officers that serve in executive officer capacities for the Company, (ii) evaluating and making recommendations
to the board of directors regarding the compensation of the directors of the Company; (iii) evaluating and making recommendations to
the board regarding equity- based and incentive-compensation plans, policies and programs that are subject to board approval; and (iv)
the fulfillment of the other responsibilities set out in its charter.
83
Nominating and Corporate Governance Committee
Glen Kim, Roger Mason Jr., and Greg Economou,
each of whom has been determined by our board of directors to meet the definition of an "independent director" under NYSE
American's rules, will serve on the Nominating and Corporate Governance Committee effective as of the date of this prospectus,
with Mr. Economou serving as the chairman. The Nominating and Corporate Governance Committee will assist the board of directors in selecting
individuals qualified to become our directors and in determining the composition of the board and its committees.
The Nominating and Corporate Governance Committee
will be responsible for, among other things: (i) identifying and evaluating individuals qualified to become members of the board by reviewing
nominees for election to the board submitted by stockholders and recommending to the board director nominees for each annual meeting
of stockholders and for election to fill any vacancies on the board, (ii) advising the board with respect to board organization, desired
qualifications of board members, the membership, function, operation, structure and composition of committees (including any committee
authority to delegate to subcommittees), and self-evaluation and policies, (iii) advising on matters relating to corporate governance
in each case, subject to the requirements of the Amended and Restated Bylaws of the Company and monitoring developments in the law and
practice of corporate governance, (iv) overseeing compliance with the Company's Code of Ethics and Business Conduct and conduct
of the Company's officers and directors; and (v) the fulfillment of the other responsibilities set out in its charter.
The Nominating and Corporate Governance Committee's
methods for identifying candidates for election to our board of directors (other than those proposed by our stockholders, as discussed
below) will include the solicitation of ideas for possible candidates from a number of sources – members of our board of directors,
our executives, individuals personally known to the members of our board of directors, and other research. The Nominating and Corporate
Governance Committee may also, from time-to-time, retain one or more third-party search firms to identify suitable candidates.
In making director recommendations, the Nominating
and Corporate Governance Committee may consider some or all of the following factors: (i) the candidate's judgment, skill, experience
with other organizations of comparable purpose, complexity and size, and subject to similar legal restrictions and oversight; (ii) the
interplay of the candidate's experience with the experience of other board members; (iii) the extent to which the candidate would
be a desirable addition to the board and any committee thereof; (iv) whether or not the person has any relationships that might impair
his or her independence; and (v) the candidate's ability to contribute to the effective management of our company, taking into
account the needs of our company and such factors as the individual's experience, perspective, skills and knowledge of the industry
in which we operate. The Nominating and Corporate Governance Committee will also develop, reevaluate at least annually and modify as
appropriate a set of specific considerations outlining the skills, experiences (whether in business or in other areas such as public
service, academia or scientific communities), particular areas of expertise, specific backgrounds, and other characteristics for which
there is a specific need on the board of directors and which would enhance the effectiveness of the board and its committees given its
current composition.
Code of Ethics and Business Conduct
We have adopted a Code of Ethics and Business
Conduct that applies to all of our directors, officers and employees, including our principal executive officer, principal financial
officer and principal accounting officer. Such Code of Ethics and Business Conduct addresses, among other things, honesty and ethical
conduct, conflicts of interest, compliance with laws, regulations and policies, including disclosure requirements under the federal securities
laws, and reporting of violations of the code.
A copy of the Code of Ethics and Business Conduct
has been filed as an exhibit to the registration statement of which this prospectus is a part. We are required to disclose any amendment
to, or waiver from, a provision of the Code of Ethics and Business Conduct applicable to our principal executive officer, principal financial
officer, principal accounting officer, controller, or persons performing similar functions. We intend to use our website as a method
of disseminating this disclosure as well as by SEC filings, as permitted or required by applicable SEC rules. Any such disclosure will
be posted to our website within four (4) business days following the date of any such amendment to, or waiver from, a provision of the
Code of Ethics and Business Conduct.
Limitation on Liability and Indemnification
of Directors and Certain Officers
Limitation on Liability of Directors and
Certain Officers
Section 102(b)(7) of the DGCL authorizes a corporation
to limit or eliminate the personal liability of directors and certain officers to the corporation
and its stockholders for monetary damages for breaches of directors' and officers' fiduciary duties, subject to certain limitations.
However, directors and officers remain liable for breaches of duties of loyalty, failing to act in good faith, engaging in intentional
misconduct, knowingly violating a law, or obtaining an improper personal benefit. Directors also remain liable for paying a dividend
or approving a stock repurchase which was illegal under DGCL Section 174, and officers remain liable for any action by or in the right
of the corporation. Liability may be limited under Section 102(b)(7) for an officer only if the officer meet the requirements of Section
3114 of the DGCL, including that such officer is or was the president, chief executive officer, chief operating officer, chief financial
officer, chief legal officer, controller, treasurer or chief accounting officer of the corporation at any time during the course of conduct
alleged in the action or proceeding to be wrongful; Is or was identified in a reporting company's SEC filings as one of the corporation's
most highly compensated executives at any time during the allegedly wrongful conduct; or has agreed in writing with the corporation to
be identified as an officer for these purposes. In addition, equitable remedies for breach of fiduciary duty of care, such as injunction
or recession, are available. The Certificate of Incorporation eliminates the personal liability of the Company's directors
and officers to the fullest extent permitted by the DGCL.
84
Indemnification
of
Directors and Executive Officers
Section 145 of the DGCL provides that a corporation
has the power to indemnify a director, officer, employee or agent of the corporation, or a person serving at the request of the corporation
for another corporation, partnership, joint venture, trust or other enterprise in related capacities against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with an action, suit
or proceeding to which he was or is a party or is threatened to be made a party to any threatened, ending or completed action, suit or
proceeding by reason of such position, if such person acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the corporation, and, in any criminal action or proceeding, had no reasonable cause to believe such person's
conduct was unlawful, except that, in the case of actions brought by or in the right of the corporation, no indemnification shall be
made with respect to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless
and only to the extent that the Court of Chancery or other adjudicating court determines that, despite the adjudication of liability
but in view of all of the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which
the Court of Chancery or such other court shall deem proper.
Our Certificate of Incorporation authorizes the
Company to indemnify, and advance expenses to, to the fullest extent permitted by law, any person who was or is a party to or is threatened
to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative
by reason of the fact that the person is or was a director, officer, employee or agent of the Corporation, or is or was serving at the
request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other
enterprise.
The Amended and Restated Bylaws require that
we indemnify our directors and executive officers to the fullest extent permitted by law, provided that we may modify the extent of such
indemnification by individual contracts with directors and executive officers, and also provided that we are not required to indemnify
any director or executive officer in connection with any proceeding (or part thereof) initiated by such person unless (i) such indemnification
is expressly required to be made by law, (ii) the proceeding was authorized by the our board of directors, (iii) such indemnification
is provided by the Company, in its sole discretion, pursuant to the powers vested in the Company under the DGCL or any other applicable
law, or (iv) such indemnification is required to be made under the indemnification rights enforcement provision of the Amended and Restated
Bylaws. Our obligation, if any, to indemnify any person pursuant to our Amended and Restated Bylaws who was or is serving at its request
as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, enterprise, or nonprofit entity
shall be reduced by any amount such person may collect as indemnification from such other corporation, partnership, joint venture, trust,
enterprise, or nonprofit entity.
Our
Amended and Restated Bylaws also provide for advancement of expenses to a
ny person who was or is a party or is threatened to be
made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative,
by reason of the fact that the person is or was a director or executive officer of the Company, or is or was serving at the request of
the Company as a director or executive officer of another corporation, partnership, joint venture, trust or other enterprise, prior to
the final disposition of the proceeding, promptly following request therefor, all expenses actually and reasonably incurred by any director
or executive officer in defending such proceeding, upon receipt of an undertaking by or on behalf of such person to repay all amounts
advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal that such person
is not entitled to be indemnified for such expenses. Notwithstanding the foregoing, generally no advance shall be made by the Company
to an executive officer of the Company (except by reason of the fact that such executive officer is or was a director of the Company)
in any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly
made (i) by a majority vote of a quorum consisting of directors who were not parties to the proceeding, even if not a quorum, or
(ii) by a committee of such directors designated by a majority of such directors, even though less than a quorum, or (iii) if there
are no such directors, or such directors so direct, by independent legal counsel in a written opinion, that the facts known to the decision-making
party at the time such determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner
that such person did not believe to be in or not opposed to the Company's interest. The Company's obligation, if any, to
indemnify any person pursuant to the Amended and Restated Bylaws who was or is serving at its request as a director, officer, employee,
or agent of another corporation, partnership, joint venture, trust, enterprise, or nonprofit entity shall be reduced by any amount such
person may collect as indemnification from such other corporation, partnership, joint venture, trust, enterprise, or nonprofit entity.
Our Amended and Restated Bylaws also permit the Company to indemnity its other officers, employees and other agents as set forth in the
DGCL. The board of directors has the power to delegate the determination of whether indemnification shall be given to any such person
except executive officers to such officers or other persons as the board of directors shall determine.
85
We have also separately entered into an indemnification
agreement with each of our directors and executive officers. Each indemnification agreement provides for indemnification to the fullest
extent permitted by law, including: (i) all expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably
incurred by a director or executive officer, or on their behalf, in connection with any proceeding other than proceedings by or in the
right of the Company or any claim, issue or matter therein, if the director or executive officer acted in good faith and in a manner
the director or executive officer reasonably believed to be in or not opposed to the best interests of the Company, and with respect
to any criminal proceeding, had no reasonable cause to believe the director or executive officer's conduct was unlawful; (ii) all
expenses actually and reasonably incurred by a director or executive officer, or on their behalf, in connection with a proceedings by
or in the right of the Company if the director or executive officer acted in good faith and in a manner the director or executive officer
reasonably believed to be in or not opposed to the best interests of the Company, provided that if applicable law so provides, no indemnification
against such expenses shall be made in respect of any claim, issue or matter in such proceeding as to which the director or executive
officer shall have been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware
shall determine that such indemnification may be made; (iii) to the extent that a director or executive officer is, by reason of the
director or executive officer's director or executive officer status, a party to and is successful, on the merits or otherwise,
in any proceeding, including by dismissal of such proceeding with or without prejudice, then the director or executive officer shall
be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all expenses actually and reasonably
incurred by the director or executive officer or on the director or executive officer's behalf in connection therewith; and (iv)
all expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by a director or executive
officer or on a director or executive officer's behalf if, by reason of the director or executive officer's status as a director
or executive officer, the director or executive officer is, or is threatened to be made, a party to or participant in any proceeding
(including a proceeding by or in the right of the Company), including, without limitation, all liability arising out of the negligence
or active or passive wrongdoing of the director or executive officer, except where the payment is finally determined (under the procedures,
and subject to the presumptions, set forth in the indemnification agreements) to be unlawful. The Company shall also advance all such
expenses incurred by or on behalf of each director or executive officer in connection with any of the above proceedings by reason of
the director or executive officer's director or executive officer status within 30 days after the receipt by the Company of a statement
or statements from the director or executive officer requesting such advance or advances from time to time, whether prior to or after
final disposition of such proceeding. Such statement or statements shall reasonably evidence the expenses incurred by the director or
executive officer and shall include or be preceded or accompanied by a written undertaking by or on behalf of the director or executive
officer to repay any expenses advanced if it shall ultimately be determined that the director or executive officer is not entitled to
be indemnified against such expenses. Any advances and undertakings to repay shall be unsecured and interest free. The indemnification
agreements also provide for payments by the Company for the entire amount of any judgment or settlement of any action, suit or proceeding
in which it is liable or would be liable if joined in such action, subject to the other terms and provisions of the indemnification agreements,
and certain other indemnification and payment obligations. The indemnification agreements also provide that if we maintain a directors'
and officers' liability insurance policy, that each director and executive officer will be covered by the policy to the maximum
extent of the coverage available for any of the Company's directors or executive officers.
We have obtained standard directors and officers
liability insurance under which coverage is provided (a) to our directors and officers against loss rising from claims made by reason
of breach of duty or other wrongful act, and (b) to us with respect to payments which we may make to such officers and directors
pursuant to the indemnification agreements described above or otherwise as a matter of law.
The underwriting agreement, filed as Exhibit 1.1
to the registration statement of which this prospectus forms a part, will provide for indemnification, under certain circumstances,
by the underwriter of us and our officers and directors for certain liabilities arising under the Securities Act or otherwise.
Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to directors, officers or persons controlling us under the foregoing provisions, we have been
informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore
unenforceable.
86
EXECUTIVE
COMPENSATION
Summary Compensation Table - Years Ended December 31, 2022 and
2021
The following table sets forth information concerning
all cash and non-cash compensation awarded to, earned by or paid to the named persons for services rendered in all capacities during
the noted periods. No other executive officers received total compensation in excess of $100,000 during the fiscal year ended December
31, 2022.
Name
                                            and Principal Position
Year
Salary
($)
Bonus
($)
Stock
                                            Awards
($)
Option
                                            Awards
($)
All
                                            Other Compensation
($)
Total
($)
Daniel D. Nelson, Chief Executive Officer
(1)
2022
-
-
-
108,500
(2)
-
108,500
Dennis Gile, former President and Chief Executive Officer
(3)
2022
-
-
-
108,500
(4)
-
108,500
2021
240,000
-
-
-
-
240,000
John Dorsey, former Chief Executive Officer
(5)
2022
120,000
-
-
-
-
120,000
2021
240,000
-
-
-
-
240,000
David O'Hara, Chief Operating Officer
(6)
2022
194,993
-
-
186,000
(7)
-
186,000
2021
200,000
-
-
-
-
200,000
(1)
Daniel D. Nelson became Chief Executive Officer in
                                            November 2022. Mr. Nelson was not a named executive officer in 2021.
(2)
Daniel D. Nelson was granted options to purchase
                                            a total of 35,000 shares of common stock on September 28, 2022. A portion of the options
                                            is subject to certain vesting conditions. The aggregate grant date fair value was computed
                                            in accordance with FASB ASC Topic 718 based on the assumptions described in footnotes 1 and
                                            12 to the Company's financial statements included with this prospectus.
(3)
Dennis Gile was Chief Executive Officer from January
                                            2019 to April 2021 and from July 2022 to November 2022 and was President from November 2022
                                            to March 2023. See also "
Certain Relationships and Related Party Transactions –
                                            Transactions with Related Persons
".
(4)
Dennis Gile was granted options to purchase a total
                                            of 35,000 shares of common stock on September 28, 2022. The options may be exercised at a
                                            price per share equal to $3.10 per share. A portion of the options is subject to certain
                                            vesting conditions. The aggregate grant date fair value was computed in accordance with FASB
                                            ASC Topic 718 based on the assumptions described in footnotes 1 and 12 to the Company's
                                            financial statements included with this prospectus.
(5)
John Dorsey was Chief Executive Officer from April
                                            2021 to June 2022.
(6)
David O'Hara was General Manager from April
                                            2021 to September 2021, Chief Administrative Officer from September 2021 to July 2022; interim
                                            Chief Executive Officer from July 5, 2022 to July 31, 2022; and Chief Financial Officer from
                                            July 8, 2022 to July 31, 2022.
(7)
David O'Hara was granted options to purchase
                                            30,000 shares of common stock on each of September 9, 2022 and September 28, 2022. The options
                                            may be exercised at $3.10 per share. A portion of the options is subject to certain vesting
                                            conditions. The aggregate grant date fair value was computed in accordance with FASB ASC
                                            Topic 718 based on the assumptions described in footnotes 1 and 12 to the Company's
                                            financial statements included with this prospectus.
87
Management Employment and Consulting Agreements
Under our employment letter agreement with John
Dorsey, a former Chief Executive Officer of the Company, dated January 13, 2022, Mr. Dorsey was employed on an at-will basis until his
resignation on June 28, 2022. Under the agreement, Mr. Dorsey's base salary was $240,000 per year paid according to the Company's
normal payroll cycle. The agreement provided for a grant of a non-statutory stock option to purchase shares of common stock equal to
1% of the Company's equity on a fully-diluted basis as of the date of grant within three months of the date of the agreement, at
an exercise price equal to the fair market value of a share of common stock determined consistent with Section 409A of the U.S. Internal
Revenue Code of 1986, as amended (the "Code"), and subject to vesting and other terms and conditions. Mr. Dorsey was eligible
for an annual cash incentive between 50% and 200% of base salary, based on the achievement of certain written performance goals established
by the Company's board of directors, and subject to the board's certification of achievement of such goals. Mr. Dorsey was
eligible for standard benefit and vacation plans. The agreement contained standard provisions for non-solicitation of customers or employees,
non-competition, confidentiality, and non-disparagement.
Under an employment letter agreement with George
Weathers, a former Chief Financial Officer of the Company, dated October 8, 2021, Mr. Weathers' salary was $175,000 per year. Mr.
Weathers was also provided health care coverage, flexible paid time off, and eligibility to participate in the Company's employee
stock option plan for up to 60,000 shares. Mr. Weathers resigned on July 7, 2022.
Under an employment contract with David O'Hara,
our Chief Operating Officer and former General Manager, dated March 30, 2021 (the "Original O'Hara Employment Contract"),
Mr. O'Hara was employed as General Manager on an at-will basis beginning April 5, 2021. Mr. O'Hara's salary was $200,000
per year. Mr. O'Hara was entitled to available standard employee benefits, which are subject to change without compensation. Mr.
O'Hara was also entitled to a $25,000 bonus dependent upon performance review once every 90 days. The agreement contained non-competition,
non-solicitation, and confidentiality provisions.
Under an amended and restated employment offer
letter agreement with Mr. O'Hara, dated March 14, 2022 (the "Amended O'Hara Agreement"), Mr. O'Hara agreed
to continue to be responsible for duties customary for a Chief Operating Officer. Effective March 14, 2023, Mr. O'Hara's
salary was changed to $170,000 per year. Upon the consummation of the Company's initial public offering, Mr. O'Hara's
salary will be $185,000 per year. Mr. O'Hara will also receive an initial cash bonus of $35,000. Under the agreement, on March
14, 2023, Mr. O'Hara was granted 90,000 shares of restricted stock, which vested as to 45,000 shares on March 29, 2023, and will
vest as to 11,250 shares on March 29, 2024, 937 shares at the end of each of the following 35 calendar months, and 955 shares of common
stock at the end of the 36th calendar month following the anniversary of the grant date, provided that he remains in continuous service
with the Company. Mr. O'Hara will be eligible to participate in standard employee benefits plans. The Amended O'Hara Agreement
contains customary confidentiality requirements. Mr. O'Hara was also required to sign an Employee Confidential Information and
Inventions Assignment Agreement, which prohibits unauthorized use or disclosure of the Company's proprietary information and related
provisions, and contains customary non-competition and non-disparagement provisions during the term of employment and non-solicitation
terms for one year after the end of employment, and which was fully executed and dated as of April 3, 2023. The Amended O'Hara
Agreement supersedes the Original O'Hara Employment Contract.
Under an Executive Employment Agreement with
Richard Symington, dated as of April 5, 2023, the Company agreed to employ Mr. Symington as its President and Chief Marketing Officer.
Mr. Symington's base salary will be $200,000 per year. Mr. Symington may receive any comprehensive benefits plans offered by the
Company, including medical, dental and life insurance options. In addition, pursuant to the agreement, Mr. Symington was granted a stock
option to purchase 100,000 shares of common stock of the Company under the Equity Incentive Plan. One-third (1/3) of the option will
vest on each of the six-month anniversary, the 18-month anniversary, and the 30-month anniversary of the date of the consummation of
the Company's initial public offering, provided that Mr. Symington remains in continuous service with the Company, and will have
an exercise price of $2.50 per share. In addition, during the employment, Mr. Symington will be considered for an additional performance-based
award under the Plan on a quarterly basis within the sole discretion of the board of directors or the Compensation Committee. The agreement
provides that Mr. Symington's employment is on an at-will basis, and may be terminated by the board of directors of the Company
at any time for any or no reason, upon written notice to Mr. Symington.
88
We have also separately entered into an indemnification
agreement with each of our directors and executive officers. Each indemnification agreement provides for indemnification to the fullest
extent permitted by law, including: (i) all expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably
incurred by an executive officer, or on their behalf, in connection with any proceeding other than proceedings by or in the right of
the Company or any claim, issue or matter therein, if the executive officer acted in good faith and in a manner the executive officer
reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal proceeding, had no
reasonable cause to believe the executive officer's conduct was unlawful; (ii) all expenses actually and reasonably incurred by
an executive officer, or on their behalf, in connection with a proceedings by or in the right of the Company if the executive officer
acted in good faith and in a manner the executive officer reasonably believed to be in or not opposed to the best interests of the Company,
provided that if applicable law so provides, no indemnification against such expenses shall be made in respect of any claim, issue or
matter in such proceeding as to which the executive officer shall have been adjudged to be liable to the Company unless and to the extent
that the Court of Chancery of the State of Delaware shall determine that such indemnification may be made; (iii) to the extent that a
executive officer is, by reason of the executive officer's executive officer status, a party to and is successful, on the merits
or otherwise, in any proceeding, including by dismissal of such proceeding with or without prejudice, then the executive officer shall
be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all expenses actually and reasonably
incurred by the executive officer or on the executive officer's behalf in connection therewith; and (iv) all expenses, judgments,
penalties, fines and amounts paid in settlement actually and reasonably incurred by an executive officer or on an executive officer's
behalf if, by reason of the executive officer's status as an executive officer, the executive officer is, or is threatened to be
made, a party to or participant in any proceeding (including a proceeding by or in the right of the Company), including, without limitation,
all liability arising out of the negligence or active or passive wrongdoing of the executive officer, except where the payment is finally
determined (under the procedures, and subject to the presumptions, set forth in the indemnification agreements) to be unlawful. The Company
shall also advance all such expenses incurred by or on behalf of each executive officer in connection with any of the above proceedings
by reason of the executive officer's executive officer status within 30 days after the receipt by the Company of a statement or
statements from the executive officer requesting such advance or advances from time to time, whether prior to or after final disposition
of such proceeding. Such statement or statements shall reasonably evidence the expenses incurred by the executive officer and shall include
or be preceded or accompanied by a written undertaking by or on behalf of the executive officer to repay any expenses advanced if it
shall ultimately be determined that the executive officer is not entitled to be indemnified against such expenses. Any advances and undertakings
to repay shall be unsecured and interest free. The indemnification agreements also provide for payments by the Company for the entire
amount of any judgment or settlement of any action, suit or proceeding in which it is liable or would be liable if joined in such action,
subject to the other terms and provisions of the indemnification agreements, and certain other indemnification and payment obligations.
The indemnification agreements also provide that if we maintain a directors' and officers' liability insurance policy, that
each director and executive officer will be covered by the policy to the maximum extent of the coverage available for any of the Company's
directors or executive officers.
We have obtained standard directors and officers
liability insurance under which coverage is provided (a) to our directors and officers against loss rising from claims made by reason
of breach of duty or other wrongful act, and (b) to us with respect to payments which we may make to such officers and directors
pursuant to the indemnification agreements described above or otherwise as a matter of law.
89
Outstanding Equity Awards at Fiscal Year-End
The executive officers named above had the following
unexercised options, stock that has not vested or equity incentive plan awards outstanding as of December 31, 2022.
Option Awards
Stock Awards
Name
Number of Securities
    Underlying Unexercised Options (#) Exercisable
Number of securities
underlying
unexercised
options
(#) unexercisable
Equity
incentive
plan awards: Number of
securities
underlying
unexercised
unearned
options
(#)
Option
exercise
    price
($)
Option Expiration Date
Number of shares
or units
of stock
that have
not vested
(#)
Market
value of
shares of
units of
stock that
have not
vested
($)
Equity
incentive
plan awards: Number of
unearned
shares, units or
other
rights that
have not
vested
(#)
Equity
incentive
plan awards: Market or payout value of
unearned
shares, units or other rights that have not vested
($)
Daniel D. Nelson, Chief Executive
    Officer
(1)
17,000
18,000
-
$
3.10
September 28, 2032
-
-
-
-
Dennis Gile, former President
    and Chief Executive Officer
(2)
17,000
18,000
-
$
3.10
September 28, 2032
-
-
-
-
David O'Hara, Chief
    Operating Officer
(3)
7,500
22,500
-
$
3.10
September 9, 2032
-
-
-
-
David O'Hara, Chief
    Operating Officer
(4)
7,500
22,500
-
$
3.10
September 28, 2032
-
-
-
-
John Dorsey, former Chief
    Executive Officer
-
-
-
-
-
-
-
-
-
(1)
Daniel D. Nelson was granted options to purchase
                                            a total of 35,000 shares of common stock on September 28, 2022. The options vested as to
                                            11,000 shares in aggregate immediately upon grant. As of December 31, 2022, one of the options
                                            remained subject to vesting as to 18,000 shares, which vest in 6,000-share increments on
                                            a quarterly basis for one year ending September 28, 2023. No other options, shares of stock
                                            or equity incentive plan awards subject to vesting were held by Mr. Nelson on December 31,
                                            2022.
(2)
Dennis Gile was granted options to purchase a total
                                            of 35,000 shares of common stock on September 28, 2022. The options vested as to 11,000 shares
                                            in aggregate immediately upon grant. As of December 31, 2022, one of the options remained
                                            subject to vesting as to 18,000 shares, which vest in 6,000-share increments on a quarterly
                                            basis for one year ending September 28, 2023. No other options, shares of stock or equity
                                            incentive plan awards subject to vesting were held by Mr. Gile on December 31, 2022.
(3)
David O'Hara was granted an option to purchase
                                            30,000 shares of common stock on September 9, 2022. The option vested as to 7,500 shares
                                            immediately upon grant. As of December 31, 2022, the option remained subject to vesting as
                                            to 22,500 shares, of which 5,625 shares vest on September 9, 2023, with the balance vesting
                                            in 36 equal monthly increments of approximately 468 shares each (subject to rounding adjustments).
                                            Other than as described in the following footnote, no other options, shares of stock or equity
                                            incentive plan awards subject to vesting were held by Mr. O'Hara on December 31, 2022.
(4)
David O'Hara was granted an option to purchase
                                            30,000 shares of common stock on September 28, 2022. The option vested as to 7,500 shares
                                            immediately upon grant. As of December 31, 2022, the option remained subject to vesting as
                                            to 22,500 shares, of which 5,625 shares vest on September 28, 2023, with the balance vesting
                                            in 36 equal monthly increments of approximately 468 shares each (subject to rounding adjustments).
                                            Other than as described in the preceding footnote, no other options, shares of stock or equity
                                            incentive plan awards subject to vesting were held by Mr. O'Hara on December 31, 2022.
90
Additional Narrative to Named Executive Officer Compensation
Retirement Benefits
We have not maintained, and do not currently
maintain, a defined benefit pension plan, nonqualified deferred compensation plan or other retirement benefits.
Potential Payments Upon Termination or
Change in Control
None of our named executive officers was entitled
to severance compensation during the fiscal year ended December 31, 2022, except as described below.
Under the Settlement Agreement with Dennis Gile,
a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, dated as of May 12, 2022, we and Mr. Gile
agreed, among other things, to a general release and discharge of claims against us, our officers and directors, certain other affiliates
and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to
Mr. Gile's direct or indirect ownership of shares of SDS Inc. – DE's capital stock, or Mr. Gile's direct or indirect
ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
that nothing in the Settlement Agreement was intended to release any rights that any party or Mr. Gile may have under the terms of that
certain Severance General Waiver and Release Agreement between Mr. Gile and the Company, dated March 22, 2022, including the releases
of any and all claims against the Company and certain related parties as contained therein, Mr. Gile's agreement to be terminated
effective on January 1, 2022 and receive a severance payment of $53,500 pursuant to Section 1 of the Severance Agreement, paid in March
2022, all of which terms were to remain in force notwithstanding the provisions of the Settlement Agreement. Further, Mr. Gile irrevocably,
unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions,
payments, or other amounts that Mr. Gile believed should have been paid or were owed to Mr. Gile by SDS LLC – AZ, SDS LLC –
DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding regarding
the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF
LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Mr. Gile owned 2,816,377 shares of common stock pursuant to the Settlement Agreement. Mr. Gile also
irrevocably covenanted that he would not sue us or the other released parties in respect of any of the matters released and discharged.
Under the terms of the Repurchase Agreement,
on March 31, 2023, we paid an aggregate purchase price of $800,000 for 600,000 shares of common stock formerly held by Dennis Gile, a
former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, at approximately $1.33 per share. Pursuant
to the Repurchase Agreement, the Dorsey/Gile Settlement Payment was made to John Dorsey as part of the settlement of the Dorsey/Gile
Lawsuit under the Dorsey/Gile Settlement Agreement. Pursuant to the Repurchase Agreement, the balance of the aggregate purchase price
was paid to the attorneys for Mr. Gile. Pursuant to the Repurchase Agreement, Mr. Gile agreed to resign his position as Chairman and
every other director and officer position he held with the Company effective as of March 21, 2023. Prior to such date, on March 20, 2023,
Mr. Gile delivered notice of resignation from such positions, which stated that it was effective March 19, 2023. Pursuant to the Repurchase
Agreement, Mr. Gile will not receive any severance payments in connection with any other agreement with the Company as a result of his
resignation. The Repurchase was also conditioned on the Company's prior review of and consent to the Dorsey/Gile Settlement Agreement
prior to its execution, and receipt of the CFO Certificate. Under the Repurchase Agreement, the Dorsey/Gile Settlement Agreement was
required to fully resolve, settle and dismiss the Gile/Dorsey Lawsuit and contain a general release of claims by all the plaintiffs in
the Dorsey/Gile Lawsuit in favor of Mr. Gile, the Company, the Company's affiliates, stockholders, and certain other Company releasees.
Under the Repurchase Agreement, Mr. Gile agreed to indemnify the Company for claims arising out of based upon the Repurchase Agreement.
Pursuant to the Repurchase Agreement, a copy of the Dorsey/Gile Settlement Agreement was reviewed and consented to by the Company and
entered into as of March 20, 2023. Under the Dorsey/Gile Settlement Agreement, between Mr. Gile, Mr. Dorsey, and Dorsey LLC, Mr. Gile
agreed to pay the Dorsey/Gile Settlement Payment, transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile, Mr. Dorsey and Dorsey
LLC agreed to mutual releases of all claims relating to the Dorsey/Gile Lawsuit and to dismiss the Dorsey/Gile Lawsuit. Although the
Dorsey/Gile Settlement Agreement did not contain a release of the Company and did not contain releases by the plaintiffs of Mr. Gile
other than with respect to the Lawsuit, the Company waived any related requirements under the Repurchase Agreement in light of the expected
execution of the Mutual Release Agreement. The CFO Certificate was received as of March 21, 2023. The repurchased shares were cancelled
as of March 31, 2023. The transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023, after waiver of the board of
directors of the repurchase rights and purchase rights provided for under the Shareholder Agreement by resolutions adopted on March 24,
2023.
91
Director Compensation
The directors of the Company during the fiscal
year ended December 31, 2022 were compensated for services as directors as follows:
Fees
Earned or
Paid
Stock
Option
Non-Equity
Incentive
Plan
Nonqualified
Deferred
Compensation
All Other
Name
in Cash
Awards
Awards
Compensation
Earnings
Compensation
Total
Clayton Adams
(1)
$
-
$
-
$
93,000
$
-
$
-
$
-
$
93,000
Glen Kim
(2)
$
-
$
-
$
15,500
$
-
$
-
$
-
$
15,500
Martin Lanphere
(3)
$
-
$
-
$
83,700
$
-
$
-
$
-
$
83,700
Roger Mason Jr.
(4)
$
-
$
-
$
74,400
$
-
$
-
$
-
$
74,400
Noah (Jed) Smith
(5)
$
-
$
-
$
15,500
$
-
$
-
$
-
$
15,500
(1)
Clayton Adams was a director of the Company from
                                            July 2022 to April 2023. Mr. Adams was granted options to purchase a total of 30,000 shares
                                            of common stock on September 28, 2022. The options may be exercised at $3.10 per share. The
                                            aggregate grant date fair value was computed in accordance with FASB ASC Topic 718 based
                                            on the assumptions described in footnotes 1 and 12 to the Company's financial statements
                                            included with this prospectus. The options vested as to 10,000 shares in aggregate immediately
                                            upon grant. As of December 31, 2022, one of the options remained subject to vesting as to
                                            15,000 shares, in 5,000-share increments on a quarterly basis for one year ending September
                                            28, 2023. No other options, shares of stock or equity incentive plan awards subject to vesting
                                            were held by Mr. Adams on December 31, 2022.
(2)
Glen Kim was granted an option to purchase 5,000
                                            shares of common stock on September 28, 2022. The option may be exercised at $3.10 per share.
                                            The aggregate grant date fair value was computed in accordance with FASB ASC Topic 718 based
                                            on the assumptions described in footnotes 1 and 12 to the Company's financial statements
                                            included with this prospectus. The option vested immediately upon grant. No other options,
                                            shares of stock or equity incentive plan awards subject to vesting were held by Mr. Kim on
                                            December 31, 2022.
(3)
Martin Lanphere was granted an option to purchase
                                            27,000 shares of common stock on September 28, 2022. The option may be exercised at $3.10
                                            per share. The aggregate grant date fair value was computed in accordance with FASB ASC Topic
                                            718 based on the assumptions described in footnotes 1 and 12 to the Company's financial
                                            statements included with this prospectus. The option remains subject to vesting as to 16,200
                                            shares as of December 31, 2022, which vest in 5,400-share increments on each subsequent quarter
                                            following September 28, 2022. No other options, shares of stock or equity incentive plan
                                            awards subject to vesting were held by Mr. Lanphere on December 31, 2022.
(4)
Roger Mason Jr. was granted an option to purchase
                                            24,000 shares of common stock on September 9, 2022. The option may be exercised at $3.10
                                            per share. The aggregate grant date fair value was computed in accordance with FASB ASC Topic
                                            718 based on the assumptions described in footnotes 1 and 12 to the Company's financial
                                            statements included with this prospectus. The option remains subject to vesting as to 22,000
                                            shares as of December 31, 2022, which vest in 2,000-share increments over three years on
                                            each subsequent 9th of March, June, September, and December. No other options, shares of
                                            stock or equity incentive plan awards subject to vesting were held by Mr. Mason on December
                                            31, 2022.
(5)
Noah (Jed) Smith was a director of the Company from
                                            July 2022 to April 2023. Mr. Smith was granted an option to purchase 5,000 shares of common
                                            stock on September 28, 2022. The option may be exercised at $3.10 per share. The aggregate
                                            grant date fair value was computed in accordance with FASB ASC Topic 718 based on the assumptions
                                            described in footnotes 1 and 12 to the Company's financial statements included with
                                            this prospectus. The option vested immediately upon grant. No other options, shares of stock
                                            or equity incentive plan awards subject to vesting were held by Mr. Smith on December 31,
                                            2022.
92
Additional Narrative to Director Compensation
Each of the Company's independent directors,
Roger Mason Jr., Glen Kim, Greg Economou, and Martin Lanphere, has entered into an independent director agreement. In accordance with
their independent director agreements, we have granted equity awards to each independent director. During 2022, an option to purchase
24,000 shares of common stock was awarded to Mr. Mason, an option to purchase 5,000 shares of common stock was awarded to Mr. Kim, and
an option to purchase 27,000 shares of common stock was awarded to Mr. Lanphere, each at a price $3.10 per share. A portion of Mr. Mason
and Mr. Lanphere's options are subject to certain vesting conditions. In addition, during 2022, we granted an option to purchase
30,000 shares of common stock to former director Clayton Adams and an option to purchase 5,000 shares of common stock to former director
Noah (Jed) Smith. A portion of Mr. Adams' option was subject to certain vesting conditions and terminated as to such portion at
the time of Mr. Adams' resignation. We will also reimburse each independent director for pre-approved reasonable business-related
expenses incurred in good faith in connection with the performance of the independent director's duties for us.
In accordance with our independent director agreements,
we have separately entered into an indemnification agreement with each of our current independent directors. Each indemnification agreement
provides for indemnification to the fullest extent permitted by law, including: (i) all expenses, judgments, penalties, fines and amounts
paid in settlement actually and reasonably incurred by a director, or on their behalf, in connection with any proceeding other than proceedings
by or in the right of the Company or any claim, issue or matter therein, if the director acted in good faith and in a manner the director
reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal proceeding, had no
reasonable cause to believe the director's conduct was unlawful; (ii) all expenses actually and reasonably incurred by a director,
or on their behalf, in connection with a proceedings by or in the right of the Company if the director acted in good faith and in a manner
the director reasonably believed to be in or not opposed to the best interests of the Company, provided that if applicable law so provides,
no indemnification against such expenses shall be made in respect of any claim, issue or matter in such proceeding as to which the director
shall have been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware shall
determine that such indemnification may be made; (iii) to the extent that a director is, by reason of the director's director status,
a party to and is successful, on the merits or otherwise, in any proceeding, including by dismissal of such proceeding with or without
prejudice, then the director shall be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against
all expenses actually and reasonably incurred by the director or on the director's behalf in connection therewith; and (iv) all
expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by a director or on a director's
behalf if, by reason of the director's status as a director, the director is, or is threatened to be made, a party to or participant
in any proceeding (including a proceeding by or in the right of the Company), including, without limitation, all liability arising out
of the negligence or active or passive wrongdoing of the director, except where the payment is finally determined (under the procedures,
and subject to the presumptions, set forth in the indemnification agreements) to be unlawful. The Company shall also advance all such
expenses incurred by or on behalf of each director in connection with any of the above proceedings by reason of the director's
director status within 30 days after the receipt by the Company of a statement or statements from the director requesting such advance
or advances from time to time, whether prior to or after final disposition of such proceeding. Such statement or statements shall reasonably
evidence the expenses incurred by the director and shall include or be preceded or accompanied by a written undertaking by or on behalf
of the director to repay any expenses advanced if it shall ultimately be determined that the director is not entitled to be indemnified
against such expenses. Any advances and undertakings to repay shall be unsecured and interest free. The indemnification agreements also
provide for payments by the Company for the entire amount of any judgment or settlement of any action, suit or proceeding in which it
is liable or would be liable if joined in such action, subject to the other terms and provisions of the indemnification agreements, and
certain other indemnification and payment obligations. The indemnification agreements also provide that if we maintain a directors'
and officers' liability insurance policy, that each director and executive officer will be covered by the policy to the maximum
extent of the coverage available for any of the Company's directors or executive officers.
Directors and Officers Liability Insurance
We have obtained standard directors and officers
liability insurance under which coverage is provided (a) to our directors and officers against loss rising from claims made by reason
of breach of duty or other wrongful act, and (b) to us with respect to payments which we may make to such officers and directors
pursuant to the indemnification agreements described above or otherwise as a matter of law.
93
2022 Equity Incentive Plan
On August 31, 2022, we established the Signing
Day Sports, Inc. 2022 Equity Incentive Plan. The Plan was established to advance our interests and the interests of our stockholders
by providing an incentive to attract, retain and reward persons performing services for us and by motivating such persons to contribute
to our growth and profitability. Under the Plan, we may grant restricted stock, stock options and other forms of incentive compensation
to our officers, employees, directors and consultants. The maximum number of shares of common stock that may be issued pursuant to awards
granted under the Plan is 750,000 shares. Cancelled and forfeited stock options and stock awards may again become available for grant
under the Plan. As of the date of this prospectus, 139,550 shares remain available for issuance under the Plan. The Plan and all awards
granted under the Plan are intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum
extent permitted, the Plan and all awards agreements shall be interpreted and administered to be in compliance therewith.
The following summary briefly describes the principal
features of the Plan and is qualified in its entirety by reference to the full text of the Plan.
Awards that may be granted include: (a) Incentive
Stock Options, (b) Non-qualified Stock Options, (c) Stock Appreciation Rights, (d) Restricted Awards, (e) Performance
Share Awards, and (f) Performance Compensation Awards. These awards offer our officers, employees, consultants and directors the
possibility of future value, depending on the long-term price appreciation of our common stock and the award holder's continuing
service with our company.
Stock options give the option holder the right
to acquire from us a designated number of shares of common stock at a purchase price that is fixed upon the grant of the option. The
exercise price generally will not be less than the market price of the common stock on the date of grant. Stock options granted may be
either incentive stock options or non-statutory stock options.
Stock appreciation rights, or SARs, may be granted
alone or in tandem with options, and have an economic value similar to that of options. When a SAR for a particular number of shares
is exercised, the holder receives a payment equal to the difference between the fair market value of the shares on the date of exercise
and the exercise price of the shares under the SAR. The exercise price for SARs is normally the market price of the shares on the date
the SAR is granted. Under the Plan, holders of SARs may receive this payment — the appreciation value — either
in cash or shares of common stock valued at the fair market value on the date of exercise. The form of payment will be determined by
the administrator.
Restricted awards are awards of shares of common
stock or rights to shares of common stock to participants at no cost. Restricted stock awards represent issued and outstanding shares
of common stock which may be subject to vesting criteria under the terms of the award within the discretion of the administrator. Restricted
stock units represent the right to receive shares of common stock which may be subject to satisfaction of vesting criteria under the
terms of the award within the discretion of the administrator. Restricted stock and the rights under restricted stock units are forfeitable
and non-transferable until they vest. The vesting date or dates and other conditions for vesting are established when the shares
are awarded.
The Plan also provides for performance compensation
awards, representing the right to receive a payment, which may be in the form of cash, shares of common stock, or a combination, based
on the attainment of pre-established goals.
All of the permissible types of awards under
the Plan are described in more detail as follows:
Purposes of Plan:
The
purposes of the Plan are (a) to enable the Company and any affiliate company to attract and retain the types of employees, consultants
and directors who will contribute to the Company's long-term success; (b) provide incentives that align the interests of employees,
consultants and directors with those of the stockholders of the Company; and (c) promote the success of the Company's business.
Administration of the Plan:
The
Plan is currently administered by our board of directors and will be administered by the Compensation Committee effective the date of
this prospectus. In this summary, we refer to the board of directors or the Compensation Committee, as applicable, as the administrator.
Among other things, the administrator has the authority to select persons who will receive awards, determine the types of awards and
the number of shares to be covered by awards, and to establish the terms, conditions, performance criteria, restrictions and other provisions
of awards. The administrator has authority to establish, amend and rescind rules and regulations relating to the Plan.
Eligible Recipients:
Persons
eligible to receive awards under the Plan are employees (including officers or directors who are also treated as employees); consultants,
i.e., persons engaged to provide consulting or advisory services to the Company; and directors.
94
Shares Available Under the Plan:
The
maximum number of shares of our common stock that may be delivered to participants under the Plan is 750,000, subject to adjustment for
certain corporate changes affecting the shares, such as stock splits. Shares subject to an award under the Plan which is canceled, forfeited
or expires again become available for grants under the Plan.
Stock Options:
General.
Subject to the provisions
of the Plan, the administrator has the authority to determine all grants of stock options. That determination will include: (i) the
number of shares subject to any option; (ii) the exercise price per share; (iii) the expiration date of the option; (iv) the
manner, time and date of permitted exercise; (v) other restrictions, if any, on the option or the shares underlying the option;
and (vi) any other terms and conditions as the administrator may determine.
Option Price
. The exercise price for stock
options will be determined at the time of grant. Normally, the exercise price will not be less than the fair market value on the date
of grant. As a matter of tax law, the exercise price for any incentive stock option awarded may not be less than the fair market value
of the shares on the date of grant. However, incentive stock option grants to any person owning more than 10% of our voting stock must
have an exercise price of not less than 110% of the fair market value on the grant date.
Exercise of Options.
An option may be
exercised only in accordance with the terms and conditions of the option agreement as established by the administrator at the time of
the grant. The option must be exercised by notice to us, accompanied by payment of the exercise price. Payments may be made in cash or,
at the option of the administrator, by actual or constructive delivery of shares of common stock based upon the fair market value of
the shares on the date of exercise.
Expiration or Termination.
Options, if
not previously exercised, will expire on the expiration date established by the administrator at the time of grant. In the case of incentive
stock options, such term cannot exceed ten years provided that in the case of holders of more than 10% of our voting stock, such term
cannot exceed five years. Options will terminate before their expiration date if the holder's service with the Company or an affiliate
company terminates before the expiration date. The option may remain exercisable for specified periods after certain terminations of
employment, including terminations as a result of death, disability or retirement, with the precise period during which the option may
be exercised to be established by the administrator and reflected in the grant evidencing the award.
Incentive and Non-Statutory Options.
As
described elsewhere in this summary, an incentive stock option is an option that is intended to qualify under certain provisions of the
Code for more favorable tax treatment than applies to non-statutory stock options. Only employees may be granted incentive stock
options. Any option that does not qualify as an incentive stock option will be a non-statutory stock option. Under the Code, certain
restrictions apply to incentive stock options. For example, the exercise price for incentive stock options may not be less than the fair
market value of the shares on the grant date and the term of the option may not exceed ten years. In addition, an incentive stock option
may not be transferred, other than by will or the laws of descent and distribution, and is exercisable during the holder's lifetime
only by the holder. In addition, no incentive stock options may be granted to a holder that is first exercisable in a single year if
that option, together with all incentive stock options previously granted to the holder that also first become exercisable in that year,
relate to shares having an aggregate market value in excess of $100,000, measured at the grant date.
Stock Appreciation Rights:
Awards
of SARs may be granted alone or in tandem with stock options. SARs provide the holder with the right, upon exercise, to receive a payment,
in cash or shares of stock, having a value equal to the excess of the fair market value on the exercise date of the shares covered by
the award over the exercise price of those shares. Essentially, a holder of a SAR benefits when the market price of the common stock
increases, to the same extent that the holder of an option does, but, unlike an option holder, the SAR holder need not pay an exercise
price upon exercise of the award.
Restricted Stock Awards
. A restricted
stock award is a grant of shares of common stock. These awards may be subject to such vesting conditions, restrictions and contingencies
as the administrator shall determine at the date of grant. Those may include requirements for continuous service and/or the achievement
of specified performance goals. Restricted stock is forfeitable and generally non-transferable until it vests. The vesting date
or dates and other conditions for vesting are established when the shares are awarded. The administrator may remove any vesting or other
restrictions from restricted stock whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances
arising after the date of grant, such action is appropriate. Holders of restricted stock otherwise generally have the rights of stockholders
of the Company, including voting and dividend rights, to the same extent as other stockholders of the Company.
95
Restricted Stock Units
. A
restricted stock unit is a right to receive stock on a future date, at which time the restricted stock unit will be settled and the stock
to which it granted rights will be issued to the restricted stock unit holder.  These awards may be subject to such vesting conditions,
restrictions and contingencies as the administrator shall determine at the date of grant. Restricted stock units are forfeitable and
generally non-transferable until they vest. The administrator may remove any vesting or other restrictions from a restricted stock
unit whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date
of grant, such action is appropriate. A restricted stock unit holder has no rights as a stockholder. The administrator may exercise discretion
to credit a restricted stock unit with cash and stock dividends, with or without interest, and distribute such credited amounts upon
settlement of a restricted stock unit, and if the restricted stock unit is forfeited, such dividend equivalents will also be forfeited.
Performance Share Awards and Performance
Compensation Awards:
The administrator may grant performance share awards and performance compensation
awards. A performance share means the grant of a right to receive a number of actual shares of common stock or share units based upon
the performance of the Company during a performance period, as determined by the administrator. The administrator may determine the number
of shares subject to the performance share award, the performance period, the conditions to be satisfied to warn an award, and the other
terms, conditions and restrictions of the award. No payout of a performance share award will be made except upon written certification
by the administrator that the minimum threshold performance goal(s) have been achieved.
The administrator may also designate any of the
other awards described above as a performance compensation award (other than stock options and SARs granted with an exercise price equal
to or greater than the fair market value per share of common stock on the grant date). In addition, the administrator shall have the
authority to make an award of a cash bonus to any participant and designate such award as a performance compensation award. The participant
must be employed by the Company on the last day of the performance period to be eligible for payment in respect of a performance compensation
award unless otherwise provided in the applicable award agreement. A performance compensation award will be paid only to the extent that
the administrator certifies in writing whether and the extent to which the applicable performance goals for the performance period have
been achieved and the applicable performance formula determines that the performance compensation award has been earned. A performance
formula means, for a performance period, the one or more objective formulas applied against the relevant performance goal to determine,
with regard to the performance compensation award of a particular participant, whether all, some portion but less than all, or none of
the performance compensation award has been earned for the performance period. The administrator will not have the discretion to grant
or provide payment in respect of a performance compensation award for a performance period if the performance goals for such performance
period have not been attained.
The administrator will establish performance
goals for each performance compensation award based upon the performance criteria that it has selected. The performance criteria shall
be based on the attainment of specific levels of performance of the Company and may include the following: (a) net earnings or net income
(before or after taxes); (b) basic or diluted earnings per share (before or after taxes); (c) net revenue or net revenue growth; (d)
gross revenue; (e) gross profit or gross profit growth; (f) net operating profit (before or after taxes); (g) return on assets, capital,
invested capital, equity, or sales; (h) cash flow (including, but not limited to, operating cash flow, free cash flow, and cash flow
return on capital); (i) earnings before or after taxes, interest, depreciation and/or amortization; (j) gross or operating margins; (k)
improvements in capital structure; (l) budget and expense management; (m) productivity ratios; (n) economic value added or other value
added measurements; (o) share price (including, but not limited to, growth measures and total stockholder return); (p) expense targets;
(q) margins; (r) operating efficiency; (s) working capital targets; (t) enterprise value; (u) safety record; (v) completion of acquisitions
or business expansion; (w) achieving research and development goals and milestones; (x) achieving product commercialization goals; and
(y) other criteria as may be set by the administrator from time to time.
The administrator will also determine the performance
period for the achievement of the performance goals under a performance compensation award. At any time during the first 90 days of a
performance period (or such longer or shorter time period as the administrator shall determine) or at any time thereafter, in its sole
and absolute discretion, to adjust or modify the calculation of a performance goal for such performance period in order to prevent the
dilution or enlargement of the rights of participants based on the following events: (a) asset write-downs; (b) litigation or claim judgments
or settlements; (c) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results;
(d) any reorganization and restructuring programs; (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion
No. 30 (or any successor or pronouncement thereto) and/or in management's discussion and analysis of financial condition and results
of operations appearing in the Company's annual report to stockholders for the applicable year; (f) acquisitions or divestitures;
(g) any other specific unusual or nonrecurring events, or objectively determinable category thereof; (h) foreign exchange gains and losses;
and (i) a change in the Company's fiscal year.
96
Any one or more of the performance criteria may
be used on an absolute or relative basis to measure the performance of our company, as the administrator may deem appropriate, or as
compared to the performance of a group of comparable companies, or published or special index that the administrator deems appropriate.
In determining the actual size of an individual
performance compensation award, the administrator may reduce or eliminate the amount of the award through the use of negative discretion
if, in its sole judgment, such reduction or elimination is appropriate. The administrator shall not have the discretion to (i) grant
or provide payment in respect of performance compensation awards if the performance goals have not been attained or (ii) increase
a performance compensation award above the maximum amount payable under the Plan.
Other Material Provisions:
Awards
will be evidenced by a written agreement, in such form as may be approved by the administrator. In the event of various changes to the
capitalization of our company, such as stock splits, stock dividends and similar re-capitalizations, an appropriate adjustment will be
made by the administrator to the number of shares covered by outstanding awards or to the exercise price of such awards.
The
administrator generally has the power to accelerate the exercise or vesting period of an award. The administrator is also permitted to
include in the written agreement provisions that provide for certain changes in the award in the event of a change of control of our
company, including acceleration of vesting or payment of the value of the award in cash or stock. Except as otherwise determined by the
administrator at the date of grant, awards will generally not be transferable, other than by will or the laws of descent and distribution.
Prior to any award distribution, to the extent provided by the terms of an award agreement and subject to the discretion of the administrator,
a participant may satisfy any employee withholding tax requirements relating to the exercise or acquisition of common stock under an
award by tendering a cash payment authorizing the Company to withhold shares of common stock otherwise issuable to the participant as
a result of the exercise or acquisition of common stock under the award (in addition to the Company's right to withhold from any
compensation paid to the participant by the Company). Our board has the authority, at any time, to discontinue the granting of awards.
The board also has the authority to alter or amend the Plan or any outstanding award or may terminate the Plan as to further grants,
provided that no amendment to the Plan will be made, without the approval of our stockholders, to the extent that such approval is required
by law or the rules of an applicable securities exchange, or such alteration or amendment would change the number of shares available
under the Plan or change the persons eligible for awards under the Plan. No amendment to an outstanding award made under the Plan that
would adversely affect the award may be made without the consent of the holder of such award.
97
CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Transactions with Related Persons
The following includes a summary of transactions
since the beginning of our fiscal year ended December 31, 2020, or any currently proposed transaction, in which we were or are to be
a participant and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of our total assets at
year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest
(other than compensation described under "
Executive Compensation
" above). We believe the terms obtained or consideration
that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the
amounts that would be paid or received, as applicable, in arm's-length transactions.
●
On April 10, 2023, the Company issued
                                            Richard Symington, our President and Chief Marketing Officer and a director, an 8% unsecured
                                            promissory note in the amount of $250,000 and a warrant to purchase 100,000 shares of common
                                            stock at an exercise price of $2.50 per share in a private placement. The promissory note
                                            bears interest at 8% annually and will mature on the earlier to occur of March 17, 2025 or
                                            a Liquidity Event. If a Liquidity Event occurs before March 17, 2025, the warrant will be
                                            automatically exercised as to the unexercised portion of the warrant, the outstanding balance
                                            due under the 8% unsecured promissory note will be deemed repaid in the amount of the unexercised
                                            portion of the warrant from the automatic exercise of the unexercised portion of the warrant,
                                            and any remaining balance outstanding under the promissory note must be repaid in cash. If
                                            a Liquidity Event does not occur before March 17, 2025, then both principal and interest
                                            outstanding under the note must be repaid in cash. The warrant may be voluntarily exercised
                                            for cash prior to the maturity date of the promissory note or, as indicated above, will be
                                            automatically exercised for shares of common stock upon the consummation of a Liquidity Event.
                                            The warrant has a five-year term. Mr. Symington also entered into a subscription agreement
                                            which provided certain registration rights with respect to the shares underlying the warrant.
●
Under the terms of the Repurchase Agreement,
                                            on March 31, 2023, we paid an aggregate purchase price of $800,000 for 600,000 shares of
                                            common stock formerly held by Dennis Gile, our largest stockholder and a former Chief Executive
                                            Officer, President, Secretary, Chairman, and director of the Company, at approximately $1.33
                                            per share. Pursuant to the Repurchase Agreement, the Dorsey/Gile Settlement Payment was made
                                            to John Dorsey as part of the settlement of the Dorsey/Gile Lawsuit under the Dorsey/Gile
                                            Settlement Agreement. Pursuant to the Repurchase Agreement, the balance of the aggregate
                                            purchase price was paid to the attorneys for Mr. Gile. Pursuant to the Repurchase Agreement,
                                            Mr. Gile agreed to resign his position as Chairman and every other director and officer position
                                            he held with the Company effective as of March 21, 2023. Prior to such date, on March 20,
                                            2023, Mr. Gile delivered notice of resignation from such positions, which stated that it
                                            was effective March 19, 2023. Pursuant to the Repurchase Agreement, Mr. Gile will not receive
                                            any severance payments in connection with any other agreement with the Company as a result
                                            of his resignation. The Repurchase was also conditioned on the Company's prior review
                                            of and consent to the Dorsey/Gile Settlement Agreement prior to its execution, and receipt
                                            of the CFO Certificate. Under the Repurchase Agreement, the Dorsey/Gile Settlement Agreement
                                            was required to fully resolve, settle and dismiss the Gile/Dorsey Lawsuit and contain a general
                                            release of claims by all the plaintiffs in the Dorsey/Gile Lawsuit in favor of Mr. Gile,
                                            the Company, the Company's affiliates, stockholders, and certain other Company releasees.
                                            Under the Repurchase Agreement, Mr. Gile agreed to indemnify the Company for claims arising
                                            out of based upon the Repurchase Agreement. Pursuant to the Repurchase Agreement, a copy
                                            of the Dorsey/Gile Settlement Agreement was reviewed and consented to by the Company and
                                            entered into as of March 20, 2023. Under the Dorsey/Gile Settlement Agreement, between Mr.
                                            Gile, Mr. Dorsey, and Dorsey LLC, Mr. Gile agreed to pay the Dorsey/Gile Settlement Payment,
                                            transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile, Mr. Dorsey and Dorsey LLC
                                            agreed to mutual releases of all claims relating to the Dorsey/Gile Lawsuit and to dismiss
                                            the Dorsey/Gile Lawsuit. Although the Dorsey/Gile Settlement Agreement did not contain a
                                            release of the Company and did not contain releases by the plaintiffs of Mr. Gile other than
                                            with respect to the Lawsuit, the Company waived any related requirements under the Repurchase
                                            Agreement in light of the expected execution of the Mutual Release Agreement. The CFO Certificate
                                            was received as of March 21, 2023. The repurchased shares were cancelled as of March 31,
                                            2023. The transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023,
                                            after waiver of the board of directors of the repurchase rights and purchase rights provided
                                            for under the Shareholder Agreement by resolutions adopted on March 24, 2023.
●
Under the Mutual Release Agreement, as
                                            of March 29, 2023, Mr. Dorsey agreed to a general release of claims against and covenant
                                            not to sue the Company, the Company's affiliates, stockholders, and certain other Company
                                            releasees, and the Company agreed to a general release of claims against and covenant not
                                            to sue Mr. Dorsey, Mr. Dorsey's affiliates, and certain other releasees, subject to
                                            payment of the Dorsey/Gile Settlement Payment, which, as indicated above, was made on March
                                            31, 2023. The releases of claims and covenants not to sue under the Mutual Release Agreement
                                            do not apply to breach of the Dorsey/Gile Settlement Agreement or to the January 2023 Dorsey
                                            Settlement Agreement.
98
●
Under our Settlement Agreement with Dennis
                                            Gile, our largest stockholder and a former Chief Executive Officer, President, Secretary,
                                            Chairman, and director of the Company, dated as of May 12, 2022, the parties agreed, among
                                            other things, to a general release and discharge of claims against us, our officers and directors,
                                            certain other affiliates and related parties, and our stockholders as listed on an exhibit
                                            to the agreement, including without limitation, claims relating to Mr. Gile's direct
                                            or indirect ownership of shares of SDS Inc. – DE's capital stock, or Mr. Gile's
                                            direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC –
                                            DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
                                            Agreement was intended to release any rights that any party or Mr. Gile may have under the
                                            terms of that certain Severance General Waiver and Release Agreement between Mr. Gile and
                                            the Company, dated March 22, 2022, including the releases of any and all claims against the
                                            Company and certain related parties as contained therein, Mr. Gile's agreement to be
                                            terminated effective on January 1, 2022 and receive a severance payment of $53,500 pursuant
                                            to Section 1 of the Severance Agreement, paid in March 2022, all of which terms were to remain
                                            in force notwithstanding the provisions of the Settlement Agreement. Further, Mr. Gile irrevocably,
                                            unconditionally, voluntarily, knowingly, fully, finally, and completely forever released
                                            and waived their rights to any claim, distributions, payments, or other amounts that Mr.
                                            Gile believed should have been paid or were owed to Mr. Gile by SDS LLC – AZ, SDS LLC
                                            – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order
                                            to make sure there was a clear understanding regarding the capitalization of SDS Inc. –
                                            DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
                                            to forever release and waive any claims that they may have had with respect to ownership
                                            interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. –
                                            DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not
                                            own any interests in SDS Inc. – DE beyond that set forth on the capitalization table
                                            attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr.
                                            Gile owned 2,816,377 shares of common stock pursuant to the Settlement Agreement. Mr. Gile
                                            also irrevocably covenanted that he would not sue us or the other released parties in respect
                                            of any of the matters released and discharged. Notwithstanding the Severance Agreement referenced
                                            above, Mr. Gile has not had a written employment agreement with the Company, has not been
                                            terminated, and has not received a salary since 2021, but has continued to receive standard
                                            employee benefits on a monthly basis.
●
Under our Settlement Agreement with Dorsey
                                            LLC, John Dorsey, in his individual capacity, and who was formerly Chief Executive Officer
                                            and a director of the Company, and his spouse, Elena Dorsey, to the extent of such spouse's
                                            community property interest, if any (together, "Dorsey"), dated as of April 25,
                                            2022, the parties agreed, among other things, (1) that Dorsey had held 959,940 shares of
                                            SDS Inc. – DE's common stock at that time, (2) that prior to the anticipated
                                            redomestication of SDS LLC – AZ to Delaware as a Delaware limited liability company
                                            and conversion to a Delaware corporation, Dorsey was a member of SDS LLC – AZ and was
                                            a party to SDS LLC – AZ's Fourth Amended Limited Liability Company Operating
                                            Agreement dated July 16, 2021 (the "SDS LLC – AZ Operating Agreement"),
                                            (3) that the SDS LLC – AZ Operating Agreement provided Dorsey, among other things,
                                            certain anti-dilution protections whereby SDS LLC – AZ would have been required to
                                            issue additional equity to Dorsey if SDS LLC – AZ were to have issued additional equity
                                            which would have the effect of reducing Dorsey's ownership below 11% of SDS LLC –
                                            AZ's outstanding equity (the "Dorsey Anti-Dilution Provision"), (4) that
                                            on April 25, 2022, Dorsey LLC would receive a total of 350,000 shares of common stock of
                                            SDS Inc. – DE in exchange for Dorsey's cancellation, waiver, and release of all
                                            of Dorsey's rights under the Dorsey Anti-Dilution Provision in the SDS LLC –
                                            AZ Operating Agreement, (5) to a general release and discharge of claims against us, our
                                            officers and directors, certain other affiliates and related parties, and our stockholders
                                            as listed on an exhibit to the agreement, including without limitation, claims relating to
                                            the Dorsey Anti-Dilution Provision, Dorsey's direct or indirect ownership of shares
                                            of SDS Inc. – DE's capital stock, or Dorsey's direct or indirect ownership
                                            of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC,
                                            as applicable, provided, however, that nothing in the Settlement Agreement was intended to
                                            release any rights that any party or Dorsey may have under the terms of that certain Offer
                                            of Employment between John Dorsey and SDS LLC – AZ, dated January 13, 2022, or that
                                            certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of
                                            the date of this prospectus, the Company has no agreements with Dorsey otherwise relating
                                            to, and has not issued to Dorsey, any simple agreement for future equity or convertible note.
                                            Further, Dorsey irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and
                                            completely forever released and waived their rights to any claim, distributions, payments,
                                            or other amounts that Dorsey believed should have been paid or were owed to Dorsey by SDS
                                            LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party
                                            also agreed, in order to make sure there was a clear understanding regarding the capitalization
                                            of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
                                            and completely to forever release and waive any claims that they may have had with respect
                                            to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or
                                            SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he,
                                            she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the
                                            capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
                                            agreed that Dorsey LLC owned 1,309,940 shares of common stock pursuant to the Settlement
                                            Agreement. Dorsey also irrevocably covenanted that they would not sue us or the other released
                                            parties in respect of any of the matters released and discharged. Mr. Dorsey is deemed to
                                            beneficially own the shares of common stock owned by Dorsey LLC and has sole voting and dispositive
                                            powers over its shares.
99
●
On or about November 29, 2022, John Dorsey,
                                            a former Chief Executive Officer and director of the Company, through his counsel, sent the
                                            Company a letter demanding full payment on the Alleged Loan in connection with the Loan Dispute.
                                            Under the January 2023 Dorsey Settlement Agreement, Mr. Dorsey agreed to a discharge of the
                                            Alleged Loan and waiver and release of claims relating to the Alleged Loan and Loan Dispute
                                            and covenant not to sue on the basis of such claims or otherwise commence any action or proceeding
                                            that would be inconsistent with the release of such claims. The Company agreed to pay Mr.
                                            Dorsey $10,000 and issue a promissory note to Mr. Dorsey in the principal amount of $40,000
                                            payable on the earlier of ten business days following the successful closing of an initial
                                            public offering of the Company's common stock that generates at least $1 million in
                                            net proceeds to the Company or July 1, 2023.
●
Under our Settlement Agreement with Noah
                                            (Jed) Smith, a former director and a beneficial owner of more than 5% of the outstanding
                                            common stock of the Company, and his spouse, Glory Smith, to the extent of such spouse's
                                            community property interest, if any (together, "Smith"), dated as of May 13,
                                            2022, the parties agreed, among other things, (1) that Dennis Gile, the founder of SDS LLC
                                            – AZ, our largest stockholder, and a former Chief Executive Officer, President, Secretary,
                                            and Chairman of the Company, agreed and contracted to fulfill certain obligations to Smith,
                                            including, but not limited to, granting a profits interest that was intended to be a membership
                                            interest in SDS LLC – AZ as well as a percentage of future profits from the operations
                                            or sale of SDS LLC – AZ, pursuant to that certain Contribution and Profit-Sharing Agreement
                                            between Mr. Gile and Smith, dated April 5, 2019, as amended by that certain First Amendment
                                            to Contribution and Profit-Sharing Agreement dated December 9, 2019, and that certain Second
                                            Amendment to Contribution and Profit-Sharing Agreement dated August 21, 2020, all attached
                                            as an exhibit to the Settlement Agreement (collectively, the "Smith Contribution and
                                            Profit-Sharing Agreement"), (2) that Mr. Smith held 300,000 shares of common stock
                                            in SDS Inc. – DE in exchange for Smith's previous contributions to SDS LLC –
                                            AZ, (3) that on May 13, 2022, Mr. Smith would receive an additional 100,000 shares of common
                                            stock of SDS Inc. – DE in exchange for the termination of Smith's rights under
                                            the Smith Contribution and Profit-Sharing Agreement, (4) that following such receipt of such
                                            additional shares, Mr. Smith would have a total of 400,000 shares of common stock, and (5)
                                            to a general release and discharge of claims against us, our officers and directors, certain
                                            other affiliates and related parties, and our stockholders as listed on an exhibit to the
                                            agreement, including without limitation, claims relating to the Smith Contribution and Profit-Sharing
                                            Agreement, Smith's direct or indirect ownership of shares of SDS Inc. – DE's
                                            capital stock, or Smith's direct or indirect ownership of membership interests of SDS
                                            LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
                                            that nothing in the Settlement Agreement was intended to release any rights that any party
                                            or Smith may have under that certain Simple Agreement for Future Equity and/or Convertible
                                            Note, as applicable. As of the date of this prospectus, the Company has no agreements with
                                            Smith otherwise relating to, and has not issued to Smith, any simple agreement for future
                                            equity or convertible note. Further, Smith irrevocably, unconditionally, voluntarily, knowingly,
                                            fully, finally, and completely forever released and waived their rights to any claim, distributions,
                                            payments, or other amounts that Smith believed should have been paid or were owed to Smith
                                            by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each
                                            party also agreed, in order to make sure there was a clear understanding regarding the capitalization
                                            of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
                                            and completely to forever release and waive any claims that they may have had with respect
                                            to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or
                                            SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he,
                                            she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the
                                            capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
                                            agreed that Mr. Smith owned 400,000 shares of common stock pursuant to the Settlement Agreement.
                                            Smith also irrevocably covenanted that they would not sue us or the other released parties
                                            in respect of any of the matters released and discharged.
●
Under our Settlement Agreement with Virginia
                                            Byrd, an individual, and Byrd Enterprises of Arizona, Inc., an Arizona corporation ("Byrd
                                            Enterprises"), dated as of May 13, 2022 (together, "Byrd"), the parties
                                            agreed, among other things, to a general release and discharge of claims against us, our
                                            officers and directors, certain other affiliates and related parties, and our stockholders
                                            as listed on an exhibit to the agreement, including without limitation, claims relating to
                                            Byrd's direct or indirect ownership of shares of SDS Inc. – DE's capital
                                            stock, or Byrd's direct or indirect ownership of membership interests of SDS LLC –
                                            AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing
                                            in the Settlement Agreement was intended to release any rights that any party or Byrd may
                                            have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable.
                                            As of the date of this prospectus, the Company has no agreements with Byrd otherwise relating
                                            to, and has not issued to Byrd, any simple agreement for future equity or convertible note.
                                            Further, Byrd irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
                                            forever released and waived their rights to any claim, distributions, payments, or other
                                            amounts that Byrd believed should have been paid or were owed to Byrd by SDS LLC –
                                            AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed,
                                            in order to make sure there was a clear understanding regarding the capitalization of SDS
                                            Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and
                                            completely to forever release and waive any claims that they may have had with respect to
                                            ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS
                                            Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she,
                                            or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization
                                            table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that
                                            Byrd Enterprises owned 767,785 shares of common stock pursuant to the Settlement Agreement.
                                            Byrd also irrevocably covenanted that they would not sue us or the other released parties
                                            in respect of any of the matters released and discharged.
100
●
On November 15, 2021, the Company issued
                                            a 6% convertible unsecured promissory note in the amount of $565,000 to Zone Right in a private
                                            placement. Glen Kim, a director of the Company and the managing member of Zone Right, is
                                            deemed to beneficially own the shares of common stock owned by Zone Right and has sole voting
                                            and dispositive powers over its shares. The convertible note bears interest at 6% annually
                                            and matures on November 15, 2024. The convertible note contains provisions for optional and
                                            mandatory conversion and conversion price adjustments. In the event that the Company's
                                            initial public offering occurs prior to such convertible note's maturity date or optional
                                            conversion, 282,500 shares of common stock will be issuable upon the automatic conversion
                                            of such convertible note, based on the assumed initial public offering price of $4.00 per
                                            share, which is the low point of the price range set forth on the cover page of this prospectus.
                                            The purchaser also entered into a subscription agreement and investor rights and lockup agreement
                                            which provided information and inspection rights, registration rights, lock-up provisions,
                                            participation rights in subsequent securities offerings and private placements, and typical
                                            "drag along" and "tag along" rights. See "
Description of
                                            Securities – 6% Convertible Unsecured Promissory Notes
" for a further description
                                            of the terms of the convertible note and related agreements.
●
Under our Settlement Agreement with Zone
                                            Right, Mr. Kim, a director of the Company, and his spouse, Jessica Lee, to the extent of
                                            such spouse's community property interest, if any, dated as of April 26, 2022 (the
                                            "Zone Right Parties"), the parties agreed, among other things, to a general release
                                            and discharge of claims against us, our officers and directors, certain other affiliates
                                            and related parties, and our stockholders as listed on an exhibit to the agreement, including
                                            without limitation, claims relating to the Zone Right Parties' direct or indirect ownership
                                            of shares of SDS Inc. – DE's capital stock, or the Zone Right Parties'
                                            direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC –
                                            DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
                                            Agreement was intended to release any rights that any party or the Zone Right Parties may
                                            have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable.
                                            As of the date of this prospectus, other than as otherwise disclosed above, the Company has
                                            no agreements with the Zone Right Parties otherwise relating to, and has not issued to the
                                            Zone Right Parties, any Simple Agreement for Future Equity or convertible note. Further,
                                            the Zone Right Parties irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
                                            and completely forever released and waived their rights to any claim, distributions, payments,
                                            or other amounts that the Zone Right Parties believed should have been paid or were owed
                                            to the Zone Right Parties by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC,
                                            or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding
                                            regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily,
                                            knowingly, fully, finally, and completely to forever release and waive any claims that they
                                            may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE,
                                            SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent,
                                            and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond
                                            that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
                                            The parties therefore agreed that Zone Right owned 483,833 shares of common stock pursuant
                                            to the Settlement Agreement. The Zone Right Parties also irrevocably covenanted that they
                                            would not sue us or the other released parties in respect of any of the matters released
                                            and discharged. Glen Kim is deemed to beneficially own the shares of common stock owned by
                                            Zone Right and has sole voting and dispositive powers over its shares.
●
Under a lease agreement dated as of October
                                            7, 2021 and an addendum dated the same date, we leased our former corporate offices consisting
                                            of approximately 7,800 square feet for a term of five years beginning January 1, 2022 and
                                            ending December 31, 2026 for a monthly rent of $20,800 plus tax and certain operating expenses,
                                            with an increase of 3% at the beginning of every calendar year following the first year of
                                            the term of the lease agreement through January 2026. As of December 31, 2021, a security
                                            deposit was paid in the amount of $23,411. The office space was owned by John Dorsey, a former
                                            chief executive officer and director of the Company. On August 31, 2022, we entered into
                                            a Lease Termination Agreement in which both parties agreed to terminate the lease and release
                                            each other from all future obligations. The total approximate dollar value of this transaction
                                            was $420,992 plus tax and certain operating expenses. The approximate dollar value of the
                                            interest of Mr. Dorsey in this transaction was $420,992.
101
●
On August 7, 2021, SDS LLC – AZ
                                            agreed to issue Clayton Adams, a former director and a beneficial owner of more than 5% of
                                            the common stock of the Company, 4.3% of its membership interests in a private placement
                                            for total proceeds of $250,000 under a membership interest purchase agreement. The agreement
                                            stated that SDS LLC – AZ intended to convert into a corporation in connection with
                                            a going public transaction by way of an initial public offering or reverse merger ("Going
                                            Public Transaction"), and that the membership interest would be converted into or exchanged
                                            for shares of common stock in connection with the Public Transaction. The agreement indicates
                                            that the number of shares of common stock that Mr. Adams would hold upon an initial public
                                            offering would be 363,274 shares of common stock. Under the agreement, SDS LLC – AZ
                                            reserved the right to reduce Mr. Adams' membership interest from the pre-Public Transaction
                                            valuation of our most recent SAFE round of $42,000,000. The parties also agreed that, notwithstanding
                                            the foregoing, the membership interest would not be adjusted based on the final capital structure
                                            following a Public Transaction.
●
Under our Settlement Agreement with Clayton
                                            Adams, a former director and a beneficial owner of more than 5% of the common stock of the
                                            Company, dated as of May 3, 2022, the parties agreed, among other things, to a general release
                                            and discharge of claims against us, our officers and directors, certain other affiliates
                                            and related parties, and our stockholders as listed on an exhibit to the agreement, including
                                            without limitation, claims relating to Mr. Adams' direct or indirect ownership of shares
                                            of SDS Inc. – DE's capital stock, or Mr. Adams' direct or indirect ownership
                                            of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC,
                                            as applicable, provided, however, that nothing in the Settlement Agreement was intended to
                                            release any rights that any party or Mr. Adams may have under that certain Simple Agreement
                                            for Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus,
                                            the Company has no agreements with Mr. Adams otherwise relating to, and has not issued to
                                            Mr. Adams, any simple agreement for future equity or convertible note. Further, Mr. Adams
                                            irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
                                            released and waived their rights to any claim, distributions, payments, or other amounts
                                            that Mr. Adams believed should have been paid or were owed to Mr. Adams by SDS LLC –
                                            AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed,
                                            in order to make sure there was a clear understanding regarding the capitalization of SDS
                                            Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and
                                            completely to forever release and waive any claims that they may have had with respect to
                                            ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS
                                            Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she,
                                            or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization
                                            table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that
                                            Mr. Adams owned 363,274 shares of common stock pursuant to the Settlement Agreement. Mr.
                                            Adams also irrevocably covenanted that they would not sue us or the other released parties
                                            in respect of any of the matters released and discharged.
●
On July 21, 2022, the date that Clayton
                                            Adams, a former director and a beneficial owner of more than 5% of the common stock of the
                                            Company, was appointed as a member of our board of directors, Mr. Adams agreed to provide
                                            $100,000 in financing to the Company. The Company has not borrowed any funds from Mr. Adams
                                            and does not expect that it will need to do so as of the date of this prospectus. Mr. Adams
                                            resigned from his position on the board of directors effective April 27, 2023.
●
On August 9, 2021, SDS LLC – AZ
                                            agreed to issue Matthew Atkinson, a former director and a beneficial owner of more than five
                                            percent (5%) of the issued and outstanding shares of the Company, 4.3% of its membership
                                            interests in a private placement for total proceeds of $250,000 under a membership interest
                                            purchase agreement. The agreement stated that SDS LLC – AZ intended to convert into
                                            a corporation in connection with a going public transaction by way of an initial public offering
                                            or reverse merger ("Going Public Transaction"), and that the membership interest
                                            would be converted into or exchanged for shares of common stock in connection with the Public
                                            Transaction. The agreement indicates that the number of shares of common stock that Mr. Atkinson
                                            would hold upon an initial public offering would 363,274 shares of common stock. Under the
                                            agreement, SDS LLC – AZ reserved the right to reduce Mr. Atkinson's membership
                                            interest from the pre-Public Transaction valuation of the Company's most recent SAFE
                                            round of $42,000,000. The parties also agreed that, notwithstanding the foregoing, the membership
                                            interest would not be adjusted based on the final capital structure following a Public Transaction.
102
●
Under our Settlement Agreement with Mr.
                                            Atkinson and his spouse, Penny Atkinson, to the extent of such spouse's community property
                                            interest, if any (together, "Atkinson"), dated as of May 13, 2022, the parties
                                            agreed, among other things, to a general release and discharge of claims against us, our
                                            officers and directors, certain other affiliates and related parties, and our stockholders
                                            as listed on an exhibit to the agreement, including without limitation, claims relating to
                                            Atkinson's direct or indirect ownership of shares of SDS Inc. – DE's capital
                                            stock, or Atkinson's direct or indirect ownership of membership interests of SDS LLC
                                            – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
                                            that nothing in the Settlement Agreement was intended to release any rights that any party
                                            or Atkinson may have under that certain Simple Agreement for Future Equity and/or Convertible
                                            Note, as applicable. As of the date of this prospectus, the Company has no agreements with
                                            Atkinson otherwise relating to, and has not issued to Atkinson, any simple agreement for
                                            future equity or convertible note. Further, Atkinson irrevocably, unconditionally, voluntarily,
                                            knowingly, fully, finally, and completely forever released and waived their rights to any
                                            claim, distributions, payments, or other amounts that Atkinson believed should have been
                                            paid or were owed to Atkinson by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC,
                                            or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding
                                            regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily,
                                            knowingly, fully, finally, and completely to forever release and waive any claims that they
                                            may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE,
                                            SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent,
                                            and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond
                                            that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
                                            The parties therefore agreed that Mr. Atkinson owned 383,274 shares of common stock pursuant
                                            to the Settlement Agreement. Atkinson also irrevocably covenanted that they would not sue
                                            us or the other released parties in respect of any of the matters released and discharged.
●
Under our Settlement Agreement with 35'sNextChapters,
                                            LLC ("35'sNextChapters"), dated as of May 13, 2022, the parties agreed,
                                            among other things, to a general release and discharge of claims against us, our officers
                                            and directors, certain other affiliates and related parties, and our stockholders as listed
                                            on an exhibit to the agreement, including without limitation, claims relating to 35'sNextChapters'
                                            direct or indirect ownership of shares of SDS Inc. – DE's capital stock, or 35'sNextChapters'
                                            direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC –
                                            DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
                                            Agreement was intended to release any rights that any party or 35'sNextChapters may
                                            have under the terms of that certain Invitation to Join the Board of Directors between Ronald
                                            Saslow and the Company or that certain Simple Agreement for Future Equity and/or Convertible
                                            Note, as applicable. As of the date of this prospectus, the Company has no agreements with
                                            35'sNextChapters otherwise relating to, and has not issued to 35'sNextChapters,
                                            any convertible note or Invitation to Join the Board of Directors between Ronald Saslow and
                                            the Company. Further, 35'sNextChapters irrevocably, unconditionally, voluntarily, knowingly,
                                            fully, finally, and completely forever released and waived their rights to any claim, distributions,
                                            payments, or other amounts that 35'sNextChapters believed should have been paid or
                                            were owed to 35'sNextChapters by SDS LLC – AZ, SDS LLC – DE, SDSF LLC,
                                            SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was
                                            a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally,
                                            voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims
                                            that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC
                                            – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or
                                            contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. –
                                            DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement
                                            Agreement. The parties therefore agreed that 35'sNextChapters owned 150,000 shares
                                            of common stock pursuant to the Settlement Agreement. 35'sNextChapters also irrevocably
                                            covenanted that they would not sue us or the other released parties in respect of any of
                                            the matters released and discharged. Ronald Saslow, a former director of the Company, as
                                            Manager of 35'sNextChapters, is deemed to beneficially own the shares of common stock
                                            owned by 35'sNextChapters and has sole voting and dispositive powers over its shares.
●
In July 2021, we issued a SAFE to 35'snextchapters,
                                            LLC, whose Manager, Ronald Saslow, is a former director of the Company, and is deemed to
                                            beneficially own the securities and interests in securities owned by 35'sNextChapters
                                            and has sole voting and dispositive powers over its securities. In October 2022, we entered
                                            into a cancellation and exchange agreement with 35'snextchapters, LLC in which we agreed
                                            to cancel its SAFE in exchange for the issuance of 74,627 shares of common stock. The number
                                            of shares was equal to the purchase amount under the SAFE divided by approximately $3.35,
                                            based on a $25 million valuation for the Company.
103
●
In April 2021, we issued a SAFE to The
                                            Nelson Revocable Living Trust (the "Nelson Trust"), one of whose co-trustees
                                            is Daniel D. Nelson, our Chief Executive Officer, Chairman, and a director of the Company,
                                            in exchange for a payment of $100,000. See "
Description of Securities – SAFEs
"
                                            for a further description of the terms of the SAFE. In October 2022, we entered into a cancellation
                                            and exchange agreement with the Nelson Trust in which we agreed to cancel its SAFE in exchange
                                            for the issuance of 29,851 shares of common stock. The number of shares was equal to the
                                            purchase amount under the SAFE divided by approximately $3.35, based on a $25 million valuation
                                            for the Company.
●
On October 15, 2021, the Company issued
                                            a 6% convertible unsecured promissory note in a private placement in the amount of $1,500,000
                                            to the Nelson Trust, whose co-trustees are Daniel D. Nelson, our Chief Executive Officer,
                                            Chairman, and a director of the Company, and Jodi B. Nelson. The convertible note bears interest
                                            at 6% annually and matures on October 15, 2024. The convertible note contains provisions
                                            for optional and mandatory conversion and conversion price adjustments. In the event that
                                            the Company's initial public offering occurs prior to such convertible note's
                                            maturity date or optional conversion, 750,000 shares of common stock will be issuable upon
                                            the automatic conversion of such convertible note, based on the assumed initial public offering
                                            price of $4.00 per share, which is the low point of the price range set forth on the cover
                                            page of this prospectus. The purchaser also entered into a subscription agreement and investor
                                            rights and lockup agreement which provided information and inspection rights, registration
                                            rights, lock-up provisions, participation rights in subsequent securities offerings and private
                                            placements, and typical "drag along" and "tag along" rights. See
                                            "
Description of Securities – 6% Convertible Unsecured Promissory Notes
"
                                            for a further description of the terms of the convertible note and related agreements.
●
In April 2022, Nelson Financial Services
                                            Inc. became the insurance agent providing group benefits for the Company. Total dollar benefits
                                            provided to the Company under the group benefits plan in 2022 were approximately $48,374.
                                            Total dollar payments to Nelson Financial Services Inc. in 2022 under the group benefits
                                            plan were approximately $2,790. As Chief Executive Officer and sole owner of Nelson Financial
                                            Services Inc., the approximate dollar value of Mr. Nelson's interest in this transaction
                                            was approximately $2,790.
Promoters and Certain Control Persons
Each of Dennis Gile, our largest stockholder
and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, and John Dorsey, a former Chief Executive
Officer and director of the Company, may be deemed a "promoter" as defined by Rule 405 of the Securities Act. For information
regarding compensation and other items of value that have been provided or that may be provided to these individuals, please refer to
"
Executive Compensation
" and "
Certain Relationships and Related Party Transactions – Transactions with
Related Persons
".
104
PRINCIPAL
STOCKHOLDERS
The following table sets forth certain information
with respect to the beneficial ownership of our common stock as of the date of this prospectus for (i) each of our named executive officers,
other executive officers, directors and director nominees; (ii) all of our executive officers and directors as a group; and (iii) each
other stockholder known by us to be the beneficial owner of more than 5% of our outstanding common stock. The following table assumes
that the underwriters do not exercise the over-allotment option.
Beneficial ownership is determined in accordance
with SEC rules and generally includes voting or investment power with respect to securities. For purposes of this table, a person or
group of persons is deemed to have "beneficial ownership" of any shares of common stock that such person or any member of
such group has the right to acquire within sixty (60) days of the date of this prospectus. For purposes of computing the percentage of
outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons has
the right to acquire within sixty (60) days of the date of this prospectus are deemed to be outstanding for such person, but not deemed
to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed
as beneficially owned does not constitute an admission of beneficial ownership by any person.
Unless otherwise indicated, the address of each
beneficial owner listed in the table below is c/o Signing Day Sports, Inc., 8355 East Hartford Rd., Suite 100, Scottsdale, AZ 85255.
Prior to the Company's Initial
    Public Offering
After the Company's Initial
    Public Offering
Title of Class
Name of Beneficial Owner
Amount and
Nature of Beneficial Ownership
Percent
    of Class (%)
(1)
Amount and
Nature of Beneficial Ownership
Percent
    of Class (%)
(2)
Common Stock
Daniel D. Nelson, Chief Executive Officer, Chairman, and Director
658,851
(3)
8.0
808,851
(3)
4.7
-
Damon Rich, Interim Chief Financial Officer
-
-
-
-
Common Stock
Richard Symington, President, Chief Marketing Officer, and Director
100,000
(4)
1.3
-
(4)
-
Common Stock
David O'Hara, Chief Operating Officer and Secretary
105,000
(5)
1.4
105,000
(5)
0.6
Common Stock
Glen Kim, Director
714,833
(6)
9.1
771,333
(6)
4.7
Common Stock
Martin Lanphere, Director
24,600
(7)
*
24,600
(7)
*
Common Stock
Roger Mason Jr., Director
6,000
(8)
*
6,000
(8)
*
Common Stock
Greg Economou, Director
-
(9)
*
-
(9)
*
Common Stock
All directors and executive officers (8 persons)
1,614,284
18.8
%
1,720,784
10.5
%
Common Stock
Dennis Gile
2,205,377
(10)
28.9
2,205,377
(10)
13.5
Common Stock
Dorsey Family Holdings, LLC
1,309,940
(11)
17.3
1,309,940
(11)
8.1
Common Stock
John Dorsey
1,349,940
(12)
17.8
1,349,940
(12)
8.3
Common Stock
Byrd Enterprises of Arizona, Inc.
767,785
(13)
10.1
767,785
(13)
4.7
Common Stock
Zone Right, LLC
709,833
(14)
9.1
766,333
(14)
4.7
Common Stock
The Nelson Revocable Living Trust
629,851
(15)
7.7
779,851
(15)
4.6
Common Stock
Jodi B. Nelson
658,851
(16)
8.0
808,851
(16)
4.7
Common Stock
Noah (Jed) Smith
405,000
(17)
5.3
405,000
(17)
2.5
Common Stock
Clayton Adams
383,274
(18)
5.0
20,000
(18)
0.1
Common Stock
Matthew Atkinson
(19)
383,274
5.0
383,274
2.4
*
Non-officer director beneficially owning less than
                                            1% of the shares of the Company's common stock.
(1)
Based on 7,591,152 shares of common stock issued and outstanding as
                                  of the date of this prospectus.
(2)
Based on 16,256,727 shares of common stock issued and outstanding after
                                  the Company's initial public offering, assuming no exercise of the underwriters' over-allotment
                                  option and assuming an initial public offering price of $4.00 per share (which is the low point of
                                  the estimated range of the initial public offering price shown on the cover page of this prospectus),
                                  and further assuming, at the time of the initial public offering, the automatic conversion of the Company's
                                  6% convertible unsecured promissory notes into a total of 3,152,500 shares of common stock, the automatic
                                  conversion of the Company's 8% convertible unsecured promissory notes into a total of 732,500
                                  shares of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares
                                  of common stock. Immediately after the consummation of the initial public offering, we intend to file
                                  a Registration Statement on Form S-8 with the SEC to register common stock and options to purchase
                                  stock that were issued to certain of our employees, consultants, officers and directors pursuant to
                                  the Equity Incentive Plan. See "
Corporate History and Structure
" and "
Executive
                                  Compensation – Management Employment and Consulting Agreements
".
105
(3)
Consists of (i) 29,851 shares of common stock held by the Nelson Trust,
                                  (ii) prior to the Company's initial public offering, 600,000 shares of common stock issuable
                                  upon the conversion of a 6% convertible unsecured promissory note held by the Nelson Trust at the option
                                  of the Nelson Trust, otherwise, following the initial public offering, assuming no prior occurrence
                                  of an Alternative Liquidity Event (as defined in "
Description of Securities – 6% Convertible
                                  Unsecured Promissory Notes
"), in the event that the initial public offering occurs prior
                                  to such convertible note's maturity date, 750,000 shares of common stock issuable upon the automatic
                                  conversion of such convertible note, based on the assumed initial public offering price of $4.00 per
                                  share, which is the low point of the price range set forth on the cover page of this prospectus, (iii)
                                  5,000 shares of common stock issuable upon the exercise of an option, and (iv) 24,000 shares of common
                                  stock issuable upon the exercise of an option within 60 days of the date of this prospectus. Daniel
                                  D. Nelson is a co-trustee of the Nelson Trust. Jodi B. Nelson is a co-trustee of the Nelson Trust and
                                  is Mr. Nelson's spouse. Mr. Nelson is deemed to beneficially own the shares of common stock beneficially
                                  owned by the Nelson Trust and have shared voting and dispositive powers with Ms. Nelson over its shares.
                                  Mr. Nelson also has shared voting and dispositive powers with Ms. Nelson over the shares of common
                                  stock that may be purchased by exercise of Mr. Nelson's stock options.
(4)
Consists of 100,000 shares of common stock that may be purchased upon
                                  exercise of a warrant prior to the Company's initial public offering. The shares underlying the
                                  warrant are being registered for resale contemporaneously with the Company's initial public offering,
                                  and it has been assumed that such shares will be sold after the initial public offering. See "
Selling
                                  Stockholders
" in the resale prospectus filed contemporaneously with this prospectus.
(5)
Consists of (i) 90,000 shares of common stock, (ii) 7,500 shares of
                                  common stock issuable upon exercise within 60 days of the date of this prospectus, and (iii) 7,500
                                  shares of common stock issuable upon exercise within 60 days of the date of this prospectus.
(6)
Consists of (i) 483,833 shares of common stock held by Zone Right,
                                  (ii) prior to the Company's initial public offering, 226,000 shares of common stock issuable
                                  upon the conversion of a 6% convertible unsecured promissory note held by Zone Right at the option
                                  of Zone Right, otherwise, following the initial public offering, assuming no prior occurrence of an
                                  Alternative Liquidity Event (as defined in "
Description of Securities – 6% Convertible
                                  Unsecured Promissory Notes
"), in the event that the initial public offering occurs prior
                                  to such convertible note's maturity date, 282,500 shares of common stock issuable upon the automatic
                                  conversion of such convertible note, based on the assumed initial public offering price of $4.00 per
                                  share, which is the low point of the price range set forth on the cover page of this prospectus, and
                                  (iii) 5,000 shares of common stock issuable upon exercise of an option. Mr. Kim is the managing member
                                  of Zone Right. Mr. Kim is deemed to beneficially own the shares of common stock beneficially owned
                                  by Zone Right and has sole voting and dispositive powers over its shares.
(7)
Consists of (i) 3,000 shares of common stock issuable upon the exercise
                                  of an option and (ii) 21,600 shares of common stock issuable upon the exercise of an option within
                                  60 days of the date of this prospectus.
(8)
Consists of 6,000 shares of common stock issuable upon the exercise
                                  of an option within 60 days of the date of this prospectus.
(9)
A stock option granted to Mr. Economou is not exercisable within 60
                                  days of the date of this prospectus.
(10)
Consists
                                            of (i) 2,176,377 shares of common stock, (ii) 5
,000
shares
                                            of common stock issuable upon the exercise of an option, and (iii) 24,000 shares of common
                                            stock issuable upon the exercise of an option within 60 days of the date of this prospectus.
                                            Dennis Gile's last known address is 4010 E. Leland St., Mesa, AZ 85215.
(11)
John Dorsey, a former officer and director of the Company, is the
                                   manager of Dorsey LLC. Mr. Dorsey is deemed to beneficially own the shares of common stock beneficially
                                   owned by Dorsey LLC and has sole voting and dispositive powers over its shares. Dorsey LLC's
                                   last known address is 18690 N. 101st Pl., Scottsdale, AZ 85255.
(12)
Consists of 1,309,940 shares of common stock held by Dorsey LLC and
                                   40,000 shares of common stock held by John Dorsey. John Dorsey, a former officer and director of the
                                   Company, is the manager of Dorsey LLC. Mr. Dorsey is deemed to beneficially own the shares of common
                                   stock beneficially owned by Dorsey LLC and has sole voting and dispositive powers over its shares.
                                   Mr. Dorsey's last known address is 18690 N. 101st Pl., Scottsdale, AZ 85255.
106
(13)
Consists of 767,785 shares of common stock.
                                            Byrd Enterprises is an Arizona corporation. Virginia Byrd, its partner, is deemed to beneficially
                                            own the shares of common stock beneficially owned by Byrd Enterprises and has sole voting
                                            and dispositive powers over its shares. Byrd Enterprises' business address is 500 Polk
                                            Street, Suite 37, Greenwood, IN 46143.
(14)
Consists of (i) 483,833 shares of common
                                            stock and (ii) prior to the Company's initial public offering, 226,000 shares of common
                                            stock issuable upon the conversion of a 6% convertible unsecured promissory note at the option
                                            of Zone Right, otherwise, following the initial public offering, assuming no prior occurrence
                                            of an Alternative Liquidity Event (as defined in "
Description of Securities –
                                            6% Convertible Unsecured Promissory Notes
"), in the event that the initial public
                                            offering occurs prior to such convertible note's maturity date, 282,500 shares of common
                                            stock issuable upon the automatic conversion of such convertible note, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of this prospectus. Zone Right's managing member, Glen
                                            Kim, a director, is deemed to beneficially own the shares of common stock beneficially owned
                                            by Zone Right and has sole voting and dispositive powers over its shares. Zone Right's
                                            business address is 8840 Warner Ave, Suite 200B, Fountain Valley, CA 92708.
(15)
Consists of (i) 29,851 shares of common
                                            stock and (ii) prior to the Company's initial public offering, 600,000 shares of common
                                            stock issuable upon the conversion of a 6% convertible unsecured promissory note at the option
                                            of the Nelson Trust, otherwise, following the initial public offering, assuming no prior
                                            occurrence of an Alternative Liquidity Event (as defined in "
Description of Securities
                                            – 6% Convertible Unsecured Promissory Notes
"), in the event that the initial
                                            public offering occurs prior to such convertible note's maturity date, 750,000 shares
                                            of common stock issuable upon the automatic conversion of such convertible note, based on
                                            the assumed initial public offering price of $4.00 per share, which is the low point of the
                                            price range set forth on the cover page of this prospectus. The Nelson Trust is an Arizona
                                            trust provided for by the Nelson Revocable Living Trust Agreement established on March 9,
                                            1999 and amended and restated on November 21, 2005. Daniel D. Nelson, Chief Executive Officer
                                            and a director of the Company, and Jodi B. Nelson, who is the spouse of Mr. Nelson, are the
                                            co-trustees of the Nelson Trust, and are deemed to beneficially own the shares of common
                                            stock beneficially owned by the Nelson Trust and have shared voting and dispositive powers
                                            over its shares.
(16)
Consists of (i) 29,851 shares of common
                                            stock held by the Nelson Trust, (ii) prior to the Company's initial public offering,
                                            600,000 shares of common stock issuable upon the conversion of a 6% convertible unsecured
                                            promissory note held by the Nelson Trust at the option of the Nelson Trust, otherwise, following
                                            the initial public offering, assuming no prior occurrence of an Alternative Liquidity Event
                                            (as defined in "
Description of Securities – 6% Convertible Unsecured Promissory
                                            Notes
"), in the event that the initial public offering occurs prior to such convertible
                                            note's maturity date, 750,000 shares of common stock issuable upon the automatic conversion
                                            of such convertible note, based on the assumed initial public offering price of $4.00 per
                                            share, which is the low point of the price range set forth on the cover page of this prospectus,
                                            (iii) 5,000 shares of common stock issuable upon the exercise of an option, and (iv) 24,000
                                            shares of common stock issuable upon the exercise of an option within 60 days of the date
                                            of this prospectus. Jodi B. Nelson is a co-trustee of the Nelson Trust and is the spouse
                                            of Mr. Nelson, and is deemed to beneficially own the shares of common stock beneficially
                                            owned by each of the Nelson Trust and Mr. Nelson and have shared voting and dispositive powers
                                            over such shares.
(17)
Consists of (i) 400,000 shares of common
                                            stock and (ii) 5,000 shares of common stock issuable upon the exercise of an option. Noah
                                            (Jed) Smith's business address is 225 Fig Tree Lane, Anthony, NM, 88021.
(18)
Consists of (i) 363,274 shares of common
                                            stock prior to the Company's initial public offering, (ii) 5,000 shares of common stock
                                            issuable upon the exercise of an option, and (iii) 15,000 shares of common stock issuable
                                            upon the exercise of an option within 60 days of the date of this prospectus. The shares
                                            of common stock are being registered for resale contemporaneously with the Company's
                                            initial public offering, and it has been assumed that such shares will be sold after the
                                            Company's initial public offering. See "
Selling Stockholders
" in
                                            the resale prospectus filed contemporaneously with this prospectus. Clayton Adams'
                                            business address is 1904 S. 183rd Circle, Omaha, Nebraska, 68130.
(19)
Matthew Atkinson's business address
                                            is 255 Calamus Circle, Medina, MN 55340.
We do not currently have any arrangements which
if consummated may result in a change of control of our company.
107
DESCRIPTION
OF SECURITIES
General
Our authorized capital stock currently consists
of 150,000,000 shares of common stock, $0.0001 par value per share. No other classes of securities are authorized under our Certificate
of Incorporation.
The following description summarizes important
terms of the common stock and securities that may converted into or exercised to purchase the common stock. This summary does not purport
to be complete and is qualified in its entirety by the provisions of our Certificate of Incorporation and Amended and Restated Bylaws
which have been filed as exhibits to the registration statement of which this prospectus is a part.
As of the date of this prospectus, there were
7,591,152 shares of common stock issued and outstanding.
Common Stock
The holders of common stock are entitled to one
vote for each share held of record on all matters submitted to a vote of the stockholders. Under our Certificate of Incorporation and
Amended and Restated Bylaws, any corporate action to be taken by vote of stockholders other than for election of directors shall be authorized
by the affirmative vote of a majority of the shares present in person or represented by proxy at the meeting and entitled to vote on
the matter. Directors are elected by a plurality of votes. Stockholders entitled to vote in an election of directors may remove any director
from office at any time, with or without cause, by the affirmative vote of a majority in voting power thereof. Stockholders do not have
cumulative voting rights.
Holders of common stock are entitled to receive
ratably those dividends, if any, as may be declared from time to time by the board of directors out of legally available funds. In the
event of our liquidation, dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally
available for distribution to stockholders after the payment of all of our debts and other liabilities.
Holders of common stock have no preemptive, conversion
or subscription rights and there are no redemption or sinking fund provisions applicable to the common stock.
Representative's Warrants
Upon the closing of the Company's initial
public offering, there will be up to 301,875 shares of common stock issuable upon exercise of the representative's warrants, based
on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover page
of this prospectus. See "
Underwriting—Representative's Warrants
" below for a description of the representative's
warrants.
Options
On August 31, 2022, we established the Signing
Day Sports, Inc. 2022 Equity Incentive Plan. The purpose of the Plan is to grant restricted stock, stock options and other forms of incentive
compensation to our officers, employees, directors and consultants. The maximum number of shares of common stock that may be issued pursuant
to awards granted under the Plan is 750,000 shares. Cancelled and forfeited stock options and stock awards may again become available
for grant under the Plan. As of the date of this prospectus, 139,550 shares remain available for issuance under the Plan. For a further
description of the terms of the Plan, please see "
Executive Compensation — 2022 Equity Incentive Plan
" in this
prospectus.
In September 2022, we granted incentive stock
options to certain employees that may be exercised to purchase a total of 59,000 shares of common stock and non-statutory stock
options to certain employees, consultants, officers, and directors that may be exercised to purchase a total of 175,000 shares of common
stock, not including stock options or portions of stock options that subsequently terminated due to employee and director departures.
The options have an exercise price equal to $3.10 per share, and are subject to various vesting conditions. The options will expire in
September 2032.
In March 2023, we granted incentive stock options
to certain employees that are exercisable to purchase a total of 43,450 shares of common stock, not including stock options or portions
of stock options that subsequently terminated due to employee and director departures. The options have an exercise price equal to $3.10
per share, and are subject to various vesting conditions. The options will expire in March 2033. In April 2023, we granted an incentive
stock option to an employee, officer and director to purchase a total of 100,000 shares of common stock with an exercise price equal
to $2.50 per share, which is subject to certain vesting conditions. In April 2023, we also granted a non-statutory stock option
to a director to purchase a total of 3,000 shares of common stock with an exercise price equal to $3.10 per share, which is subject to
certain vesting conditions. In May 2023, we granted a non-statutory stock option to a director to purchase a total of 24,000 shares
of common stock with an exercise price equal to $2.50 per share.
Immediately after the consummation of the initial
public offering, we intend to file a Registration Statement on Form S-8 with the SEC to register the potential exercise of these options.
108
6% Convertible Unsecured Promissory Notes
From September 2021 to December 2021, we conducted
a private placement of 6% convertible unsecured promissory notes due three years from the date of execution and entered into related
subscription agreements and investor rights and lockup agreements with a number of accredited investors. Pursuant to the agreements,
we issued 27 convertible notes for aggregate loans of $6,305,000. The convertible notes bear interest at 6% annually. The convertible
notes will mature on October 15, 2024 as to the principal amount of $3,300,000; November 15, 2024 as to the principal amount of $1,205,000;
and December 23, 2024 as to the principal amount of $1,800,000, respectively.
The 6% convertible unsecured promissory notes
contain both optional and mandatory conversion provisions allowing for the conversion of the outstanding balance under the notes to be
converted into shares of common stock, subject to waiver of all accrued interest on the principal subject to such conversion. The convertible
notes will be convertible at the holders' option at a conversion price per share equal to the price per share determined by dividing
$50 million by the total number of outstanding shares of the Company, subject to adjustment as described below. In connection with an
initial public offering and listing of the common stock on Nasdaq, NYSE American, the New York Stock Exchange, or the OTCQX platform
of the OTC Markets, the notes will automatically be converted under a mandatory conversion provision into shares of common stock of the
Company at the conversion price per share equal to 60% of the public offering price per share of the common stock offered to the public
in the Company's initial public offering, subject to adjustment as described below. In the event of a sale of all or substantially
all of the capital stock or assets of the Company to an unaffiliated third person, or Sale of Control, an acquisition by a special purpose
acquisition corporation listed on Nasdaq or the New York Stock Exchange, or a SPAC, or an acquisition or merger of the Company by a publicly-reporting
company under the Exchange Act without significant business activities and is trading on certain qualified markets, or a Reverse Merger,
or collectively, an Alternative Liquidity Event, the note holders will have the option to convert the notes at the conversion price per
share equal to 60% of the aggregate transaction consideration divided by the total number of outstanding shares of common stock of the
acquiror resulting from such event, subject to adjustment as described below.
The 6% convertible unsecured promissory notes
further provided that the above conversion prices will be adjusted to reflect the applicable price per share, or conversion or exercise
price per share, of shares of common stock or securities convertible or exercisable for common stock in a subsequent private placement,
initial public offering or Alternative Liquidity Event, that is lower than the convertible notes' optional conversion price. As
described below (see "—
8% Convertible Unsecured Promissory Notes
"), from August 2022 to January 2023, we issued
8% unsecured convertible promissory notes with an optional conversion price per share equal to $25 million divided by the total number
of outstanding shares of the Company's common stock, which is 50% lower than the initial optional conversion price per share of
the convertible notes issued in 2021. In addition, the 8% unsecured convertible promissory notes provide that they will automatically
convert upon the occurrence of an initial public offering and each of the events defined as an Alternative Liquidity Event at 50% of
the price applicable to such transactions. As a result, the optional conversion price of the convertible notes was adjusted to equal
the optional conversion price per share of the convertible notes issued in 2022, equal to $25 million divided by the total number of
outstanding shares of the Company's common stock, and the automatic conversion price of the convertible notes was adjusted to equal
50% of an initial public offering price or price applicable to an Alternative Liquidity Event price. Subsequently, as described below,
in March 2023 and April 2023 we conducted one private placement and in May 2023 we commenced a subsequent private placement which will
be completed prior to the commencement of our initial public offering. In these private placements, we issued 8% unsecured promissory
notes with accompanying warrants with an exercise price per share equal to $2.50, which is lower than the prior as-adjusted optional
conversion price. As a result, the optional conversion price of the notes was adjusted to equal the exercise price of such warrants,
or $2.50 per share.
Each note holder may not convert the 6% convertible
unsecured promissory note to the extent that the note holder (together with its affiliates) would beneficially own in excess of 9.99%
of the number of shares of common stock outstanding. The note holder may increase or decrease the beneficial ownership limit to any other
percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days following notice
from the convertible note holder.
In addition, in the event that by the maturity
date, the Company has not consummated an initial public offering of its common stock and the listing or trading of its common stock on
Nasdaq, the New York Stock Exchange, NYSE American, or the OTCQX platform of OTC Markets, and has not consummated an Alternative Liquidity
Event, the Company may elect either (a) upon thirty (30) days prior written notice to the holder, to prepay all or a portion of the principal
amount of each note and accrued interest hereon, subject to the holder's right to convert the note into common stock during such
thirty (30) day period, or (b) if the Company does not prepay the entire principal amount of the note or the remaining principal amount
of the note, the note will automatically increase to 110% of the original or unpaid portion of the outstanding principal amount. Each
note may also either be prepaid by the Company in whole or in part without penalty, fees or premium upon not less than 20 business days
prior written notice to the holder, subject to the Holder's right to convert all or any portion of the note into conversion shares
at the optional conversion price prior to the prepayment date.
109
The subscription agreements and investor rights
and lockup agreements further provided for typical "drag along" and "tag along" rights. Each note holder may
sell a portion of the holder's note or note's conversion shares pursuant to a Sale of Control transaction equal to the percentage
of the common stock that stockholders holding a majority of the outstanding voting equity of the Company will sell in the Sale of Control
transaction. Each note holder may also be required to sell their note or note's conversion shares to the proposed acquiror in the
Sale of Control transaction. Each note holder also has the participation rights in subsequent securities offerings, including the initial
public offering, up to 50% of the amount originally invested. Additionally, the agreements provided that until the 180th day after the
first to occur of (i) consummation of an initial public offering, (ii) consummation of a transaction with a SPAC, or (iii) consummation
of a Reverse Merger, as applicable, the holder agreed not to sell, transfer or otherwise dispose of any shares of common stock received
upon conversion of the convertible notes, subject to certain exceptions.
The convertible note holders entered into related
subscription agreements and investor rights and lockup agreements which provided the following registration rights. Within 30 business
days following the consummation of the first to occur of an initial public offering, a Sale of Control or a Reverse Merger, as applicable,
the Company will file a registration statement on Form S-1 or Form S-3, as available, or Resale Registration Statement, in order to register
for resale all of the shares of common stock of the Company or common stock of any successor-in-interest to the Company issued to all
holders of the notes upon automatic conversion of the notes, and will use its bests efforts to cause such Resale Registration Statement
to be declared effective by the SEC within 90 business days from the date of its initial filing; provided, that such conversion shares
will continue to be subject to restrictions on resale for a period of six (6) months following completion of either the initial public
offering, Sale of Control or Reverse Merger, as applicable. In the event that, for any reason, the Company is unable to comply with the
above registration requirement, note holders holding the majority of the outstanding notes have a one-time right, at any time after one
hundred eighty (180) days from the effective date of the registration statement in connection with its initial public offering, to request
that the Company file a Resale Registration Statement with respect to the notes' underlying conversion shares then outstanding
having an anticipated aggregate offering price, net of selling expenses, of at least five million dollars ($5,000,000), in which event
the Company shall (x) within ten (10) days after the date such request is given, give notice thereof to all other note holders; and (y)
as soon as practicable, and in any event within sixty (60) days after the date such request, file a Resale Registration Statement covering
all the notes' underlying conversion shares that were requested to be registered and any additional conversion shares requested
to be included in such registration by any other note holders, subject to certain limitations and exceptions. In addition, the Company
provided "piggyback" registration rights to the note holders, so as to require us to include, at the option of the note holders,
the shares of common stock underlying their securities in any registration statement to register other shares of common stock that the
Company determines to file after its initial public offering. The Company must generally keep any required or requested registration
statement effective for a period of at least 180 days after the expiration of the lockup requirements described above, subject to extensions
under certain circumstances. The Company also provided customary indemnification to the note holders relating to any damages to the holders
arising from such registrations.
The investor rights and lockup agreements also
provided access rights to audited annual financial statements within 120 days of the end of each fiscal year, unaudited monthly financial
statements, and unaudited quarterly financial statements, an annual budget, tax filing-related information, and daily access to the Company's
books and records.
The shares of common stock underlying the notes
are subject to certain lockup provisions until 180 days after the commencement of trading of our common stock, subject to certain exceptions.
8% Convertible Unsecured Promissory Notes
From August 2022 to January 2023, we conducted
a private placement of the Company's 8% convertible unsecured promissory notes to a number of accredited investors under subscription
agreements. Pursuant to the agreements, we issued convertible notes for aggregate loans of $1,465,000. The convertible notes bear interest
at 8% annually. The convertible notes are due on the one-year anniversary from the date of the initial closing of the private placement,
or August 8, 2023.
The convertible notes contain both optional and
mandatory conversion provisions allowing for the conversion of the outstanding balance under the notes to be converted into shares of
common stock, subject to waiver of all accrued interest on the principal subject to such conversion. The convertible notes will be convertible
at the holders' option at a conversion price per share equal to the price per share determined by dividing $25 million by the total
number of outstanding shares of the Company. In connection with an initial public offering and listing of the common stock on Nasdaq,
NYSE American, or the New York Stock Exchange, the notes will automatically be converted under a mandatory conversion provision into
shares of common stock of the Company at the conversion price per share equal to 50% of the public offering price per share of the common
stock offered to the public in the initial public offering, or the IPO Conversion Price. In the event of an "Alternative Liquidity
Event," which is defined in a substantially similar manner as in the 6% convertible unsecured promissory notes, the note holders
will have the option to convert the notes at the conversion price per share equal to 50% of the aggregate transaction consideration divided
by the total number of outstanding shares of common stock of the acquiror resulting from such an event, or the Alternative Liquidity
Event Conversion Price.
110
Each note holder may not convert the 8% convertible
unsecured promissory note to the extent that the note holder (together with its affiliates) would beneficially own in excess of 9.99%
of the number of shares of common stock outstanding, not including remaining shares issuable to the note holder upon conversion of the
note or conversion or exercise of any other securities subject to an equivalent beneficial ownership limit. The note holder may waive
or raise the beneficial ownership limit, effective 61 days following notice from the convertible note holder.
In addition, in the event that by the maturity
date, the Company has not consummated an initial public offering of its common stock and the listing or trading of its common stock on
Nasdaq, the New York Stock Exchange, or NYSE American, and has not consummated an Alternative Liquidity Event, the Company may elect
either (a) upon thirty (30) days prior written notice to the holder, elect to prepay all or a portion of the principal amount of the
note and accrued interest hereon, subject to the holder's right to convert the note into common stock during such thirty (30) day
period, or (b) if the Company does not prepay the entire principal amount of the note or the remaining principal amount of the note,
the note will automatically increase to 110% of the original or unpaid portion of the outstanding principal amount. The note may otherwise
not be prepaid.
In addition, the Company provided "piggyback"
registration rights to the note holders, so as to require us to include, at the option of the note holders, the shares of common stock
underlying their securities in any registration statement to register other shares of common stock that the Company determines to file
after its initial public offering. The Company must generally keep such registration statement effective until all shares underlying
the convertible notes are sold. The Company also provided customary indemnification to the note holders relating to any damages to the
holders arising from such registrations.
The shares of common stock underlying the notes
are subject to certain lockup provisions until 365 days after the commencement of trading of our common stock, subject to certain exceptions.
8% Unsecured Promissory Notes
In March 2023 and April 2023 we completed one
private placement, and in May 2023 we conducted a subsequent private placement, in which we entered into subscription agreements with
accredited investors pursuant to which we issued 8% unsecured promissory notes. The total aggregate principal amount under the notes
outstanding is $2,350,000. The notes bear interest at the annual rate of 8%. The amount outstanding under the 8% unsecured promissory
notes must be repaid upon the earlier to occur of the consummation of a Liquidity Event or the second anniversary of the initial closing
date of the respective private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000 principal). If a Liquidity
Event occurs before the second anniversary of the initial closing date of the applicable private placement, the warrants will be automatically
exercised as to the unexercised portion of the warrants, the outstanding balance due under the 8% unsecured promissory notes will be
deemed repaid in the amount of the exercise price for the automatic exercise of the unexercised portion of the related warrants (see
"—
Warrants – Investor Warrants
" below), and any remaining balance outstanding must be repaid in cash.
If a Liquidity Event does not occur before the second anniversary of the initial closing date of the applicable private placement, then
both principal and interest outstanding under the notes must be repaid in cash. The notes may be prepaid at the discretion of the Company.
Under the subscription agreements with the investors
in the first private placement of the 8% unsecured promissory notes, the Company was required to use the first $450,000 of the net proceeds
from the private placement to expand its current operations, including its technology and intellectual property portfolio, and to fund
the costs of its initial public offering. The Company was required to use the next $800,000 of the net proceeds from the private placement
to repurchase up to 600,000 shares of common stock that were held by Dennis Gile, our largest stockholder and a former officer and director
of the Company, at a price equal to approximately $1.35 per share. The repurchase was required to be consummated only to the extent that
it does not impair the Company's capital within the meaning of Section 160 of the DGCL or the Company's ability to pay down
its debts as they become due. The Company was required to enter into an agreement with Mr. Gile providing that Mr. Gile will use the
proceeds of the repurchase to settle an existing lawsuit filed against Mr. Gile by John Dorsey, a former officer and director of the
Company, subject to a full release of Mr. Gile and the Company, and that Mr. Gile will resign from the board of directors of the Company
and from any officer position with the Company upon the repurchase. The Company was required to use any remaining net proceeds from the
private placement, which consisted of $250,000 less placement agent fees and expenses, for working capital and other general corporate
purposes. Subsequently, the Company used the net proceeds as required. For discussion of related recent developments, see "
Management's
Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments –Repurchase of Shares, Settlement
and Release
".
111
Warrants
Investor Warrants
From August 2022 to January 2023, we conducted
a private placement in which we issued warrants to a number of accredited investors. Following an initial public offering or Alternative
Liquidity Event, each warrant will be automatically exercisable for the amount of shares of common stock equal to the original principal
amount of the accompanying convertible note divided by the IPO Conversion Price or the Alternative Liquidity Event Conversion Price,
as applicable. The warrants have a five-year term. The shares of common stock underlying the warrants are subject to certain lockup provisions
until 365 days after the commencement of trading of our common stock, subject to certain exceptions.
In connection with our private placements of
8% unsecured promissory notes (see "—
8% Unsecured Promissory Notes
" above), in March 2023, April 2023 and May
2023, we issued warrants to purchase an aggregate of 940,000 shares of common stock exercisable at $2.50 per share. The warrants
may be voluntarily exercised for cash prior to the maturity date of the related 8% unsecured promissory notes (see "—
8%
Unsecured Promissory Notes
" above), or will be automatically exercised as to any unexercised portion for shares of common stock
upon the occurrence of a Liquidity Event-based maturity of the related 8% unsecured promissory notes in exchange for the Company's
deemed repayment of the notes in the amount of the exercise price for the automatic exercise of the unexercised portion of the related
warrants, with any remaining balance owed on the promissory notes to be repaid in cash. The warrants have a five-year term. The Company
agreed to register the resale all of the shares of common stock that such warrants may or shall be exercised to purchase with the shares
being registered for sale in the registration statement of which this prospectus forms a part. The Company must generally keep the registration
statement effective for a period as shall be required to permit the investors to complete the offer and sale of their shares. The Company
and the investors also provided customary mutual indemnification relating to any damages arising from such registration.
Placement Agent's Warrants
Boustead acted as placement agent in our private
placements of the convertible promissory notes, promissory notes, and warrants described above. Pursuant to our engagement letter agreement
with Boustead, in addition to a commission equal to 7% of the gross proceeds raised in the private placements, a non-accountable expense
allowance equal to 1% of the gross proceeds raised in the private placements, and payment of certain other expenses, we agreed to issue
Boustead five-year warrants to purchase a number of shares of common stock at an exercise price equal to the conversion price as defined
in the notes in an amount equal to 7% of the common stock underlying the securities sold in the private placements. Accordingly, a warrant
to purchase common stock was issued in December 2021 in connection with our private placement of 6% convertible unsecured promissory
notes, exercisable to purchase 7% of the original principal amount of the Company's 6% convertible unsecured promissory notes divided
by the convertible notes' applicable conversion price, at an exercise price equal to the convertible notes' applicable per-share
conversion price. Warrants to purchase shares of common stock were also issued to Boustead in March 2023, April 2023 and May 2023 in
connection with our private placements of 8% unsecured promissory notes and accompanying investor warrants. The warrants may be exercised
to purchase an aggregate of 7% of the common stock underlying the warrants that were issued to the initial 8% unsecured promissory note
holders at an exercise price equal to the exercise price as defined in such warrants. Each of the placement agent's warrants will
terminate five years after issuance. Boustead has informally waived its rights to warrants to purchase shares of common stock in connection
with our private placement of 8% convertible unsecured promissory notes and accompanying investor warrants. Under the engagement letter
with Boustead, its placement agent's warrants must be registered for resale with the Company's initial public offering. However,
Boustead has informally deferred these registration rights with respect to the registration statement for the initial public offering.
SAFEs
From March 2021 to July 2021, the Company raised
$1,980,000 from investors in exchange for securities called Simple Agreements for Future Equity (collectively, the "SAFEs").
The SAFEs were subject to different conversion calculations depending on the event triggering conversions as described in the SAFE, including
an equity financing, a liquidity event such as the Company's initial public offering, or an automatic conversion at the end of
18 months because no other conversion-triggering event has occurred. The terms of the SAFEs are discussed below. As also discussed below,
all of the SAFEs have been cancelled and exchanged for common stock.
112
SAFEs –
General
A SAFE is an agreement
between an investor and a company in which an investor invests cash into a company and the company in turn issues a SAFE contract that
will automatically convert into cash, equity in the company, or other future repayment if certain trigger events occur. SAFE instruments
were developed for startup companies seeking substantial funds quickly. SAFEs like those we issued convert into cash, equity in the company,
or other future repayment upon the occurrence of agreed-upon events indicating that the company has reached sufficient maturity to be
accurately valued. At that point the amount contributed by the investor will automatically convert into an amount of cash, equity in
the company, or other future repayment represented by the dollar amount contributed divided by the agreed expected company valuation.
Unlike common or preferred
stock, SAFEs do not represent a current equity stake and do not entitle investors to typical equity rights such as rights to dividends
or voting on major corporate matters.  Instead, the terms of the SAFE must be met in order for an investor to receive an equity
stake with these kinds of rights. Also, unlike debt, SAFEs do not represent a right to interest payments or any current legal obligation
by the SAFE issuer for the outstanding amount of a loan. If a SAFE issuer is dissolved or otherwise non-operative, SAFE holders typically
have no rights to demand or receive any portion of any remaining assets, unlike debtholders and equity holders.
SAFEs – Specific Conversion Terms
From March 2021 to July 2021, our predecessor
entity SDS LLC – AZ issued eight SAFEs to investors for total gross proceeds of $1,980,000. The SAFEs had the following conversion
terms.
Upon an Equity Financing (defined as a bona fide
transaction or series of transactions with the principal purpose of raising capital, pursuant to which the Company issues and sells preferred
stock at a fixed pre-money valuation) before the expiration or termination of these instruments, on the initial closing of such Equity
Financing, the SAFEs would have automatically converted into preferred stock in an amount of shares equal to the SAFE Purchase Amount
divided by the Equity Financing's offering price per share multiplied by 80%, or the SAFE Conversion Price Per Share, and with
identical rights as the preferred stock in such offering except for per share liquidation preference, the initial conversion price for
purposes of price-based anti-dilution protection and
the basis for any dividend or distribution rights,
which will be based on the
SAFE Conversion Price Per Share.
Upon a SAFE Liquidity Event (defined as any of
certain changes of voting control or disposition of substantially all assets of the Company, a listing of the Company's equity
securities in connection with an effective resale registration statement on Form S-1, or an initial public offering of the Company),
the SAFEs would have automatically been entitled to receive a portion of proceeds from the SAFE Liquidity Event due and payable to the
investors immediately prior to, or concurrent with the consummation of the initial public offering, equal to the greater of (i) the SAFE
Purchase Amount or (ii) an amount equal to a percentage of the proceeds from the initial public offering with such percentage calculated
by dividing the SAFE Purchase Amount by $20,000,000.
If there had been a Dissolution Event (defined
as (i) a voluntary termination of operations, (ii) a general assignment for the benefit of the Company's creditors or (iii) any
other liquidation, dissolution or winding up of the Company, excluding a SAFE Liquidity Event), whether voluntary or involuntary), the
SAFE investors would have automatically been entitled to receive a portion of the cash or other proceeds equal to the SAFE Purchase Amount,
due and payable to the investors immediately prior to the consummation of the Dissolution Event.
If after 18 months, there had been no Equity
Financing, SAFE Liquidity Event, or Dissolution Event where the SAFE investors have received equity interests in the Company or other
payment as contemplated above, then the SAFEs would have automatically converted to the number of shares of common stock of the Company
equal to the SAFE Purchase Amount divided by the issued and outstanding shares of common stock of the Company on a fully-diluted basis
divided by $20,000,000.
113
SAFE Cancellations and Exchanges
From September 22, 2022 to October 11, 2022,
we entered into cancellation and exchange agreements with the holders of the SAFEs. Under these agreements, each SAFE holder agreed to
cancel and exchange the holder's SAFE for a number of shares of common stock equal to the purchase amount under the SAFE divided
by approximately $3.35, based on a $25 million valuation for the Company. As a result, SAFEs that were purchased in the aggregate amount
of $1,980,000 were cancelled and exchanged for a total of 591,048 shares of common stock.
Anti-Takeover Provisions
Section 203 of the Delaware General Corporation Law
We are subject to Section 203 of
the DGCL, which prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a
period of three years after the date that such stockholder became an interested stockholder, with the following exceptions:
●
before such date, the Board of the
                                            corporation approved either the business combination or the transaction that resulted in
                                            the stockholder becoming an interested stockholder;
●
upon completion of the transaction
                                            that resulted in the stockholder becoming an interested stockholder, the interested stockholder
                                            owned at least 85% of the voting stock of the corporation outstanding at the time the transaction
                                            began, excluding for purposes of determining the voting stock outstanding (but not the outstanding
                                            voting stock owned by the interested stockholder) those shares owned (i) by persons
                                            who are directors and also officers and (ii) employee stock plans in which employee
                                            participants do not have the right to determine confidentially whether shares held subject
                                            to the plan will be tendered in a tender or exchange offer; or
●
on or after such date, the business
                                            combination is approved by the Board and authorized at an annual or special meeting of the
                                            stockholders, and not by written consent, by the affirmative vote of at least 662∕3%
                                            of the outstanding voting stock that is not owned by the interested stockholder.
In general, Section 203 defines
a "business combination" to include the following:
●
any merger or consolidation involving
                                            the corporation and the interested stockholder;
●
any sale, transfer, pledge or other
                                            disposition of 10% or more of the assets of the corporation involving the interested stockholder;
●
subject to certain exceptions, any
                                            transaction that results in the issuance or transfer by the corporation of any stock of the
                                            corporation to the interested stockholder;
●
any transaction involving the corporation
                                            that has the effect of increasing the proportionate share of the stock or any class or series
                                            of the corporation beneficially owned by the interested stockholder; and
●
the receipt by the interested stockholder
                                            of the benefit of any loans, advances, guarantees, pledges or other financial benefits by
                                            or through the corporation.
In general, Section 203 defines
an "interested stockholder" as an entity or person who, together with the person's affiliates and associates, beneficially
owns, or within three years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding
voting stock of the corporation.
The statute could prohibit or delay mergers or
other takeover or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may
offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.
A Delaware corporation may "opt out"
of these provisions with an express provision in its certificate of incorporation. We have not opted out of these provisions, which may,
as a result, discourage or prevent mergers or other takeover or change of control attempts of us.
114
Amended and Restated Bylaws
Our Amended and Restated Bylaws contain certain
provisions that may have anti-takeover effects, making it more difficult for or preventing a third party from acquiring control
of our company or changing our board of directors and management.
Our Amended and Restated Bylaws permit the board
of directors to establish the number of directors and fill any vacancies and newly created directorships. These provisions will prevent
a stockholder from increasing the size of our board of directors and gaining control of our board of directors by filling the resulting
vacancies with its own nominees. In addition, our Amended and Restated Bylaws provide that in addition to any other vote required by
law, no member of our board of directors may be removed from office by our stockholders without the approval of not less than the majority
of the total voting power of all of our outstanding voting stock then entitled to vote in the election of directors. Our Amended and
Restated Bylaws also do not provide our stockholders with the power to call a special meeting of stockholders and contain certain advance
notice provisions for the submission and presentation of stockholder meeting proposals or director nominations at a stockholder meeting,
which may limit the ability of stockholders to influence the composition and business decisions of our management.
Our
Amended and Restated Bylaws expressly provide for a right of first refusal of the Company for any proposed sale or transfer of stock
by a stockholder. As provided, any stockholder may only sell or transfer stock after first giving written notice of the proposed terms
of the transfer and a 30-day option to the Company or any designee(s) to purchase the shares on such terms. To the extent that the Company
and any designee(s) do not exercise the right of first refusal, the stockholder will have 60 days to sell or transfer the shares as proposed.
Certain transfers are exempt from the right of first refusal, including to immediate family, pledges of shares, or to another stockholder
or an officer or director of the Company.
However, this right of first refusal will terminate upon the date securities of the
Company are first offered to the public pursuant to a registration statement or offering statement filed with, and declared effective
or qualified by, as applicable, the SEC under the Securities Act. It is expected that upon the completion of the Company's initial
public offering, the right of first refusal under the Amended and Restated Bylaws will terminate in accordance with its terms.
Our
Amended and Restated Bylaws also provide that the Company may also agree with any stockholders to restrict the sale or other disposal
of the stock of the Company owned by such stockholders. Our Amended and Restated Bylaws are expressly subject to the restrictions set
forth in the Shareholder Agreement. As discussed in "
Corporate History and Structure – Shareholder Agreement
"
and "
Shares Eligible For Future Sale –
Shareholder Agreement
", the Shareholder Agreement provides
certain restrictions, rights and obligations relating to the proposed sale, transfer or other disposition of the shares of the Company.
These restrictions, rights and obligations include certain provisions that may have anti-takeover effects and prevent a third party from
acquiring control of the Company, including the Company's right of first refusal for proposed sales of shares by any stockholder;
each of the stockholder parties' right to purchase up to their relative percentage ownership of the Company's common stock
of any common stock or securities convertible into or exercisable to purchase common stock that the Company may from time to time issue,
including in an initial public offering, at the proposed price and other offering terms; and tag-along rights of the stockholder parties
to a proposed Change of Control, which may limit the Company's ability to negotiate a Change of Control transaction.
The Shareholder Agreement provides that it will
terminate on the earliest of (i) the written consent of the board of directors and vote of two-thirds of the holders of the outstanding
common stock of the Company; (ii) the Company's dissolution, filing of a petition in bankruptcy under Chapter 7 of the United States
Bankruptcy Code or insolvency of the Company; (iii) upon the closing of the Company's first underwritten public offering of its
common stock on Nasdaq, the New York Stock Exchange or other exchange or marketplace approved by the board of directors; or (iv) at such
time as only one stockholder party remains. Similarly, our Amended and Restated Bylaws provide that the right of first refusal date securities
of the Corporation are first offered to the public pursuant to a registration statement or offering statement filed with, and declared
effective or qualified by, as applicable, the SEC under the Securities Act of 1933. It is expected that upon the completion of the initial
public offering, the Shareholder Agreement will terminate in accordance with its terms.
The holders of our common stock do not have cumulative
voting rights in the election of our directors. The combination of the present ownership by a few stockholders of a significant portion
of our issued and outstanding common stock and lack of cumulative voting makes it more difficult for other stockholders to replace our
board of directors or for a third party to obtain control of our company by replacing its board of directors.
Transfer Agent and Registrar
We have appointed Securities Transfer Corporation,
telephone (469) 633-0101, as the transfer agent for our common stock.
Trading Symbol and Market
In
connection with the
Company's
initial public offering, we are in
the process of applying for the listing of our common stock
on NYSE American
under
the symbol "
SDS
".
115
SHARES
ELIGIBLE FOR FUTURE SALE
Before the Company's initial public offering,
there has not been a public market for shares of our common stock. Future sales of substantial amounts of shares of our common stock,
including shares issued upon the conversion of convertible notes, the exercise of outstanding options and warrants, in the public market
after the initial public offering, or the possibility of these sales occurring, could cause the prevailing market price for our common
stock to fall or impair our ability to raise equity capital in the future.
Immediately following the closing of the initial
public offering, there will be 16,256,727 shares of common stock issued and outstanding, assuming, at the time of the initial public
offering, the automatic conversion of the Company's 6% convertible unsecured promissory notes into a total of 3,152,500 shares
of common stock, the automatic conversion of the Company's 8% convertible unsecured promissory notes into a total of 732,500 shares
of common stock, and the exercise of certain warrants of the Company to purchase 940,000 shares of common stock. In the event the underwriters
exercise the over-allotment option in full, there will be 16,819,227 shares of common stock issued and outstanding, subject to the same
assumptions stated above. The common stock sold in the initial public offering and by the selling stockholders named in the resale prospectus
filed contemporaneously with this prospectus will be freely tradable without restriction or further registration or qualification under
the Securities Act.
Previously issued shares of common stock that
were not offered and sold in the initial public offering or by the selling stockholders named in the resale prospectus, as well as shares
issuable upon the exercise of warrants, stock options, or pursuant to the terms of other agreements or instruments, are, or will be upon
issuance, "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities
are eligible for public sale only if such public resale is registered under the Securities Act or if the resale qualifies for an exemption
from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.
Rule 144
In general, a person who has beneficially owned
restricted shares of our common stock for at least 12 months, or at least six months in the event we have been a reporting company under
the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided that such person
is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the ninety (90)
days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such
person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:
●
1% of the number of shares of our
                                            common stock then outstanding; or
●
1% of the average weekly trading
                                            volume of our common stock during the four calendar weeks preceding the filing by such person
                                            of a notice on Form 144 with respect to the sale;
provided that, in each case, we are subject to
the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the
manner of sale, notice and other provisions of Rule 144, to the extent applicable.
Rule 701
In general, Rule 701 allows a stockholder who
purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate
of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being required to comply
with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 shares, however,
are required to wait until ninety (90) days after the date of this prospectus before selling shares pursuant to Rule 701.
Lock-Up Agreements
2021 Private Placement Lock-Up Period
From September 2021 to December 2021, we conducted
a private placement of 6% convertible unsecured promissory notes due three years from the date of execution and entered into related
subscription agreements and investor rights and lockup agreements with a number of accredited investors. The shares of common stock underlying
the notes are subject to certain lockup provisions until 180 days after the commencement of trading of our common stock, subject to certain
exceptions.
116
2022 Private Placement Lock-Up Period
From August 2022 to January 2023, we conducted
a private placement of the Company's 8% convertible unsecured promissory notes and accompanying warrants under subscription agreements
with a number of accredited investors. The shares of common stock underlying the notes and warrants are subject to certain lockup provisions
until 365 days after the commencement of trading of our common stock, subject to certain exceptions.
Company Lock-Up
We, all of our directors and officers and stockholders
holding 5% or more of our shares have agreed with the underwriters, subject to certain exceptions, not to sell, transfer or dispose of,
directly or indirectly, any of our common stock or securities convertible into or exercisable or exchangeable for our common stock for
a period of 12 months after the closing of the Company's initial public offering. The underwriters have agreed to waive the lock-up
requirement for shares of common stock being sold by the selling stockholders named in the resale prospectus filed contemporaneously
with this prospectus. See "
Underwriting—Company Lock-Up
".
Registration Rights
Registration Rights of 6% Convertible Unsecured
Promissory Notes
In connection with the private placement of 6%
convertible unsecured promissory notes, the note holders entered into related subscription agreements and investor rights and lockup
agreements which provided the following registration rights. Within 30 business days following the consummation of the first to occur
of an initial public offering, a Sale of Control or a Reverse Merger, as applicable, the Company will file a Resale Registration Statement
in order to register for resale all of the shares of common stock of the Company or common stock of any successor-in-interest to the
Company issued to all holders of the notes upon automatic conversion of the notes, and will use its bests efforts to cause such Resale
Registration Statement to be declared effective by the SEC within 90 business days from the date of its initial filing; provided, that
such conversion shares will continue to be subject to restrictions on resale for a period of six (6) months following completion of either
the initial public offering, Sale of Control or Reverse Merger, as applicable. In the event that, for any reason, the Company is unable
to comply with the above registration requirement, note holders holding the majority of the outstanding notes have a one-time right,
at any time after one hundred eighty (180) days from the effective date of the registration statement in connection with its initial
public offering, to request that the Company file a Resale Registration Statement with respect to the notes' underlying conversion
shares then outstanding having an anticipated aggregate offering price, net of selling expenses, of at least five million dollars ($5,000,000),
in which event the Company shall (x) within ten (10) days after the date such request is given, give notice thereof to all other note
holders; and (y) as soon as practicable, and in any event within sixty (60) days after the date such request, file a Resale Registration
Statement covering all the notes' underlying conversion shares that were requested to be registered and any additional conversion
shares requested to be included in such registration by any other note holders, subject to certain limitations and exceptions. In addition,
the Company provided "piggyback" registration rights to the note holders, so as to require us to include, at the option of
the note holders, the shares of common stock underlying their securities in any registration statement to register other shares of common
stock that the Company determines to file after its initial public offering. The Company must generally keep any required or requested
registration statement effective for a period of at least 180 days after the expiration of the lockup requirements described above, subject
to extensions under certain circumstances. The Company also provided customary indemnification to the note holders relating to any damages
to the holders arising from such registrations.
Registration Rights of 8% Convertible Unsecured
Promissory Notes and Related Warrants
In connection with the private placement of 8%
convertible unsecured promissory notes and accompanying warrants, the Company provided "piggyback" registration rights to
the investors in such private placement, so as to require us to include, at the option of the investors, the shares of common stock underlying
their securities in any registration statement to register other shares of common stock that the Company determines to file after the
Company's initial public offering.
Registration Rights of Warrants Related
to 8% Unsecured Promissory Notes
In connection with the private placement of warrants
issued with the 8% unsecured promissory notes, the Company agreed to register the resale all of the shares of common stock that such
warrants may or shall be exercised to purchase with the shares being registered for sale in the registration statement of which this
prospectus forms a part. The Company must generally keep the registration statement of which this prospectus forms a part effective for
a period as shall be required to permit the investors to complete the offer and sale of their shares, unless the shares may be resold
pursuant to Rule 144 promulgated under the Securities Act. The Company and the investors also provided customary mutual indemnification
relating to any damages arising from such registration.
117
Registration Rights of the Placement Agent's
Warrants
Under our engagement letter with Boustead, its
placement agent's warrants must be registered for resale with the Company's initial public offering. However, Boustead has
informally deferred these registration rights with respect to the registration statement for the initial public offering.
Shareholder Agreement
On May 17, 2022, the Shareholder Agreement was
entered into by and among the Company and the stockholders of the Company. The Shareholder Agreement provides certain restrictions, rights
and obligations relating to the proposed sale, transfer or other disposition of the shares of the Company.
Rights of First Refusal
If a stockholder party proposes to sell their
shares, or the ownership of the shares would change as a result of a marital divorce or separation, death, bankruptcy or similar proceeding,
or the stockholder party engages in fraud, a felony or bad-faith violation of the implied contractual covenant of good faith and fair
dealing, the Company may repurchase the shares within a certain period, subject to certain restrictions. If the Company does not repurchase
the shares within the prescribed period, the other stockholder parties may then purchase the shares within a certain period. The purchase
price would be the seller's proposed price, or, in the event of a purchase pursuant to a change in the ownership of the shares
for one of the reasons stated above, at the Company or other stockholder party buyer's proposed price, and if not accepted by the
disposing stockholder or their spouse, representative or successor, as applicable, then the fair market value of the shares. The purchase
price must be paid at the proposed price for proposed sales; in cash as to dispositions pursuant to marital divorce or separation; and
for the other events described above, must be paid in cash or with a 5-year nonnegotiable promissory note bearing interest at the rate
per annum equal to
The Wall Street Journal
prime rate of interest as quoted in the Money Rates section of
The Wall Street Journal
,
compounded annually on each anniversary of the note. These purchase rights are subject to certain notice, timing and other provisions
set forth in the Shareholder Agreement. The board of directors of the Company may waive the application of the repurchase rights of the
Company and the purchase rights of the other stockholder parties described above. Dispositions subject to the tag-along right or drag-along
rights described below are not subject to these purchase rights.
Drag-Along Right and Tag-Along Rights
If the Company proposes a Change of Control,
the Company may require the other stockholders to transfer all of their shares to the proposed transferee for the same consideration
and otherwise on the same terms and conditions upon which the Company is arranging for the sale of shares. Likewise, in the event of
such a proposed transaction or series of transactions, subject to the Company's repurchase rights described above, any stockholder
party may cause the Company to effect a disposition of such stockholder's shares in the transaction. The drag-along right and tag-along
rights are subject to certain notice, timing, payment, and other provisions set forth in the Shareholder Agreement.
Participation Rights
Each of the stockholder parties generally has
the right to purchase up to their relative percentage ownership of the Company's common stock of any common stock or securities
convertible into or exercisable to purchase common stock that the Company may from time to time issue, including in an initial public
offering, at the proposed price and other offering terms. These purchase rights are subject to certain notice and timing provisions set
forth in the Shareholder Agreement.
Other Provisions
The stockholder parties are subject to certain
confidentiality requirements. The Shareholder Agreement will terminate on the earliest of (i) the written consent of the board of directors
and vote of two-thirds of the holders of the outstanding common stock of the Company; (ii) the Company's dissolution, filing of
a petition in bankruptcy under Chapter 7 of the United States Bankruptcy Code or insolvency of the Company; (iii) upon the closing of
the Company's first underwritten public offering of its common stock on Nasdaq, the New York Stock Exchange or other exchange or
marketplace approved by the board of directors; or (iv) at such time as only one stockholder party remains.
118
MATERIAL
U.S. FEDERAL TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF OUR COMMON STOCK
The following is a summary of the material U.S.
federal income and estate tax consequences of the ownership and disposition of our common stock that is being issued pursuant to the
Company's initial public offering. This summary is limited to Non-U.S. Holders (as defined below) that hold our common stock as
a capital asset (generally, property held for investment) for U.S. federal income tax purposes. This summary does not discuss all of
the aspects of U.S. federal income and estate taxation that may be relevant to a non-U.S. Holder in light of the Non-U.S. Holder's
particular investment or other circumstances. Accordingly, all prospective Non-U.S. Holders should consult their own tax advisors with
respect to the U.S. federal, state, local and non-U.S. tax consequences of the ownership and disposition of our common stock.
This summary is based on provisions of the Code,
applicable U.S. Treasury regulations, and administrative and judicial interpretations, all as in effect or in existence on the date of
this prospectus. Subsequent developments in U.S. federal income or estate tax law, including changes in law or differing interpretations,
which may be applied retroactively, could alter the U.S. federal income and estate tax consequences of owning and disposing of our common
stock as described in this summary. There can be no assurance that the Internal Revenue Service, or IRS, will not take a contrary position
with respect to one or more of the tax consequences described herein and we have not obtained, nor do we intend to obtain, a ruling from
the IRS with respect to the U.S. federal income or estate tax consequences of the ownership or disposition of our common stock.
As used in this summary, the term "Non-U.S.
Holder" means a beneficial owner of our common stock that is not, for U.S. federal income tax purposes:
●
an individual who is a citizen or
                                            resident of the United States;
●
a
                                            corporation (or other entity treated as a corporation) created or organized in or under the
                                            laws of the United States, any state thereof, or the District of Columbia;
●
an
                                            entity or arrangement treated as a domestic partnership;
●
an estate whose income is includible
                                            in gross income for U.S. federal income tax purposes regardless of its source; or
●
a
                                            trust, if (1) a U.S. court is able to exercise primary supervision over the trust's
                                            administration and one or more "United States persons" (within the meaning of
                                            the Code) has the authority to control all of the trust's substantial decisions, or
                                            (2) the trust has a valid election in effect under applicable U.S. Treasury regulations
                                            to be treated as a United States person.
If an entity or arrangement treated as a partnership
for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in such a partnership generally will depend
upon the status of the partner, the activities of the partnership and certain determinations made at the partner level. Partnerships,
and partners in partnerships, that hold our common stock should consult their own tax advisors as to the particular U.S. federal income
and estate tax consequences of owning and disposing of our common stock that are applicable to them.
This summary does not consider any specific facts
or circumstances that may apply to a Non-U.S. Holder and does not address any special tax rules that may apply to particular Non-U.S.
Holders, such as:
●
a
                                            Non-U.S. Holder that is a financial institution, insurance company, tax-exempt organization,
                                            pension plan, broker, dealer or trader in securities, dealer in currencies, U.S. expatriate,
                                            controlled foreign corporation or passive foreign investment company;
●
a
                                            non-U.S. Holder holding our common stock as part of a conversion transaction, constructive
                                            sale, wash sale or other integrated transaction or a hedge, straddle or synthetic security;
●
a Non-U.S. Holder that holds or
                                            receives our common stock pursuant to the exercise of any employee stock option or otherwise
                                            as compensation; or
●
a non-U.S. Holder that at any time
                                            owns, directly, indirectly or constructively, 5% or more of our outstanding common stock.
In addition, this summary does not address any
U.S. state or local, or non-U.S. or other tax consequences, or any U.S. federal income or estate tax consequences for beneficial owners
of a Non-U.S. Holder, including stockholders of a controlled foreign corporation or passive foreign investment company that holds our
common stock.
119
Each Non-U.S. Holder should consult its own
tax advisor regarding the U.S. federal, state, local and non-U.S. income and other tax consequences of owning and disposing of our common
stock.
Distributions on Our Common Stock
We do not currently expect to pay any cash dividends
on our common stock. If we make distributions of cash or property (other than certain pro rata distributions of our common stock) with
respect to our common stock, any such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent
paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax rules. If a distribution exceeds
our current and accumulated earnings and profits, the excess will be treated as a nontaxable return of capital to the extent of the Non-U.S.
Holder's adjusted tax basis in our common stock and will reduce (but not below zero) such Non-U.S. Holder's adjusted tax
basis in our common stock. Any remaining excess will be treated as gain from a disposition of our common stock subject to the tax treatment
described below in "
— Dispositions of Our Common Stock
."
Distributions on our common stock that are treated
as dividends and that are effectively connected with a Non-U.S. Holder's conduct of a trade or business in the United States will
be taxed on a net income basis at the regular graduated rates and in the manner applicable to United States persons. An exception may
apply if the Non-U.S. Holder is eligible for, and properly claims, the benefit of an applicable income tax treaty and the dividends are
not attributable to a permanent establishment or fixed base maintained by the Non-U.S. Holder in the United States. In such case, the
Non-U.S. Holder may be eligible for a lower rate under an applicable income tax treaty between the United States and its jurisdiction
of tax residence. Dividends that are effectively connected with a Non-U.S. Holder's conduct of a trade or business in the United
States will not be subject to U.S. withholding tax if the Non-U.S. Holder provides to the applicable withholding agent a properly executed
IRS Form W-8ECI (or other applicable form) in accordance with the applicable certification and disclosure requirements. A Non-U.S. Holder
treated as a corporation for U.S. federal income tax purposes may also be subject to a "branch profits tax" at a 30% rate
(unless the Non-U.S. Holder is eligible for a lower rate under an applicable income tax treaty) on the Non-U.S. Holder's earnings
and profits (attributable to dividends on our common stock or otherwise) that are effectively connected with the Non-U.S. Holder's
conduct of a trade or business within the United States. The amount of taxable earnings and profits is generally reduced by amounts reinvested
in the operations of the U.S. trade or business and increased by any decline in its equity.
The certifications described above must be provided
to the applicable withholding agent prior to the payment of dividends and must be updated periodically. A Non-U.S. Holder may obtain
a refund or credit of any excess amounts withheld by timely filing an appropriate claim for a refund with the IRS. Non-U.S. Holders should
consult their own tax advisors regarding their eligibility for benefits under any relevant income tax treaty and the manner of claiming
such benefits.
The foregoing discussion is subject to the discussions
below under "
—Backup Withholding and Information Reporting
" and "
—FATCA Withholding
."
Dispositions of Our Common Stock
A Non-U.S. Holder generally will not be subject
to U.S. federal income tax (including U.S. withholding tax) on gain recognized on any sale or other disposition of our common stock unless:
●
the
                                            gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business
                                            in the United States (and, if required by an applicable income tax treaty, is attributable
                                            to a permanent establishment or fixed base maintained by the Non-U.S. Holder in the United States);
                                            in such case, the gain would be subject to U.S. federal income tax on a net income basis
                                            at the regular graduated rates and in the manner applicable to United States persons
                                            (unless an applicable income tax treaty provides otherwise) and, if the Non-U.S. Holder is
                                            treated as a corporation for U.S. federal income tax purposes, the "branch profits
                                            tax" described above may also apply;
●
the
                                            Non-U.S. Holder is an individual who is present in the United States for 183 days
                                            or more in the taxable year of the disposition and meets certain other requirements; in such
                                            case, except as otherwise provided by an applicable income tax treaty, the gain, which may
                                            be offset by certain U.S. source capital losses, generally will be subject to a flat 30%
                                            U.S. federal income tax, even if the Non-U.S. Holder is not treated as a resident of the
                                            United States under the Code; or
●
we
                                            are or have been a "United States real property holding corporation," or USRPHC,
                                            for U.S. federal income tax purposes at any time during the shorter of (i) the five-year
                                            period ending on the date of disposition and (ii) the period that the Non-U.S. Holder held
                                            our common stock.
120
Generally, a corporation is a USRPHC, if the
fair market value of its "United States real property interests" equals or exceeds 50% of the sum of the fair market value
of its worldwide real property interests plus its other assets used or held for use in a trade or business. We believe that we are not
currently, and we do not anticipate becoming in the future, a USRPHC. However, because the determination of whether we are a USRPHC is
made from time to time and depends on the relative fair market values of our assets, there can be no assurance in this regard. If we
were a USRPHC, the tax relating to disposition of stock in a USRPHC generally will not apply to a Non-U.S. Holder whose holdings, direct,
indirect and constructive, constituted 5% or less of our common stock at all times during the applicable period, provided that our common
stock is "regularly traded on an established securities market" (as provided in applicable U.S. Treasury regulations) at
any time during the calendar year in which the disposition occurs. However, no assurance can be provided that our common stock will be
regularly traded on an established securities market for purposes of the rules described above. Non-U.S. Holders should consult
their own tax advisors regarding any possible adverse U.S. federal income tax consequences to them if we are, or were to become, a USRPHC.
The foregoing discussion is subject to the discussions
below under "
—Backup Withholding and Information Reporting
" and "
—FATCA Withholding
."
Federal Estate Tax
Any shares of our common stock that are owned
(or treated as owned) by an individual who is not a U.S. citizen or resident of the United States (as specially defined for U.S. federal
estate tax purposes) at the time of his or her death will be included in that individual's gross estate for U.S. federal estate
tax purposes, unless an applicable estate tax or other treaty provides otherwise, and therefore may be subject to U.S. federal estate
tax.
Backup Withholding and Information Reporting
Backup withholding (currently at a rate of 24%)
may apply to dividends paid by U.S. corporations in some circumstances, but will not apply to payments of dividends on our common stock
to a Non-U.S. Holder if the Non-U.S. Holder provides to the applicable withholding agent a properly executed IRS Form W-8BEN or
W-8BEN-E (or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person
or is otherwise entitled to an exemption. However, the applicable withholding agent generally will be required to report to the IRS (and
to such Non-U.S. Holder) payments of dividends on our common stock and the amount of U.S. federal income tax, if any, withheld from those
payments. In accordance with applicable treaties or agreements, the IRS may provide copies of such information returns to the tax authorities
in the country in which the Non-U.S. Holder resides.
The gross proceeds from sales or other dispositions
of our common stock may be subject, in certain circumstances discussed below, to U.S. backup withholding and information reporting. If
a Non-U.S. Holder sells or otherwise disposes of any of our common stock outside the United States through a non-U.S. office of a non-U.S.
broker and the disposition proceeds are paid to the Non-U.S. Holder outside the United States, the U.S. backup withholding and information
reporting requirements generally will not apply to that payment. However, U.S. information reporting, but not U.S. backup withholding,
will apply to a payment of disposition proceeds, even if that payment is made outside the United States, if a Non-U.S. Holder sells our
common stock through a non-U.S. office of a broker that is a United States person or has certain enumerated connections with the United
States, unless the broker has documentary evidence in its files that the Non-U.S. Holder is not a United States person and certain other
conditions are met or the Non-U.S. Holder otherwise qualifies for an exemption.
121
If a Non-U.S. Holder receives payments of the
proceeds of a disposition of our common stock to or through a U.S. office of a broker, the payment will be subject to both U.S. backup
withholding and information reporting unless the Non-U.S. Holder provides to the broker a properly executed IRS Form W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person, or the Non-U.S.
Holder otherwise qualifies for an exemption.
Backup withholding is not an additional tax.
Any amounts withheld under the backup withholding rules may be credited against the Non-U.S. Holder's U.S. federal income tax liability
(which may result in the Non-U.S. Holder being entitled to a refund), provided that the required information is timely furnished to the
IRS.
FATCA Withholding
The Foreign Account Tax Compliance Act and related
Treasury guidance (commonly referred to as FATCA) impose U.S. federal withholding tax at a rate of 30% on payments to certain foreign
entities of (i) U.S.-source dividends (including dividends paid on our common stock) and (ii) the gross proceeds from the sale
or other disposition of property that produces U.S.-source dividends (including sales or other dispositions of our common stock). This
withholding tax applies to a foreign entity, whether acting as a beneficial owner or an intermediary, unless such foreign entity complies
with (i) certain information reporting requirements regarding its U.S. account holders and its U.S. owners and (ii) certain
withholding obligations regarding certain payments to its account holders and certain other persons. Accordingly, the entity through
which a Non-U.S. Holder holds its common stock will affect the determination of whether such withholding is required. While withholding
under FATCA would have also applied to payments of gross proceeds from the sale or other disposition of our common stock on or after
January 1, 2019, U.S. Treasury regulations proposed in December, 2018 eliminate such withholding on payments of gross proceeds entirely.
Taxpayers generally may rely on these proposed U.S. Treasury regulations until final U.S. Treasury regulations are issued. Non-U.S. Holders
are encouraged to consult their tax advisors regarding the possible application of FATCA in their particular circumstances.
122
UNDERWRITING
We expect to enter an underwriting agreement
with Boustead Securities, LLC (who we refer to as the representative), as representative of the underwriters named in this prospectus,
with respect to the shares of common stock in the Company's initial public offering. Under the terms and subject to the conditions
contained in the underwriting agreement, the representative will agree to purchase from us on a firm commitment basis the respective
number of shares of common stock at the public price less the underwriting discounts set forth on the cover page of this prospectus,
and each of the underwriters has severally agreed to purchase, and we have agreed to sell to the underwriters, the number of shares of
common stock listed next to its name in the following table.
Underwriter
Number of Shares
Boustead Securities, LLC
Total
The shares of common stock sold by the underwriters
to the public will initially be offered at the initial public offering price range set forth on the cover page of this prospectus. Any
shares of common stock sold by the underwriters to securities dealers may be sold at a discount from the initial public offering price
not to exceed $ per share. If all of the shares are not sold at the initial offering price, the representative may change the offering
price and the other selling terms. The representative has advised us that the underwriters do not intend to make sales to discretionary
accounts. The underwriting agreement will provide that the obligations of the underwriters to pay for and accept delivery of the shares
of common stock are subject to the passing upon certain legal matters by counsel and certain conditions such as confirmation of the accuracy
of representations and warranties by us about our financial condition and operations and other matters. The obligation of the underwriters
to purchase the shares of common stock is conditioned upon our receiving approval to list the shares of common stock on NYSE American.
If the underwriters sell more shares of common
stock than the total number set forth in the table above, we have granted to the representative an option, exercisable for 45 days from
the date of this prospectus, to purchase up to 562,500 additional shares of common stock at the assumed public offering price less the
underwriting discount, constituting 15% of the total number of shares of common stock to be offered in the initial public offering (excluding
shares subject to this option). The representative may exercise this option solely for the purpose of covering over-allotments in connection
with the initial public offering. The initial public offering is being conducted on a firm commitment basis.  Any shares of common
stock issued or sold under the option will be issued and sold on the same terms and conditions as the other shares of common stock that
are the subject of the initial public offering.
In connection with the initial public offering,
the underwriters may engage in stabilizing transactions, over-allotment transactions, syndicate covering transactions and penalty bids
in compliance with Regulation M under the Exchange Act, as described below:
●
Stabilizing transactions permit
                                            bids to purchase securities so long as the stabilizing bids do not exceed a specified maximum.
●
Over-allotment transactions involve
                                            sales by the underwriters of securities in excess of the number of securities the underwriters
                                            are obligated to purchase, which creates a syndicate short position. The short position may
                                            be either a covered short position or a naked short position. In a covered short position,
                                            the number of securities over-allotted by the underwriters is not greater than the number
                                            of securities that they may purchase in the over-allotment option. In a naked short position,
                                            the number of securities involved is greater than the number of securities in the over-allotment
                                            option. The underwriters may close out any covered short position by either exercising their
                                            over-allotment option and/or purchasing securities in the open market.
●
Syndicate covering transactions
                                            involve purchases of securities in the open market after the distribution has been completed
                                            in order to cover syndicate short positions. In determining the source of securities to close
                                            out the short position, the underwriters will consider, among other things, the price of
                                            securities available for purchase in the open market as compared to the price at which they
                                            may purchase securities through the over-allotment option. A naked short position occurs
                                            if the underwriters sell more securities than could be covered by the over-allotment option.
                                            This position can only be closed out by buying securities in the open market. A naked short
                                            position is more likely to be created if the underwriters are concerned that there could
                                            be downward pressure on the price of the securities in the open market after pricing that
                                            could adversely affect investors who purchase in the initial public offering.
●
Penalty bids permit the underwriters
                                            to reclaim a selling concession from a syndicate member when securities originally sold by
                                            the syndicate member are purchased in a stabilizing or syndicate covering transaction to
                                            cover syndicate short positions.
123
These stabilizing transactions, syndicate covering
transactions and penalty bids may have the effect of raising or maintaining the market price of our securities or preventing or retarding
a decline in the market price of the securities. As a result, the price of our shares of common stock may be higher than the price that
might otherwise exist in the open market. These transactions may be discontinued at any time.
Discounts and Expenses
The following table shows the underwriting discounts,
commissions, and non-accountable expense allowance payable to the underwriters by us in connection with the Company's initial public
offering (assuming both the exercise and non-exercise of the over-allotment option that we have granted to the representative):
Per Share
Without Option
With Option
Public offering price
$
$
$
Underwriting discounts and commissions (7%)
$
$
$
Non-accountable expense allowance (1%)
$
$
$
Proceeds, before expenses, to us
$
$
$
We have agreed to pay a non-accountable expense
allowance to the representative equal to 1.0% of the gross proceeds received at the closing of the offering.
We have agreed to pay the representative the
reasonable out-of-pocket expenses incurred by the representative in connection with the initial public offering up to $255,000. The representative
out-of-pocket expenses include but are not limited to: (i) reasonable fees of representative's legal counsel up to $125,000, (ii)
due diligence and other expenses incurred prior to completion of the initial public offering up to $75,000, (iii) road show, travel,
platform on-boarding fees, and other reasonable out-of-pocket accountable expenses up to $50,000, and (iv) $5,000 for background checks
on our officers, directors and major stockholders and due diligence expenses. As of the date of this prospectus, we have paid the representative
advances of $75,000 for its anticipated out-of-pocket costs. Such advance payments will be returned to us to the extent such out-of-pocket
expenses are not actually incurred in accordance with FINRA Rule 5110(g)(4)(A).
Representative's Warrants
We have agreed to issue warrants to the
representative to purchase a number of shares of common stock equal to 7% of the total number of shares sold in the Company's
initial public offering at an exercise price equal to 100% of the public offering price of the shares sold in the initial public
offering. The representative's warrants will be exercisable upon issuance, will have a cashless exercise provision and will
terminate on the fifth anniversary of the effective date of the registration statement of which this prospectus forms a part. The
representative's warrants also provide for customary anti-dilution provisions and immediate "piggyback"
registration rights with respect to the registration of the shares of common stock underlying the warrants, which registration
rights shall terminate on the fifth anniversary of the effective date of the registration statement of which this prospectus forms a
part. We have registered the representative's warrants and the shares underlying the representative's warrants in the
initial public offering.
The representative's warrants and the underlying
shares may be deemed to be compensation by FINRA, and therefore will be subject to FINRA Rule 5110(e)(1). In accordance with FINRA Rule
5110(e)(1), neither the representative's warrants nor any of our shares of common stock issued upon exercise of the representative's
warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or
call transaction that would result in the effective economic disposition of such securities by any person, for a period of 180 days immediately
following the commencement date of sales in the initial public offering, subject to certain exceptions. The representative's warrants
to be received by the representative and related persons in connection with the initial public offering: (i) fully comply with lock-up
restrictions pursuant to FINRA Rule 5110(e)(1); and (ii) fully comply with transfer restrictions pursuant to FINRA Rule 5110(e)(2).
124
Determination of Offering Price
In determining the Company's initial public
offering price, we and the representative have considered a number of factors, including:
●
the information set forth in this
                                            prospectus and otherwise available to the representative;
●
our prospects and the history and
                                            prospects for the industry in which we compete;
●
an assessment of our management;
●
our prospects for future revenue
                                            and earnings;
●
the recent prices of, and demand
                                            for, shares sold by us prior to the initial public offering;
●
the general condition of the securities
                                            markets at the time of the initial public offering;
●
the recent market prices of, and
                                            demand for, publicly traded securities of generally comparable companies; and
●
other factors deemed relevant by
                                            the Representative and us.
The assumed initial public offering price set
forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions and other factors. Neither
we nor the representative can assure investors that an active trading market will develop for our shares of common stock, or that the
shares will trade in the public market at or above the initial public offering price.
We have agreed to indemnify the representative
and the other underwriters against certain liabilities, including liabilities under the Securities Act. If we are unable to provide this
indemnification, we will contribute to payments that the representative and the other underwriters may be required to make for these
liabilities.
Right of First Refusal
We have agreed to provide the representative
the right of first refusal for eighteen (18) months following the consummation of the Company's initial public offering or the
termination or expiration of the engagement with the representative to act as financial advisor or to act as joint financial advisor
on or at least equal economic terms on any public or private financing (debt or equity), merger, business combination,
recapitalization or sale of some or all of our equity or our assets.  In the event that we engage the representative to provide
such services, the representative will be compensated consistent with our engagement agreement with the representative, unless we
mutually agree otherwise.
Tail Rights
Following the termination or expiration of our
engagement agreement with the representative, the representative shall be entitled to a cash fee ("Tail Fee") equal to seven
percent (7.0%) of the gross proceeds received by the Company from the sale of shares of common stock to any investor which became aware
of the Company or which became known to the Company prior to such termination or expiration within the twelve (12) month period ("Tail
Period") following the termination or expiration of the engagement agreement with the representative, or Identified Party, provided
that no party shall be an Identified Party unless such person is contained on a list of Identified Parties to be provided by the representative
to the Company at the time of termination or expiration of the engagement agreement with the representative (and which such list must
be agreed to by the Company in its reasonable discretion). Notwithstanding the foregoing, in the event the engagement agreement is terminated
for "Cause," which shall mean a material breach by the representative of the engagement agreement, and which such material
breach is not cured, no Tail Fee shall be due during the Tail Period.
No Sales of Similar Securities
We have agreed not to offer, issue, sell, contract
to sell, encumber, grant any option for the sale of or otherwise dispose of any shares of our common stock or other securities convertible
into or exercisable or exchangeable for shares of common stock at a price per share that is less than the price per share of common stock
in the Company's initial public offering, or modify the terms of any existing securities, whether in conjunction with another broker-dealer
or on the Company's own volition for a period of 12 months following the date on which the shares of common stock are trading
on NYSE American, without the prior written consent of the representative.
125
Company Lock-Up
We will not, without the prior written consent
of the representative, from the date of execution of the Underwriting Agreement and continuing for a period of 12 months from the date
on which the trading of our common stock commences (the "Lock-Up Period"), (i) offer, pledge, announce the intention to sell,
sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, change the terms of or grant
any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, or file with the Commission a registration
statement under the Securities Act relating to, our common stock or any securities convertible into or exercisable or exchangeable for
our common stock, or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences
of ownership of the common stock or any such other securities, whether any such transaction described in clause (i) or (ii) above is
to be settled by delivery of common stock or such other securities, in cash or otherwise. We will agree not to accelerate the vesting
of any option or warrant or the lapse of any repurchase right prior to the expiration of the Lock-Up Period.
Our executive officers, directors and current
stockholders (as well as holders of convertible or exercisable securities which convert into or are exercisable into common stock) have
also agreed to a 12-month "lock-up," during which, without the prior written consent of the representative, they shall not,
directly or indirectly, subject to certain exceptions, (i) offer, pledge, assign, encumber, announce the intention to sell, sell, contract
to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase,
or otherwise transfer or dispose of, any shares of common stock or any securities convertible into or exercisable or exchangeable for
common stock, owned either of record or beneficially by any signatory of the lock-up agreement on the date of the prospectus or thereafter
acquired; (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership
of the common stock or any securities convertible into or exercisable or exchangeable for common stock, whether any such transaction described
in clauses (i) or (ii) above is to be settled by delivery of common stock or such other securities, in cash or otherwise, or publicly
announce an intention to do any of the foregoing; and (iii) make any demand for or exercise any right with respect to, the registration
of any shares of common stock or any security convertible into or exercisable or exchangeable for common stock. The underwriters have
agreed to waive the lock-up requirement for shares of common stock being sold by the selling stockholders named in the resale prospectus
filed contemporaneously with this prospectus.
Electronic Offer, Sale and Distribution of
Shares of Common Stock
A prospectus in electronic format may be made
available on the websites maintained by the representative. In addition, shares of common stock may be sold by the representative to
securities dealers who resell shares of common stock to online brokerage account holders. Other than the prospectus in electronic format,
the information on the representative's website and any information contained in any other website maintained by the representative
is not part of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed
by us or the representative in its capacity as representative and should not be relied upon by investors.
Selling Restrictions
No action has been taken in any jurisdiction
(except in the United States) that would permit a public offering of the shares of common stock, or the possession, circulation or distribution
of this prospectus or any other material relating to us or the shares of common stock, where action for that purpose is required. Accordingly,
the shares of common stock may not be offered or sold, directly or indirectly, and neither this prospectus nor any other offering material
or advertisements in connection with the shares of common stock may be distributed or published, in or from any country or jurisdiction
except in compliance with any applicable rules and regulations of any such country or jurisdiction.
Offer Restrictions Outside the United States
Other than in the United States, no action has
been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction
where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly,
nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities
be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules
and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and
to observe any restrictions relating to the Company's initial public offering and the distribution of this prospectus. This prospectus
does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction
in which such an offer or a solicitation is unlawful.
126
Company Securities Acquired by Underwriters
in Connection with Private Placements
From October 2021 to December 2021, we conducted
a private placement of 6% convertible unsecured promissory notes due three years from the date of execution and entered into related
subscription agreements and investor rights and lockup agreements with a number of accredited investors. Pursuant to the agreements,
we issued 27 convertible notes for aggregate loans of $6,305,000. The convertible notes bear interest at 6% annually. For a further description
of the terms of these convertible notes, see "
Description of Securities – 6% Convertible Unsecured Promissory Notes
".
From August 2022 to January 2023, we conducted
a private placement of the Company's 8% convertible unsecured promissory notes and accompanying warrants under subscription agreements
with a number of accredited investors. Pursuant to the agreements, we issued 15 convertible notes and accompanying warrants for aggregate
loans of $1,465,000. The convertible notes bear interest at 8% annually and are due August 8, 2023 unless converted in accordance with
their terms. For a further description of the terms of these convertible notes and warrants, see "
Description of Securities
– 8% Convertible Unsecured Promissory Notes
" and "
Description of Securities – Warrants – Investor
Warrants
", respectively.
In March 2023 and April 2023 we completed one
private placement, and in May 2023 we conducted a subsequent private placement, in which we entered into subscription agreements with
a number of accredited investors, pursuant to which we issued 8% unsecured promissory notes in the aggregate principal amount of $2,350,000,
which bear interest at the annual rate of 8%, and accompanying warrants to purchase an aggregate of 940,000 shares of common stock
exercisable at $2.50 per share. The convertible notes bear interest at 8% annually. For a further description of the private placement
and the terms of these notes and warrants, see "
Description of Securities – 8% Unsecured Promissory Notes
",
and "
Description of Securities – Warrants – Investor Warrants
".
Boustead acted as placement agent in our private
placements of the convertible notes, promissory notes, and warrants described above. Pursuant to our engagement letter agreement with
Boustead, in addition to a commission equal to 7% of the gross proceeds raised in the private placements, a non-accountable expense allowance
equal to 1% of the gross proceeds raised in the private placements, and payment of certain other expenses, we agreed to issue Boustead
five-year warrants to purchase a number of shares of common stock at an exercise price equal to the conversion price as defined in the
notes in an amount equal to 7% of the common stock underlying the securities sold in the private placements. Accordingly, a warrant to
purchase common stock was issued in December 2021 in connection with our private placement of 6% convertible unsecured promissory notes,
exercisable to purchase 7% of the original principal amount of the Company's 6% convertible unsecured promissory notes divided
by the convertible notes' applicable conversion price, at an exercise price equal to the convertible notes' applicable per-share
conversion price. Warrants to purchase shares of common stock were also issued to Boustead in March 2023, April 2023 and May 2023 in
connection with our private placement of 8% unsecured promissory notes and accompanying investor warrants. The warrants may be exercised
to purchase an aggregate of 7% of the common stock underlying the warrants that were issued to the initial 8% unsecured promissory note
holders at an exercise price equal to the exercise price as defined in such warrants. Each of the placement agent's warrants will
terminate five years after issuance. Boustead has informally waived its rights to warrants to purchase shares of common stock in connection
with our private placement of 8% convertible unsecured promissory notes and accompanying investor warrants. Under the engagement letter
with Boustead, its placement agent's warrants must be registered for resale with the Company's initial public offering. However,
Boustead has informally deferred these registration rights with respect to the registration statement for the initial public offering.
Boustead agreed to waive its success fee and
expense allowance for any Company-introduced investors in the private placement of the Company's 8% convertible unsecured promissory
notes and accompanying warrants and in consideration of such waiver Boustead will receive a number of shares of common stock of the Company
that is equal to 8% of the number of shares of common stock issuable to the Company-introduced investors upon conversion or exercise,
as applicable, of their securities. A total of $965,000 were invested by Company-introduced investors in that private placement. Accordingly,
Boustead will receive a total of up to 77,200 shares of common stock based on the number of shares of common stock that will be issued
upon the automatic conversion of the 8% convertible promissory notes and issuable to the holders of the related warrants upon the initial
public offering, based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set
forth on the cover page of the prospectus. Further, Boustead agreed to defer 50% of its total success fee and 50% of its expense allowance
for the other investors in the private placement of the Company's 8% convertible unsecured promissory notes and accompanying warrants
until the closing of the initial public offering. Based on a total of $500,000 invested by non-Company-introduced investors in that private
placement, such deferred fees and non-accountable expense allowance total $20,000.
127
LEGAL
MATTERS
The validity of the securities covered by this
prospectus will be passed upon for us by Bevilacqua PLLC. Anthony L.G., PLLC is acting as counsel to the underwriters.
As
of the date of this prospectus, Bevilacqua PLLC owns
15,000 shares of common stock.
Bevilacqua
PLLC received these shares as partial consideration for legal services previously provided to us.
EXPERTS
The financial statements of the Company as of
and for the fiscal year ended December 31, 2022 appearing elsewhere in this prospectus have been included herein in reliance upon the
report of BARTON CPA, an independent registered public accounting firm, appearing elsewhere herein (which contains an explanatory paragraph
describing conditions that raise substantial doubt about our ability to continue as a going concern as disclosed in Note
1 to the consolidated financial statements), and upon the authority of said firm as experts in accounting and auditing.
The financial statements of the Company as of
and for the fiscal year ended December 31, 2021 appearing elsewhere in this prospectus have been included herein in reliance upon the
report of Marcum LLP, an independent registered public accounting firm, appearing elsewhere herein (which contains an explanatory
paragraph describing conditions that raise substantial doubt about our ability to continue as a going concern as disclosed
in Note 1 to the consolidated financial statements), and upon the authority of said firm as experts in accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement
on Form S-1 under the Securities Act with respect to the securities we are offering by this prospectus. This prospectus does not contain
all of the information included in the registration statement. For further information about us and our securities, you should refer
to the registration statement and the exhibits and schedules filed with the registration statement. Whenever we make reference in this
prospectus to any of our contracts, agreements or other documents, the references are materially complete but may not include a description
of all aspects of such contracts, agreements or other documents, and you should refer to the exhibits attached to the registration statement
for copies of the actual contract, agreement or other document.
Upon the effectiveness of the registration statement
of which this prospectus forms a part, we will be subject to the informational requirements of the Exchange Act, and, in accordance with
the Exchange Act, will file reports, proxy and information statements and other information with the SEC. Such annual, quarterly and
special reports, proxy and information statements and other information can be inspected and copied at the locations set forth above.
We also anticipate making these documents publicly available, free of charge, on our website at https:// www.signingdaysports.com/ as
soon as reasonably practicable after filing such documents with the SEC. Information on, or accessible through, our website is not part
of this prospectus.
128
FINANCIAL
STATEMENTS
Page
Audited Consolidated Financial Statements for the Years Ended December
    31, 2022 and December 31, 2021
F-1
Report of Independent Registered Public Accounting
    Firm (PCAOB ID: 6968)
F-2
Report of Independent Registered Public Accounting
    Firm (PCAOB ID: 688)
F-4
Consolidated Balance Sheets as of December 31, 2022
    and December 31, 2021
F-5
Consolidated Statements of Operations for the Years
    Ended December 31, 2022 and December 31, 2021
F-6
Consolidated
    Statements of Stockholders' and Members' Equity (Deficit) for the Years Ended December 31, 2022 and December 31, 2021
F-7
Consolidated Statements
    of Cash Flows for the Years Ended December 31, 2022 and December 31, 2021
F-8
Notes to Consolidated
    Financial Statements
F-9
F-
1
Certified Public Accountants
and Advisors
A PCAOB Registered Firm
713-489-5635 bartoncpafirm.com Cypress,
Texas
Report of Independent Registered Public Accounting
Firm
To the Board of Directors of
Signing Day Sports, Inc.
7272 E. Indian School Road, STE 101
Scottsdale, Arizona 85251
Opinion on the Financial Statements
We have audited the accompanying balance sheet
of Signing Day Sports, Inc., (the "Company"), as of December 31, 2022, and the related statements of operations, stockholders'
equity, and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements). In our
opinion, the financial statements present fairly, in all material respects, the financial position of Signing Day Sports, Inc. as of
December 31, 2022, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting
principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility
of the entity's management. Our responsibility is to express an opinion on these financial statements based on our audits. We are
a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are
required to be independent with respect to Signing Day Sports, Inc. in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. Signing Day Sports, Inc. is not required to have, nor were
we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to
assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Substantial Doubt About the Entity's Ability to Continue
as a Going Concern
The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company
has suffered recurring losses from operations and has a net capital deficiency, and therefore a substantial doubt exists about the Company's
ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding
these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome
of this uncertainty. Our opinion is not modified with respect to this matter.
Other Matter – Prior Year Financial Statements
The accompanying balance sheet of Signing Day
Sports, Inc. as of December 31, 2021, and the related statements of operations and cash flows for the year then ended were not audited,
reviewed, or compiled by us and, accordingly, we do not express an opinion or any other form of assurance on them, with the exception
of the reverse stock split mentioned below. They were audited by other auditors whose report dated January 24, 2023, expressed an unmodified
opinion on those statements.
As part of our audit of the December 31, 2022
financial statements, we also audited the 2021 change in common stock related to the reverse stock split that has been reflected in the
financial statements as if it had occurred at the beginning of the first period presented.
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Critical Audit Matters
The are no critical audit matters matters arising
from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee
and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective, or complex judgments.
We have served as Signing Day Sports, Inc.'s auditor since 2023.
/s/ BARTON CPA
BARTON CPA
Cypress, Texas
April 27, 2023
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3
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors of
Signing Day Sports, Inc.
Opinion on the Financial Statements
We have audited, before the effects of the adjustments
to retroactively apply the reverse stock split described in Note 12, the accompanying consolidated balance sheet of Signing Day Sports,
Inc. (the "Company") as of December 31, 2021, the related consolidated statements of operations, stockholders' and
members' equity (deficit) and cash flows for the year then ended, and the related notes (collectively referred to as the "financial
statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the
Company as of December 31, 2021, and the results of its operations and its cash flows for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.
We were not engaged to audit, review, or apply
any procedures to the adjustments to retroactively apply the effects of the reverse stock split described in Note 12, accordingly, we
do not express an opinion or any other form of assurance about whether such adjustments are appropriate and have been properly applied.
Those adjustments were audited by Barton CPA.
Explanatory Paragraph – Going Concern
The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 1, the Company has suffered
significant losses and negative cash flows from operations and is dependent on debt and equity financing to fund its operations. These
conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard
to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our
audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB")
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the
standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial
reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial
reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
/s/ Marcum LLP
Marcum LLP
We served as the Company's auditor from
2021 (such date takes into account the acquisition of Rotenberg Meril Solomon Bertiger & Guttilla, P.C., by Marcum LLP effective
February 1, 2022) through 2023.
Saddle Brook, New Jersey
January 24, 2023
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4
Signing
Day Sports, Inc.
Consolidated Balance
Sheets
December 31,
December 31,
2022
2021
ASSETS
Current assets
Cash and cash equivalents
$
254,409
$
4,687,550
Accounts receivable, net
15,670
4,840
Prepaid expense
13,841
162,833
Other current assets
17,412
-
Total current assets
301,332
4,855,223
Property and equipment, net
10,302
12,070
Intellectual property
22,000
-
Software development & intangible assets
12,529
-
Deferred tax asset
100,000
-
Other assets
8,000
48,902
Total assets
$
454,163
$
4,916,195
LIABILITIES AND STOCKHOLDERS'
    DEFICIT
Current liabilities
Accounts payable
$
614,158
$
182,947
Accrued liabilities
512,688
197,417
Deferred revenue
44,073
66,549
Deferred rent
9,894
31,960
Lease liabilities
13,924
43,785
Tenant deposit
9,894
9,894
Convertible notes - current maturities
1,315,000
-
Loans Payable
120,000
-
Total current liabilities
2,639,631
532,552
Non-current liabilities
Convertible notes - net of current maturities,
less unamortized debt issuance costs
5,917,080
5,809,993
SAFE Agreements
-
2,134,635
Total liabilities
$
8,556,711
$
8,477,180
Stockholders' deficit
Common stock: par value $0.0001 per share; 150,000,000 authorized shares,
    8,086,152 and 7,495,104 shares issued and outstanding as of December 31, 2022 and 2021, respectively.
809
750
Additional paid-in capital
3,377,459
1,245,267
Accumulated deficit
(11,480,816
)
(4,807,002
)
Total stockholders' deficit
(8,102,548
)
(3,560,985
)
Total liabilities and stockholders'
    deficit
$
454,163
$
4,916,195
The accompanying notes are an integral part of
these consolidated financial statements.
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5
Signing Day Sports, Inc.
Consolidated Statements of Operations
Year Ended
December 31,
Year Ended
December 31,
2022
2021
Revenues, net
$
78,336
$
340,984
Cost of revenues
783,064
504,342
Gross profit (loss)
(704,728
)
(163,358
)
Operating cost and expenses
Advertising and marketing
1,842,666
1,104,939
General and administrative
3,025,223
5,027,820
Impairment charge
820,951
2,276,159
Total operating expenses
5,688,840
8,408,918
Net income (loss) from operations
(6,393,568
)
(8,572,276
)
Other income (expense)
Interest expense
(597,747
)
(78,503
)
Interest income
1,100
1,187
Deferred tax income
100,000
-
Change in fair value of SAFE Agreements
154,635
(154,635
)
Other expense
(53,640
)
-
Other Income
115,406
-
Total other income (expense)
(280,246
)
(231,951
)
Net loss
$
(6,673,814
)
$
(8,804,227
)
Weighted average common shares outstanding - basic and diluted
7,614,070
7,495,104
Net loss per common share - basic and diluted
0.88
1.17
The accompanying notes are an integral part of
these consolidated financial statements.
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6
Signing Day Sports, Inc.
Consolidated Statements of Changes In Stockholders'
Deficit
Member's Equity
Common Stock
Additional Paid-in
Accumulated Equity
Total Stockholders'
Amount
Shares
Amount
Capital
(Deficit)
Deficit
Balance at December 31, 2020
$
2,556,242
-
$
-
$
-
$
-
$
2,556,242
Member contributions
3,437,000
-
-
-
-
3,437,000
Member distributions
(750,000
)
-
-
-
-
(750,000
)
Net loss attributable to LLC
(3,997,225
)
-
(3,997,225
)
Conversion from LLC to Corp
(1,246,017
)
7,495,104
750
1,245,267
-
-
Net loss
-
-
-
-
(4,807,002
)
(4,807,002
)
Balance at December 31, 2021
$
-
7,495,104
$
750
$
1,245,267
$
(4,807,002
)
$
(3,560,985
)
Issuance of Common Stock in exchange for SAFEs cancelation
-
591,048
59
1,979,941
-
1,980,000
Stock based compensation expense
152,251
152,251
Net loss
-
-
-
-
(6,673,814
)
(6,673,814
)
Balance at December 31, 2022
$
-
8,086,152
$
809
$
3,377,459
$
11,480,816
)
$
8,102,548
)
The accompanying notes are an integral part of
these consolidated financial statements.
F-
7
Signing
Day Sports, Inc.
Consolidated Statements
of Cash Flows
2022
2021
Cash flows from operating activities
Net loss
$
(6,673,814
)
$
(8,804,227
)
Adjustments to reconcile net income to net cash used
    in operating activities:
Depreciation and amortization
1,768
372,852
Bad debt
6,660
-
Change in fair value of future equity obligations
(154,635
)
154,635
Interest expense attributable to amortization of debt issuance
    cost
191,287
24,559
Impairment loss on software development costs
820,951
2,276,159
Stock-based compensation
152,251
-
(Increase) decrease in assets:
Accounts receivable
(17,490
)
(4,840
)
Prepaid and other assets
172,482
(172,621
)
Deferred tax asset
(100,000
)
-
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities
746,482
378,040
Deferred revenue
(22,476
)
(7,719
)
Due to related parties
(22,066
)
-
Lease liabilities
(29,861
)
43,785
Tenant deposit
-
9,894
Net cash used in operating activities
(4,928,461
)
(5,729,483
)
Cash flows from investing activities
Development of internal software
(833,480
)
(1,073,898
)
Purchase of intellectual property
(22,000
)
-
Purchase of property and equipment
-
(12,380
)
Net cash used in investing activates
(855,480
)
(1,086,278
)
Cash flows from financing activities
Proceeds from issuance of convertible notes
1,230,800
6,305,000
Payment of debt issuance cost
-
(519,566
)
Proceeds from loans
120,000
Proceeds from SAFE agreements
-
1,980,000
Proceeds from member contributions
-
3,437,000
Distribution to member
-
(750,000
)
Net cash provided by financing activities
1,350,800
10,452,434
Net increase (decrease) in cash and cash equivalents
(4,433,141
)
3,636,673
Cash and cash equivalents, beginning
    of period
4,687,550
1,050,877
Cash and cash equivalents, end of period
$
254,409
$
4,687,550
Supplemental cash flow information
Cash paid for interest expense
$
-
$
695
Supplemental disclosure of non-cash financing activities:
SAFEs cancelation
$
(1,980,000
)
$
-
Issuance of common stock in exchange for SAFEs cancelation
$
1,980,000
$
-
The accompanying notes are an integral part of
these consolidated financial statements.
F-
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Signing Day Sports, Inc.
Notes to Consolidated Financial Statements
Note 1 - Principal Business Activity and Significant
Accounting Policies
Principal Business Activity
Signing Day Sports, Inc. (formerly known as Signing
Day Sports, LLC) ("Company") was formed and began operations in January 2019 and provides a digital ecosystem to help high
school athletes get discovered and recruited by college coaches across the United States of America.
The Company's website and mobile phone
application provides an opportunity for athletes to create a personal profile by uploading measurables, videos of key drills, testing
stats, academics and demographic information. Coaches can evaluate a prospect's video, watch two separate prospects side by side
simultaneously, and perform other actions with the video to visually evaluate talent. Intangible assets consist of development software,
patented technology, customer lists, trademarks, software IP, and customer data in the form of verifiable video uploads, player statistics,
and academic records.
Principles of Consolidation
The accompanying consolidated financial statements
(sometimes referred to herein as "financial statements") include the accounts of Signing Day Sports, Inc. and its subsidiaries
(collectively, the "Company"). All significant intercompany
balances and transactions have
been eliminated.
Going Concern Considerations
Our financial statements have been prepared on
a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course
of business. We sustained significant losses and negative cash flows from operations and are dependent on debt and equity financing to
fund operations. We incurred a net loss of approximately $6.6 million and $8.8 million for the years ended December 31, 2022, and 2021,
respectively. We had cash used in operating activities of approximately $4.9 million and $5.7 million for the years ended December 31,
2022, and 2021, respectively, and have cumulative losses of approximately $18.1 million and $11.5 million as of December 31, 2022, and
2021, respectively. These conditions raise substantial doubt about our ability to continue as a going concern.
The Company is continuing its path to profitability
through increased business development, marketing and sales of the Company's multiple lines of subscriptions.
Failure to successfully continue to grow operational
revenues could harm our profitability and adversely affect our financial condition and results of operations. We face all of the risks
inherent in a new business, including the need for significant additional capital, management's potential underestimation of initial
and ongoing costs, and potential delays and other problems in connection with establishing sales channels.
We are continuing our plan to further grow and
expand operations and seek sources of capital to pay our contractual obligations as they come due. Management believes that its current
operating strategy will provide the opportunity for us to continue as a going concern as long as we are able to obtain additional financing;
however, there is no assurance this will occur. The accompanying financial statements do not include any adjustments that might be necessary
if we are unable to continue as a going concern.
Basis of Presentation
The financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the rules and
regulations of the Securities and Exchange Commission ("SEC").
Concentrations of Credit Risk
The Company maintains its cash account in several
deposit accounts, the balances of which are periodically more than federally insured limits. At December 31, 2022 and 2021, the uninsured
amounts approximated $0 and $4,000,000, respectively.
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9
Receivables and Credit Policy
The Company estimates an allowance for doubtful
accounts based upon an evaluation of the status of receivables, historical experience, and other factors as necessary. It is reasonably
possible that the Company's estimate of the allowance for doubtful accounts will change. There were approximately $16,000 of open
receivables at December 31, 2022 and $5,000 at December 31, 2021. At December 31, 2022 and 2021 the Company believes the accounts receivable
are fully collectable and has no reserve established.
Payment Terms
Payments from individuals and organizations are
required prior to providing access to the Company's website and application. If not paid in advance, payments are required from
organizations on a monthly basis. If a payment is not made, access to the Company's website and application is suspended until
the required payment is received.
Property and Equipment
Property and equipment is recorded at cost. Expenditures
for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized.
Expenditures for maintenance and repairs are charged to expense. When equipment is retired or sold, the cost and related accumulated
depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income.
Depreciation is provided using the straight-line
method, based on useful lives of the assets which range from three to five years.
The Company reviews the carrying value of property
and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from
the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future
cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds
the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends
and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors.
Based on this assessment there was no impairment at December 31, 2022 and 2021.
Internally Developed Software
Software consists of an internally developed
information system for use by the Company in matching athletes with qualified coaches. The Company has capitalized costs incurred with
development and upgrades of the information systems in accordance with applicable accounting standards. Costs incurred up to and including
the feasibility stage of development as well as maintenance costs are expensed as incurred. The Company amortizes these capitalized costs
on a straight-line basis over the estimated useful life of the asset of five years.
The Company periodically performs reviews of
the recoverability of such capitalized technology costs. At the time a determination is made that capitalized amounts are not recoverable
based on estimated cash flows to be generated from technology; any remaining capitalized amounts are written off. During the years ended
December 31, 2022, and 2021, the Company wrote off net capitalized software development costs of $820,951 and $2,276,159 respectively.
An impairment charge for this write-off is reflected in the operating expenses in the accompanying statement of operations.
Intangible Assets
Intangible assets consist of development software,
patented technology, customer lists, trademarks, software IP, and customer data in the form of verifiable video uploads, player statistics,
and academic records. Intangible assets are stated at cost less accumulated amortization. For intangible assets that have finite lives,
the assets are amortized using the straight-line method over the estimated useful lives of the related assets. For intangible assets
with indefinite lives, the assets are tested periodically for impairment.
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Fair Value Measurements
The Company values its "Simple Agreement
for Future Equity" Agreements ("SAFE Agreements") under the provisions of FASB ASC 820, "
Fair Value Measurements
and Disclosures
," which defines fair value under U.S. GAAP, establishes a framework for measuring fair value and enhances disclosures
about fair value measurements. U.S. GAAP establishes a fair value hierarchy, which required an entity to maximize the use of observable
inputs and minimize the use of unobservable inputs when measuring fair value. The asset or liability's fair value measurement level
within the fair value hierarchy is based up the lowest level of any input that is significant to the fair value measurement.
A fair value hierarchy has been established,
which prioritizes the valuation inputs into three broad levels. Level 1 inputs consist of quoted prices in active markets for identical
assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than
quoted prices included within Level 1 that are observable for the related asset or liability. Level 3 inputs are unobservable inputs
related to the asset or liability.
The SAFE Agreements are valued using market conditions
to estimate the fair value of the agreements. These are classified within Level 3.
Income Taxes
Income taxes are provided for the tax effects
of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences
between the basis of internally developed software and net operating loss and research and development tax credit carry forwards for
financial and income tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences,
which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets are reduced
by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax
assets will not be realized.
The Company converted to a C corporation in August
of 2021. As a limited liability company for the 2020 year and through the date of conversion in 2021, the Company's taxable loss
was allocated to members in accordance with their respective percentage of ownership. Therefore, no provision for income taxes has been
included in the financial statements for the period prior to the Company's conversion to a corporation.
The Company evaluates its tax positions that
have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions.
As of December 31, 2022 and 2021, the unrecognized tax benefits accrual was zero. The Company will recognize future accrued interest
and penalties related to unrecognized tax benefits in income tax expense if incurred. As of December 31, 2022, the 2020 through 2022
tax years generally remain subject to examination by federal and state authorities.
Deferred Revenue
Deferred revenues are contract liabilities for
collections on subscription agreements in excess of revenue recognized.
Revenue Recognition
The Company accounts for revenue under the guidance
of FASB ASC 606, "Revenue from Contracts from Customers" ("ASC 606").
ASC 606 prescribes a five-step model that focuses
on transfer of control and entitlement to payment when determining the amount of revenue to be recognized. Under the ASC 606 guidance,
an entity is required to perform the following five steps:
(1) identify the contract(s) with a customer;
(2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to
the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.
Revenue from performance obligations satisfied
at a point in time consist of sales to individuals representing a one-month subscription and are recognized at the end of the subscription.
Revenue from performance obligations satisfied
over time consists of the sale of subscription agreements to individual organizations or customers that are more than one month in duration
and are recognized on a monthly basis over the life of the subscription agreement.
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11
Debt Issuance Costs
Debt issuance costs are amortized over the period
the related obligation is outstanding using the straight-line method. The straight-line method is a reasonable estimate of the effective
interest method due to the relatively short maturities of the related debt. Debt issuance costs are included within long-term debt on
the balance sheet. Amortization of debt issuance costs is included in interest expense in the accompanying financial statements. As of
December 31, 2022 and 2021, unamortized debt issuance costs are $387,920 and $495,007, respectively.
Advertising Costs
Advertising and marketing costs are expensed
as incurred. Such costs amounted to $1,842,666 and $1,104,939 for the years ended December 31, 2022 and 2021, respectively. Advertising
costs are included in advertising and marketing expenses in the statements of operations.
Estimates
The preparation of the financial statements in
conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Contract Costs
Incremental costs of obtaining a contract are
expensed as incurred as the amortization period of the asset that otherwise would have been recognized is estimated to be one year or
less.
Stock-Based Compensation
The Company accounts for stock-based compensation
costs under the provisions of ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation
expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. Stock-based compensation expense
recognized includes the compensation cost for all stock-based payments granted to employees, officers, and directors based on the grant
date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or cancelled
during the periods reported. Stock-based compensation is recognized as expense over the employee's requisite vesting period and
over the nonemployee's period of providing goods or services.
Basic and Diluted Net Loss per Common Share
Basic loss per common share is computed by dividing
the net loss by the weighted average number of shares of common stock outstanding for each period. Diluted loss per share is computed
by dividing the net loss by the weighted average number of shares of common stock outstanding plus the dilutive effect of shares issuable
through the common stock equivalents. The weighted-average number of common shares outstanding excludes common stock equivalents because
their inclusion would be anti-dilutive. As of December 31, 2022, and 2021, 253,000 and 0 stock options, respectively, were excluded from
dilutive earnings per share as their effects were anti-dilutive.
Recent Accounting Guidance
In February 2016, the FASB issued Accounting
Standards Update No. 2016-02, Leases (Topic 842), which requires lessees to recognize leases on the balance sheet and disclose key information
about leasing arrangements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and
lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating,
with classification affecting the pattern and classification of the expense recognition in the income statement. The Company has implemented
the new standard and it does not have an impact on its assets, liabilities and results of operations or cash flows.
F-
12
Leases
At the inception or modification of a contract,
the Company determines whether a lease exists and classifies its leases as an operating or finance lease at commencement. Right-of-use
("ROU") assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent
their obligation to make lease payments arising from the lease.
As most of the Company's leases do not
provide an implicit interest rate, the lease liability is calculated at lease commencement as the present value of unpaid lease payments
using the Company's estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that the
Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined
using a portfolio approach based on information available at the commencement date of the lease.
The lease asset also reflects any prepaid rent,
initial direct costs incurred and lease incentives received. The Company's lease terms may include optional extension periods when
it is reasonably certain that those options will be exercised.
Leases with an initial expected term of 12 months
or less are not recorded in the Balance Sheet and the related lease expense is recognized on a straight-line basis over the lease term.
For certain classes of underlying assets, the Company has elected to not separate fixed lease components from the fixed non-lease components.
As of December 31, 2022 and 2021, there were no leases with an expected term greater than 12 months.
Reclassifications
Certain amounts in the 2021 consolidated financial
statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or
equity.
Note 2 - Revenue
The following table disaggregates the Company's
revenue based on the timing of satisfaction of performance obligations for the years ended December 31, 2022 and 2021:
2022
2021
Revenue recognized over time
$
33,229
$
340,984
Revenue recognized at a point in time
45,107
-
Total revenue from contracts with customers
$
78,336
$
340,984
The beginning and ending balances for deferred revenue were as follows
for the years ended December 31, 2022 and 2021:
2022
Deferred revenue
January 1
December 31
$
66,549
$
44,073
2021
Deferred revenue
January
                                            1
December 31
$
74,268
$
66,549
The Company recognized revenue of $66,549 in
2022 that was included in the deferred revenue balance as of December 31, 2021. The Company expects to recognize the December 31, 2022
balance fully in the year ending December 31, 2023.
F-
13
Note 3 - Property, Plant and Equipment
The Company's fixed assets include the following on December
31, 2022 and 2021:
Accum.
Cost Basis
Depreciation
Net
2022
Office Furniture
$
12,380
$
(2,078
)
$
10,302
2021
Office Furniture
$
12,380
$
(310
)
$
12,070
Note 4 - Internally Developed Software
Internally developed software asset consists of the following:
2022
Accumulated
Cost
Amortization
Impairment
Net
Internally developed software
$
820,951
$
-
$
(820,951
)
$
-
2021
Accumulated
Cost
Amortization
Impairment
Net
Internally developed software
$
2,769,984
$
(493,825
)
$
(2,276,159
)
$
-
During the years ended December 31, 2022 and 2021, the Company recognized
impairment loss on its internally developed software amounting to $820,951 and $2,276,159, respectively due to a decrease in projected
revenues.
Amortization expense for the years ended December 31, 2022 and 2021,
was $0 and $372,542, respectively.
Note 5 - Intangible Assets
The Company's intangible assets include the following on December
31, 2022:
Accumulated
Cost
Amortization
Net
Intellectual Property
$
22,000
$
-
$
22,000
Proprietary technology
$
18,700
$
(6,171
)
$
12,529
Total intangible assets
$
40,700
$
(6,171
)
$
34,529
Amortization expense for the years ended December 31, 2022 and 2021
was $6,171 and $0, respectively.
F-
14
Note 6 - Fair Value of Assets and Liabilities
There are three general valuation techniques
that may be used to measure fair value, as described below:
1.
Market approach
                                            – Uses prices and other relevant information generated by market transactions involving
                                            identical or comparable assets or liabilities. Prices may be indicated by pricing guides,
                                            sale transactions, market trades, or other sources;
2.
Cost approach –
                                            Based on the amount that currently would be required to replace the service capacity of an
                                            asset (replacement cost); and
3.
Income approach
                                            – Uses valuation techniques to convert future amounts to a single present amount based
                                            on current market expectations about the future amounts (includes present value techniques
                                            and option-pricing models). Net present value is an income approach where a stream of expected
                                            cash flows is discounted at an appropriate market interest rate.
The fair value of the SAFE Agreements was determined
using the market approach with an option pricing model discounted to present value. Significant assumptions used in the option pricing
model included current equity value of the Company, risk free rate, maturity and volatility resulting in a future value of $0 and $2,134,635,
as of December 31, 2022 and 2021, respectively. A discount rate of 11.8% was applied to the future value to arrive at the estimated fair
value. In 2022, the SAFEs were converted to common stock through agreements made with all SAFE holders.
Liabilities measured at fair value as of December
31, 2022 is as follows:
Quoted Prices in Active
Other Observable
Unobservable
Markets
Inputs
Inputs
Total
(Level 1)
(Level 2)
(Level 3)
SAFE Agreements
$
-
$
-
$
Liabilities measured at fair value as of December 31, 2021 is as follows:
Quoted Prices in Active
Other Observable
Unobservable
Markets
Inputs
Inputs
Total
(Level 1)
(Level 2)
(Level 3)
SAFE Agreements
$
2,134,635
$
-
$
-
$
2,134,635
The following are transfers into and out of Level 3 of the fair value
hierarchy and purchases and issues of Level 3 assets and liabilities:
Transfers into Level 3
-
Transfers out of Level 3
-
Purchases
-
Issuances
1,980,000
Change in fair value
154,635
Balance at December 31, 2021
$
2,134,635
Transfers into Level 3
-
Transfers out of Level 3
-
Purchases
-
Issuances
-
Conversion to stock
(1,980,000
)
Change in fair value
(154,635
)
Balance at December 31, 2022
$
-
F-
15
Note 7 - Convertible Notes Payable
Convertible notes payable consists of:
2022
2021
9 convertible notes payable, bear interest
    at 6%,     no monthly payments, unsecured, notes automatically convert at 50% of fair value (less any accrued interest)
    upon initial public offering (IPO) or other "sale of control" as defined in the agreement. If IPO or sale of control
    is not consummated by March 31, 2022, the Company   has the option to repay notes at anytime prior to maturity date of October
    15, 2024
3,300,000
3,300,000
12 convertible notes payable, bear interest at 6%,
      no monthly payments, unsecured, notes automatically convert at 50% of fair value (less any accrued interest) upon IPO or other
    "sale of control" as defined in the agreement. If IPO or sale of control is not consummated by March 31, 2022 the company
    has the option to repay notes at anytime prior to maturity date of November 15, 2024
1,205,000
1,205,000
6 convertible notes payable, bear interest at 6%,  
      no monthly payments, unsecured, notes automatically  convert at 50% of fair value (less any accrued interest) upon  IPO
    or other "sale of control" as defined in the agreement. If IPO or sale of control is not consummated by March 31, 2022
    the company has the option to repay notes at anytime prior to maturity date of December 23, 2024
1,800,000
1,800,000
13 convertible notes payable,
    bear interest at 8%,   no monthly payments, unsecured, notes automatically convert at 50% of fair value (less any accrued interest)
    upon IPO or other "sale of control" as defined in the agreement. Notes may only be  prepaid by the Company
    with the written consent of the holder prior to the maturity   date of August 8, 2023
1,315,000
7,620,000
6,305,000
Less unamortized debt issuance
    costs
(387,920
)
(495,007
)
Long-term debt, less unamortized
    debt issuance costs
$
7,232,080
$
5,809,993
Future maturities of convertible notes payable are as follows:
Years Ending December 31,
Amount
2022
-
2023
1,315,000
2024
6,305,000
Total
$
7,620,000
F-
16
Note 8 - SAFE Agreements
During March 2021 through July 2021, the Company
entered into 8 agreements consisting of a "Simple Agreement for Future Equity" (SAFE agreements) totaling $1,980,000. The
SAFE agreements provide a right to the holder to future equity in the Company in the form of these notes payable.
If the Company receives Equity Financing, the
SAFE agreement will automatically convert into the number of Preferred Shares equal to the Purchase Amount (as defined in the SAFE agreements)
divided by the conversion price per share.
If there is a Liquidity Event (as defined in
the SAFE agreements), the holder of the SAFE Agreement will be automatically entitled to receive a portion of the proceeds equal to the
greater of (i) the Purchase Amount/Cash-out Amount or (ii) an amount equal to a percentage of the proceeds to be received in a Liquidity
Event with such percentage calculated by dividing the Purchase Amount by the Liquidity Event Amount.
If there is a Dissolution Event (as defined in
the SAFE agreements), the holder of the SAFE agreement will automatically receive a portion of the Proceeds equal to the Purchase Amount/Cash-out
Amount, due and payable immediately prior to the consummation of the Dissolution Event.
If after eighteen months, there has been no Equity
Financing, Liquidity Event, or Dissolution Event, the SAFE agreement will automatically convert into the number of Common Shares equal
to the Purchase Amount divided by the Valuation Discount Price Per Share resulting in an approximate 20% discount.
As of December 31, 2021, none of the above described
events have occurred. In 2022, the SAFE Agreements were voluntarily canceled through agreements with the SAFE holders and a total of
591,048 share of common stock were issued in exchange.
The SAFE Agreements were not mandatorily redeemable,
and they could require the Company to issue a variable number of shares. Management of the Company determined that the SAFE Agreements
contained a liquidity event provision that embodied an obligation indexed to the fair value of the equity shares and could require the
Company to settle the SAFE obligation by transferring assets or cash. The SAFE Agreements represented a recurring measurement that is
classified within Level 3, disclosed and defined in Note 5 of the financial statements of the fair value hierarchy wherein fair value
is estimated using significant unobservable inputs.
On initial recognition, the Company measured
the fair value of the liability at an amount equal to the aggregate proceeds of $1,980,000 that was received from investors in exchange
for the SAFE agreements. As of December 31, 2022 and 2021, the Company estimated the fair value to be $0 and $2,134,635. See Note 5 for
Fair Value related disclosures.
The SAFE Agreements are shown as long-term on the accompanying balance
sheet in 2021.
The Company elected to offer safe holders the
option for voluntary conversion. At the time of offering the company proposed a $25 million valuation offering to the current SAFE holders.
All SAFE holders voluntarily converted into common stock in 2022.
Note 9 - Leases
The Company leases office space under a long-term
operating lease from a third party expiring on May 31, 2023. Monthly rent is $12,075 and includes annual escalations. Total rental expense
to non-related parties in 2021 was $174,437. In December 2021, the Company entered into an agreement to sublease their office space to
an unrelated party under an operating lease agreement. The sublease ends on May 31, 2023 and includes fixed rent of $9,894. As a result
of the sublease, the Company incurred a loss on the transaction of $43,785 during the year ended December 31, 2021, which is shown as
lease liability in the accompanying balance sheet. The lease liability will be amortized over the remainder of the lease.
In November 2022, the company signed a 6-month
short-term lease for office space expiring on April 30, 2023. Monthly rent is $7,491 per month plus rental tax.
F-
17
During 2021, the Company entered into a lease
for office space with a related party with the lease commencing in January 2022. The office space is owned by John Dorsey. The lease
agreement requires monthly payments of approximately $20,800 plus tax, with an increase of three percent every year on each anniversary
date until January 2026. As of December 31, 2021, a security deposit was paid in the amount of $23,411.
In August 2022, the Company entered into a lease
termination agreement whereby both parties agreed to terminate the lease and release each other from all future obligations.
Total rental expense to non-related parties in
2022 and 2021 was $158,621 and $174,437 , respectively. Total rental expense to related parties in 2022 and 2021 was $148,876 and $0
respectively.
As of December 31, 2022, there are no future maturities of uncancelable
leases with a term longer than one year.
Note 10 - Income Taxes
There was no current tax expense for the year ended December 31, 2022
and 2021. Deferred tax income was $100,000 and $0 as of December 31, 2022 and 2021.
Deferred tax assets consist of the following components as of December
31, 2022 and 2021:
2022
2021
Deferred Tax Asset (Liabilities)
Net operating loss
$
2,040,000
$
800,000
Internally developed software
470,000
-
Furniture and fixtures
(3,000
)
(3,000
)
R&D Tax Credit Carryforwards
160,000
60,000
AZ Refundable R&D Tax Credit
100,000
-
Net deferred tax assets before valuation allowance
$
2,767,000
$
857,000
Less valuation allowance
(2,667,000
)
(857,000
)
Net deferred tax assets
$
100,000
$
-
The Company has a valuation allowance against
the full amount of its net deferred tax assets due to the uncertainty of realization of the deferred tax assets due to the operating
loss history of the Company. The Company currently provides a valuation allowance against deferred taxes when it is more likely than
not that some portion, or all of its deferred tax assets will not be realized. The valuation allowance could be reduced or eliminated
based on future earnings and future estimates of taxable income.
The Company's effective income tax rate
is lower than what would be expected if the federal statutory rate were applied to income from continuing operations primarily because
of expenses deductible for financial reporting purposes that are not deductible for tax purposes and tax-exempt income.
As of December 31, 2022 and 2021, the Company
had approximately $7,900,000 and $3,100,000, respectively, of federal net operating loss carryforwards available to offset future taxable
income. Under current tax law, the federal net operating losses generated do not expire and may be carried forward indefinitely. As of
December 31, 2022 and 2021, the Company has approximately $260,000 and $60,000, respectively, of federal and state research and development
credits. The 2022 Arizona credit of $100,000 is refundable, and the remaining federal credit from 2022 will expire in 2042, and the 2021
credits expire in 2041.
F-
18
Note 11 - Recapitalization
At inception, the Company was organized as a
limited liability company (LLC). During 2020, The LLC formed two wholly- owned subsidiaries, Signing Day Sports Football, LLC (SDSF LLC)
and Signing Day Sports Baseball, LLC (SDSB LLC).
Signing Day Sports, LLC, an Arizona limited liability
company ("SDS LLC – AZ"), was formed on January 21, 2019. SDS LLC – AZ formed two wholly-owned subsidiaries,
Signing Day Sports Football, LLC, an Arizona limited liability company ("SDSF LLC"), and Signing Day Sports Baseball, LLC,
an Arizona limited liability company ("SDSB LLC"), on September 29, 2020 and November 25, 2020, respectively.
On June 5, 2020, a process to change SDS LLC
– AZ into a Delaware corporation was initiated. On that date, a certificate of formation for Signing Day Sports, LLC, a Delaware
limited liability company ("SDS LLC – DE"), and a certificate of conversion of SDS LLC – AZ into SDS LLC –
DE, were filed with the Delaware Secretary of State. On September 9, 2021, a certificate of incorporation for Signing Day Sports, Inc.,
a Delaware corporation ("SDS Inc. – DE" or the "Company"), and a certificate of conversion of SDS LLC –
DE into SDS Inc. – DE were filed with the Delaware Secretary of State. From September 9, 2021 to July 11, 2022, SDS Inc. –
DE operated as the successor entity to SDS LLC – AZ, and SDS LLC – AZ continued to be registered as an active entity with
the Arizona Corporation Commission while its conversion into SDS LLC – DE pended.
On July 11, 2022, an Agreement and Plan of Merger
was entered into between SDS LLC – AZ, SDSF LLC, SDSB LLC, and SDS Inc. – DE (the "Merger Agreement"). On the
same date, pursuant to the Merger Agreement, a certificate of merger was filed with the Delaware Secretary of State and a statement of
merger was filed with the Arizona Secretary of State effecting the merger of SDS LLC – AZ, SDSF LLC, and SDSB LLC with and into
SDS Inc. – DE, and SDS Inc. – DE succeeded to the rights, property, obligations, and liabilities of each of SDS LLC –
AZ, SDSF LLC, and SDSB LLC. In anticipation of the Merger Agreement and its consummation, in April 2022 and May 2022, SDS LLC –
AZ, SDS Inc. – DE, and each of the members or stockholders of SDS LLC – AZ, SDSF LLC, SDSB LLC, and SDS Inc. – DE,
entered into Settlement Agreement and Releases (collectively, the "Settlement Agreements"), which provided, among other things,
for the mutual general release of all claims by the parties against and relating to SDS LLC – AZ, SDSF LLC, SDSB LLC, and SDS Inc.
– DE, and confirmed the owners and related amounts of all outstanding shares of common stock of SDS Inc. represented by the capitalization
table exhibit to the Settlement Agreements.
SDS Inc. – DE has 150,000,000 shares authorized.
No shares were formally issued as of December 31, 2021. On July 11, 2022, it was agreed that all previous members in SDS LLC -AZ owned
7,495,104 common shares of SDS Inc. – DE at the date of the merger.
The accompanying balance sheet and statement
of stockholders' and members' equity (deficit) retrospectively present the shares as if they were issued as of December 31,
2021.
Note 12 - Stockholder's Deficit
Common Stock
The Company is authorized to issue 150,000,000
shares of $0.0001 par value common stock as of December 31, 2022 and 2021, respectively. The Company has 8,086,152 and 7,495,104 shares
issued and outstanding as of December 31, 2022 and 2021, respectively.
During 2021, 7,495,104 shares were issued as
part of the recapitalization from an LLC to a Corporation. See note 11. In 2022, 591,048 shares of common stock were issued in exchange
for the cancelation of the SAFE agreements. See note 8.
Reverse Stock Split
On April 14, 2023 (the "Effective Date"),
the Company filed a Certificate of Amendment with the Secretary of State of the State of Delaware. Upon the filing and effectiveness,
April 14, 2023,  pursuant to the Delaware General Corporation Law of this Certificate of Amendment to the Certificate of Incorporation
of the Corporation, each five (5) shares of Common Stock issued and outstanding immediately prior to the Effective Date shall, automatically
and without any action on the part of the respective holder thereof, be combined and converted into one (1) share of Common Stock (the
"Reverse Stock Split").
The Certificate of Amendment
effected a 1-for-5 Reverse Stock Split on the Effective Date and was approved by shareholders on April 4, 2023, and the Board of Directors
on April 11, 2023. Accordingly, all share and per share amounts for all periods presented in the accompanying financial statements and
notes thereto have been adjusted retroactively, where applicable, to reflect this reverse stock split.
F-
19
Equity Incentive Plan
In August 2022, the Board of Directors adopted
the Company's 2022 Equity Incentive Plan (the "2022 Plan"), effective as of August 31, 2022. Awards that may be granted
under the 2022 Plan include: (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stock Appreciation Rights, (d) Restricted
Awards, (e)Performance Share Awards, and (f) Performance Compensation Awards. The persons eligible to receive Awards are the Employees,
Consultants and Directors of the Company and its Affiliates and such other individuals designated by the Committee who are reasonably
expected to become Employees, Consultants and Directors after the receipt of Awards. The purpose of the 2022 Plan is to attract and retain
the types of Employees, Consultants and Directors who will contribute to the Company's long-term success; (b) provide incentives
that align the interests of Employees, Consultants and Directors with those of the stockholders of the Company; and (c) promote the success
of the Company's business. The 2022 Plan shall be administered by the Committee or, in the Board's sole discretion, by the
Board. Subject to the terms of the Plan and the provisions of Section 409A of the Code (if applicable), the Committee's charter
and Applicable Laws, and in addition to other express powers and authorization conferred by the Plan. The Board reserved 750,000 shares
of common stock issuable upon the grant of awards. Stock options comprise all of the awards granted since the 2022 Plan's inception.
As of December 31, 2022, there were 488,000 shares available for grant under the 2022 Plan and the Company had granted 262,000 stock
options to purchase common stock with an exercise price of $3.10 that expire ten years from the date of grant.
A summary of information related to stock options
for the year ended December 31, 2022 is as follows:
The summary of activity under the plan
as of December 31, 2022, and changes during the year then ended is as follows:
Weighted
Average Exercise
Intrinsic
Options
Price
Value
Outstanding at December 31, 2021
-
$
-
Granted
262,000
3.10
Exercised
-
-
Forfeited or expired
-
-
Outstanding at December 31, 2022
262,000
$
3.10
$
42,402
Exercisable at December 31, 2022
92,390
$
3.10
$
21,848
Year Ended
December 31,
2022
Weighted average grant-date fair value of
    options granted during year
$
1.74
Weighted average duration (years) to expiration of outstanding
    options at year-end
9.73
The following table presents, on a weighted average
basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted:
Year Ended
December 31,
2022
Risk-free interest rate
3.88
%
Expected term (in years)
5.42
Expected volatility
50
%
Expected dividend yield
$
-
The total grant-date fair value of the options
granted during the year ended December 31, 2022, was $440,726. Stock-based compensation expense of $152,251 was recognized for the year
ended December 31, 2022. Total unrecognized compensation cost related to non-vested stock option awards amounted to $288,475 as of December
31, 2022, which will be recognized over a weighted average period of 1.1 years.
F-
20
Note 13 - Commitments and Contingencies
Legal
The Company may be a party to various legal actions
arising from the normal course of business. In management's opinion, the Company has adequate legal defenses and/or insurance coverage
and does not believe the outcome of such legal actions will materially affect the Company's operation and/or financial position.
Betterdays Media, Inc. v. Signing Day Sports,
LLC,
Case No. 2:21-cv-07442-DMG-JDE (United States District Court for the Central District of California, September 17, 2021)
The plaintiff, Betterdays Media, Inc. commenced
this case in the Superior Court of California for Los Angeles County. Thereafter, the defendant, SDS LLC – AZ, removed the case
to U.S. District Court for the Central District of California on September 17, 2021. The plaintiff's complaint in the case alleges
that it entered into a contract with the defendant pursuant to which the plaintiff was to perform film production work on a sports documentary
for the defendant and that the defendant breached that contract by failing to pay the full amount owed under the contract to the plaintiff.
The plaintiff claimed damages in the amount of $138,062.97 plus interest. In its answer to the complaint, SDS LLC – AZ denied the
plaintiff's allegations. On February 1, 2022, the parties filed a joint notice stating that they had agreed to settle the case,
were preparing a written settlement agreement and stipulation of dismissal, and that by February 28, 2022 they would file such stipulated
dismissal or a report why such stipulated dismissal was not filed. On February 4, 2022, the court entered an order providing that, by
March 1, 2022, the parties were to file either (1) a stipulation and proposed order for dismissal of the action or judgment, or (2) a
motion to reopen if settlement has not been consummated and that upon the failure to timely comply with this order, the action would
be deemed to be dismissed as of March 2, 2022. That was the last docket entry in the case. Therefore, pursuant to that order, the case
was deemed dismissed as neither a stipulation and proposed order of dismissal nor a motion to reopen was filed by March 1, 2022.
Claim of John Dorsey
On or about November 29, 2022, John Dorsey, a
former Chief Executive Officer and director of the Company, through his counsel, sent the Company a letter demanding full payment on
the Alleged Loan in connection with the Loan Dispute. Under the January 2023 Dorsey Settlement Agreement, Mr. Dorsey agreed to a discharge
of the Alleged Loan and waiver and release of claims relating to the Alleged Loan and Loan Dispute and covenant not to sue on the basis
of such claims or otherwise commence any action or proceeding that would be inconsistent with the release of such claims. The Company
agreed to pay Mr. Dorsey $10,000 and issue a promissory note to Mr. Dorsey in the principal amount of $40,000 payable on the earlier
of ten business days following the successful closing of an initial public offering of the Company's common stock that generates
at least $1 million in net proceeds to the Company or July 1, 2023.
Collaborative Arrangements
The company has entered into collaborative arrangements
with various parties for the cross promotion of technologies and services within certain geographical areas. These arrangements do not
commit the Company or the counterpart to any financial obligation. If these arrangements result in a formal project, the Company and
the counterparties will receive certain equity consideration in the project or be given first right of refusal to provide their products
or services to the projects, as defined by the respective agreements. To date, these arrangements have not resulted in any formal projects.
F-
21
Note 14 - Related Party Transactions
See leases note 9 for related party
disclosure.
On April 10, 2023, the Company issued Richard
Symington, our President and Chief Marketing Officer and a director, an 8% unsecured promissory note in the amount of $250,000 and a
warrant to purchase 100,000 shares of common stock at an exercise price of $2.50 per share in a private placement. The promissory note
bears interest at 8% annually and will mature on the earlier to occur of March 17, 2025 or a Liquidity Event. If a Liquidity Event occurs
before March 17, 2025, the warrant will be automatically exercised as to the unexercised portion of the warrant, the outstanding balance
due under the 8% unsecured promissory note will be deemed repaid in the amount of the unexercised portion of the warrant from the automatic
exercise of the unexercised portion of the warrant, and any remaining balance outstanding under the promissory note must be repaid in
cash. If a Liquidity Event does not occur before March 17, 2025, then both principal and interest outstanding under the note must be
repaid in cash. The warrant may be voluntarily exercised for cash prior to the maturity date of the promissory note or, as indicated
above, will be automatically exercised for shares of common stock upon the consummation of a Liquidity Event. The warrant has a five-year
term. Mr. Symington also entered into a subscription agreement which provided certain registration rights with respect to the shares
underlying the warrant.
Under the terms of the Repurchase Agreement,
on March 31, 2023, we paid an aggregate purchase price of $800,000 for 600,000 shares of common stock formerly held by Dennis Gile, our
largest stockholder and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, at approximately
$1.33 per share. Pursuant to the Repurchase Agreement, the Dorsey/Gile Settlement Payment was made to John Dorsey as part of the settlement
of the Dorsey/Gile Lawsuit under the Dorsey/Gile Settlement Agreement. Pursuant to the Repurchase Agreement, the balance of the aggregate
purchase price was paid to the attorneys for Mr. Gile. Pursuant to the Repurchase Agreement, Mr. Gile agreed to resign his position as
Chairman and every other director and officer position he held with the Company effective as of March 21, 2023. Prior to such date, on
March 20, 2023, Mr. Gile delivered notice of resignation from such positions, which stated that it was effective March 19, 2023. Pursuant
to the Repurchase Agreement, Mr. Gile will not receive any severance payments in connection with any other agreement with the Company
as a result of his resignation. The Repurchase was also conditioned on the Company's prior review of and consent to the Dorsey/Gile
Settlement Agreement prior to its execution, and receipt of the CFO Certificate. Under the Repurchase Agreement, the Dorsey/Gile Settlement
Agreement was required to fully resolve, settle and dismiss the Gile/Dorsey Lawsuit and contain a general release of claims by all the
plaintiffs in the Dorsey/Gile Lawsuit in favor of Mr. Gile, the Company, the Company's affiliates, stockholders, and certain other
Company releasees. Under the Repurchase Agreement, Mr. Gile agreed to indemnify the Company for claims arising out of based upon the
Repurchase Agreement. Pursuant to the Repurchase Agreement, a copy of the Dorsey/Gile Settlement Agreement was reviewed and consented
to by the Company and entered into as of March 20, 2023. Under the Dorsey/Gile Settlement Agreement, between Mr. Gile, Mr. Dorsey, and
Dorsey LLC, Mr. Gile agreed to pay the Dorsey/Gile Settlement Payment, transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile,
Mr. Dorsey and Dorsey LLC agreed to mutual releases of all claims relating to the Dorsey/Gile Lawsuit and to dismiss the Dorsey/Gile
Lawsuit. Although the Dorsey/Gile Settlement Agreement did not contain a release of the Company and did not contain releases by the plaintiffs
of Mr. Gile other than with respect to the Lawsuit, the Company waived any related requirements under the Repurchase Agreement in light
of the expected execution of the Mutual Release Agreement. The CFO Certificate was received as of March 21, 2023. The repurchased shares
were cancelled as of March 31, 2023. The transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023, after waiver
of the board of directors of the repurchase rights and purchase rights provided for under the Shareholder Agreement by resolutions adopted
on March 24, 2023.
Under the Mutual Release Agreement,
as of March 29, 2023, Mr. Dorsey agreed to a general release of claims against and covenant not to sue the Company, the Company's
affiliates, stockholders, and certain other Company releasees, and the Company agreed to a general release of claims against and covenant
not to sue Mr. Dorsey, Mr. Dorsey's affiliates, and certain other releasees, subject to payment of the Dorsey/Gile Settlement Payment,
which, as indicated above, was made on March 31, 2023. The releases of claims and covenants not to sue under the Mutual Release Agreement
do not apply to breach of the Dorsey/Gile Settlement Agreement or to the January 2023 Dorsey Settlement Agreement.
F-
22
Under our Settlement Agreement with Dennis Gile,
our largest stockholder and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, dated as of
May 12, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers and directors,
certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation,
claims relating to Mr. Gile's direct or indirect ownership of shares of SDS Inc. – DE's capital stock, or Mr. Gile's
direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable,
provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or Mr. Gile may have under
the terms of that certain Severance General Waiver and Release Agreement between Mr. Gile and the Company, dated March 22, 2022, including
the releases of any and all claims against the Company and certain related parties as contained therein, Mr. Gile's agreement to
be terminated effective on January 1, 2022 and receive a severance payment of $53,500 pursuant to Section 1 of the Severance Agreement,
paid in March 2022, all of which terms were to remain in force notwithstanding the provisions of the Settlement Agreement. Further, Mr.
Gile irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to
any claim, distributions, payments, or other amounts that Mr. Gile believed should have been paid or were owed to Mr. Gile by SDS LLC
– AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a
clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC
– AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed
that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an
exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Gile owned 2,816,377 shares of common stock pursuant to the
Settlement Agreement. Mr. Gile also irrevocably covenanted that he would not sue us or the other released parties in respect of any of
the matters released and discharged. Notwithstanding the Severance Agreement referenced above, Mr. Gile has not had a written employment
agreement with the Company, has not been terminated, and has not received a salary since 2021, but has continued to receive standard
employee benefits on a monthly basis.
Under our Settlement Agreement with Dorsey LLC,
John Dorsey, in his individual capacity, and who was formerly Chief Executive Officer and a director of the Company, and his spouse,
Elena Dorsey, to the extent of such spouse's community property interest, if any (together, "Dorsey"), dated as of
April 25, 2022, the parties agreed, among other things, (1) that Dorsey had held 959,940 shares of SDS Inc. – DE's common
stock at that time, (2) that prior to the anticipated redomestication of SDS LLC – AZ to Delaware as a Delaware limited liability
company and conversion to a Delaware corporation, Dorsey was a member of SDS LLC – AZ and was a party to SDS LLC – AZ's
Fourth Amended Limited Liability Company Operating Agreement dated July 16, 2021 (the "SDS LLC – AZ Operating Agreement"),
(3) that the SDS LLC – AZ Operating Agreement provided Dorsey, among other things, certain anti-dilution protections whereby SDS
LLC – AZ would have been required to issue additional equity to Dorsey if SDS LLC – AZ were to have issued additional equity
which would have the effect of reducing Dorsey's ownership below 11% of SDS LLC – AZ's outstanding equity (the "Dorsey
Anti-Dilution Provision"), (4) that on April 25, 2022, Dorsey LLC would receive a total of 350,000 shares of common stock of SDS
Inc. – DE in exchange for Dorsey's cancellation, waiver, and release of all of Dorsey's rights under the Dorsey Anti-Dilution
Provision in the SDS LLC – AZ Operating Agreement, (5) to a general release and discharge of claims against us, our officers and
directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without
limitation, claims relating to the Dorsey Anti-Dilution Provision, Dorsey's direct or indirect ownership of shares of SDS Inc.
– DE's capital stock, or Dorsey's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC
– DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release
any rights that any party or Dorsey may have under the terms of that certain Offer of Employment between John Dorsey and SDS LLC –
AZ, dated January 13, 2022, or that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date
of this prospectus, the Company has no agreements with Dorsey otherwise relating to, and has not issued to Dorsey, any simple agreement
for future equity or convertible note. Further, Dorsey irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
forever released and waived their rights to any claim, distributions, payments, or other amounts that Dorsey believed should have been
paid or were owed to Dorsey by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed,
in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Dorsey LLC owned 1,309,940 shares of common
stock pursuant to the Settlement Agreement. Dorsey also irrevocably covenanted that they would not sue us or the other released parties
in respect of any of the matters released and discharged. Mr. Dorsey is deemed to beneficially own the shares of common stock owned by
Dorsey LLC and has sole voting and dispositive powers over its shares.
On or about November 29, 2022, John Dorsey, a
former Chief Executive Officer and director of the Company, through his counsel, sent the Company a letter demanding full payment on
the Alleged Loan in connection with the Loan Dispute. Under the January 2023 Dorsey Settlement Agreement, Mr. Dorsey agreed to a discharge
of the Alleged Loan and waiver and release of claims relating to the Alleged Loan and Loan Dispute and covenant not to sue on the basis
of such claims or otherwise commence any action or proceeding that would be inconsistent with the release of such claims. The Company
agreed to pay Mr. Dorsey $10,000 and issue a promissory note to Mr. Dorsey in the principal amount of $40,000 payable on the earlier
of ten business days following the successful closing of an initial public offering of the Company's common stock that generates
at least $1 million in net proceeds to the Company or July 1, 2023.
F-
23
Under our Settlement Agreement with Noah (Jed)
Smith, a former director and a beneficial owner of more than 5% of the outstanding common stock of the Company, and his spouse, Glory
Smith, to the extent of such spouse's community property interest, if any (together, "Smith"), dated as of May 13,
2022, the parties agreed, among other things, (1) that Dennis Gile, the founder of SDS LLC – AZ, our largest stockholder, and a
former Chief Executive Officer, President, Secretary, and Chairman of the Company, agreed and contracted to fulfill certain obligations
to Smith, including, but not limited to, granting a profits interest that was intended to be a membership interest in SDS LLC –
AZ as well as a percentage of future profits from the operations or sale of SDS LLC – AZ, pursuant to that certain Contribution
and Profit-Sharing Agreement between Mr. Gile and Smith, dated April 5, 2019, as amended by that certain First Amendment to Contribution
and Profit-Sharing Agreement dated December 9, 2019, and that certain Second Amendment to Contribution and Profit-Sharing Agreement dated
August 21, 2020, all attached as an exhibit to the Settlement Agreement (collectively, the "Smith Contribution and Profit-Sharing
Agreement"), (2) that Mr. Smith held 300,000 shares of common stock in SDS Inc. – DE in exchange for Smith's previous
contributions to SDS LLC – AZ, (3) that on May 13, 2022, Mr. Smith would receive an additional 100,000 shares of common stock of
SDS Inc. – DE in exchange for the termination of Smith's rights under the Smith Contribution and Profit-Sharing Agreement,
(4) that following such receipt of such additional shares, Mr. Smith would have a total of 400,000 shares of common stock, and (5) to
a general release and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our
stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the Smith Contribution and Profit-Sharing
Agreement, Smith's direct or indirect ownership of shares of SDS Inc. – DE's capital stock, or Smith's direct
or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided,
however, that nothing in the Settlement Agreement was intended to release any rights that any party or Smith may have under that certain
Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus, the Company has no agreements
with Smith otherwise relating to, and has not issued to Smith, any simple agreement for future equity or convertible note. Further, Smith
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any
claim, distributions, payments, or other amounts that Smith believed should have been paid or were owed to Smith by SDS LLC – AZ,
SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding
regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC –
DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not
own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Mr. Smith owned 400,000 shares of common stock pursuant to the Settlement Agreement. Smith also irrevocably
covenanted that they would not sue us or the other released parties in respect of any of the matters released and discharged.
Under our Settlement Agreement with Virginia
Byrd, an individual, and Byrd Enterprises of Arizona, Inc., an Arizona corporation ("Byrd Enterprises"), dated as of May
13, 2022 (together, "Byrd"), the parties agreed, among other things, to a general release and discharge of claims against
us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement,
including without limitation, claims relating to Byrd's direct or indirect ownership of shares of SDS Inc. – DE's capital
stock, or Byrd's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB
LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or
Byrd may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus,
the Company has no agreements with Byrd otherwise relating to, and has not issued to Byrd, any simple agreement for future equity or
convertible note. Further, Byrd irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released
and waived their rights to any claim, distributions, payments, or other amounts that Byrd believed should have been paid or were owed
to Byrd by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make
sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily,
knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests
in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent,
and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached
as an exhibit to the Settlement Agreement. The parties therefore agreed that Byrd Enterprises owned 767,785 shares of common stock pursuant
to the Settlement Agreement. Byrd also irrevocably covenanted that they would not sue us or the other released parties in respect of
any of the matters released and discharged.
On November 15, 2021, the Company issued a 6%
convertible unsecured promissory note in the amount of $565,000 to Zone Right in a private placement. Glen Kim, a director of the Company
and the managing member of Zone Right, is deemed to beneficially own the shares of common stock owned by Zone Right and has sole voting
and dispositive powers over its shares. The convertible note bears interest at 6% annually and matures on November 15, 2024. The convertible
note contains provisions for optional and mandatory conversion and conversion price adjustments. In the event that the Company's
initial public offering occurs prior to such convertible note's maturity date or optional conversion, 282,500 shares of common
stock will be issuable upon the automatic conversion of such convertible note, based on the assumed initial public offering price of
$4.00 per share, which is the low point of the price range set forth on the cover page of this prospectus. The purchaser also entered
into a subscription agreement and investor rights and lockup agreement which provided information and inspection rights, registration
rights, lock-up provisions, participation rights in subsequent securities offerings and private placements, and typical "drag along"
and "tag along" rights.
F-
24
Under our Settlement Agreement with Zone Right,
Mr. Kim, a director of the Company, and his spouse, Jessica Lee, to the extent of such spouse's community property interest, if
any, dated as of April 26, 2022 (the "Zone Right Parties"), the parties agreed, among other things, to a general release
and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as
listed on an exhibit to the agreement, including without limitation, claims relating to the Zone Right Parties' direct or indirect
ownership of shares of SDS Inc. – DE's capital stock, or the Zone Right Parties' direct or indirect ownership of membership
interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
Agreement was intended to release any rights that any party or the Zone Right Parties may have under that certain Simple Agreement for
Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus, other than as otherwise disclosed above, the
Company has no agreements with the Zone Right Parties otherwise relating to, and has not issued to the Zone Right Parties, any Simple
Agreement for Future Equity or convertible note. Further, the Zone Right Parties irrevocably, unconditionally, voluntarily, knowingly,
fully, finally, and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that
the Zone Right Parties believed should have been paid or were owed to the Zone Right Parties by SDS LLC – AZ, SDS LLC – DE,
SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding regarding the
capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF
LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Zone Right owned 483,833 shares of common stock pursuant to the Settlement Agreement. The Zone Right
Parties also irrevocably covenanted that they would not sue us or the other released parties in respect of any of the matters released
and discharged. Glen Kim is deemed to beneficially own the shares of common stock owned by Zone Right and has sole voting and dispositive
powers over its shares.
Under a lease agreement dated as of October 7,
2021 and an addendum dated the same date, we leased our former corporate offices consisting of approximately 7,800 square feet for a
term of five years beginning January 1, 2022 and ending December 31, 2026 for a monthly rent of $20,800 plus tax and certain operating
expenses, with an increase of 3% at the beginning of every calendar year following the first year of the term of the lease agreement
through January 2026. As of December 31, 2021, a security deposit was paid in the amount of $23,411. The office space was owned by John
Dorsey, a former chief executive officer and director of the Company. On August 31, 2022, we entered into a Lease Termination Agreement
in which both parties agreed to terminate the lease and release each other from all future obligations. The total approximate dollar
value of this transaction was $420,992 plus tax and certain operating expenses. The approximate dollar value of the interest of Mr. Dorsey
in this transaction was $420,992.
On August 7, 2021, SDS LLC – AZ agreed
to issue Clayton Adams, a former director and a beneficial owner of more than 5% of the common stock of the Company, 4.3% of its membership
interests in a private placement for total proceeds of $250,000 under a membership interest purchase agreement. The agreement stated
that SDS LLC – AZ intended to convert into a corporation in connection with a going public transaction by way of an initial public
offering or reverse merger ("Going Public Transaction"), and that the membership interest would be converted into or exchanged
for shares of common stock in connection with the Public Transaction. The agreement indicates that the number of shares of common stock
that Mr. Adams would hold upon an initial public offering would be 363,274 shares of common stock. Under the agreement, SDS LLC –
AZ reserved the right to reduce Mr. Adams' membership interest from the pre-Public Transaction valuation of our most recent SAFE
round of $42,000,000. The parties also agreed that, notwithstanding the foregoing, the membership interest would not be adjusted based
on the final capital structure following a Public Transaction.
Under our Settlement Agreement with Clayton Adams,
a former director and a beneficial owner of more than 5% of the common stock of the Company, dated as of May 3, 2022, the parties agreed,
among other things, to a general release and discharge of claims against us, our officers and directors, certain other affiliates and
related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to Mr.
Adams' direct or indirect ownership of shares of SDS Inc. – DE's capital stock, or Mr. Adams' direct or indirect
ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
that nothing in the Settlement Agreement was intended to release any rights that any party or Mr. Adams may have under that certain Simple
Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this prospectus, the Company has no agreements
with Mr. Adams otherwise relating to, and has not issued to Mr. Adams, any simple agreement for future equity or convertible note. Further,
Mr. Adams irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights
to any claim, distributions, payments, or other amounts that Mr. Adams believed should have been paid or were owed to Mr. Adams by SDS
LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was
a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC
– AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed
that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an
exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Adams owned 363,274 shares of common stock pursuant to the
Settlement Agreement. Mr. Adams also irrevocably covenanted that they would not sue us or the other released parties in respect of any
of the matters released and discharged.
F-
25
On July 21, 2022, the date that Clayton Adams,
a former director and a beneficial owner of more than 5% of the common stock of the Company, was appointed as a member of our board of
directors, Mr. Adams agreed to provide $100,000 in financing to the Company. The Company has not borrowed any funds from Mr. Adams and
does not expect that it will need to do so as of the date of this prospectus. Mr. Adams resigned from his position on the board of directors
effective April 27, 2023.
On August 9, 2021, SDS LLC – AZ agreed
to issue Matthew Atkinson, a former director and a beneficial owner of more than five percent (5%) of the issued and outstanding shares
of the Company, 4.3% of its membership interests in a private placement for total proceeds of $250,000 under a membership interest purchase
agreement. The agreement stated that SDS LLC – AZ intended to convert into a corporation in connection with a going public transaction
by way of an initial public offering or reverse merger ("Going Public Transaction"), and that the membership interest would
be converted into or exchanged for shares of common stock in connection with the Public Transaction. The agreement indicates that the
number of shares of common stock that Mr. Atkinson would hold upon an initial public offering would 363,274 shares of common stock. Under
the agreement, SDS LLC – AZ reserved the right to reduce Mr. Atkinson's membership interest from the pre-Public Transaction
valuation of the Company's most recent SAFE round of $42,000,000. The parties also agreed that, notwithstanding the foregoing,
the membership interest would not be adjusted based on the final capital structure following a Public Transaction.
Under our Settlement Agreement with Mr. Atkinson
and his spouse, Penny Atkinson, to the extent of such spouse's community property interest, if any (together, "Atkinson"),
dated as of May 13, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers
and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including
without limitation, claims relating to Atkinson's direct or indirect ownership of shares of SDS Inc. – DE's capital
stock, or Atkinson's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC,
or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party
or Atkinson may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of
this prospectus, the Company has no agreements with Atkinson otherwise relating to, and has not issued to Atkinson, any simple agreement
for future equity or convertible note. Further, Atkinson irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
forever released and waived their rights to any claim, distributions, payments, or other amounts that Atkinson believed should have been
paid or were owed to Atkinson by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also
agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Atkinson owned 383,274 shares of common
stock pursuant to the Settlement Agreement. Atkinson also irrevocably covenanted that they would not sue us or the other released parties
in respect of any of the matters released and discharged.
Under our Settlement Agreement with 35'sNextChapters,
LLC ("35'sNextChapters"), dated as of May 13, 2022, the parties agreed, among other things, to a general release and
discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed
on an exhibit to the agreement, including without limitation, claims relating to 35'sNextChapters' direct or indirect ownership
of shares of SDS Inc. – DE's capital stock, or 35'sNextChapters' direct or indirect ownership of membership interests
of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement
was intended to release any rights that any party or 35'sNextChapters may have under the terms of that certain Invitation to Join
the Board of Directors between Ronald Saslow and the Company or that certain Simple Agreement for Future Equity and/or Convertible Note,
as applicable. As of the date of this prospectus, the Company has no agreements with 35'sNextChapters otherwise relating to, and
has not issued to 35'sNextChapters, any convertible note or Invitation to Join the Board of Directors between Ronald Saslow and
the Company. Further, 35'sNextChapters irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
released and waived their rights to any claim, distributions, payments, or other amounts that 35'sNextChapters believed should
have been paid or were owed to 35'sNextChapters by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. –
DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE,
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they
may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE,
whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond
that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that 35'sNextChapters
owned 150,000 shares of common stock pursuant to the Settlement Agreement. 35'sNextChapters also irrevocably covenanted that they
would not sue us or the other released parties in respect of any of the matters released and discharged. Ronald Saslow, a former director
of the Company, as Manager of 35'sNextChapters, is deemed to beneficially own the shares of common stock owned by 35'sNextChapters
and has sole voting and dispositive powers over its shares.
F-
26
In July 2021, we issued a SAFE to 35'snextchapters,
LLC, whose Manager, Ronald Saslow, is a former director of the Company, and is deemed to beneficially own the securities and interests
in securities owned by 35'sNextChapters and has sole voting and dispositive powers over its securities. In October 2022, we entered
into a cancellation and exchange agreement with 35'snextchapters, LLC in which we agreed to cancel its SAFE in exchange for the
issuance of 74,627 shares of common stock. The number of shares was equal to the purchase amount under the SAFE divided by approximately
$3.35, based on a $25 million valuation for the Company.
In April 2021, we issued a SAFE to The Nelson
Revocable Living Trust (the "Nelson Trust"), one of whose co-trustees is Daniel D. Nelson, our Chief Executive Officer, Chairman,
and a director of the Company, in exchange for a payment of $100,000. In October 2022, we entered into a cancellation and exchange agreement
with the Nelson Trust in which we agreed to cancel its SAFE in exchange for the issuance of 29,851 shares of common stock. The number
of shares was equal to the purchase amount under the SAFE divided by approximately $3.35, based on a $25 million valuation for the Company.
On October 15, 2021, the Company issued a 6%
convertible unsecured promissory note in a private placement in the amount of $1,500,000 to the Nelson Trust, whose co-trustees are Daniel
D. Nelson, our Chief Executive Officer, Chairman, and a director of the Company, and Jodi B. Nelson. The convertible note bears interest
at 6% annually and matures on October 15, 2024. The convertible note contains provisions for optional and mandatory conversion and conversion
price adjustments. In the event that the Company's initial public offering occurs prior to such convertible note's maturity
date or optional conversion, 750,000 shares of common stock will be issuable upon the automatic conversion of such convertible note,
based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover
page of this prospectus. The purchaser also entered into a subscription agreement and investor rights and lockup agreement which provided
information and inspection rights, registration rights, lock-up provisions, participation rights in subsequent securities offerings and
private placements, and typical "drag along" and "tag along" rights.
In April 2022, Nelson Financial Services Inc.
became the insurance agent providing group benefits for the Company. Total dollar benefits provided to the Company under the group benefits
plan in 2022 were approximately $48,374. Total dollar payments to Nelson Financial Services Inc. in 2022 under the group benefits plan
were approximately $2,790. As Chief Executive Officer and sole owner of Nelson Financial Services Inc., the approximate dollar value
of Mr. Nelson's interest in this transaction was approximately $2,790.
Note 15 - Restatement
The Company has restated its previously issued
financial statements to appropriately reflect the December 31, 2021 internally developed software and impairment loss on the statement
of operations for the year ended December 31, 2021, as well as to properly reflect the impact of the conversion of the Company from a
limited liability company to a corporation on the statement of stockholders' and members' equity (deficit) for the year ended
December 31, 2021.
The statement of stockholders' and member's
equity (deficit) also reflects an opening balance reclassification of accumulated deficit to total members' equity.
The following is a summary of the effects of
the restatement in the Company's December 31, 2021 Balance Sheet:
As previously reported
Adjustment
As restated
Internally developed software, net
$
2,276,159
$
(2,276,159
)
$
-
Total assets
7,192,354
(2,276,159
)
4,916,195
Additional paid-in capital
7,870,793
(6,628,524
)
1,242,269
Accumulated deficit
(9,159,367
)
4,352,365
(4,807,002
)
Total stockholders' (deficit)
(1,284,826
)
(2,276,159
)
(3,560,985
)
Total liabilities and stockholders' (deficit)
7,192,354
(2,276,159
)
4,916,195
F-
27
The following is a summary of the effects of
the restatement in the Company's December 31, 2021 Statement of Operations:
As previously reported
Adjustment
As restated
Impairment loss
$
-
$
2,276,159
$
2,276,159
Net loss
6,528,068
2,276,159
8,804,227
The following is a summary of the effects of
the restatement in the Company's December 31, 2021, Statement of Cash Flows:
As previously reported
Adjustment
As restated
Net loss
$
6,528,068
$
2,276,159
$
8,804,227
Impairment loss
-
2,276,159
2,276,159
Note 16 - Subsequent Events
Subsequent to December 31, 2022, the Company
issued two 8% convertible unsecured promissory notes and accompanying warrants to accredited investors under subscription agreements
for aggregate loans of $150,000. The convertible notes bear interest at 8% annually, and are due August 8, 2023 unless converted in accordance
with their terms.
Subsequent to December 31, 2022, a grant of 90,000
shares of common stock to an executive officer under the Company's Equity Incentive Plan.
Subsequent to December 31, 2022, an issuance
of 15,000 shares of common stock as partial payment for legal services occurred.
In January 2023, the Company entered into a settlement
agreement with its former Chief Executive Officer whereby it agreed to pay $10,000 and issue a promissory note in the amount of $40,000.
The note bears no interest, and is payable on the earlier of (a) ten business days after the successful initial public offering of the
Company's stock that generates at least $1 million in net proceeds to the Company, or (b) July 1, 2023.
In March 2023 and April 2023 we completed one
private placement, and in May 2023  we conducted a subsequent private placement in which we entered into subscription agreements
with a number of accredited investors, pursuant to which we issued 8% unsecured promissory notes in the aggregate principal amount of
$2,350,000, which bear interest at the annual rate of 8%, and accompanying warrants to purchase an aggregate of 940,000 shares of
common stock exercisable at $2.50 per share. The warrants may be voluntarily exercised for cash prior to the maturity date of the promissory
notes or will be automatically exercised as described below. The amount outstanding under the 8% unsecured promissory notes must be repaid
upon the earlier to occur of the consummation of a Liquidity Event or the second anniversary of the initial closing date of the respective
private placement (March 17, 2025 as to $1,500,000 principal and May 2, 2025 as to $850,000 principal). If a Liquidity Event occurs before
the second anniversary of the initial closing date of the applicable private placement, the warrants will be automatically exercised
as to the unexercised portion of the warrants, the outstanding balance under the 8% unsecured promissory notes will be deemed repaid
in the amount of the exercise price for the automatic exercise of the unexercised portion of the related warrants, with any remaining
balance owed on the promissory notes to be repaid in cash. If a Liquidity Event does not occur before the second anniversary of the initial
closing date of the applicable private placement, then both principal and interest outstanding under the notes must be repaid in cash.
The Company agreed to register the resale all of the shares of common stock that such warrants may or shall be exercised to purchase
with the shares being registered for sale in the registration statement of which this prospectus forms a part. The Company must generally
keep the registration statement effective for a period as shall be required to permit the investors to complete the offer and sale of
their shares. The Company and the investors also provided customary mutual indemnification relating to any damages arising from such
registration.
F-
28
Boustead has acted as placement agent in these
private placements. Pursuant to our engagement letter agreement with Boustead, in addition to a commission equal to 7% of the gross proceeds
raised in the private placements, a non-accountable expense allowance equal to 1% of the gross proceeds raised in the private placements,
and payment of certain other expenses, we agreed to issue Boustead five-year warrants to purchase a number of shares of common stock
equal to 7% of the common stock underlying the warrants accompanying the 8% unsecured promissory notes at an exercise price equal to
the exercise price as defined in such warrants. Under the engagement letter with Boustead, its placement agent's warrants must
be registered for resale with the Company's initial public offering. However, Boustead has informally deferred these registration
rights with respect to the registration statement for the initial public offering.
Under the subscription agreements with the investors
in the first of these two private placements, the Company was required to use the first $450,000 of the net proceeds from the private
placement to expand its current operations, including its technology and intellectual property portfolio, and to fund the costs of its
initial public offering. The Company was required to use the next $800,000 of the net proceeds from the private placement to repurchase
up to 600,000 shares of common stock that were held by Dennis Gile, our largest stockholder and a former officer and director of the
Company, at a price equal to approximately $1.35 per share. The repurchase was required to be consummated only to the extent that it
does not impair the Company's capital within the meaning of Section 160 of the DGCL or the Company's ability to pay down
its debts as they become due. The Company was required to enter into an agreement with Mr. Gile providing that Mr. Gile will use the
proceeds of the repurchase to settle an existing lawsuit filed against Mr. Gile by John Dorsey, a former officer and director of the
Company, subject to a full release of Mr. Gile and the Company, and that Mr. Gile will resign from the board of directors of the Company
and from any officer position with the Company upon the repurchase. The Company was required to use any remaining net proceeds from the
private placement, which consisted of $250,000 less placement agent fees and expenses, for working capital and other general corporate
purposes. Subsequently, the Company used the net proceeds as required.
On March 31, 2023, under the terms of a Repurchase
and Resignation Agreement, dated March 21, 2023, with Dennis Gile (the "Repurchase Agreement"), we paid an aggregate purchase
price of $800,000 for the repurchase (the "Repurchase") of 600,000 shares of common stock from Dennis Gile, our largest stockholder
and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, at approximately $1.33 per share.
Pursuant to the Repurchase Agreement, $695,000 of the $800,000 payment was made to the attorneys for John Dorsey, a former officer and
director of the Company (the "Dorsey/Gile Settlement Payment"), as part of the settlement of a private lawsuit under a settlement
agreement between Mr. Gile and Mr. Dorsey (the "Dorsey/Gile Lawsuit") between these individuals and Dorsey LLC (the "Dorsey/Gile
Settlement Agreement"). Pursuant to the Repurchase Agreement, the balance of the aggregate purchase price was paid to the attorneys
for Mr. Gile. Pursuant to the Repurchase Agreement, Mr. Gile agreed to resign his position as Chairman and every other director and officer
position he held with the Company effective as of March 21, 2023. Prior to such date, on March 20, 2023, Mr. Gile delivered notice of
resignation from such positions, which stated that it was effective March 19, 2023. Pursuant to the Repurchase Agreement, Mr. Gile will
not receive any severance payments in connection with any other agreement with the Company as a result of his resignation. The Repurchase
was also conditioned on the Company's prior review of and consent to the Dorsey/Gile Settlement Agreement prior to its execution,
and receipt of a certificate from the Chief Financial Officer of the Company that the Repurchase will not impair the Company's
capital within the meaning of Section 160 of the DGCL or the Company's ability to pay down its debts as they become due (the "CFO
Certificate"). Under the Repurchase Agreement, the Dorsey/Gile Settlement Agreement was required to fully resolve, settle and dismiss
the Gile/Dorsey Lawsuit and contain a general release of claims by all the plaintiffs in the Dorsey/Gile Lawsuit in favor of Mr. Gile,
the Company, the Company's affiliates, stockholders, and certain other Company releasees. Under the Repurchase Agreement, Mr. Gile
agreed to indemnify the Company for claims arising out of based upon the Repurchase Agreement. Pursuant to the Repurchase Agreement,
a copy of the Dorsey/Gile Settlement Agreement was reviewed and consented to by the Company and entered into as of March 20, 2023. Under
the Dorsey/Gile Settlement Agreement, between Mr. Gile, Mr. Dorsey, and Dorsey LLC, Mr. Gile agreed to pay the Dorsey/Gile Settlement
Payment, transfer 40,000 shares of the Company to Mr. Dorsey. Mr. Gile, Mr. Dorsey and Dorsey LLC agreed to mutual releases of all claims
relating to the Dorsey/Gile Lawsuit and to dismiss the Dorsey/Gile Lawsuit. Although the Dorsey/Gile Settlement Agreement did not contain
a release of the Company and did not contain releases by the plaintiffs of Mr. Gile other than with respect to the Lawsuit, the Company
waived any related requirements under the Repurchase Agreement in light of the expected execution of the Mutual Release Agreement (as
defined below). The CFO Certificate was received as of March 21, 2023. The repurchased shares were cancelled as of March 31, 2023. The
transfer of 40,000 shares by Mr. Gile to Mr. Dorsey occurred on April 4, 2023, after waiver of the board of directors of the repurchase
rights and purchase rights provided for under the Shareholder Agreement by resolutions adopted on March 24, 2023.
F-
29
Effective March 29, 2023, a Confidential Mutual
General Release and Covenant Not to Sue Agreement was entered into between the Company and Mr. Dorsey (the "Mutual Release Agreement").
Under the Mutual Release Agreement, Mr. Dorsey agreed to a general release of claims against and covenant not to sue the Company, the
Company's affiliates, stockholders, and certain other Company releasees, and the Company agreed to a general release of claims
against and covenant not to sue Mr. Dorsey, Mr. Dorsey's affiliates, and certain other releasees, subject to payment of the Dorsey/Gile
Settlement Payment, which, as indicated above, was made on March 31, 2023. The releases of claims and covenants not to sue under the
Mutual Release Agreement do not apply to breach of the Dorsey/Gile Settlement Agreement or to the January 2023 Dorsey Settlement Agreement.
In March 2023, we granted incentive stock options
to certain employees to purchase a total of 53,800 shares of common stock. The options have an exercise price equal to $3.10 per share,
and are subject to various vesting conditions. The options will expire in March 2033. In April 2023, we granted an incentive stock option
to an employee, officer and director to purchase a total of 100,000 shares of common stock with an exercise price equal to $2.50 per
share, which is subject to certain vesting conditions. In April 2023, we also granted a non-statutory stock option to a director
to purchase a total of 3,000 shares of common stock with an exercise price equal to $3.10 per share, which is subject to certain vesting
conditions. In May 2023, we granted a non-statutory stock option to a director to purchase a total of 24,000 shares of common stock
with an exercise price equal to $2.50 per share.
Immediately after the consummation of the initial
public offering, we intend to file a Registration Statement on Form S-8 with the SEC to register the potential exercise of these options.
On May 1, 2023, the Company entered into a lease
agreement with M4 Perimeter, LLC for a period of 39 months from the commencement date of May 4, 2023. The term of the current lease shall
expire on May 3, 2023.
Base Monthly Rent. From and after the Extension
Term Commencement Date, the Base Monthly Rent schedule is hereby amended as follows:
Months 1 – 12 $7,359.00 per month, plus
applicable rental taxes**
Months 13 – 24 $7,580.00 per month, plus
applicable rental taxes
Months 25 – 36 $7,808.00 per month, plus
applicable rental taxes
Months 37 – 39 $8,042.00 per month, plus
applicable rental taxes
**
Base Monthly Rent for
                                            Months 1 – 3 shall be 100% abated
See Note 12 for reverse stock split subsequent
event.
F-
30
Signing Day Sports, Inc.
3,750,000
Shares of Common Stock
Prospectus
Boustead Securities, LLC
,
2023
Until and including     , 2023 (the
25th day after the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in
this offering, may be required to deliver a prospectus.  This is in addition to a dealer's obligation to deliver a prospectus
when acting as an underwriter and with respect to an unsold allotment or subscription.
The
information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and
it is not soliciting offers to buy these securities in any jurisdiction where the offer or sale is not permitted.
SUBJECT
TO COMPLETION
PRELIMINARY PROSPECTUS
DATED MAY 15, 2023
Signing Day Sports, Inc.
2,346,548 Shares of Common Stock
This prospectus relates to the resale of up to
2,346,548 shares of common stock, $0.0001 par value per share (the "common stock"), of Signing Day Sports, Inc. that may
be sold from time to time by the selling stockholders named in this prospectus, which includes:
●
746,548
                                            shares of common stock issued to the selling stockholders;
●
410,000
                                            shares of common stock issuable upon the conversion of 6% convertible unsecured promissory
                                            notes issued to the selling stockholders;
●
250,000
                                            shares of common stock issuable upon the conversion of 8% convertible unsecured promissory
                                            notes issued to the selling stockholders; and
●
940,000
                                            shares of common stock issuable upon the exercise of warrants issued to the selling stockholders.
We
will not receive any proceeds from the sales of common stock by the selling stockholders.
Prior
to this offering, there has been no public market for our shares.  We are in the process of applying to list our shares of common
stock on NYSE American under the symbol "SDS". NYSE American might not approve such application, and if our application is
not approved, the Company's initial public offering cannot be completed and this resale offering will not proceed.
We
are an "emerging growth company", as defined in the Jumpstart Our Business Startups Act of 2012, under applicable U.S. federal
securities laws, and are eligible for reduced public company reporting requirements. See "
Prospectus Summary – Implications
of Being an Emerging Growth Company
" for more information.
The selling stockholders may offer and sell the
common stock being offered by this prospectus from time to time in public or private transactions, or both. These sales will occur at
an assumed fixed initial public offering price of $4.00 per share, which is the low point of the price range set forth on the cover page
of initial public offering prospectus being filed contemporaneously with this prospectus, until our common stock is listed on NYSE American.
Thereafter, these sales will occur at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market
prices, or at negotiated prices. The selling stockholders may sell shares to or through underwriters, broker-dealers or agents, who may
receive compensation in the form of discounts, concessions or commissions from the selling stockholders, the purchasers of the shares,
or both. Any participating broker-dealers and any selling stockholders who are affiliates of broker-dealers may be deemed to be "underwriters"
within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), and any commissions or discounts given
to any such broker-dealer or affiliates of a broker-dealer may be regarded as underwriting commissions or discounts under the Securities
Act. The selling stockholders have informed us that they do not have any agreement or understanding, directly or indirectly, with any
person to distribute their common stock. See "
Plan of Distribution
" for a more complete description of the ways in
which the shares may be sold.
Investing
in our securities is highly speculative and involves a high degree of risk.  See "
Risk Factors
" beginning on
page 15 for a discussion of information that should be considered in connection with an investment in our securities.
Neither
the U.S. Securities and Exchange Commission nor any state or provincial securities commission has approved or disapproved of these securities
or determined if this prospectus is truthful or complete.  Any representation to the contrary is a criminal offense.
The
date of this prospectus is , 2023.
[Alternate Page for Resale Prospectus]
The
Offering
Common
    stock offered by the selling stockholders:
This
                                            prospectus relates to 2,346,548 shares of common stock that may be sold from time to time
                                            by the selling stockholders named in this prospectus, which includes:
●      746,548
    shares of common stock issued to the selling stockholders;
●     410,000
    shares of common stock issuable upon the conversion of 6% convertible unsecured promissory notes issued to the selling stockholders;
●     250,000
    shares of common stock issuable upon the conversion of 8% convertible unsecured promissory notes issued to the selling stockholders;
    and
●     940,000
    shares of common stock issuable upon the exercise of warrants issued to the selling stockholders.
Shares outstanding
    at commencement of the offering
(1)
:
11,341,152
    shares of common stock (or 11,903,652 shares if the underwriters in the Company's initial public offering exercise the over-allotment
    option in full, based on the assumed initial public offering price of $4.00 per share, which is the low point of the price range
    set forth on the cover page of the initial public offering prospectus filed contemporaneously with this prospectus).
Use of proceeds:
We
    will not receive any proceeds from the sales of outstanding common stock by the selling stockholders.
Risk factors:
Investing
    in our common stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment.
    You should carefully consider the information set forth in the "
Risk Factors
" section beginning on page 15
    before deciding to invest in our Class B Common Stock.
Trading market
    and symbol:
We
    are in the process of applying to list our common stock on NYSE American under the symbol "SDS". We believe that upon
    the completion of the Company's initial public offering, we will meet the standards for listing on NYSE American.  The
    closing of the initial public offering is contingent upon the successful listing of our common stock on NYSE American.
(1)
The number of shares of common stock outstanding at the commencement of the offering assumes the issuance by us of shares of common stock
pursuant to the initial public offering prospectus filed contemporaneously with this prospectus, is based on 7,591,152 shares of common
stock outstanding as of the date of this prospectus or that may be outstanding before the commencement of the initial public offering,
and excludes:
●
3,152,500
                                            shares of common stock issuable upon conversion of 6% convertible unsecured promissory notes
                                            at a conversion price of $2.00 per share assuming that all are converted at the mandatory
                                            conversion price at the time of the initial public offering, based on the assumed initial
                                            public offering price of $4.00 per share, which is the low point of the price range set forth
                                            on the cover page of the initial public offering prospectus being filed contemporaneously
                                            with this prospectus, or up to 2,522,000 shares of common stock issuable upon the optional
                                            conversion of 6% convertible unsecured promissory notes at their optional conversion price
                                            of $2.50 per share;
●
732,500
                                            shares of common stock issuable upon conversion of 8% convertible unsecured promissory notes
                                            at a conversion price of $2.00 per share assuming that all are converted at the mandatory
                                            conversion price at the time of the initial public offering, based on the assumed initial
                                            public offering price of $4.00 per share, which is the low point of the price range set forth
                                            on the cover page of initial public offering prospectus being filed contemporaneously with
                                            this prospectus, or up to 444,842 shares of common stock issuable upon the optional conversion
                                            of 8% convertible unsecured promissory notes at their optional conversion price of approximately
                                            $3.29 per share;
Alt-
1
[Alternate
Page for Resale Prospectus]
●
732,500
                                            shares of common stock issuable upon exercise of warrants at an exercise price of $2.00 per
                                            share, based on the assumed initial public offering price of $4.00 per share, which is the
                                            low point of the price range set forth on the cover page of initial public offering prospectus
                                            being filed contemporaneously with this prospectus;
●
940,000
                                            shares of common stock issuable upon exercise of warrants at an exercise price of $2.50 per
                                            share;
●
220,675
                                            shares of common stock issuable to Boustead as placement agent upon exercise of placement
                                            agent's warrants issued to Boustead at an exercise price of $2.00 per share with respect
                                            to outstanding 6% convertible unsecured promissory notes issued to private placement investors
                                            assuming that all such private placement securities are converted at the 6% convertible unsecured
                                            promissory notes' mandatory conversion price at the time of the initial public offering,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of initial public offering prospectus being
                                            filed contemporaneously with this prospectus, or 176,540 shares of common stock issuable
                                            upon exercise of such placement agent's warrants at an exercise price of $2.50 per
                                            share upon the optional conversion of outstanding 6% convertible unsecured promissory notes
                                            at their optional conversion price of $2.50 per share;
●
Up
                                            to 77,200 shares of common stock issuable to Boustead as placement agent in consideration
                                            for the waiver of its success fee and expense allowance for Company-introduced investors
                                            in the private placement of the Company's 8% convertible unsecured promissory notes
                                            and accompanying warrants equal to 8% of the number of shares of common stock issuable to
                                            the Company-introduced investors upon conversion or exercise, as applicable, of their securities,
                                            based on the assumed initial public offering price of $4.00 per share, which is the low point
                                            of the price range set forth on the cover page of initial public offering prospectus being
                                            filed contemporaneously with this prospectus;
●
65,800
                                            shares of common stock issuable to Boustead as placement agent upon exercise of placement
                                            agent's warrants issued to Boustead at an exercise price of $2.50 per share with respect
                                            to warrants issued or that may be issued to private placement investors in our 8% unsecured
                                            promissory notes;
●
13,375
                                            shares of common stock upon the completion of the initial public offering assuming the offering
                                            is completed by November 15, 2023, based on the assumed initial public offering price of
                                            $4.00 per share, which is the low point of the price range set forth on the cover page of
                                            initial public offering prospectus being filed contemporaneously with this prospectus, otherwise
                                            the number of shares of common stock equal to the number of shares derived by dividing $53,500
                                            by the Fair Market Value, as defined by certain service provider agreements, of the common
                                            stock of the Company on November 15, 2023, pursuant to such service provider agreements;
●
277,450
                                            total shares of common stock issuable upon the exercise of stock options at an exercise price
                                            per share equal to $3.10 per share and 243,000 total shares of common stock issuable upon
                                            the exercise of stock options at an exercise price per share equal to $2.50 per share which
                                            were granted to certain employees, consultants, officers, and directors under the Signing
                                            Day Sports, Inc. 2022 Equity Incentive Plan, or the Equity Incentive Plan, or the Plan;
●
750,000
                                            shares of common stock that are reserved for issuance under the Plan, which is inclusive
                                            of the 520,450 shares issuable upon the exercise of stock options that are granted under
                                            the Plan; and
●
301,875
                                            shares of common stock issuable upon exercise of representative's warrants to be issued
                                            to the underwriters in connection with the initial public offering, based on the assumed
                                            initial public offering price of $4.00 per share, which is the low point of the price range
                                            set forth on the cover page of initial public offering prospectus being filed contemporaneously
                                            with this prospectus, and assuming full exercise by the underwriters of the over-allotment
                                            option.
Alt-
2
[Alternate
Page for Resale Prospectus]
USE
OF PROCEEDS
We
will not receive any proceeds from the sale of common stock by the selling stockholders.
The
selling stockholders will pay any underwriting discounts and commissions and expenses incurred by them for brokerage, accounting, tax
or legal services or any other expenses incurred by them in disposing of the shares. We will bear all other costs, fees and expenses
incurred in effecting the registration of the shares covered by this prospectus, including, without limitation, all registration and
filing fees and fees and expenses of our counsel and our accountants.
Alt-
3
[Alternate
Page for Resale Prospectus]
SELLING
STOCKHOLDERS
The
common stock being offered by the selling stockholders are those held by the selling stockholders or issuable to the selling stockholders
upon the automatic exercise of certain warrants to purchase shares of common stock or automatic conversion of certain convertible notes
into shares of common stock held by the selling stockholders. We are registering the shares of common stock in order to permit the selling
stockholders to offer the shares for resale from time to time. Except for the ownership of these securities or as otherwise disclosed
below, the selling stockholders have not had any position, office, or other material relationship with us or any of our predecessors
or affiliates within the past three years, and based on the information provided to us by the selling stockholders, no selling stockholder
is a broker-dealer or an affiliate of a broker-dealer.
Beneficial
ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities.
For purposes of this table, a person or group of persons is deemed to have "beneficial ownership" of any shares of common
stock that such person or any member of such group has the right to acquire within 60 days of the date of this prospectus. For purposes
of computing the percentage of outstanding shares of our common stock held by each person or group of persons named below, any shares
that such person or persons has the right to acquire within 60 days of the date of this prospectus are deemed to be outstanding for such
person, but not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein
of any shares listed as beneficially owned does not constitute an admission of beneficial ownership by any person.
The
table below lists the selling stockholders and other information regarding the beneficial ownership of the shares of common stock by
each of the selling stockholders. The second column lists the number of shares of common stock beneficially owned by each selling stockholder,
based on its ownership of shares of common stock, shares of common stock issuable upon the automatic conversion of 6% convertible unsecured
promissory notes upon the consummation of the Company's initial public offering, shares of common stock issuable upon the automatic
conversion of 8% convertible promissory notes upon the consummation of the Company's initial public offering, or shares of common
stock issuable upon the exercise of warrants issued to initial holders of 8% unsecured promissory notes, and assuming the automatic conversion
of the 6% convertible unsecured promissory notes upon the consummation of the Company's initial public offering, the automatic
conversion of the 8% convertible unsecured promissory notes upon the consummation of the Company's initial public offering, and
the exercise prior to or upon the consummation of the Company's initial public offering of the warrants issued to the initial holders
of 8% unsecured promissory notes, without regard to any limitations on conversions and exercises. The third column lists the shares of
common stock being offered by this prospectus by the selling stockholders.
In
accordance with the terms of the registration provisions of subscription agreements entered into with the initial holders of the warrants
issued to the initial holders of our 8% unsecured promissory notes, this prospectus generally covers the resale of the sum of the maximum
number of shares of common stock issuable upon the exercise of all shares of common stock, without regard to any limitations on the exercise
of these securities. The other shares of common stock that are included below were included based on discussions with the underwriter
of the Company's initial public offering, which is being conducted simultaneously with this resale offering. The fourth column
of the table below assumes the sale of all of the shares offered by the selling stockholders pursuant to this prospectus. The fifth column
is based on the assumptions described in the first footnote to the table.
Each
selling stockholder whose shares being offered are issuable upon conversion of a 6% convertible unsecured promissory note holder may
not convert the note to the extent that the note holder (together with its affiliates) would beneficially own in excess of 9.99% of the
number of shares of common stock outstanding. The selling stockholder may increase or decrease the beneficial ownership limit to any
other percentage not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days following
notice from the selling stockholder. Each selling stockholder whose shares being offered are issuable upon conversion of an 8% convertible
unsecured promissory note may not convert the note to the extent that the selling stockholder (together with its affiliates) would beneficially
own in excess of 9.99% of the number of shares of common stock outstanding, not including remaining shares issuable to the selling stockholder
upon conversion of the note or conversion or exercise of any other securities subject to an equivalent beneficial ownership limit. The
selling stockholder may waive or raise the beneficial ownership limit, effective 61 days following notice from the selling stockholder.
The number of shares in the table below do not reflect these limitations. The selling stockholders may sell all, some or none of their
shares in this offering. See "
Plan of Distribution
."
Alt-
4
[Alternate
Page for Resale Prospectus]
Except
as otherwise indicated in the table below, the selling stockholders may sell all, some or none of the shares of common stock being offered.
See "
Plan of Distribution
." We therefore have no way of determining the number of shares of common stock each selling
stockholder will hold after this offering. Therefore, the fourth and fifth columns assume that each selling stockholder will sell all
shares of common stock covered by this prospectus.
Amount
                                            of
Shares of
Common
Stock
Beneficially
Owned
Prior
                                            to this
Amount
    of
Shares of
Common
Stock Being
Amount
    of Shares of
Common Stock Beneficially
Owned After this Offering
Name
    of Selling Stockholder
Offering
Offered
Shares
Percent
(1)
BaseStones,
    Inc.
100,000
(2)
50,000
(2)
50,000
*
Brick Lane Asset Management
50,000
(3)
50,000
(3)
-
-
Candice Nicholson
12,500
(4)
12,500
(4)
-
-
Charles Holbrook
12,500
(5)
12,500
(5)
-
-
Chris Etherington
12,500
(6)
12,500
(6)
-
-
Clayton Adams
383,273
(7)
363,274
(7)
20,000
*
Confluence Global Capital
100,000
(8)
100,000
(8)
-
-
Eternal Horizon International
    Company Limited
100,000
(9)
50,000
(9)
50,000
*
Gilbert Lam
100,000
(10)
50,000
(10)
50,000
*
John Dodero
10,000
(11)
10,000
(11)
-
-
John Nicholson
12,500
(12)
12,500
(12)
-
-
Matthew Atkinson
(13)
383,273
383,273
-
-
Oleta Investments, LLC
100,000
(14)
50,000
(14)
50,000
*
Roger Beasley
50,000
(15)
50,000
(15)
-
-
Rui Wu
225,000
(16)
175,000
(16)
50,000
-
Herbert Irvine and Sandra
    Irvine
57,964
(17)
40,000
(17)
17,964
*
John M Stroud and Melissa
    J Stroud Revocable Trust
320,000
(18)
320,000
(18)
-
-
Martin De Rito
100,000
(19)
100,000
(19)
-
-
Paul Rutkowski
40,000
(20)
40,000
(20)
-
-
Richard Symington
100,000
(21)
100,000
(21)
-
-
Todd Bazucki
40,000
(22)
40,000
(22)
-
-
James Tewell
40,000
(23)
40,000
(23)
-
-
Keith Zacher
100,000
(24)
100,000
(24)
-
-
Mayurkumar Bhakta
40,000
(25)
40,000
(25)
-
-
Chris Lane
80,000
(26)
80,000
(26)
-
-
Cory Lane
40,000
(27)
40,000
(27)
-
-
*
Less
                                            than 1%.
(1)
Applicable
                                            percentage ownership after this offering is based on 7,591,152 shares of common stock deemed
                                            to be outstanding as of the date of this prospectus and 16,256,727 shares of common stock
                                            issued and outstanding after the Company's initial public offering which will occur
                                            contemporaneously with the resale offering, assuming no exercise of the underwriters'
                                            over-allotment option and assuming an initial public offering price of $4.00 per share (which
                                            is the low point of the estimated range of the initial public offering price shown on the
                                            cover page of the initial public offering prospectus filed contemporaneously with this prospectus),
                                            and further assuming, at the time of the initial public offering, the automatic conversion
                                            of the Company's 6% convertible unsecured promissory notes into a total of 3,152,500
                                            shares of common stock, the automatic conversion of the Company's 8% convertible unsecured
                                            promissory notes into a total of 732,500 shares of common stock, and the exercise of certain
                                            warrants of the Company to purchase 940,000 shares of common stock. As noted above, for purposes
                                            of computing percentage ownership after this offering, we have assumed that any shares of
                                            common stock being offered will be sold in this offering, and any shares of common stock
                                            issuable upon exercise of a warrant or conversion of a convertible note that are being offered
                                            will be sold immediately following the automatic exercise or conversion of the warrant or
                                            convertible note under which such common stock is issuable.
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(2)
Beneficially
                                            owned shares of common stock consist of (i) 50,000 shares of common stock issuable upon conversion
                                            of an 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering and (ii) 50,000 shares of common stock issuable upon exercise of a warrant. The
                                            shares of common stock being offered consist of 50,000 shares of common stock issuable upon
                                            conversion of the 8% convertible unsecured promissory note.
(3)
Consists
                                            of 50,000 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.
(4)
Consists
                                            of 12,500 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.
(5)
Consists
                                            of 12,500 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.
(6)
Consists
                                            of 12,500 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.
(7)
Beneficially
                                            owned shares of common stock consist of (i) 363,274 shares of common stock, (ii) 5,000 shares
                                            of common stock issuable upon the exercise of an option, and (iii) 15,000 shares of common
                                            stock issuable upon the exercise of an option within 60 days of the date of this prospectus.
                                            The shares of common stock being offered consist of 363,274 shares of common stock. Clayton
                                            Adams is a former director of the Company and beneficially owns more than 5% of the outstanding
                                            common stock. Mr. Adams has had no other material relationship with the Company.
(8)
Consists
                                            of 100,000 shares of common stock issuable upon conversion of a 6% convertible unsecured
                                            promissory note upon the consummation of the initial public offering.
(9)
Beneficially
                                            owned shares of common stock consist of (i) 50,000 shares of common stock issuable upon conversion
                                            of an 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering and (ii) 50,000 shares of common stock issuable upon exercise of a warrant. The
                                            shares of common stock being offered consist of 50,000 shares of common stock issuable upon
                                            conversion of the 8% convertible unsecured promissory note upon the consummation of the initial
                                            public offering.
(10)
Beneficially
                                            owned shares of common stock consist of (i) 50,000 shares of common stock issuable upon conversion
                                            of an 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering and (ii) 50,000 shares of common stock issuable upon exercise of a warrant. The
                                            shares of common stock being offered consist of 50,000 shares of common stock issuable upon
                                            conversion of the 8% convertible unsecured promissory note upon the consummation of the initial
                                            public offering.
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(11)
Consists
                                            of 10,000 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.
(12)
Consists
                                            of 12,500 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.
(13)
Matthew
                                            Atkinson beneficially owns more than 5% of the outstanding common stock as of the date of
                                            this prospectus.
(14)
Beneficially
                                            owned shares of common stock consist of (i) 50,000 shares of common stock issuable upon conversion
                                            of an 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering and (ii) 50,000 shares of common stock issuable upon exercise of a warrant. The
                                            shares of common stock being offered consist of 50,000 shares of common stock issuable upon
                                            conversion of the 8% convertible unsecured promissory note upon the consummation of the initial
                                            public offering.
(15)
Consists
                                            of 50,000 shares of common stock issuable upon conversion of a 6% convertible unsecured promissory
                                            note upon the consummation of the initial public offering.
(16)
Beneficially
                                            owned shares of common stock consist of (i) 125,000 shares of common stock issuable upon
                                            conversion of a 6% convertible unsecured promissory note, (ii) 50,000 shares of common stock
                                            issuable upon conversion of an 8% convertible unsecured promissory note upon the consummation
                                            of the initial public offering, and (iii) 50,000 shares of common stock issuable upon exercise
                                            of a warrant. The shares of common stock being offered consist of (i) 125,000 shares of common
                                            stock issuable upon conversion of the 6% convertible unsecured promissory note upon the consummation
                                            of the initial public offering, and (ii) 50,000 shares of common stock issuable upon conversion
                                            of the 8% convertible unsecured promissory note upon the consummation of the initial public
                                            offering.
(17)
Consists
                                            of (i) 17,964 shares of common stock and (ii) 40,000 shares of common stock issuable upon
                                            exercise of a warrant. The shares of common stock being offered consist of 40,000 shares
                                            of common stock issuable upon exercise of a warrant.
(18)
Consists
                                            of 320,000 shares of common stock issuable upon exercise of a warrant. John Stroud and Melissa
                                            Stroud are the co-trustees of the John M Stroud and Melissa J Stroud Revocable Trust (the
                                            "Stroud Trust") and have shared voting and dispositive powers over the securities
                                            held by the Stroud Trust.
(19)
Consists
                                            of 100,000 shares of common stock issuable upon exercise of a warrant.
(20)
Consists
                                            of 40,000 shares of common stock issuable upon exercise of a warrant.
(21)
Consists
                                            of 100,000 shares of common stock issuable upon exercise of a warrant. Richard Symington
                                            is a director, executive officer and employee of the Company.
(22)
Consists
                                            of 40,000 shares of common stock issuable upon exercise of a warrant.
(23)
Consists
                                            of 40,000 shares of common stock issuable upon exercise of a warrant.
(24)
Consists of 100,000 shares of common stock
                                            issuable upon exercise of a warrant.
(25)
Consists of 40,000 shares of common stock
                                            issuable upon exercise of a warrant.
(26)
Consists of 80,000 shares of common stock
                                            issuable upon exercise of a warrant.
(27)
Consists of 40,000 shares of common stock
                                            issuable upon exercise of a warrant.
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PLAN
OF DISTRIBUTION
Each
selling stockholder and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their
securities covered hereby on any stock exchange, market or trading facility on which the securities are traded or in private transactions.
These sales will occur at a fixed price of $4.00 per share until our common stock is listed on NYSE American. Thereafter, these sales
will occur at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated
prices. A selling stockholder may use any one or more of the following methods when selling securities:
●
ordinary
                                            brokerage transactions and transactions in which the broker-dealer solicits purchasers;
●
block
                                            trades in which the broker-dealer will attempt to sell the securities as agent but may position
                                            and resell a portion of the block as principal to facilitate the transaction;
●
purchases
                                            by a broker-dealer as principal and resale by the broker-dealer for its account;
●
an
                                            exchange distribution in accordance with the rules of the applicable exchange;
●
privately
                                            negotiated transactions;
●
settlement
                                            of short sales;
●
in
                                            transactions through broker-dealers that agree with the selling stockholders to sell a specified
                                            number of such securities at a stipulated price per security;
●
through
                                            the writing or settlement of options or other hedging transactions, whether through an options
                                            exchange or otherwise;
●
a
                                            combination of any such methods of sale; or
●
any
                                            other method permitted pursuant to applicable law.
The
selling stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act, if available,
rather than under this prospectus.
Broker-dealers
engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions
or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser)
in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in
excess of a customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or
markdown in compliance with FINRA Rule 2121.
In
connection with the sale of the securities or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they
assume. The selling stockholders may also sell securities short and deliver these securities to close out their short positions, or loan
or pledge the securities to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option
or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the
delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer
or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
The
selling stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be "underwriters"
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each selling stockholder has informed us that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the securities.
We
are required to pay certain fees and expenses incurred by us incident to the registration of the securities. We have agreed to indemnify
the selling stockholders of shares issued upon exercise of the warrants that were issued with our 8% unsecured promissory notes against
certain losses, claims, damages and liabilities relating to the registration of their shares, including liabilities under the Securities
Act.
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We
agreed to keep the registration statement of which this prospectus forms a part effective for a period as shall be required to permit
the investors to complete the offer and sale of their shares, unless the shares may be resold pursuant to Rule 144 promulgated under
the Securities Act. The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable
state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is
complied with.
Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously
engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the
Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the
common stock by the selling stockholders or any other person. We will make copies of this prospectus available to the selling stockholders
and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including
by compliance with Rule 172 under the Securities Act).
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Prospectus]
LEGAL
MATTERS
The
validity of the shares of common stock covered by this prospectus will be passed upon by Bevilacqua PLLC.
As of the date of this prospectus, Bevilacqua
PLLC owns 15,000 shares of common stock. Bevilacqua PLLC received these shares as partial consideration for legal services previously
provided to us.
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PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
Unless
the context indicates otherwise, "we," "us," "our," "Signing Day Sports," "the
Company," "our company" and similar references in this
"
Part II. Information Not Required in the Prospectus
"
refer to the consolidated operations of Signing Day Sports, Inc., a Delaware corporation.
Item
13. Other Expenses of Issuance and Distribution
The
following table sets forth the costs and expenses, other than underwriting discounts, commissions and non-accountable expense allowance,
payable by us in connection with the sale of shares of common stock being registered. All amounts, other than the SEC registration fee,
NYSE American listing fee and FINRA filing fee, are estimates. We will pay all these expenses.
Amount
SEC registration fee
$
4,602.56
NYSE American listing fee
60,000
FINRA filing fee
6,764.83
Accounting fees and expenses
300,000
Legal fees and expenses
275,000
Transfer agent fees and expenses
5,000
Printing and related fees
30,000
Miscellaneous fees and expenses
350,000
Total
$
1,031,367.39
Item
14. Indemnification of Directors and Officers
Section
145 of the DGCL provides that a corporation has the power to indemnify a director, officer, employee or agent of the corporation, or
a person serving at the request of the corporation for another corporation, partnership, joint venture, trust or other enterprise in
related capacities against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by the person in connection with an action, suit or proceeding to which he was or is a party or is threatened to be made a party
to any threatened, ending or completed action, suit or proceeding by reason of such position, if such person acted in good faith and
in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and, in any criminal action or proceeding,
had no reasonable cause to believe such person's conduct was unlawful, except that, in the case of actions brought by or in the
right of the corporation, no indemnification shall be made with respect to any claim, issue or matter as to which such person shall have
been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or other adjudicating court determines
that, despite the adjudication of liability but in view of all of the circumstances of the case, such person is fairly and reasonably
entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.
Our
Certificate of Incorporation authorizes the Company to indemnify, and advance expenses to, to the fullest extent permitted by law, any
person who was or is a party to or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative by reason of the fact that the person is or was a director, officer, employee
or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise.
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1
The
Amended and Restated Bylaws require that we indemnify our directors and executive officers to the fullest extent permitted by law, provided
that we may modify the extent of such indemnification by individual contracts with directors and executive officers, and also provided that
we are not required to indemnify any director or executive officer in connection with any proceeding (or part thereof) initiated by such
person unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding was authorized by the our board
of directors, (iii) such indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested in the
Company under the DGCL or any other applicable law, or (iv) such indemnification is required to be made under the indemnification rights
enforcement provision of the Amended and Restated Bylaws. Our obligation, if any, to indemnify any person pursuant to our Amended and
Restated Bylaws who was or is serving at its request as a director, officer, employee, or agent of another corporation, partnership,
joint venture, trust, enterprise, or nonprofit entity shall be reduced by any amount such person may collect as indemnification from
such other corporation, partnership, joint venture, trust, enterprise, or nonprofit entity.
Our
Amended and Restated Bylaws also provide for advancement of expenses to any person who was or is a party or is threatened to be made
a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative,
by reason of the fact that the person is or was a director or executive officer of the Company, or is or was serving at the request of
the Company as a director or executive officer of another corporation, partnership, joint venture, trust or other enterprise, prior to
the final disposition of the proceeding, promptly following request therefor, all expenses actually and reasonably incurred by any director
or executive officer in defending such proceeding, upon receipt of an undertaking by or on behalf of such person to repay all amounts
advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal that such person
is not entitled to be indemnified for such expenses. Notwithstanding the foregoing, generally no advance shall be made by the Company
to an executive officer of the Company (except by reason of the fact that such executive officer is or was a director of the Company)
in any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly
made (i) by a majority vote of a quorum consisting of directors who were not parties to the proceeding, even if not a quorum, or
(ii) by a committee of such directors designated by a majority of such directors, even though less than a quorum, or (iii) if there
are no such directors, or such directors so direct, by independent legal counsel in a written opinion, that the facts known to the decision-making
party at the time such determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner
that such person did not believe to be in or not opposed to the Company's interest. The Company's obligation, if any, to
indemnify any person pursuant to the Amended and Restated Bylaws who was or is serving at its request as a director, officer, employee,
or agent of another corporation, partnership, joint venture, trust, enterprise, or nonprofit entity shall be reduced by any amount such
person may collect as indemnification from such other corporation, partnership, joint venture, trust, enterprise, or nonprofit entity.
Our Amended and Restated Bylaws also permit the Company to indemnity its other officers, employees and other agents as set forth in the
DGCL. The board of directors has the power to delegate the determination of whether indemnification shall be given to any such person
except executive officers to such officers or other persons as the board of directors shall determine.
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2
We
have also separately entered into an indemnification agreement with each of our directors and executive officers. Each indemnification
agreement provides for indemnification to the fullest extent permitted by law, including: (i) all expenses, judgments, penalties, fines
and amounts paid in settlement actually and reasonably incurred by a director or executive officer, or on their behalf, in connection
with any proceeding other than proceedings by or in the right of the Company or any claim, issue or matter therein, if the director or
executive officer acted in good faith and in a manner the director or executive officer reasonably believed to be in or not opposed to
the best interests of the Company, and with respect to any criminal proceeding, had no reasonable cause to believe the director or executive
officer's conduct was unlawful; (ii) all expenses actually and reasonably incurred by a director or executive officer, or on their
behalf, in connection with a proceedings by or in the right of the Company if the director or executive officer acted in good faith and
in a manner the director or executive officer reasonably believed to be in or not opposed to the best interests of the Company, provided
that if applicable law so provides, no indemnification against such expenses shall be made in respect of any claim, issue or matter in
such proceeding as to which the director or executive officer shall have been adjudged to be liable to the Company unless and to the
extent that the Court of Chancery of the State of Delaware shall determine that such indemnification may be made; (iii) to the extent
that a director or executive officer is, by reason of the director or executive officer's director or executive officer status,
a party to and is successful, on the merits or otherwise, in any proceeding, including by dismissal of such proceeding with or without
prejudice, then the director or executive officer shall be indemnified to the maximum extent permitted by law, as such may be amended
from time to time, against all expenses actually and reasonably incurred by the director or executive officer or on the director or executive
officer's behalf in connection therewith; and (iv) all expenses, judgments, penalties, fines and amounts paid in settlement actually
and reasonably incurred by a director or executive officer or on a director or executive officer's behalf if, by reason of the
director or executive officer's status as a director or executive officer, the director or executive officer is, or is threatened
to be made, a party to or participant in any proceeding (including a proceeding by or in the right of the Company), including, without
limitation, all liability arising out of the negligence or active or passive wrongdoing of the director or executive officer, except
where the payment is finally determined (under the procedures, and subject to the presumptions, set forth in the indemnification agreements)
to be unlawful. The Company shall also advance all such expenses incurred by or on behalf of each director or executive officer in connection
with any of the above proceedings by reason of the director or executive officer's director or executive officer status within
30 days after the receipt by the Company of a statement or statements from the director or executive officer requesting such advance
or advances from time to time, whether prior to or after final disposition of such proceeding. Such statement or statements shall reasonably
evidence the expenses incurred by the director or executive officer and shall include or be preceded or accompanied by a written undertaking
by or on behalf of the director or executive officer to repay any expenses advanced if it shall ultimately be determined that the director
or executive officer is not entitled to be indemnified against such expenses. Any advances and undertakings to repay shall be unsecured
and interest free. The indemnification agreements also provide for payments by the Company for the entire amount of any judgment or settlement
of any action, suit or proceeding in which it is liable or would be liable if joined in such action, subject to the other terms and provisions
of the indemnification agreements, and certain other indemnification and payment obligations. The indemnification agreements also provide
that if we maintain a directors' and officers' liability insurance policy, that each director and executive officer will
be covered by the policy to the maximum extent of the coverage available for any of the Company's directors or executive officers.
We
have obtained standard directors and officers liability insurance under which coverage is provided (a) to our directors and officers
against loss rising from claims made by reason of breach of duty or other wrongful act, and (b) to us with respect to payments which
we may make to such officers and directors pursuant to the indemnification agreements described above or otherwise as a matter of law.
We
have obtained standard directors and officers liability insurance under which coverage is provided (a) to our directors and officers
against loss rising from claims made by reason of breach of duty or other wrongful act, and (b) to us with respect to payments which
we may make to such officers and directors pursuant to the indemnification agreements described above or otherwise as a matter of law.
The
underwriting agreement, filed as Exhibit 1.1 to this registration statement, will provide for indemnification, under certain
circumstances, by the underwriter of us and our officers and directors for certain liabilities arising under the Securities Act of 1933,
as amended (the "Securities Act") or otherwise.
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us
under the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as
expressed in the Securities Act and is therefore unenforceable.
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Item
15. Recent Sales of Unregistered Securities
During
the past three years, we issued or agreed to issue the following securities, which issuances were not, and are not expected to be, registered
under the Securities Act. Unless otherwise noted, the share and per share information in this "Part II.
Information Not Required
in the Prospectus – Item 15. Recent Sales of Unregistered Securities
" have been adjusted to give effect to the one-for-five
(1-for-5) reverse stock split of the outstanding common stock which became effective on April 14, 2023.
Settlement
Agreements with Stockholders
Under
our Settlement Agreement with Dennis Gile, our largest stockholder and a former Chief Executive Officer, President, Secretary, Chairman,
and director of the Company, dated as of May 12, 2022, the parties agreed, among other things, to a general release and discharge of
claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit
to the agreement, including without limitation, claims relating to Mr. Gile's direct or indirect ownership of shares of the capital
stock of Signing Day Sports, Inc., a Delaware corporation ("SDS Inc. – DE"), or Mr. Gile's direct or indirect
ownership of membership interests of Signing Day Sports, LLC, an Arizona limited liability company ("SDS LLC – AZ"),
Signing Day Sports, LLC, a Delaware limited liability company ("SDS LLC – DE"), Signing Day Sports Football, LLC, an
Arizona limited liability company ("SDSF LLC"), or Signing Day Sports Baseball, LLC, an Arizona limited liability company
("SDSB LLC"), as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights
that any party or Mr. Gile may have under the terms of that certain Severance General Waiver and Release Agreement between Mr. Gile and
the Company, dated March 22, 2022, including the releases of any and all claims against the Company and certain related parties as contained
therein, Mr. Gile's agreement to be terminated effective on January 1, 2022 and receive a severance payment of $53,500 pursuant
to Section 1 of the Severance Agreement, paid in March 2022, all of which terms were to remain in force notwithstanding the provisions
of the Settlement Agreement. Further, Mr. Gile irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
released and waived their rights to any claim, distributions, payments, or other amounts that Mr. Gile believed should have been paid
or were owed to Mr. Gile by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed,
in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Gile owned 2,816,377 shares of common
stock pursuant to the Settlement Agreement. Mr. Gile also irrevocably covenanted that he would not sue us or the other released parties
in respect of any of the matters released and discharged.
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Under
our Settlement Agreement with Dorsey Family Holdings, LLC, an Arizona limited liability company ("Dorsey LLC"), John Dorsey,
in his individual capacity, and who was formerly Chief Executive Officer and a director of the Company, and his spouse, Elena Dorsey,
to the extent of such spouse's community property interest, if any (together, "Dorsey"), dated as of April 25, 2022,
the parties agreed, among other things, (1) that Dorsey had held 959,940 shares of SDS Inc. – DE's common stock at that time,
(2) that prior to the anticipated redomestication of SDS LLC – AZ to Delaware as a Delaware limited liability company and conversion
to a Delaware corporation, Dorsey was a member of SDS LLC – AZ and was a party to SDS LLC – AZ's Fourth Amended Limited
Liability Company Operating Agreement dated July 16, 2021 (the "SDS LLC – AZ Operating Agreement"), (3) that the SDS
LLC – AZ Operating Agreement provided Dorsey, among other things, certain anti-dilution protections whereby SDS LLC – AZ
would have been required to issue additional equity to Dorsey if SDS LLC – AZ were to have issued additional equity which would
have the effect of reducing Dorsey's ownership below 11% of SDS LLC – AZ's outstanding equity (the "Dorsey Anti-Dilution
Provision"), (4) that on April 25, 2022, Dorsey LLC would receive a total of 350,000 shares of common stock of SDS Inc. –
DE in exchange for Dorsey's cancellation, waiver, and release of all of Dorsey's rights under the Dorsey Anti-Dilution Provision
in the SDS LLC – AZ Operating Agreement, (5) to a general release and discharge of claims against us, our officers and directors,
certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation,
claims relating to the Dorsey Anti-Dilution Provision, Dorsey's direct or indirect ownership of shares of SDS Inc. – DE's
capital stock, or Dorsey's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF
LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that
any party or Dorsey may have under the terms of that certain Offer of Employment between John Dorsey and SDS LLC – AZ, dated January
13, 2022, or that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration
statement, the Company has no agreements with Dorsey otherwise relating to, and has not issued to Dorsey, any simple agreement for future
equity or convertible note. Further, Dorsey irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
released and waived their rights to any claim, distributions, payments, or other amounts that Dorsey believed should have been paid or
were owed to Dorsey by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in
order to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Dorsey LLC owned 1,309,940 shares of common
stock pursuant to the Settlement Agreement. Dorsey also irrevocably covenanted that they would not sue us or the other released parties
in respect of any of the matters released and discharged. Mr. Dorsey is deemed to beneficially own the shares of common stock owned by
Dorsey LLC and has sole voting and dispositive powers over its shares.
Under
our Settlement Agreement with Joshua A. Donaldson Revocable Trust and Joshua Donaldson, an individual (together, "Donaldson"),
dated as of May 17, 2022, the parties agreed, among other things, (1) that Donaldson had held 210,000 shares of SDS Inc. – DE's
common stock at that time, (2) that prior to the anticipated redomestication of SDS LLC – AZ to Delaware as a Delaware limited
liability company and conversion to a Delaware corporation, Donaldson was a member of SDS LLC – AZ and was a party to the SDS LLC
– AZ Operating Agreement, (3) that the SDS LLC – AZ Operating Agreement provided Donaldson, among other things, certain anti-dilution
protections whereby SDS LLC – AZ would have been required to issue additional equity to Donaldson if SDS LLC – AZ were to
have issued additional equity which would have the effect of reducing Donaldson's ownership below 3.5% of SDS LLC – AZ's
outstanding equity (the "Donaldson Anti-Dilution Provision"), (4) that on April 25, 2022, Donaldson would receive a total
of 60,000 shares of common stock of SDS Inc. – DE in exchange for Donaldson's cancellation, waiver, and release of all of
Donaldson's rights under the Donaldson Anti-Dilution Provision in the SDS LLC – AZ Operating Agreement, (5) we and Donaldson
agreed that the Celebrity Endorsement / Licensing Agreement between SDSB LLC and JDRAINMAN20 INC., a Florida limited liability company,
dated March 1, 2021 (the "Endorsement Agreement"), remains in full force and effect, that Donaldson confirmed that Donaldson
received 1% ownership in SDS LLC – AZ in consideration for the licenses granted under the Endorsement Agreement, which 1% interest
converted into 60,000 shares, or 1% of the outstanding shares of SDS Inc. – DE at the time of the conversion of SDS LLC –
DE into SDS Inc. – DE, (6) to a general release and discharge of claims against us, our officers and directors, certain other affiliates
and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to
the Donaldson Anti-Dilution Provision, Donaldson's direct or indirect ownership of shares of SDS Inc. – DE's capital
stock, or Donaldson's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC,
or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party
or Donaldson may have under the terms of the Endorsement Agreement. Further, Donaldson irrevocably, unconditionally, voluntarily, knowingly,
fully, finally, and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that
Donaldson believed should have been paid or were owed to Donaldson by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or
SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS
Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any
claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS
Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc.
– DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
agreed that Joshua Donaldson, Trustee of the Joshua A. Donaldson Revocable Trust, owned 270,000 shares of common stock pursuant to the
Settlement Agreement. Donaldson also irrevocably covenanted that they would not sue us or the other released parties in respect of any
of the matters released and discharged.
II-
5
Under
our Settlement Agreement with Noah (Jed) Smith, a former director and a beneficial owner of more than 5% of the common stock of the Company,
and his spouse, Glory Smith, to the extent of such spouse's community property interest, if any (together, "Smith"),
dated as of May 13, 2022, the parties agreed, among other things, (1) that Dennis Gile, the founder of SDS LLC – AZ, our largest
stockholder, and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, agreed and contracted
to fulfill certain obligations to Smith, including, but not limited to, granting a profits interest that was intended to be a membership
interest in SDS LLC – AZ as well as a percentage of future profits from the operations or sale of SDS LLC – AZ, pursuant
to that certain Contribution and Profit-Sharing Agreement between Mr. Gile and Smith, dated April 5, 2019, as amended by that certain
First Amendment to Contribution and Profit-Sharing Agreement dated December 9, 2019, and that certain Second Amendment to Contribution
and Profit-Sharing Agreement dated August 21, 2020, all attached as an exhibit to the Settlement Agreement (collectively, the "Smith
Contribution and Profit-Sharing Agreement"), (2) that Mr. Smith held 300,000 shares of common stock in SDS Inc. – DE in exchange
for Smith's previous contributions to SDS LLC – AZ, (3) that on May 13, 2022, Mr. Smith would receive an additional 100,000
shares of common stock of SDS Inc. – DE in exchange for the termination of Smith's rights under the Smith Contribution and
Profit-Sharing Agreement, (4) that following such receipt of such additional shares, Mr. Smith would have a total of 400,000 shares of
common stock, and (5) to a general release and discharge of claims against us, our officers and directors, certain other affiliates and
related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the
Smith Contribution and Profit-Sharing Agreement, Smith's direct or indirect ownership of shares of SDS Inc. – DE's
capital stock, or Smith's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF
LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that
any party or Smith may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date
of this registration statement, the Company has no agreements with Smith otherwise relating to, and has not issued to Smith, any simple
agreement for future equity or convertible note. Further, Smith irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that Smith believed should
have been paid or were owed to Smith by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party
also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably,
unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had
with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past,
present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth
on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Smith owned 400,000
shares of common stock pursuant to the Settlement Agreement. Smith also irrevocably covenanted that they would not sue us or the other
released parties in respect of any of the matters released and discharged.
Under
our Settlement Agreement with Midwestern Interactive, LLC ("Midwestern"), dated as of May 2, 2022, the parties agreed, among
other things, (1) that Dennis Gile, the founder of SDS LLC – AZ, our largest stockholder and a former Chief Executive Officer,
President, Secretary, Chairman, and director of the Company, agreed and contracted to fulfill certain obligations to Midwestern, including,
but not limited to, granting a profits interest that was intended to be a membership interest in SDS LLC – AZ as well as a percentage
of future profits from the operations or sale of SDS LLC – AZ, in exchange for Midwestern's contribution of $250,000 in-kind
investment, pursuant to the terms of that certain Contribution and Profit-Sharing Agreement between Mr. Gile and Midwestern dated August
23, 2019, attached as an exhibit to the Settlement Agreement (the "Midwestern Contribution and Profit-Sharing Agreement"),
(2) that (i) the only outstanding shares of capital stock of SDS Inc. – DE that Midwestern owned were as set forth on the capitalization
table attached as an exhibit to the Settlement Agreement, (ii) such shares were issued to Midwestern pursuant to the Midwestern Contribution
and Profit-Sharing Agreement, and (iii) as a result of the issuance of such shares, Midwestern's rights under the Midwestern Contribution
and Profit-Sharing Agreement were thereby terminated and the Midwestern Contribution and Profit-Sharing Agreement was of no further force
or effect, and (3) to a general release and discharge of claims against us, our officers and directors, certain other affiliates and
related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the
Midwestern Contribution and Profit-Sharing Agreement, Midwestern's direct or indirect ownership of shares of SDS Inc. – DE's
capital stock, or Midwestern's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE,
SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights
that any party or Midwestern may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As
of the date of this registration statement, the Company has no agreements with Midwestern otherwise relating to, and has not issued to
Midwestern, any simple agreement for future equity or convertible note. Further, Midwestern irrevocably, unconditionally, voluntarily,
knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments, or other amounts
that Midwestern believed should have been paid or were owed to Midwestern by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC,
or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of
SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive
any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC,
or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS
Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
agreed that Midwestern owned 80,000 shares of common stock pursuant to the Settlement Agreement. Midwestern also irrevocably covenanted
that they would not sue us or the other released parties in respect of any of the matters released and discharged.
II-
6
Under
our Settlement Agreement with Virginia Byrd, an individual, and Byrd Enterprises of Arizona, Inc., an Arizona corporation, dated as of
May 13, 2022 (together, "Byrd"), the parties agreed, among other things, to a general release and discharge of claims against
us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement,
including without limitation, claims relating to Byrd's direct or indirect ownership of shares of SDS Inc. – DE's capital
stock, or Byrd's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB
LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or
Byrd may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration
statement, the Company has no agreements with Byrd otherwise relating to, and has not issued to Byrd, any simple agreement for future
equity or convertible note. Further, Byrd irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever
released and waived their rights to any claim, distributions, payments, or other amounts that Byrd believed should have been paid or
were owed to Byrd by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order
to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily,
knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests
in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent,
and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached
as an exhibit to the Settlement Agreement. The parties therefore agreed that Byrd Enterprises of Arizona, Inc. owned 767,785 shares of
common stock pursuant to the Settlement Agreement. Byrd also irrevocably covenanted that they would not sue us or the other released
parties in respect of any of the matters released and discharged.
Under
our Settlement Agreement with Zone Right, LLC, a California limited liability company ("Zone Right"), Glen Kim, a director
of the Company, and his spouse, Jessica Lee, to the extent of such spouse's community property interest, if any, dated as of April
26, 2022 (the "Zone Right Parties"), the parties agreed, among other things, to a general release and discharge of claims
against us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to
the agreement, including without limitation, claims relating to the Zone Right Parties' direct or indirect ownership of shares
of SDS Inc. – DE's capital stock, or the Zone Right Parties' direct or indirect ownership of membership interests of
SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement
was intended to release any rights that any party or the Zone Right Parties may have under that certain Simple Agreement for Future Equity
and/or Convertible Note, as applicable. As of the date of this registration statement, other than as otherwise disclosed above, the Company
has no agreements with the Zone Right Parties otherwise relating to, and has not issued to the Zone Right Parties, any Simple Agreement
for Future Equity or convertible note. Further, the Zone Right Parties irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that the Zone Right Parties
believed should have been paid or were owed to the Zone Right Parties by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC,
or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of
SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive
any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC,
or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS
Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
agreed that Zone Right owned 483,833 shares of common stock pursuant to the Settlement Agreement. The Zone Right Parties also irrevocably
covenanted that they would not sue us or the other released parties in respect of any of the matters released and discharged. Glen Kim
is deemed to beneficially own the shares of common stock owned by Zone Right and has sole voting and dispositive powers over its shares.
Under
our Settlement Agreement with Clayton Adams, a former director and a beneficial owner of more than 5% of the common stock of the Company,
dated as of May 3, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers
and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including
without limitation, claims relating to Mr. Adams' direct or indirect ownership of shares of SDS Inc. – DE's capital
stock, or Mr. Adams' direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC,
or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party
or Mr. Adams may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of
this registration statement, the Company has no agreements with Mr. Adams otherwise relating to, and has not issued to Mr. Adams, any
simple agreement for future equity or convertible note. Further, Mr. Adams irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that Mr. Adams
believed should have been paid or were owed to Mr. Adams by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. –
DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE,
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they
may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE,
whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond
that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr.
Adams owned 363,274 shares of common stock pursuant to the Settlement Agreement. Mr. Adams also irrevocably covenanted that he would
not sue us or the other released parties in respect of any of the matters released and discharged.
II-
7
Under
our Settlement Agreement with Matthew Atkinson, a former director and a beneficial owner of more than 5% of the common stock of the Company,
and his spouse, Penny Atkinson, to the extent of such spouse's community property interest, if any (together, "Atkinson"),
dated as of May 13, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers
and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including
without limitation, claims relating to Atkinson's direct or indirect ownership of shares of SDS Inc. – DE's capital
stock, or Atkinson's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC,
or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party
or Atkinson may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of
this registration statement, the Company has no agreements with Atkinson otherwise relating to, and has not issued to Atkinson, any simple
agreement for future equity or convertible note. Further, Atkinson irrevocably, unconditionally, voluntarily, knowingly, fully, finally,
and completely forever released and waived their rights to any claim, distributions, payments, or other amounts that Atkinson believed
should have been paid or were owed to Atkinson by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE.
Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably,
unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had
with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past,
present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth
on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Atkinson owned
383,274 shares of common stock pursuant to the Settlement Agreement. Atkinson also irrevocably covenanted that they would not sue us
or the other released parties in respect of any of the matters released and discharged.
Under
our Settlement Agreement with Bayston Family Limited Partnership, Brett Bayston, an individual, and his/her spouse, Shari L. Bayston,
to the extent of such spouse's community property interest, if any (together, "Bayston"), dated as of April 26, 2022,
the parties agreed, among other things, to a general release and discharge of claims against us, our officers and directors, certain
other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims
relating to Bayston's direct or indirect ownership of shares of SDS Inc. – DE's capital stock, or Bayston's direct
or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided,
however, that nothing in the Settlement Agreement was intended to release any rights that any party or Bayston may have under that certain
Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration statement, the Company
has no agreements with Bayston otherwise relating to, and has not issued to Bayston, any simple agreement for future equity or convertible
note. Further, Bayston irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived
their rights to any claim, distributions, payments, or other amounts that Bayston believed should have been paid or were owed to Bayston
by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure
there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly,
fully, finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in
SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and
affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached
as an exhibit to the Settlement Agreement. The parties therefore agreed that Bayston Family Limited Partnership owned 150,000 shares
of common stock pursuant to the Settlement Agreement. Bayston also irrevocably covenanted that they would not sue us or the other released
parties in respect of any of the matters released and discharged.
II-
8
Under
our Settlement Agreement with DeWayne L. Corvin and his/her spouse, Becky Corvin, to the extent of such spouse's community property
interest, if any (together, "Corvin"), dated as of May 4, 2022, the parties agreed, among other things, to a general release
and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as
listed on an exhibit to the agreement, including without limitation, claims relating to Corvin's direct or indirect ownership of
shares of SDS Inc. – DE's capital stock, or Corvin's direct or indirect ownership of membership interests of SDS LLC
– AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was
intended to release any rights that any party or Corvin may have under that certain Simple Agreement for Future Equity and/or Convertible
Note, as applicable. As of the date of this registration statement, the Company has no agreements with Corvin otherwise relating to,
and has not issued to Corvin, any simple agreement for future equity or convertible note. Further, Corvin irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that Corvin believed should have been paid or were owed to Corvin by SDS LLC – AZ, SDS LLC – DE, SDSF LLC,
SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding regarding the capitalization
of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever release and waive
any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC,
or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any interests in SDS
Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement. The parties therefore
agreed that Mr. Corvin owned 11,976 shares of common stock pursuant to the Settlement Agreement. Corvin also irrevocably covenanted that
they would not sue us or the other released parties in respect of any of the matters released and discharged.
Under
our Settlement Agreement with 35'sNextChapters, LLC ("35'sNextChapters"), dated as of May 13, 2022, the parties
agreed, among other things, to a general release and discharge of claims against us, our officers and directors, certain other affiliates
and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to
35'sNextChapters' direct or indirect ownership of shares of SDS Inc. – DE's capital stock, or 35'sNextChapters'
direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable,
provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or 35'sNextChapters
may have under the terms of that certain Invitation to Join the Board of Directors between Ronald Saslow and the Company or that certain
Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration statement, the Company
has no agreements with 35'sNextChapters otherwise relating to, and has not issued to 35'sNextChapters, any convertible note
or Invitation to Join the Board of Directors between Ronald Saslow and the Company. Further, 35'sNextChapters irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that 35'sNextChapters believed should have been paid or were owed to 35'sNextChapters by SDS LLC –
AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding
regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC –
DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not
own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that 35'sNextChapters owned 150,000 shares of common stock pursuant to the Settlement Agreement. 35'sNextChapters
also irrevocably covenanted that they would not sue us or the other released parties in respect of any of the matters released and discharged.
Ronald Saslow, a former director of the Company, as Manager of 35'sNextChapters, is deemed to beneficially own the shares of common
stock owned by 35'sNextChapters and has sole voting and dispositive powers over its shares.
II-
9
Under
our Settlement Agreement with William Greene, dated as of May 1, 2022, the parties agreed, among other things, to a general release and
discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as listed
on an exhibit to the agreement, including without limitation, claims relating to Mr. Greene's direct or indirect ownership of shares
of SDS Inc. – DE's capital stock, or Mr. Greene's direct or indirect ownership of membership interests of SDS LLC –
AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended
to release any rights that any party or Mr. Greene may have under that certain Simple Agreement for Future Equity and/or Convertible
Note, as applicable. As of the date of this registration statement, the Company has no agreements with Mr. Greene otherwise relating
to, and has not issued to Mr. Greene, any simple agreement for future equity or convertible note. Further, Mr. Greene irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that Mr. Greene believed should have been paid or were owed to Mr. Greene by SDS LLC – AZ, SDS LLC – DE,
SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding regarding the
capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF
LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Mr. Greene owned 15,000 shares of common stock pursuant to the Settlement Agreement. Mr. Greene also
irrevocably covenanted that he would not sue us or the other released parties in respect of any of the matters released and discharged.
Under
our Settlement Agreement with Herbert and Sandra Irvine, as Joint Tenants with Right of Survivorship ("Irvine"), dated as
of May 3, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers and directors,
certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation,
claims relating to Irvine's direct or indirect ownership of shares of SDS Inc. – DE's capital stock, or Irvine's
direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable,
provided, however, that nothing in the Settlement Agreement was intended to release any rights that any party or Irvine may have under
that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration statement,
the Company has no agreements with Irvine otherwise relating to, and has not issued to Irvine, any simple agreement for future equity
or convertible note. Further, Irvine irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released
and waived their rights to any claim, distributions, payments, or other amounts that Irvine believed should have been paid or were owed
to Irvine by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to
make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily,
knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests
in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent,
and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached
as an exhibit to the Settlement Agreement. The parties therefore agreed that Irvine owned 17,964 shares of common stock pursuant to the
Settlement Agreement. Irvine also irrevocably covenanted that Irvine would not sue us or the other released parties in respect of any
of the matters released and discharged.
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10
Under
our Settlement Agreement with Jonathan Byrd, an individual, and his/her spouse, Abigail R. Byrd, to the extent of such spouse's
community property interest, if any (together, the "Byrds"), dated as of May 13, 2022, the parties agreed, among other things,
to a general release and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and
our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the Byrds' direct or
indirect ownership of shares of SDS Inc. – DE's capital stock, or the Byrds' direct or indirect ownership of membership
interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
Agreement was intended to release any rights that any party or the Byrds may have under that certain Simple Agreement for Future Equity
and/or Convertible Note, as applicable. As of the date of this registration statement, the Company has no agreements with the Byrds otherwise
relating to, and has not issued to the Byrds, any simple agreement for future equity or convertible note. Further, the Byrds irrevocably,
unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions,
payments, or other amounts that the Byrds believed should have been paid or were owed to the Byrds by SDS LLC – AZ, SDS LLC –
DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding regarding
the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF
LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that Jonathan Byrd owned 7,408 shares of common stock pursuant to the Settlement Agreement. The Byrds also
irrevocably covenanted that they would not sue us or the other released parties in respect of any of the matters released and discharged.
Under
our Settlement Agreement with Jeffrey L. Smith, Trustee of the Jeffrey L. Smith Living Trust (the "Smith Trust"), dated as
of April 27, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers and
directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including without
limitation, claims relating to the Smith Trust's direct or indirect ownership of shares of SDS Inc. – DE's capital
stock, or the Smith Trust's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF
LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights that
any party or the Smith Trust may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable. As
of the date of this registration statement, the Company has no agreements with the Smith Trust otherwise relating to, and has not issued
to the Smith Trust, any simple agreement for future equity or convertible note. Further, the Smith Trust irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that the Smith Trust believed should have been paid or were owed to the Smith Trust by SDS LLC – AZ, SDS LLC –
DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding regarding
the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely to forever
release and waive any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF
LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not own any
interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that the Smith Trust owned 37,037 shares of common stock pursuant to the Settlement Agreement. The Smith
Trust also irrevocably covenanted that it would not sue us or the other released parties in respect of any of the matters released and
discharged.
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Under
our Settlement Agreement with Shawn Olson and Jill Olson (the "Olsons"), dated as of April 29, 2022, the parties agreed,
among other things, to a general release and discharge of claims against us, our officers and directors, certain other affiliates and
related parties, and our stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to the
Olsons' direct or indirect ownership of shares of SDS Inc. – DE's capital stock, or the Olsons' direct or indirect
ownership of membership interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however,
that nothing in the Settlement Agreement was intended to release any rights that any party or the Olsons may have under that certain
Simple Agreement for Future Equity and/or Convertible Note, as applicable. As of the date of this registration statement, the Company
has no agreements with the Olsons otherwise relating to, and has not issued to the Olsons, any simple agreement for future equity or
convertible note. Further, the Olsons irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released
and waived their rights to any claim, distributions, payments, or other amounts that the Olsons believed should have been paid or were
owed to the Olsons by SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in
order to make sure there was a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely to forever release and waive any claims that they may have had with respect to
ownership interests in SDS LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future,
or contingent, and affirmed that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization
table attached as an exhibit to the Settlement Agreement. The parties therefore agreed that the Olsons owned 59,702 shares of common
stock pursuant to the Settlement Agreement. The Olsons also irrevocably covenanted that they would not sue us or the other released parties
in respect of any of the matters released and discharged.
Under
our Settlement Agreement with John and Valerie Russell, as Trustees of the Valerie P. Russell Revocable Trust (the "Russell Trust"),
dated as of May 3, 2022, the parties agreed, among other things, to a general release and discharge of claims against us, our officers
and directors, certain other affiliates and related parties, and our stockholders as listed on an exhibit to the agreement, including
without limitation, claims relating to the Russell Trust's direct or indirect ownership of shares of SDS Inc. – DE's
capital stock, or the Russell Trust's direct or indirect ownership of membership interests of SDS LLC – AZ, SDS LLC –
DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement was intended to release any rights
that any party or the Russell Trust may have under that certain Simple Agreement for Future Equity and/or Convertible Note, as applicable.
As of the date of this registration statement, the Company has no agreements with the Russell Trust otherwise relating to, and has not
issued to the Russell Trust, any simple agreement for future equity or convertible note. Further, the Russell Trust irrevocably, unconditionally,
voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any claim, distributions, payments,
or other amounts that the Russell Trust believed should have been paid or were owed to the Russell Trust by SDS LLC – AZ, SDS LLC
– DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a clear understanding
regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely
to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC – AZ, SDS LLC –
DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed that he, she, or it did not
own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an exhibit to the Settlement Agreement.
The parties therefore agreed that the Russell Trust owned 5,988 shares of common stock pursuant to the Settlement Agreement. The Russell
Trust also irrevocably covenanted that it would not sue us or the other released parties in respect of any of the matters released and
discharged.
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12
Under
our Settlement Agreement with Spencer Bayston, an individual, dated as of April 26, 2022, the parties agreed, among other things, to
a general release and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our
stockholders as listed on an exhibit to the agreement, including without limitation, claims relating to Mr. Bayston's direct or
indirect ownership of shares of SDS Inc. – DE's capital stock, or Mr. Bayston's direct or indirect ownership of membership
interests of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement
Agreement was intended to release any rights that any party or Mr. Bayston may have under that certain Simple Agreement for Future Equity
and/or Convertible Note, as applicable. As of the date of this registration statement, the Company has no agreements with Mr. Bayston
otherwise relating to, and has not issued to Mr. Bayston, any simple agreement for future equity or convertible note. Further, Mr. Bayston
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any
claim, distributions, payments, or other amounts that Mr. Bayston believed should have been paid or were owed to Mr. Bayston by SDS LLC
– AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was a
clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC
– AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed
that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an
exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Bayston owned 120,000 shares of common stock pursuant to the
Settlement Agreement. Mr. Bayston also irrevocably covenanted that he would not sue us or the other released parties in respect of any
of the matters released and discharged.
Under
our Settlement Agreement with Deene Beauchamp, dated as of May 3, 2022, the parties agreed, among other things, to a general release
and discharge of claims against us, our officers and directors, certain other affiliates and related parties, and our stockholders as
listed on an exhibit to the agreement, including without limitation, claims relating to Mr. Beauchamp's direct or indirect ownership
of shares of SDS Inc. – DE's capital stock, or Mr. Beauchamp's direct or indirect ownership of membership interests
of SDS LLC – AZ, SDS LLC – DE, SDSF LLC, or SDSB LLC, as applicable, provided, however, that nothing in the Settlement Agreement
was intended to release any rights that any party or Mr. Beauchamp may have under that certain Simple Agreement for Future Equity and/or
Convertible Note, as applicable. As of the date of this registration statement, the Company has no agreements with Mr. Beauchamp otherwise
relating to, and has not issued to Mr. Beauchamp, any simple agreement for future equity or convertible note. Further, Mr. Beauchamp
irrevocably, unconditionally, voluntarily, knowingly, fully, finally, and completely forever released and waived their rights to any
claim, distributions, payments, or other amounts that Mr. Beauchamp believed should have been paid or were owed to Mr. Beauchamp by SDS
LLC – AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE. Each party also agreed, in order to make sure there was
a clear understanding regarding the capitalization of SDS Inc. – DE, irrevocably, unconditionally, voluntarily, knowingly, fully,
finally, and completely to forever release and waive any claims that they may have had with respect to ownership interests in SDS LLC
– AZ, SDS LLC – DE, SDSF LLC, SDSB LLC, or SDS Inc. – DE, whether past, present, future, or contingent, and affirmed
that he, she, or it did not own any interests in SDS Inc. – DE beyond that set forth on the capitalization table attached as an
exhibit to the Settlement Agreement. The parties therefore agreed that Mr. Beauchamp owned 5,988 shares of common stock pursuant to the
Settlement Agreement. Mr. Beauchamp also irrevocably covenanted that he would not sue us or the other released parties in respect of
any of the matters released and discharged.
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13
SAFEs
Private Placement
From
March 2021 to July 2021, we raised an aggregate of $1,980,000 from investors in exchange for securities called Simple Agreements for
Future Equity (collectively, the "SAFEs"). For a description of the terms of the SAFEs, see the section entitled "
Description
of Securities – SAFEs
" of this registration statement.
SAFE
Cancellations and Exchanges
From
September 22, 2022 to October 11, 2022, we entered into cancellation and exchange agreements with the holders of the SAFEs. Under these
agreements, each SAFE holder agreed to cancel and exchange the holder's SAFE for a number of shares of common stock equal to the
purchase amount under the SAFE divided by approximately $3.35, based on a $25 million valuation for the Company. As a result, SAFEs that
were purchased in the aggregate amount of $1,980,000 were cancelled and exchanged for a total of 591,048 shares of common stock.
6%
Convertible Unsecured Promissory Notes Private Placement
From
October 2021 to December 2021, we conducted a private placement of 6% convertible unsecured promissory notes due three years from the
date of execution and entered into related subscription agreements and investor rights and lockup agreements with a number of accredited
investors. Pursuant to the agreements, we issued 27 convertible notes for aggregate loans of $6,305,000. The convertible notes bear interest
at 6% annually. For a further description of the terms of these convertible notes, see the section entitled "
Description of
Securities – 6% Convertible Unsecured Promissory Notes
" of the prospectus contained in this registration statement.
8%
Convertible Unsecured Promissory Notes and Warrants Private Placement
From
August 2022 to January 2023, we conducted a private placement of the Company's 8% convertible unsecured promissory notes and accompanying
warrants under subscription agreements with a number of accredited investors. Pursuant to the agreements, we issued 15 convertible notes
and accompanying warrants for aggregate loans of $1,465,000. The convertible notes bear interest at 8% annually and are due August 8,
2023 unless converted in accordance with their terms. For a further description of the terms of these convertible notes and warrants,
see "
Description of Securities – 8% Convertible Unsecured Promissory Notes
" and "
Description of Securities
– Warrants – Investor Warrants
", respectively.
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8%
Unsecured Promissory Notes and Warrants Private Placements
In March 2023 and April 2023 we completed one
private placement, and in May 2023 we conducted a subsequent private placement, in which we issued 8% unsecured promissory notes and
accompanying warrants to a number of accredited investors under subscription agreements. Pursuant to the agreements, we issued promissory
notes for aggregate loans of $2,350,000, which bear interest at the annual rate of 8%, and accompanying warrants to purchase an aggregate
of 940,000 shares of common stock exercisable at $2.50 per share. The convertible notes bear interest at 8% annually. The amount
outstanding under the 8% unsecured promissory notes must be repaid upon the earlier to occur of the consummation of a Liquidity Event
or the second anniversary of the initial closing date of the respective private placement (March 17, 2025 as to $1,500,000 principal
and May 2, 2025 as to $850,000 principal). The warrants may be voluntarily exercised for cash prior to the maturity date of the related
8% unsecured promissory notes or will be automatically exercised as to any unexercised portion for shares of common stock upon the occurrence
of a Liquidity Event-based maturity of the related 8% unsecured promissory notes in exchange for the Company's deemed repayment
of the balance outstanding under the related 8% unsecured promissory notes in an amount equal to the exercise price for exercise of the
unexercised portion of the warrants. For a further description of the private placements and the terms of these notes and warrants, see
"
Management's Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments –
8% Unsecured Promissory Notes and Warrants Private Placement
", "
Description of Securities – 8% Unsecured Promissory
Notes
", and "
Description of Securities – Warrants – Investor Warrants
".
Placement
Agent's Warrants
Boustead
acted as placement agent in our private placements of the convertible promissory notes, promissory notes, and warrants described above.
Pursuant to our engagement letter agreement with the representative, in addition to a commission equal to 7% of the gross proceeds raised
in the private placements, a non-accountable expense allowance equal to 1% of the gross proceeds raised in the private placements, and
payment of certain other expenses, we agreed to issue Boustead five-year warrants to purchase a number of shares of common stock at an
exercise price equal to the conversion price as defined in the notes in an amount equal to 7% of the common stock underlying the securities
sold in the private placements. Accordingly, a warrant to purchase common stock was issued in December 2021 in connection with our private
placement of 6% convertible unsecured promissory notes, exercisable to purchase 7% of the original principal amount of the Company's
6% convertible unsecured promissory notes divided by the convertible notes' applicable conversion price, at an exercise price equal
to the convertible notes' applicable per-share conversion price. Warrants to purchase shares of common stock were also issued to
Boustead in March 2023, April 2023 and May 2023 in connection with our private placements of 8% unsecured promissory notes and accompanying
investor warrants. The warrants may be exercised to purchase an aggregate of 7% of the common stock underlying the warrants that were
issued to the initial 8% unsecured promissory note holders at an exercise price equal to the exercise price as defined in such warrants.
Each of the placement agent's warrants will terminate five years after issuance. Boustead has informally waived its rights to warrants
to purchase shares of common stock in connection with our private placement of 8% convertible unsecured promissory notes and accompanying
investor warrants. Under the engagement letter with Boustead, its placement agent's warrants must be registered for resale with
the Company's initial public offering. However, Boustead has informally deferred these registration rights with respect to the
registration statement for the initial public offering.
Boustead
agreed to waive its success fee and expense allowance for any Company-introduced investors in the private placement of the Company's
8% convertible unsecured promissory notes and accompanying warrants and in consideration of such waiver Boustead will receive a number
of shares of common stock of the Company that is equal to 8% of the number of shares of common stock issuable to the Company-introduced
investors upon conversion or exercise, as applicable, of their securities. A total of $965,000 were invested by Company-introduced investors
in that private placement. Accordingly, Boustead will receive a total of 77,200 shares of common stock based on the number of shares
of common stock that will be issued upon the automatic conversion of the 8% convertible promissory notes and issuable to the holders
of the related warrants upon the initial public offering, based on the assumed initial public offering price of $4.00 per share, which
is the low point of the price range set forth on the cover page of the Company's initial public offering prospectus filed contemporaneously
with this prospectus. Further, Boustead agreed to defer 50% of its total success fee and 50% of its expense allowance for the other investors
in that private placement until the closing of the initial public offering. Based on a total of $500,000 invested by non-Company-introduced
investors in that private placement, such deferred fees and non-accountable expense allowance total $20,000.
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15
Restricted
Stock and Option Grants
Since
September 2022, we have made the following grants of options to purchase common stock and restricted stock to employees, officers, and
directors under the Signing Day Sports, Inc. 2022 Equity Incentive Plan (the "Plan"):
Dennis
Gile, our largest stockholder and a former Chief Executive Officer, President, Secretary, Chairman, and director of the Company, was
granted options to purchase a total of 35,000 shares of common stock on September 28, 2022. The options may be exercised at $3.10 per
share. The options are subject to certain vesting conditions. Effective March 19, 2023, Mr. Gile resigned from all positions as an officer
or director of the Company. Under the terms of his option agreements, the portion of Mr. Gile's stock options that had vested prior
to Mr. Gile's resignation, relating to 29,000 shares, will be exercisable until June 19, 2023.
David
O'Hara, our Chief Operating Officer and Secretary, was granted options to purchase a total of 60,000 shares of common stock on
September 9, 2022 and September 28, 2022. The options may be exercised at $3.10 per share. The options are subject to certain vesting
conditions.
Daniel
D. Nelson, our Chief Executive Officer, Chairman, and director, was granted options to purchase a total of 35,000 shares of common stock
on September 28, 2022. The options may be exercised at $3.10 per share. The options are subject to certain vesting conditions.
Noah
(Jed) Smith, a former director and a beneficial owner of more than 5% of the common stock of the Company of the Company, was granted
an option to purchase 5,000 shares of common stock on September 28, 2022. The option may be exercised at $3.10 per share.
Clayton
Adams, a former director and a beneficial owner of more than 5% of the common stock of the Company, was granted options to purchase a
total of 30,000 shares of common stock on September 28, 2022. The options may be exercised at $3.10 per share. The options are subject
to certain vesting conditions. Effective April 27, 2023, Mr. Adams resigned from his position as a director of the Company. Under the
terms of his option agreements, the portion of Mr. Adams' stock options that had vested prior to Mr. Adams' resignation,
relating to 20,000 shares, will be exercisable until July 27, 2023.
Glen
Kim, our director, was granted an option to purchase 5,000 shares of common stock on September 28, 2022. The option may be exercised
at $3.10 per share.
Martin
Lanphere, our director, was granted an options to purchase 27,000 shares of common stock for $3.10 per share, subject to certain vesting
conditions, on September 28, 2022. Mr. Lanphere was also granted an option to purchase 3,000 shares of common stock for $2.50 per share
on April 18, 2023.
Roger
Mason Jr., our director, was granted an option to purchase 24,000 shares of common stock on September 9, 2022. The option may be exercised
at $3.10 per share. The option is subject to certain vesting conditions.
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Richard
Symington, our President, Chief Marketing Officer and director, was granted an option to purchase 100,000 shares of common stock on April
5, 2023. The option may be exercised at $2.50 per share. The option is subject to certain vesting conditions.
David
O'Hara, our Chief Operating Officer, was granted 90,000 shares of restricted stock on March 14, 2023. The restricted stock is subject
to certain vesting conditions.
Greg Economou, our director, was granted an option
to purchase 24,000 shares of common stock on May 9, 2023. The option may be exercised at $2.50 per share. The option is subject to certain
vesting conditions.
Certain
non-executive employees were granted options to purchase a total of 56,000 shares of common stock in September 2022. The options may
be exercised at $3.10 per share. A portion of the options is subject to certain vesting conditions. Subsequently, two of the employees
were terminated. The former employees' options were formerly exercisable to purchase 27,000 shares of common stock. The former
employees did not exercise the options within the options' exercise period as to the vested portion of the options, resulting in
the full termination of these options without exercise.
On
March 14, 2023, options to purchase a total of 53,800 shares of common stock were granted under the Plan to certain employees. The options
may be exercised at $3.10 per share. A portion of the options is subject to certain vesting conditions. Subsequently, one of the employees
resigned prior to the vesting of a portion of the former employee's option to purchase 13,800 shares of common stock after vesting;
the unvested portion of the option, as to 10,350 shares of common stock, terminated immediately and the vested portion of the option,
as to 3,450 shares of common stock, will remain exercisable until July 20, 2023. On April 19, 2023, stock options to purchase a total
of 51,000 shares of common stock were granted under the Plan to certain employees. The options may be exercised at $2.50 per share. The
options are subject to certain vesting conditions. On May 5, 2023, stock options to purchase a total of 35,000 shares of common stock
that were granted under the Plan to certain employees on April 19, 2023 were amended and restated to grant at total of 100,000 shares
of common stock. The options may be exercised at $2.50 per share. The options are subject to certain vesting conditions.
Service
Provider Agreements
Under
service provider agreements entered into with certain vendors effective as of November 28, 2022, in exchange for services, we agreed
to issue the number of shares of common stock equal to the number of shares derived by dividing the total of $53,500 by the public offering
price of the securities in the initial public offering to the vendors upon the completion of the initial public offering, if completed
by November 15, 2023; otherwise we will issue the number of shares of common stock derived by divided $53,500 by the Fair Market Value
(as defined in the service provider agreements) of the common stock. Pursuant to the agreements, each service provider was also required
to enter into related restricted stock award agreements and an accredited investor questionnaire prior to the issuances of shares of
common stock.
General
Unless
otherwise stated above, the sales of securities described above were made or will be made in reliance upon exemptions provided by Section 4(a)(2)
of the Securities Act and/or Rule 506(b) of Regulation D thereunder for the offer and sale of securities not involving a public offering.
No
underwriter was engaged in connection with the foregoing sales of securities. The Company has reason to believe that all of the foregoing
purchasers were familiar with or had access to information concerning the operations and financial conditions of the Company, and all
of those individuals or entities purchasing securities represented that they were accredited investors, acquiring the shares for investment
and without a view to the distribution thereof. At the time of issuance, all of the foregoing securities were deemed to be restricted
securities for purposes of the Securities Act and the certificates representing such securities bore legends to that effect.
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17
Item
16. Exhibits.
(a)
Exhibits.
Exhibit
    No.
Description
1.1*
Form of Underwriting Agreement
2.1
Agreement
    and Plan of Merger of Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, and Signing Day Sports Football, LLC, with and into
    Signing Day Sports, Inc.
3.1
Amended
    and Restated Certificate of Incorporation of Signing Day Sports, Inc.
3.2
Second
    Amended and Restated Bylaws of Signing Day Sports, Inc.
4.1*
Form of Representative's
    Warrant (included in Exhibit 1.1)
4.2
Form
    of Simple Agreement for Future Equity
4.3
Form
    of 6% Convertible Note
4.4
Warrant
    to Purchase Common Stock issued to Boustead Securities, LLC, dated as of December 23, 2021
4.5
Form
    of 8% Convertible Unsecured Note
4.6
Form
    of Warrant to Purchase Equity Securities issued with 8% Convertible Unsecured Note
4.7
Promissory
    Note issued by Signing Day Sports, Inc. to John Dorsey, dated January 12, 2023
4.8
Form
    of 8% Unsecured Promissory Note
4.9
Form
    of Common Stock Purchase Warrant issued with 8% Unsecured Promissory Note
4.10
Form
    of Warrants to Purchase Common Stock issued to Boustead Securities, LLC, in connection with issuances of 8% Unsecured Promissory
    Notes and accompanying warrants
5.1*
Opinion of Bevilacqua PLLC
10.1
Shareholder
    Agreement among Signing Day Sports, Inc. and each of the stockholders of Signing Day Sports, Inc., effective as of May 17, 2022
10.2
Marketing
    Agreement between Texas High School Coaches Association and Signing Day Sports, LLC, dated June 22, 2021
10.3
Marketing
    Agreement between North Carolina Coaches Association and Signing Day Sports, Inc., dated September 15, 2021
10.4
Marketing
    Agreement between Arizona Football Coaches Association and Signing Day Sports, dated May 23, 2022
10.5
Client
    Service Agreement between Tilson HR, Inc. and Signing Day Sports, dated June 18, 2020
10.6
Master
    Services Agreement between SAGE186, LLC and Signing Day Sports, dated January 18, 2022
10.7
Work
    for Hire Agreement between Signing Day Sports and Midwestern Interactive, LLC, dated August 17, 2022
10.8
Order
    for Services between Signing Day Sports, Inc. and Paycor Services, dated May 23, 2022
10.9
Membership
    Interest Purchase Agreement between Clayton Adams and Signing Day Sports, LLC, dated August 7, 2021
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18
10.10
Membership
    Interest Purchase Agreement between Matthew Atkinson and Signing Day Sports, LLC, dated August 9, 2021
10.11†
Employment
    Offer Letter Agreement between George Weathers and Signing Day Sports, Inc., dated October 8. 2021
10.12†
Engagement
    Letter Agreement between Wolfson Berbenich & Co., CPA's, LLP and Signing Day Sports, Inc., dated August 12, 2022
10.13
Settlement
    Agreement and Release between Dennis Gile and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of May 12, 2022
10.14
Settlement
    Agreement and Release between Dorsey Family Holdings, LLC, John Dorsey and Elena Dorsey, and Signing Day Sports, LLC, Signing Day
    Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 25, 2022
10.15
Settlement
    Agreement and Release between Joshua A. Donaldson Revocable Trust and Joshua Donaldson, and Signing Day Sports, LLC, Signing Day
    Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 17, 2022
10.16
Settlement
    Agreement and Release between Noah (Jed) Smith and Glory Smith, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022
10.17
Settlement
    Agreement and Release between Midwestern Interactive, LLC, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 2, 2022
10.18
Settlement
    Agreement and Release between Virginia Byrd and Byrd Enterprises of Arizona, Inc., and Signing Day Sports, LLC, Signing Day Sports
    Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022
10.19
Settlement
    Agreement and Release between Zone Right, LLC, Glen Kim and Jessica Lee, and Signing Day Sports, LLC, Signing Day Sports Baseball,
    LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 26, 2022
10.20
Settlement
    Agreement and Release between Clayton Adams and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of May 3, 2022
10.21
Settlement
    Agreement and Release between Matthew Atkinson and Penny Atkinson, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC,
    Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022
10.22
Settlement
    Agreement and Release between Bayston Family Limited Partnership, Brett Bayston and Shari L. Bayston, and Signing Day Sports, LLC,
    Signing Day Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 26, 2022
10.23
Settlement
    Agreement and Release between DeWayne L. Corvin and Becky Corvin, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC,
    Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 4, 2022
10.24
Settlement
    Agreement and Release between 35'sNextChapters, LLC and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022
10.25
Settlement
    Agreement and Release between William Greene and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of May 1, 2022
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10.26
Settlement
    Agreement and Release between Herbert and Sandra Irvine, as Joint Tenants with Right of Survivorship, and Signing Day Sports, LLC,
    Signing Day Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 3, 2022
10.27
Settlement
    Agreement and Release between Jonathan Byrd and Abigail R. Byrd, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 13, 2022
10.28
Settlement
    Agreement and Release between Jeffrey L. Smith, Trustee of the Jeffrey L. Smith Living Trust, and Signing Day Sports, LLC, Signing
    Day Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 27, 2022
10.29
Settlement
    Agreement and Release between Shawn Olson and Jill Olson, and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing
    Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of April 29, 2022
10.30
Settlement
    Agreement and Release between John and Valerie Russell, as Trustees of the Valerie P. Russell Revocable Trust, and Signing Day Sports,
    LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football, LLC, and Signing Day Sports, Inc., dated as of May 3, 2022
10.31
Settlement
    Agreement and Release between Spencer Bayston and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of April 26, 2022
10.32
Settlement
    Agreement and Release between Deene Beauchamp and Signing Day Sports, LLC, Signing Day Sports Baseball, LLC, Signing Day Sports Football,
    LLC, and Signing Day Sports, Inc., dated as of May 3, 2022
10.33
Form
    of Subscription Agreement for 6% Convertible Unsecured Promissory Notes
10.34
Form
    of Investor Rights and Lock-Up Agreement
10.35
Form
    of Subscription Agreement for 8% Convertible Unsecured Promissory Notes and Warrants
10.36
Sponsorship
    Agreement between Goat Farm Sports and Signing Day Sports, Inc., dated September 9, 2022
10.37
Collaboration
    and Revenue-Sharing Agreement between Signing Day Sports, Inc. and Louisville Slugger Hitting Science Center LLC, dated as of October
    31, 2022
10.38†
Offer
    Letter Agreement between John Dorsey and Signing Day Sports, Inc., dated January 13, 2022
10.39†
Severance
    General Waiver and Release Agreement between Signing Day Sports, Inc. and Dennis Gile, dated March 22, 2022
10.40
Lease
    Agreement between Scottsdale Financial Center Owner LLC and Signing Day Sports, LLC, dated January 25, 2021
10.41
Consent
    to Sublease, executed as of December 1, 2021, between Scottsdale Financial Center Owner LLC, Signing Day Sports, LLC, and Exact Payments
    Opco LLC
10.42
Sublease,
    dated as of November 10, 2021, between Signing Day Sports, LLC and Exact Payments Opco LLC
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10.43
Standard
    Multi-Tenant Office Lease – Gross and Addendum to Lease, dated as of October 7, 2021, between Verde View Grove, LLC and Signing
    Day Sports, Inc.
10.44
Lease
    Termination Agreement, dated as of August 31, 2022, between Verde View Grove LLC and Signing Day Sports, Inc.
10.45
Form
    of Cancellation and Exchange Agreement between Signing Day Sports, Inc. and the former holders of certain Simple Agreements for Future
    Equity
10.46
Form
    of Service Provider Agreement between Signing Day Sports, Inc. and certain vendors
10.47
Form
    of Restricted Stock Award Agreement between Signing Day Sports, Inc. and certain vendors
10.48
Settlement
    Agreement, Release of Claims, and Covenant Not To Sue between Signing Day Sports, Inc. and John Dorsey, dated as of January 12, 2023
10.49
Standard
    Form Office Lease, dated November 1, 2022, and Addendum to Lease, dated November 1, 2022, between M4 Perimeter, LLC and Signing Day
    Sports, Inc.
10.50†
Amended
    and Restated Employment Offer Letter, dated March 14, 2023, between Signing Day Sports, Inc. and David O'Hara
10.51†
Form
    of Independent Director Agreement between Signing Day Sports, Inc. and each independent director
10.52†
Form
    of Indemnification Agreement between Signing Day Sports, Inc. and each officer or director
10.53†
Signing
    Day Sports, Inc. 2022 Equity Incentive Plan
10.54†
Form
    of Stock Option Agreement for Signing Day Sports, Inc. 2022 Equity Incentive Plan
10.55†
Form
    of Restricted Stock Award Agreement for Signing Day Sports, Inc. 2022 Equity Incentive Plan
10.56†
Form
    of Restricted Stock Unit Award Agreement for Signing Day Sports, Inc. 2022 Equity Incentive Plan
10.57
Form
    of Subscription Agreement for 8% Unsecured Promissory Notes and Warrants
10.58
Repurchase
    and Resignation Agreement between Signing Day Sports, Inc. and Dennis Gile, dated March 21, 2023
10.59
Confidential
    Mutual General Release and Covenant Not to Sue Agreement, effective as of March 29, 2023, between Signing Day Sports, Inc. and John
    Dorsey
10.60
First
    Amendment to Lease, dated April 1, 2023, between M4 PERIMETER, LLC and Signing Day Sports, Inc.
10.61†
Employee
    Confidential Information and Inventions Assignment Agreement, dated April 3, 2023, between Signing Day Sports, Inc. and David O'Hara
10.62†
Executive
    Employment Agreement, dated April 5, 2023, between Signing Day Sports, Inc. and Richard Symington
14.1
Code
    of Ethics and Business Conduct
23.1
Consent of BARTON CPA
23.2
Consent
    of Marcum LLP
23.3*
Consent of Bevilacqua PLLC
    (included in Exhibit 5.1)
24.1
Power of
    Attorney (included on the signature page of this registration statement)
99.1
Audit
    Committee Charter
99.2
Compensation
    Committee Charter
99.3
Nominating
    and Corporate Governance Committee Charter
107
Calculation of Filing Fee Table
†
Executive
                                            compensation plan or arrangement.
*
To
                                            be filed by amendment.
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(b)
Financial Statement Schedules.
All
financial statement schedules are omitted because the information called for is not required or is shown either in the financial statements
or in the notes thereto.
Item
17. Undertakings
The
undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement, certificates
in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.
(a)
The undersigned registrant hereby undertakes:
(1)
                                            To file, during any period in which offers or sales are being made, a post-effective amendment
                                            to this registration
statement:
(i)
To
    include any prospectus required by Section 10(a)(3) of the Securities Act of 1933 (the "Securities Act");
(ii)
To
    reflect in the prospectus any facts or events arising after the effective date of this registration statement (or the most recent
    post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set
    forth in this registration statement; notwithstanding the foregoing, any increase or decrease in volume of securities offered (if
    the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end
    of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission
    pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate
    offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and
(iii)
To
    include any material information with respect to the plan of distribution not previously disclosed in this registration statement
    or any material change to such information in this registration statement.
(2)
That,
    for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a
    new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed
    to be the initial bona fide offering thereof.
(3)
To
                                            remove from registration by means of a post-effective amendment any of the securities being
                                            registered which remain unsold at the termination of the offering.
(4)
That,
                                            for the purpose of determining liability under the Securities Act of 1933 to any purchaser,
                                            each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating
                                            to an offering, other than registration statements relying on Rule 430B or other than prospectuses
                                            filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration
                                            statement as of the date it is first used after effectiveness. Provided, however, that no
                                            statement made in a registration statement or prospectus that is part of the registration
                                            statement or made in a document incorporated or deemed incorporated by reference into the
                                            registration statement or prospectus that is part of the registration statement will, as
                                            to a purchaser with a time of contract of sale prior to such first use, supersede or modify
                                            any statement that was made in the registration statement or prospectus that was part of
                                            the registration statement or made in any such document immediately prior to such date of
                                            first use.
(5)
That,
                                            for the purpose of determining liability of the registrant under the Securities
                                            Act of 1933 to any purchaser in the initial distribution of the securities,
                                            the undersigned registrant undertakes that in a primary offering of securities
                                            of the undersigned registrant pursuant to this registration statement, regardless
                                            of the underwriting method used to sell the securities to the purchaser, if the
                                            securities are offered or sold to such purchaser by means of any of the following communications,
                                            the undersigned registrant will be a seller to the purchaser and will be considered
                                            to offer or sell such securities to such purchaser:
(i)
Any
                                            preliminary prospectus or prospectus of the undersigned registrant relating to
                                            the offering required to be filed pursuant to Rule 424;
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(ii)
Any
                                            free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or
                                            used or referred to by the undersigned registrant;
(iii)
The
                                            portion of any other free writing prospectus relating to the offering containing material information
                                            about the undersigned registrant or its securities provided by or on behalf of
                                            the undersigned registrant; and
(iv)
Any
                                            other communication that is an offer in the offering made by the undersigned registrant to
                                            the purchaser.
(b)
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to
a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act
and will be governed by the final adjudication of such issue.
(c)
The undersigned registrant hereby undertakes that:
(i)
For
                                            purposes of determining any liability under the Securities Act, the information omitted from
                                            the form of prospectus filed as part of this registration statement in reliance upon Rule
                                            430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1)
                                            or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration
                                            statement as of the time it was declared effective.
(ii)
For
                                            purposes of determining any liability under the Securities Act, each post-effective amendment
                                            that contains a form of prospectus shall be deemed to be a new registration statement relating
                                            to the securities offered therein, and the offering of such securities at that time shall
                                            be deemed to be the initial bona fide offering thereof.
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SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the City of Scottsdale, State of Arizona, on May 15, 2023.
Signing
                    Day Sports, Inc.
By:
/s/
    Daniel D. Nelson
Daniel
        D. Nelson
Chief
    Executive Officer
POWER
OF ATTORNEY
Each
person whose signature appears below constitutes and appoints each of Daniel D. Nelson and Damon Rich as his or her true and lawful attorneys-in-fact
and agents with full power of substitution and resubstitution, for him and his name, place and stead, in any and all capacities, to sign
any or all amendments (including post-effective amendments) to this registration statement and to file a new registration statement under
Rule 461, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite
and necessary to be done in and about the foregoing, as fully to all intents and purposes as he or she might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or their substitutes, may lawfully do or cause to be done by virtue
hereof.
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities
and on the dates indicated.
Signature
Title
Date
/s/ Daniel
    D. Nelson
Chief Executive Officer
May 15, 2023
Daniel D. Nelson
(principal executive officer), Chairman, and Director
/s/ Damon
    Rich
Interim Chief Financial Officer
May 15, 2023
Damon Rich
(principal financial officer and principal accounting
    officer)
/s/ Richard
    Symington
President, Chief Marketing Officer, and Director
May 15, 2023
Richard Symington
/s/ Greg Economou
Director
May 15, 2023
Greg Economou
/s/ Glen Kim
Director
May 15, 2023
Glen Kim
/s/ Martin
    Lanphere
Director
May 15, 2023
Martin Lanphere
/s/ Roger
    Mason Jr.
Director
May 15, 2023
Roger Mason Jr.
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